Kingwest Resources

Primary ticker: ASX:KWR
Stage of development: Exploration, Development
Commodity: Gold
Project to promote: Menzies Goldfield
Project location: Australia
Company presentation: Click here

Live financials

Cash: AUD$3.5M

Major shareholders:
Horizon Minerals – 19.9% 
Management ownership – 5%

Kingwest is a gold explorer and developer focussed on the Menzies and Goongarrie projects in Western Australia. Menzies has historic production of 800,000 ounces of Au @ 19 g/t. Our main objective is proving up additional high grade resources in 2020 whilst at the same time adding to our near surface JORC resources of 258,000 ounces at 2 g/t and getting these into production this year. Kingwest is less than 2 years old with only 121M shares on issue.

Management Profile

Ed Turner, CEO

CEO Ed Turner is a geologist with more than 30 years of experience in Australia, Eastern Europe, Africa and South America. Most of this time has been in gold exploration and development but also includes underground gold mining and time exploring for base metals, nickel and uranium.

What is your rationale for attending 121 Mining Investment?

We are looking for long term investors interested in contributing to capital raises and on market support as we advance towards production in 2020 -2021

What recent news would you like to highlight to investors attending?

27 Mar 2020 – Drilling Update from Menzies
​16 Mar 2020 – kingwest grows Menzies and Goongarrie JORC Mineral Resource Estimates to +250,000 ounces
​11 Mar 2020 – Exploration Targets Delineated at Menzies
​04 Mar 2020 – Drilling Commences at Menzies
14 Feb 2020 – Pericles Gold Resource almost doubles at Menzies
​12 Feb 2020 – Open high-grade gold mineralisation at depth continues at Menzies​
​10 Feb 2020 – Investor Presentation February 2020
​6 Feb 2020​ – High Grade Menzies Gold Mineralisation Open at Depth
​5 Feb 2020 – Tenement Consolidation continues at Menzies

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Prove up high grade resources at Menzies by drilling the three main Exploration Targets (currently 250,000 – 500,000 ounces at 13-23 g/t Au).

6 Months:

Commence mining the Goongarrie Lady deposit and advance other resources towards production.

12 Months:

Continue to add high grade resources at Menzies and get other near surface resources into production at Menzies.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Uncertainty in Global financial markets largely due to COVID-19.Looking at alternative funding methods including third party profit share mining of the near surface resources.

What do you think makes your company such a compelling investment?

The very high grade nature of the Menzies gold resources means potentially very high profit margins. Possible near term production without the need for the building of a processing facility due to our location within trucking distance to multiple facilities.

Analyst Insight – provided by Independent Investment Research

Kingwest Resources is an ASX-listed junior gold exploration company, focused on the Menzies and Goongarrie Gold Projects, located between 90km and 130 km north of Kalgoorlie in Western Australia. Menzies has history of very high-grade production as far back as 1895 and was one of the original five-largest gold camps in the Eastern Goldfields of Western Australia.

The company’s main objective is proving up additional high-grade resources during 2020, whilst at the same time adding to its near-surface JORC resources of 258,000 ounces at 2 g/t – and getting these into production this year. The immediate focus is to prove up new high-grade gold resources that can be mined from surface or underground.

The Menzies Project contains some of the highest-grade historic production in the Eastern Goldfields with the five underground mines producing between 16g/t and 32g/t Au over their respective life of mine for a total of 650,000 oz @ 22.5g/t. The last underground mining ceased in 1943 and there has been limited drilling beneath the historic workings since then. Open-pit mining during the 1990’s before the collapse of the gold price in 1999 also produced 145,000 oz at a high-grade average of 2.6g/t Au.

Kingwest during March 2020 announced an updated Mineral Resource Estimate (MRE) for the Lady Harriet – Bellenger – Warrior System and Selkirk Prospects at its Menzies Gold Project (MGP). The Menzies Gold Project near-surface MRE now totals 233,300 ounces and the Menzies – Goongarrie combined total is now 258,336 ounces. Several large deposits (Lady Shenton, First Hit) do not have near-surface MREs, but are being drilled currently.

The Warrior and Bellenger Resources are shallow extending from near-surface to 120 metres below surface and have potential to be exploited as open-pits. Resources estimated at Selkirk and Lady Harriet extend below previously mined shallow open-pits and may be able to be mined via pit cut-backs. KWR plans to undertake pit optimisation and economic studies in the coming months to evaluate the potential for open pit mining of these resources.