KWR - Kingwest Resources

[finicky]

KWR down to 16c
Not much interest at that level either. Biggest chunk of buyers are bidding at 0.155 - 0.145
My stink bid down at 0.145 coming into view!
Even at that price the remaining 12c placement takers are holding at a decent profit.
Only potential near term news that I can think of that might turn it around is confirmation of a joint venture over one of the Menzie's deposits. Slim chance near term.
Chart's not too bad imo.

 

[Sean K]

KWR down to 16c

You picked the right month to have this in the monthly comp!

Edit: oh crap, you picked it for Dec too.... eeeek

 

[finicky]

Hmm KWR, KWR .. what to say about this pick. Well the chart has sure improved which is hardly a benefit in the comp. The last chart I posted showed the worst of it and the full red candle morphed into a huge reversal hammer candle by end of day. Since then the price has rallied out of the downtrend and looks ok for the short term.

Of course progress for the year will depend on all the forms of planned drilling on Lake Goongarrie: AC, RC and Diamond for which the company is well funded for the year. Campaign really kicks off in January and holders are dying to get more information, particularly from diamond drilling, as to what in the bedrock has been feeding the water eroded, gold bearing gravel in the discovered deep lead beneath the lake cover. They think the source could be directly below or very close. They have invested in a specially adapted track mounted drilling rig to do the job since the first rig used was getting bogged in lake sediment. Should result in heaps of news over the year.

For the upcoming year I also have hopes for progress at the Menzies Gold Project north of Goongarrie. They will be doing some drilling at MGP too but my greater anticipation is a second party deal or two to be finalised for joint venturing some of the gold resources already delineated by Kingwest. FMR Ltd, which has its own mill at Coolgardie, has already shown tangible interest but I get the feeling they are dragging their heels. Success at joint venturing could fund KWR's drilling bills for years to come - that's the dream anyway. AIMO.

 

[finicky]

Yesterday might have been the best opportunity to get some chips in this goldie super spec (as I see it).
I started accumulating @ 0.215 fifteen months ago, my average .14, and after all the mind blowing news about Lake Googarrie, punters could've bought a stake @ .17. Of course I could be wrong, caveat emptor.
The delay in getting started with the diamond drilling on Goongarrie is annoying, as is the failure so far to conclude any jv deals at the Menzies Gold Project (separate to Goongarrie)

Daily

 

[Sean K]

I'm not sure what you see in this one @finicky ?

Their best highlight for the quarter was 8m @ 5g/t... Who's to say though, that might lead to something, but ....

What's the delay with the diamond rig? Is there a shortage?

 

[finicky]

@Sean K, they've acquired a specialized dd rig for drilling on soft salt lake surfaces. Not sure of the reasons for delay apart from previous rig getting bogged.
As for what I see, have you read any posts or announcements. This is a previously undrilled prospect in Kalgoorlie terrane. They've only used aircore so far so only got a sniff if the bedrock below lake sediment. But every hole has come up with significant mineralisation and this is over a large area. The samples of gravel below the sediment are highly suggestive of a 'deep lead' from a reef nearby, if nor directly below. The gold bearing chips are angular and large suggesting they have not travelled far. This is analogous to the tier one Kanowna Belle deposit in the locality where a deep lead was initially discovered beneath cover. I believe I am right in recalling that their expert Geology consultant said that salt lakes occur for a reason - implying I believe underlying past water movement. Anyway we will see, I have punted 410k shares.

 

[finicky]

The Bardoc Tectonic Zone Gold Endowment

The Goongarrie greenstone belt lies on the northern sector of the Bardoc tectonic Zone (BTZ). This is an intensely gold-mineralised regional shear zone that runs from the Kalgoorlie in the south, where it forms the Boulder Lefroy Fault (BLF), to Menzies in the north. The BTZ is part of a complex zone of gold-mineralised strike-parallel regional shears that traverse the Kalgoorlie Terrain greenstones of the Norseman-Wiluna belt. From Kalgoorlie to Menzies it is the locus of numerous large gold deposits with a total gold endowment of over 90Moz. At Goongarrie the BTZ passes beneath salt lake cover, in a similar manner to the BLF south of Kambalda. This section of the BTZ has been notably overlooked by previous explorers, but as with the BLF at Kambalda, it may be equally well mineralised. The recessive weathering and salt lake cover may even be indicative of this.

Kingwest Resources Limited | GOONGARRIE PROJECTS

Kingwest resources Ltd has provided programs and budgets for the mining exploration in Menzies region.

www.kingwestresources.com.au

 

[Sean K]

@Sean K, they've acquired a specialized dd rig for drilling on soft salt lake surfaces. Not sure of the reasons for delay apart from previous rig getting bogged.
As for what I see, have you read any posts or announcements. This is a previously undrilled prospect in Kalgoorlie terrane. They've only used aircore so far so only got a sniff if the bedrock below lake sediment. But every hole has come up with significant mineralisation and this is over a large area. The samples of gravel below the sediment are highly suggestive of a 'deep lead' from a reef nearby, if nor directly below. The gold bearing chips are angular and large suggesting they have not travelled far. This is analogous to the tier one Kanowna Belle deposit in the locality where a deep lead was initially discovered beneath cover. I believe I am right in recalling that their expert Geology consultant said that salt lakes occur for a reason - implying I believe underlying past water movement. Anyway we will see, I have punted 410k shares.

