KWR - Kingwest Resources

[frugal.rock]

6 September 2021
High-Grade underground JORC gold resource defined
at Menzies

• New Yunndaga underground JORC Mineral Resource Estimate (MRE) of 57,000 oz @ 4.6 g/t Au (3.0 g/t Au cut off, fresh rock only) or 79,200 oz @
3.7g/t Au (2.0 g/t Au cut off, fresh rock only)
• An 384% increase on March Yunndaga 2021 MRE (using 3.0 g/t Au cut off)
• Resource open at depth and to the north
• Total MRE’s at Menzies increased to 475,100 oz @ 1.4 g/t from 446,200 oz @ 1.3 g/t1
(0.5 g/t cut off)
• New Yunndaga MRE allows KWR to consider various commercial
underground mining options, including profit share or toll-treatment

 

[finicky]

They've dangled that in front of us before, "considering' profit share or toll-treatment. Before it was for some of the open pittable resources. Understandably low response from buyers. Not all that high grade either.
Holding onto a lame hope for something to turn up under the salt lake at Googarrie. Got their track mounted rig. First results might not be too far off. Downtrend has been decelerating on the price chart.

 

[finicky]

Small rounding low on the daily chart with some indicator divergence I s'pose you could add. Probably just fickle spec buyers hoping the best for Goongarrie drill results? So will deflate quickly if things don't happen. It was a mistake buying into this because it will be obliterated in a crash as it doesn't have much cash and of course operates at a loss. I remember in student days a housemate in our shared house used to shout rhetorically, "Why am I such a Fool?!" and none us had the decency to intervene and say anything.

Daily

 

[barney]

I remember in student days a housemate in our shared house used to shout rhetorically, "Why am I such a Fool?!" and none us had the decency to intervene and say anything

Where there is life there is hope @finicky Sometimes fortune favours the brave Hope it has turned the corner for you.

 

[finicky]

Geologists knee deep in muck barney.
So if I get this remotely right they think the main gold they've found is from 'shedding' of gold infused quartz into an ancient (paleo) alluvial channel, it is in a coarse condition which means it is from a local source not transported and the gold reef(s) should be nearby. They are only aircore drilling so penetration of bedrock is superficial. They point out that this set-up resembles multi million oz Kanowna Belle and Paddington ops locally.

"Kingwest’s interpretation is that there is a large gold mineralising system present at the Sir
Laurence Prospect, which has been shedding gold-mineralised vein quartz fragments into the
paleo-drainage from nearby undrilled quartz reefs to form a Tertiary ‘Deep Lead’ gold deposit.
• The amount of gold present in this Tertiary Deep Lead implies that there is a significant gold
source nearby, the Tertiary erosion of which has dumped into the adjacent paleo-channel, as
was the case with the Deep Leads at Paddington and the Kanowna, 60km and 80km to the
south of Goongarrie."

 

[finicky]

"Could be massive ... results matched our model (Kanowna Belle?) perfectly .. so that's why we're confident"

 

[finicky]

Kingwest recently raised $3m for the shocking price of 8c. The issue also provided a free half option ex @ 15c for each new subscribed share. So there are close to 19m unlisted options existing from this plcmt, ex @ 15c

I assume a significant part of the heavy volume on Monday was placement participants selling while able to retain a stake with the free options - thus likely putting a dampener on Monday's price appreciation

202m KWR shares currently on issue

At 10c share price, market capitalisation = only $20m
Can get in cheaper than option holders if they exercise.

My accumulated average price close to 14cps

Another way into some participation would be to buy HRZ shares which are still at 11c and have often retracted to 10c support. Horizon (HRZ) owns about 18% of KWR.

A caveat about KWR is that they have shown that they are prepared to raise money on attractive terms to connected parties and exclude shareholders. Won't be long before they need more money as they are using a track mounted rig and will soon be RC and diamond drilling deeper holes into Goongarrie.

