Kingwest Resources : Sir Laurence Diamond Core Drilling Commences

Kingwest Resources Ltd

ASX: KWR

Shares on Issue 242,973,025

Directors & Management

Chairman Gregory Bittar

CEO

Ed Turner

Non Executive Directors Adrian Byass

Jonathan Downes Jon PriceCompany Secretary Stephen BrockhurstPrincipal Place of Business Unit 3, Churchill Court 335 Hay Street Subiaco WA 6008

Registered Office Level 11

216 St Georges Terrace Perth WA 6000

Contact

T 08 9481 0389

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

Investor Relations

Lucas Robinson

T [phone]

[e-mail]

11 April 2022

Sir Laurence Diamond Core Drilling Commences and New Potential Gold Discoveries to East of Sir Laurence

•  Inaugural diamond core drill testing of "Kanowna Belle-style"

  Sir Laurence gold targets has commenced at Lake Goongarrie

•  Initial programme comprising 4,000m with expectation of this being expanded

•  Aircore drilling for Ni Sulphide targets on Highway Ultramafic unit east of Sir Laurence has delivered significant Au assays, with nickel assays pending. Best results include:

  16m @ 0.7 g/t Au from 32m; inc. 4m @ 1.3 g/t Au from 44m in KGA0887 (in bedrock)

  4m @ 1.2 g/t Au from 20m in KGA0894 (in bedrock) 4m @ 1.0 g/t Au from 8m in KGA0887

CEO, Ed Turner commented: "We are very happy to commence diamond core drilling at the Sir Laurence Gold Discovery. Sir Laurence has excellent potential, with its litho-structural similarities to Kanowna Belle and the significant mineralisation already defined over such a large area.

In addition, we are excited by the potential for further gold discoveries outside Sir Laurence, demonstrated by widespread gold in the highly successful first pass aircore drilling to the east. This was mainly focussed on the Nickel Sulphide potential of the Highway Ultramafic to the east of Sir Laurence, so to intersect significant Au mineralisation on six of the 14 lines is a great result. Most of these intersections were at shallow depth and away from paleo-channels so follow up drilling can easily be planned and completed.

We look forward now to the remainder of the multi-element assays including Nickel, which will be received over the coming month."

INTRODUCTION

Kingwest has commenced an inaugural 4,000m diamond core drilling program to test the Kanowna Belle style Sir Laurence Gold Discovery, using a customised track mounted lake rig (Figures 1 and 2).

Drilling will focus initially 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 the orientation of quartz veins that are interpreted to host the gold mineralisation in the fresh rock beneath the paleochannel sediments (Figure 3).

In addition, all gold assays have now been received from the program of 223 nickel aircore holes (KGA0815 - KGA1033) reported to the ASX on 21 March 2022. This program was designed to test Nickel Sulphide targets outside of the Sir Laurence Discovery area but also some litho-structural targets considered prospective for gold. It was primarily focussed on the Highway Ultramafic unit which extends for approximately 11km within Kingwest's tenements.

All multi-element and nickel assays from this program remain pending.

Figure 1: Raglan Drilling's lake rig sets up on first Sir Laurence diamond core hole

Figure 2: The first Sir Laurence diamond core hole underway

Figure 3: Sir Laurence aircore drill holes showing maximum Au values on aeromagnetic background

GOLD RESULTS RECEIVED FOR GOONGARRIE AIRCORE NICKEL DRILLING

Kingwest has now received all of the gold assay results for its initial Goongarrie nickel sulphide aircore drilling. This drilling was planned as a first-pass reconnaissance of the nickel potential of the Highway Ultramafic where it passes beneath the Tertiary alluvial cover of Lake Goongarrie, but the drill traverses were also chosen, and in places extended, to test several of the many gold prospective structures interpreted from Kingwest's recent high resolution magnetic survey. The gold assay results are summarised below. The nickel results will be reported separately as received.

Figures 4 - 7 show the location of all drill holes and significant Au results. Table 1 summarises the significant Au results and Table 2 summarises the geological and structural setting of these intersections. Table 3 includes all drill hole collar details (as reported on 21 March 2022 to the ASX).

These results demonstrate that the alluvium-covered, Boorara Domain, greenschist facies to amphibolite facies greenstones beneath the east side of Lake Goongarrie are as widely gold-mineralised as the Ora Banda Domain greenstones on the west side of the lake. This is not surprising, as the same Boorara Domain greenstones are host to extensive outcropping gold mineralisation at the Menzies gold mining centre, 40km along strike to the north.

What is more surprising from the above results is that, in addition to the Boorara Domain greenstones being gold mineralised, the adjacent and underlying, higher-grade paragneiss rocks that form the basement to the east of the Highway Ultramafic are also gold mineralised (eg. 4m @ 0.74 g/t Au in KGA0981). These are coarse-grained, quartz-feldspar-biotite gneisses, which exhibit a closely spaced, tightly folded magnetic stratigraphy, which includes amphibolitised basaltic metavolcanics and ultramafic rocks. They appear to be a higher metamorphic grade equivalent to the overlying Boorara Domain greenstones, and to have been previously overlooked as a potential host to gold mineralisation at Goongarrie.

The results summarised in Table 2 show that gold mineralisation is present in a wide variety of structures and a wide range of lithologies east of the Sir Laurence discovery. Mineralised structures include NW-trending D4 faults, NE-trending faults and quartz-veined sheared lithological contacts. Mineralised lithologies include ultramafics, amphibolitised metabasalts, quartzo-feldspathic felsic schists and paragneiss.

Tertiary alluvial gold is also present in the basal channel lag gravels of the Sir Laurence paleochannel where it crosses nickel aircore drilling Line N7. This downstream section of the channel appears to be several metres deeper than it is 2km to the northwest at Sir Laurence. The basal gravels here include large, well-rounded vein quartz cobbles, suggesting a higher energy paleo-alluvial environment, where coarser gold may have been more effectively concentrated. These large quartz cobbles stopped the aircore bit short of bedrock in four of the nine holes on Line N7 (KGA0966, 967, 968 and 969), but two of the holes (KGA0968 and 969) nonetheless assayed gold in the overlying channel lag gravels. A fifth hole (KGA0970) then successfully intersected serpentinised komatiite ultramafic just to the west.

This demonstrated gold potential in the eastern Boorara Domain greenstone sequence and in the adjacent paragneiss basement will be followed up with further exploration by Kingwest Resources.

Figure 4: Maximum Au values in Nickel targeted aircore drill holes on aeromagnetic background