I have read their last few anns and latest presentation. Only been following for the past two months but haven't done enough work to understand it. They're in a prospective corridor but when I looked at their current JORC and recent assays they don't seem to be either coming up with bulk tonnage or the historical grades, especially at Menzies. I will keep doing my own research, you have me interested.

 

[finicky]

KWR Horrorscope:

Chart is suggesting a bullish triangular consolidation after a two legged rally. All gap ups remain unthreatened. Triangle will fail if price drops below 0.165 and doesn't spring back. The ordinary gap at 0.145 back in November might then be filled. Not expecting that. There's really nothing wrong yet in the way that the chart is evolving that I can see; it just tries the patience. The quiet drifting periods often turn out to be the opportunity, CNB a case in point recently, but I have enough of a stake now.

The outlook is for aircore drilling on Lake Goongarrie and soon diamond drilling. There might be word from FMR Investments Ltd, the owners of the Greenfields processing plant, as to whether they want to proceed with mining the Menzies Yunndaga jv. That scenario is getting rather stale though, FMR Ltd seem to be behaving the way the Chinese tend to after they form a non binding agreement.

The big one for stimulating the share price will be the Lake Goongarrie maiden Diamond Drill campaign starting some time this month. But who knows how long before lab assays? Maybe something visual but that's not explicitly expected - these diamond drills will be the very first ever to explore geological structures of the bedrock below the salt lake.

Less anticipated is the extensional aircore campaign which has already commenced.

Quote Feb 1:

"... the planned initial 3,000m diamond core drilling program is
scheduled to commence in February 2022, with a new customised drill rig
already onsite. This will be a critical programme in delineating the primary
mineralised controls within Sir Laurence so we will be in a position to
potentially define economic gold resources in the future”

Held
Hold

Daily

Monthly

 

[finicky]

Not a lot of interest in KWR but triangle on chart still shaping up nicely for a breakout if there is good news.
Interview on Small Caps out with the CEO saying he can't wait to see Lake Goongarrie diamond cores - they're at least a few weeks off though as DD doesn't start for 2 weeks, assuming no further delay. Aircore drilling is more than halfway through with all traverses seeking to extend the boundaries of the mineralised footprint which is open in all directions.

He spent quite some time on the nickel sulphide prospect on the east side of the lake. There have been two Ni deposits found by others along the 'Highway' ultramafic unit of which KWR holds 11 km within its tenements.
KWR has aero electromag maps to be guided by as it does initial aircore drilling which will follow on soon. Very nearby south of its tenements is the 'Saints' deposits which have an Au equivalent of 1/4 million ozs gold @ 8g/t (all nickel I should emphasise). 15km south is the concluded 'Scotia' NiS mine which produced 30 kt of Nickel.

 

[finicky]

Tacked on 20,000 @ 0.17 for some shopping therapy.
Still of a mind that the price chart is consolidating within a triangle awaiting drilling information. I guess this would be invalidated by a close below 0.165 unless it rapidly recovers. Volume is tiny.

Aircore on Googarrie has been going on for weeks and the truth telling DD campaign is imminent if not overdue.

Quote Feb 1:

"... the planned initial 3,000m diamond core drilling program is
scheduled to commence in February 2022, with a new customised drill rig
already onsite. This will be a critical programme in delineating the primary
mineralised controls within Sir Laurence so we will be in a position to
potentially define economic gold resources in the future”

 

[Sean K]

Tacked on 20,000 @ 0.17 for some shopping therapy.
Still of a mind that the price chart is consolidating within a triangle awaiting drilling information. I guess this would be invalidated by a close below 0.165 unless it rapidly recovers. Volume is tiny.

Aircore on Googarrie has been going on for weeks and the truth telling DD campaign is imminent if not overdue.

Quote Feb 1:

"... the planned initial 3,000m diamond core drilling program is
scheduled to commence in February 2022, with a new customised drill rig
already onsite. This will be a critical programme in delineating the primary
mineralised controls within Sir Laurence so we will be in a position to
potentially define economic gold resources in the future”

View attachment 138114

Just sitting on that support line, hope she holds. I'm completely surprised that gold tanked from the peak overnight with so much uncertainty after Vlad's little expedition south. I thought we were off to the races and $2K was going to fall as early as today.

 

[finicky]

Imo there's no good reason that KWR should be affected by fluctuations in gold. It is teetering on the edge of a major, blow the doors off gold discovery - or not.
The price dropped off .165 to 0.16 within minutes of me posting.

 

[finicky]

Yet another delay in the commencement of diamond drilling at Lake Goongarrie. Confirmed in email reply from the CEO on Saturday. Covid border closure causing manpower/supplies issues.