Also we can't know if the Goongarrie find is significant.

 

[bux2000]

Well @finicky patience and persistence does pay off, I can see the smile on your face from here

Enjoy

bux

 

[barney]

Well @finicky patience and persistence does pay off, I can see the smile on your face from here Enjoy bux

Yeah ditto @finicky Its a nice feeling to finally dig yourself out of what feels like a never ending hole! Lets hope it keeps ticking higher from here.

 

[frugal.rock]

I nearly bought on open but had other things on the boil.

Anyway, just for you Finn, I did my little trick every so often today which can help the price along, when there is strength....
I can't say what it is though.
???

 

[finicky]

I shudder to think frugal.rock
Wow, I inwardly gave up on this one at the critical point, good thing I am slow to act, lethargic even.

 

[frugal.rock]

Nothing illegal Finn, all above board.

 

[finicky]

Interview with CEO that is pretty laboured - one of those where it might have been better if everything was cut except Ed's answers. Diamond drilling won't be till a month but still 75% aircore assays to come. Plenty of smoke for a possibly deeply plunging orebody.
Chart might be on the verge of continuing the outbreak - held up well during the recent gold stocks slump - rose glasses on, pole and pennant? We shall soon see

 

[frugal.rock]

Chart might be on the verge of continuing the outbreak - held up well during the recent gold stocks slump

Have had similar thoughts over the last few days, just can't work out what POG is doing.

Not held but watching for continuance.

 

[frugal.rock]

Hurrah for @finicky ?
Getting up there on low volume.
Hopefully holders remain tight...

 

[finicky]

Thx mate, just went into profit which seemed such a low probability a month ago.
Horizon's still cheap (HRZ) - if KWR 7 bags from 0.14 to a dollar, not predicting that of course, but not too outlandish, it would be worth 6cps to HRZ holders I think - HRZ owns 18% of KWR.

Yes needs heavier volume to come in - maybe from the outstanding aircore assays? Doesn't seem enough, must admit. Then again for non holders a good pullback might be an opportunity to punt on involvement. I'm ok with either way as I'm awaiting the RC and diamond drill offensive that's a few weeks off, or the assays from that, more to the point - they could be months off.

 

[Sean K]

Small rounding low on the daily chart with some indicator divergence I s'pose you could add.

I wish I had have been watching this more closely around this time. I really liked that set up.

 

[finicky]

I didn't act on that myself @kennas
Confidence in KWR was pretty much shot at that point

 

[finicky]

KWR getting a kick along with a jv gold production announcement today that largely allays my concern about funding and future dilution. This is likely the presence of Jon Price on the board paying off, as he is also M.D of HRZ and HRZ has done profitable deals with FMR before for toll treatment at FMR's privately owned Greenfields processing plant.

In broad brush strokes, this deal could be worth say $7m p.a to KWR for its 40% of the profits - assumes a margin of $500/oz for 180,000 ozs spread over 5 years. Also we get $0.5m upon signing (b4 30 Nov) and $0.5m at first blast for the decline.

Money for drilling Goongarrie.

 

[finicky]

Correction: Horizon (HRZ) did its toll milling with the Lakewood plant near Kalgoorlie. This preliminary agreement with FMR Investments on signing will see the ore being treated at Greenfields plant which is 3 kms from Coolgardie. This is about 175kms from Menzies but all by sealed highway. I would still credit Jon Price the m.d of HRZ and on KWR's board with landing this deal as he is very connected in the eastern goldfields it seems and it is his way of operating. Very surprised to see price pull back to 14c, just 0.005 higher than yesterday as this agreement is fantastic for KWR imo because we now should be funded for all the discovery drilling at Goongarrie. Not to mention that this u/g mining project at the Yunndaga pit at Menzies will bring potentially higher grade deeper mineralisation into play without too much expensive drilling. The Menzies field has historically produced at very high grade at depth.