Rooster Talk Episode 49: Ed Turner, CEO, Kingwest Resources Limited (ASX:KWR) shares with us the commercialisation of Menzies and raising further capital to consolidate the Sir Laurence Discovery.
Kingwest has pulled off a great deal in getting cash flow from their Yandaga asset. Ed mentions that the company has completed a $4M capital raise which will go into solidifying the recent Sir Laurence discovery. The JV announcement recently means that the company can now look forward to creating future cash flow while they continue to create discoveries.
The terms of the JV means that Kingwest does not need to find capital to deal with the mining. To add sweetness to the deal, they are paid a fee of AUD1M for the right to do the work (Mining and Processing JV to see Gold Production Recommence at Menzies). Now that is a good deal.
Watch this Rooster Talk with Ed Turner below.
00:54 Ed Turner Updates
01:51 Update on the Mining JV.
03:21 The Good News of monetising Menzies.
04:20 What is the Capital Market telling Ed?
05:22 The outlook for Gold is still good.
05:50 The margin of mining Gold is still good.
06:14 Update on the current drilling activities.
About Kingwest Resources Limited and its Menzies Gold Project
Kingwest Resources Limited (“Kingwest”) is a mining and exploration company focused primarily on gold exploration in the Eastern Gold Fields Region of Western Australia. It will aggressively explore for and extract gold in a mix of advanced, intermediate, and greenfield projects within this highly prospective district.
With a new team on board and new projects, Kingwest is redirecting its focus on developing the highly prospective Menzies Gold Project.
The Menzies Gold 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 1990s before the collapse of the gold price in 1999 also produced 145,000 oz at a high-grade average of 2.6g/t Au.
A relatively shallow resource comprising 2.42Mt at 2.2g/t Au for 171,300 oz (using 1g/t cut off) has been estimated in recent years. However, the best future economic potential is in targeting the high-grade mineralisation that remains open at depth beneath every deposit.
Ed has been a constant participant on Coffee with Samso and Rooster Talk and I felt that it is a good time to get some updates on Kingwest. Recent results on the drilling are shaping the Menzies Project into a real winner for shareholders.
Listen to the podcast below as Ed shares the significance of the recent drilling and how the gold resources have doubled since they took on the project. The recent capital raising and the selling of non-core assets have really boosted the bank balance, allowing the company to take on further drilling and making mining of the resource a reality.
About Ed Turner
BSc (Hons), MAusIMM
Ed is a geologist with 30 years of experience throughout Europe, South America, Africa and Australia in a range of roles encompassing base, precious and speciality metals for leading mining companies. Technical strengths include exploration, underground mining, resource estimation, feasibility studies and development level work. Ed was previously engaged as the CEO and General Manager of Exploration of Geology for Galena Mining Limited where he delineated the high-grade Abra lead-silver deposit that is shaping up to be a highly profitable mine development.
Tune in for more Menzies Goldfields updates
The recent M&A activity within the Eastern Goldfield gold producers is proof that if you cannot find more resources, you just buy them. It's true, play the video below to find out more.
Ed Turner from Kingwest Resources Limited (ASX: KWR), returns to talk about the progress of the company at the Menzies Gold Mining District. Kingwest's recent drilling has increased the gold resources and confirmed extensions to the existing orebodies raising capital of AUD3.5M.
COVID-19 has not affected Kingwest's fieldwork and Ed announced high grade of gold deposits.
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