I now believe that 0.17 was the critical support for an optimistic (symmetrical) triangle scenario. Since the pattern is now busted I think that there's an actionable chance that price will break lower when the market is informed of the DD delay. The CEO said they'd just found out and didn't view it as worthy of a specific announcement on its own. Very surprised by that as it certainly affects my buying intention for one. I put in a bid down at 0.14 in case price fills the gap @ 0.145 and overshoots.

Also, here is his explanation of why the salt lake is prospective by very reason of being a salt lake:

The reason I said the salt lake is there for a reason is because it sits on top of a set of major structures (in particular the D4 set of NW-SE trending faults I have shown in numerous diagrams, these faults can be the conduits for hydrothermal mineralised flows). Deep weathering of the bedrock preferentially follows the structures and so a large deep river system developed flowing from west to east. It eventually made its way to the ocean which at the time covered the Eucla Basin to the east of Goongarrie and Kalgoorlie. In more recent times sediments filled the valley and with the current climate this became a salt lake due to the lower rainfall and higher evaporation rates. You see something similar at Kambalda where there are large gold deposits under the salt lake

 

[frugal.rock]

3 March 2022

Sir Laurence Gold Discovery Continues to Grow

 62 aircore holes for 4,065m prove further extensions to the
Kanowna Belle style Sir Laurence Discovery at Lake Goongarrie

 Significant bedrock mineralisation in three different host rocks over + 2km strike length and +1km laterally

 Significant gold intercepts on every line of drilling, including:
24m @ 0.6 g/t Au inc. 4m @ 3.2 g/t Au in KGA0811
13m @ 0.9 g/t Au inc. 1m @ 4.5 g/t Au in KGA0781
4m @ 1.0 g/t Au in KGA0782
3m @ 1.1 g/t Au in KGA0799

 Mineralisation remains open in all directions

 Initial, expanded 4,000m diamond core drilling programme to follow


CEO, Ed Turner commented “This extensional aircore drilling has continued
to grow the Sir Laurence Gold Discovery and we have still not defined the limits of gold mineralisation.
It is very encouraging to intercept bedrock mineralisation as well as alluvial gold mineralisation over such a large area and in different host rocks.
This demonstrates the significant size of the
mineralised system and the growth potential remains.

The planned initial diamond core drilling program has been expanded to 4,000m as a result of these successful aircore drill results and a further expansion is foreseeable.

However, the start of the program continues to
experience delays due to ongoing Covid related personnel and equipment
related issues which are being experienced across the industry.

Drilling will commence as soon as the necessary lake terrain modifications to the rig are complete.
This next phase of drilling will be a critical programme in delineating the primary mineralised controls within Sir Laurence so we will be in a position to potentially define economic gold resources in the future.”

 

[finicky]

KWR understandably being dumped by impatient money today as it has been announced that the DD rig commencement for 4,000m at 'Sir Laurence' hot Au prospect at Lake Goongarrie has gone out to "several weeks" away. Price currently down +5% and has been lower. I extended the expiry of my bid for more shares @ 0.14 in case there's a collapse of interest. Chart looks weak but so far 0.16 has held as support for closing prices.

The delay of the diamond drilling has been buried in the announcement of the completion of the maiden aircore drilling campaign along the 'Highway' ultramafic sequence which is on the eastern side of the lake and is strongly prospective for Nickel Sulphides. Immediately south of this area of drilling are the 'Saints' NiS deposits (1.05mt resource @ 2%Ni) and 15k south is the historic 'Scotia' NiS mine operated by WMC in the seventies (produced 31kt Ni and left a reserve of 17kt Ni due to mine collapse - all from ore grading above 2% Ni)
Assays awaited

 

[frugal.rock]

Probably jumping the gun here @finicky but KWR made me stop and look this evening when scanning price moves... there's a whiff of something in the air I feel? (not a bad whiff I might add ?...)

 

[finicky]

Just no serious volume though @frugal.rock, I am looking at the chart pattern now as having morphed into a rough falling wedge as punters await the perpetually delayed DD rig's arrival to test the bedrock structures below the 'deep lead' buried alluvial channel under the lake.
I've lapsed into disinterest again though - looking for NiS on the Eastern side of Lake Googarrie isn't doing it for me. Last time I got disenchanted with KWR was when the big news of the Sir Laurence discovery hit.

 

[finicky]

They weren't looking for gold on the eastern side of the lake but they have hit weak grades on 6 out of 14 lines of shallow aircore. The assays for nickel are awaited.
At last the DD rig is on site and operative over the Sir Laurence prospect. This is the biggie - hoping for a 'Kanowna Belle' analogue.

 

[finicky]

KWR held well today considering misery in the rest of the sector. Announcement was just an increase in MRE's for the pits they've modelled at the Menzies Gold Project (MGP). Mineable resources now at 500kozs and 34kozs was added to the Pericles deposit at a cost of $5/oz. They're still looking to sell or jv parts of the MGP.
Anyone who follows KWR will know that the MGP now plays second fiddle to prospects for the Lake Goongarrie project about 40k south of the MGP. Diamond drilling is ongoing at the Lake.

The daily chart is showing a bit of a rounding low effect and momentum indicators have been trending up.