The Kingwest Resources Ltd (ASX: KWR) share price is rising today after the company reported extensional drilling success in its Menzies Gold Project (MGP).
At the time of writing, the Kingwest share price is up 3.85% to 14 cents per share.
Kingwest is engaged in the acquisition and exploration of resource projects. Currently, it is focused on gold exploration in the eastern goldfields region of Western Australia. Additionally, the company's projects include its MGP and Goongarrie Project.
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Kingwest's Menzies gold project
Extensional and infill drilling at Menzies included high-grade intersections of four metres at 7.7 g/t and three metres at 13.0 g/t. Kingwest's extensional drilling also continues to intersect high-grade gold deposits outside of the company's optimised pits.
All of Kingwest's composite drill results have now been received for drilling completed in 2021. The Kingwest share price has been relatively flat lately. However, most of the results have been positive. In particular, for future exploration potential and recurring cost savings.
Menzies is one of Western Australia's major historic goldfields. It is located 130km north of the globally significant gold deposits of Kalgoorlie. The Menzies project covers a contiguous land package over a strike length (drilling area) in excess of 15km.
Within the MGP a series of structurally controlled high-grade gold deposits have been historically mined. According to Kingwest, these also display extensive exploration potential for high-grade extensions. Modern exploration since the site's initial closure over 20 years ago has been limited.
What Kingwest management said
Kingwest CEO, Ed Turner welcomed the results, saying:
These high-grade results, including hits outside of the Scoping Study optimised open pit shells, give us great confidence that high grade underground resources can and will be proven up with additional deeper drilling.
When additional drilling is integrated into future reoptimised pits there's also a good chance of the pits being extended at depth and along
strike.
Kingwest share price snapshot
The Kingwest share price has jumped 8% this week but is an outlier among its basic materials sector, declining 20% in 2021 to date and 1% over the past 12 months.
That leaves it down more than 40% against its broader industry sector.
