Kingwest Resources has boosted its underground resource at its Yunndaga deposit within the Menzies Gold Project 6km south of Menzies. Importantly, the new estimate represents Kingwest’s first “high grade” resource estimate for Yunndaga and the company says the deposit may now be amenable to underground mining. New estimates are based on 13 new reverse circulation, or “RC” drill holes focused on eking out some high grade dirt at the Yunndaga underground deposit.
Kingwest says Yunndaga now sports a high-grade underground resource of 57,000 ounces at 4.6 g/t gold using a 3.0 g/t cut off in the fresh rock only or 79,000 ounces at 3.7 g/t using a 2.0 g/t cut off, also in fresh rock.
Importantly the company says the resource remains open at depth and to the north. Yunndaga is located within Kingwest’s 100 per cent owned flagship Menzies Gold Project, or “MGP”. Prior to the Kingwest acquisition of MGP, modern exploration since the closure of the old mine over 20 years ago has been limited.
The new Yunndaga resource represents a sizeable 384 per cent increase on the previous resource struck back in March and Kingwest says its new resource estimate for the entire MGP has now surpassed 475,000 ounces gold.
Kingwest Resources Chief Executive Officer, Ed Turner said: “We are very pleased to complete a maiden high-grade underground MRE at Menzies. The Yunndaga deposit is more amenable to underground mining than open cut mining given the current pit extends to 120 metres depth already and the ramp to the bottom of the pit gives excellent access for portal and decline. The MRE is constrained by the depth of the current drilling from surface, which only extends approximately 100 metres below the current pit, so the potential to add additional resource ounces with deeper drilling from underground is high. The Princess May Shoot, which is part of the Yunndaga System, has historic workings down to 600 vertical metres so there is a good chance other shoots within the system also extend to significant depths below the MRE defined here.”
Cube Consulting was called in to provide Kingwest with an independent fresh look at the potential for underground mining at Yunndaga. This follows the previous March resource estimate that focused on the potential for open pit mining within the greater MGP.
The latest 13 RC drill holes hammered out for the study focused on the historical underground extension of the Princess May Shoot with old workings to a depth of 600m.
Total resource estimates are now based on Kingwest’s collection of results from 317 RC drill holes, 12 holes with diamond tails, 26 diamond holes and 10 RC grade control holes within the pit area.
MGP covers a contiguous land package over a strike length greater than 15km. Historically mined structurally controlled high grade gold deposits reflect a grab bag of potential future mines. The Kingwest global resource at Menzies now stands at 475,000 ounces at 1.35 g/t. The area was exploited historically for 643,000 ounces at an impressive 22.5 g/t taken from underground mining between 1895 and 1943 and 145,000 ounces of gold at 2.6g/t from open cut mines between 1995-1999.
New results released to the ASX by Kingwest recently reflect the shift in thinking with new drilling focused on higher-grades, updated interpretations defining high-grade sub-domains and advanced modelling to test and sharpen the new interpretation.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
