Kingwest Resources : Lake Goongarrie Diamond Core Drilling Update

Kingwest Resources Ltd

ASX: KWR

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Directors & Management

Chairman

Gregory Bittar

useCEO

Ed Turner

Non Executive Directors

Jonathan Downes

Ashok Parekh

personalComp ny Secretary Stephen Brockhurst

Pri cipal Place of Business

Unit 3, Churchill Court

335 Hay Street

Subiaco WA 6008

Registered Office

Level 11

216 St Georges Terrace P rth WA 6000

Contact

ForT 08 9481 0389

[e-mail] www.kingwestresources.com.au

Investor Relations

Lucas Robinson

T [phone]

1. [e-mail]

17 June 2022

Lake Goongarrie Diamond Core Drilling Update

• Inaugural diamond core drill testing of Sir Laurence gold targets at Lake Goongarrie has intersected bedrock gold mineralisation
• The first two holes indicate the presence of a potentially large-scale bedrock gold mineralised system underlying the extensive alluvial and interface aircore gold mineralisation at Sir Laurence
• Sulphide alteration, quartz veinlets and gold levels increase eastwards from KGD001 towards KGD003 on Line 5, suggesting a localised vector towards potential significant gold mineralisation
• Remaining drilling will test other targets within Sir Laurence which have previously intersected bedrock mineralisation in aircore drilling

CEO, Ed Turner commented: "Whilst we have not yet intersected economic grades in the first two holes, the pervasive hydrothermal alteration, intense sulphide development and widespread low grade gold mineralisation demonstrate that we are drilling within a large and prospective system.

Sir Laurence retains the strong potential, due to its litho-structural setting, to host a large mineralised gold deposit.

Kingwest continues to refine and define the exploration targets within the Sir Laurence gold system, which will be tested by the rest of this drilling programme and remains excited about their potential."

INTRODUCTION

Assays have been received for the first two holes in the inaugural diamond core drilling program to test the Sir Laurence Gold Discovery at Lake Goongarrie.

Two holes (KGD001, KGD002A) have been completed for 879.4m and the third holes (KGD003A) is in progress currently at 280m (Figure 1). Two holes failed

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to reach bedrock (KGD002 and KGD003) due to difficult ground conditions and were redrilled as KGD002A and KGD003A (Table 1). Assays are pending for KGD0003A.

Although we have not yet intersected economic grades in the first two holes, the extensive alteration with intense sulphides and low-grade Au mineralisation (up to 0.35 g/t Au) across narrow quartz veins that include sulphides suggest that we are drilling within a large mineralising system.

Exploration targeting will continue to be reviewed to focus on the most prospective sections of the mineralised area, which extends for over 2km of strike in the N-S direction and over 1km across strike in the E-W direction. Diamond core drilling is necessary to establish the primary structural controls and orientation of the quartz veins that are the source gold mineralisation in the fresh rock beneath the paleochannel sediments (Figure 1).

DISCUSSION OF RESULTS

Prior to these initial diamond drill holes, the discovery aircore drilling program had demonstrated the presence of widespread shallow gold mineralisation at Sir Laurence. Gold was intersected over an area of 2km by 1km in vein quartz gravels at the base of thick alluvial cover, at the alluvium/bedrock interface, and in the upper few metres of bedrock that could be penetrated by the aircore blade bit. The bedrock gold intersections occurred in a hydrothermally altered, silicified, chloritised, quartz- veined and locally sulphidic polymictic conglomerate. The laterite profile had been stripped away by the deep alluvial channel, leaving bedrock gold values in only slightly weathered bedrock, and this was believed to be in-situ primary gold.

The first two diamond drillholes on Line 5 strongly suggest the existence of this bedrock gold mineralised system and have demonstrated that the original aircore bedrock gold intersections are underlain by a large gold-bearing hydrothermal system (Table 2). There is intense silica-chlorite- sulphide alteration, with low grade gold-bearingquartz-pyrite veins and persistent low grade gold values continuing to at least 300m depth below the interface. This remains open at depth and laterally in all directions. The highest gold values are associated with quartz-pyrite veinlets, pyritic net veining, pyrite replacement of pyrrhotite, and later stage arsenopyrite. This is consistent with the alteration and gold mineralisation described elsewhere at Goongarrie and in the rest of the Boorara Domain greenstones.

The host rocks in the first three holes form a west-dipping sequence of Archaean mafic-dominated and felsic-dominated conglomerates, felsic volcaniclastic agglomerates, felsic tuff, and polymictic conglomerate (Figure 2). Bedrock aircore gold anomalies have also been found in dolerite and in felsic metasediments further to the south and east at Sir Laurence.2

The diamond holes show an increase in the intensity of hydrothermal alteration, sulphide content, quartz-pyrite veining, and gold values both downhole and to the east on Line 5, suggesting an eastwards vector towards stronger gold mineralisation at this point (Figure 3). This observation correlates with earlier aircore bedrock gold intersections along the eastern contact of the polymictic conglomerate on several lines to the north and south of Line 5 (Target areas 4 and 5 in Figure 1).

These initial diamond drill holes help present a more precise picture of the geological controls on gold mineralisation, and this will enable Kingwest to define future bedrock drilling targets. These include: D4 NW-SE structures (Target 3), complementary D4 NE-SW structures (Targets 1 and 2), the D3- sheared eastern contact of the polymictic conglomerate (Targets 4 and 5), and the D3-sheared western contact of a major dolerite sill that bounds the Sir Laurence area to the east (Targets 6, 7 and 8). There is also an isolated bedrock gold target (Target 9), which was identified from a regional structural interpretation and was then successfully tested by aircore drilling on Line AS23.

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Figure 1: Sir Laurence diamond core drill hole traces, drill targets and location of bedrock and interface Au

intersected in aircore holes

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Figure 2: Sir Laurence diamond core drill holes on cross section

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Figure 3: Photo of quartz-pyrite and massive pyrrhotite-pyrite veining within the sulphide alteration

zone in KGD003A drill core

Table 1: Sir Laurence diamond core drill hole details

Hole ID	Status	Easting	Northing	Azimuth	Dip	Depth (m)	Comments
KGD001	Completed	325055	6682690	90	60	432.4	Rotary Mud 0 - 87m.
							NQ Core from 87m
KGD002	Failed	325180	6682690	90	60	72.0	Rotary Mud only
KGD002A	Completed	325187	6682690	90	60	447.0	Rotary Mud 0 - 98.3m.
							NQ Core from 98.3m
KGD003	Failed	325368	6682690	90	60	75.0	Mud Rotary only
KGD003A	In Progress	325418	6682640	90	60	280.0	Rotary Mud 0 - 93m.
							NQ Core from 94m