Kingwest Resources : Huge Potential at Lake Goongarrie Gold Discovery

Kingwest Resources Ltd

ASX: KWR

onlyShares on Issue 241,610,525

Directors & Management

Chairman

Gregory Bittar

useCEO

Ed Turner

Non Executive Directors

Adrian Byass

Jonathan Downes

Jon Price

personalComp ny Secretary Stephen Brockhurst

Principal Place of Business

Unit 3, Churchill Court

335 Hay Street

Subiaco WA 6008

Registered Office

L v l 11

216 St Georges Terrace

Perth WA 6000

Contact

ForT 08 9481 0389

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

Investor Relations

Lucas Robinson

T [phone]

1. [e-mail]

16 November 2021

Huge Potential at Lake Goongarrie Gold Discovery

Highlights include:

• Initial result, from 29 of 80 holes drilled so far at Sir Laurence, demonstrates significant mineralisation up to 800m south and along strike of discovery line 5 including:
• • 28m @ 1.9 g/t Au from 20m in KGA0627 (16m in bedrock)
  • 8m @ 2.2 g/t Au from 12m in KGA0626
• Bedrock and alluvial gold mineralisation in holes on Lines A, B and C
• Bedrock mineralisation open to south and west of Line A
• Resampled vein quartz gravel from Line 5-hole KGA0409 assayed 31.0 g/t Au and 5.4g/t Au from 86m (within previously reported composite assay of 3m @ 6.5 g/t Au from 86m1)
• 1,000m of Diamond Drilling at Sir Laurence to commence in 2 weeks
• 2,000m of Aircore drilling focussing on Lake Goongarrie targets outside Sir Laurence imminent

CEO, Ed Turner commented "These excellent results including 28m @ 1.9 g/t Au from 20m in follow up drilling at Sir Laurence, are very significant in that they are 800m south of, and along strike of, the discovery Line 5 but mineralisation is at a much shallower depth and includes bedrock mineralisation. Significant bedrock mineralisation has also been intersected on Lines B and C. This reinforces our interpretation of Sir Laurence as having the potential to be a large mineralised system. Line A is the first line of drilling within the current program, and we eagerly anticipate results from all of the remaining drill holes within the Sir Laurence Prospect."

DISCUSSION OF RESULTS

80 holes (KGA0615 - O694), have been completed in the current aircore drilling program for 6,064m (Figure 1). Assays have been received for 29 holes (KGA0615 - KGA0643 from Lines A, B and C (Figure 1) with the remainder pending. 13 more aircore holes are planned at Sir Laurence in the current programme to the north of Line I.

Drilling to date, which started on Line A, 800m to the south of Line 5, has intersected significant results in 10 holes including 28m @ 1.9 g/t Au from

For personal use only

20m in KGA0627 and 8m @ 2.2 g/t Au from 12m in the adjoining KGA0626 on Line A (Figure 2). Mineralisation in KGA0627 is partly in the conglomerate bedrock and partly in the overlying sediments. This mineralisation appears to be along strike from the mineralisation intersected on Line 51, 800 metres to the north and therefore indicates the potential for a large mineralised system. Assays have also been received from Lines B and C with additional significant intersections in 8 holes including 16m

• 0.18 g/t Au from 60m (alluvial) over 7m @ 0.16 g/t Au from 76m (bedrock) in KGA0632, 4m @ 0.60 g/t Au from 80m in KGA0639 and 4m @ 0.19 g/t Au from 64m in KGA0642. All significant intersections are listed in Table 1 and drill hole information in Table 2.

Figure 1: Significant drill results within the Sir Laurence Discovery on magnetics background

For personal use only

Figure 2: Line A cross section

Line A is the southernmost aircore line yet at the Sir Laurence gold discovery. It targeted the cross- faulted conglomerate unit where this has lobes of demagnetisation that may be areas of enhanced alteration. At its eastern end it also targeted the contact of the conglomeratic Black Flag metasedimentary sequence against a gabbroic dolerite sill.

The drilling intersected a 50m deep alluvial channel to the west of the dolerite sill, which appears to be a tributary of the 80m deep main Sir Laurence alluvial channel. The central part of the channel has a sequence of yellow and white clayey Tertiary sands which are partly equivalent to the shallower sands and clays in the Sir Laurence channel, but these are dry sediments in the Line A channel, and lack the hypersaline water charged running sands and basal channel-lag vein quartz gravels that characterise the deeper units of the main Sir Laurence channel.

The eastern side of the Line A channel shallows rapidly as the paleo topography rises over the resistant dolerite sill and meta-basalts to the east.

The western side of the channel also shallows, although the bedrock/alluvium interface is far less distinct and subjectively interpreted. The regionally developed upper 20m of lake clays is obviously alluvial, but below that the channel appears to be choked with a locally derived colluvium of ironstone, silcrete and clays

The underlying bedrock passes westwards from shallow fresh meta-basalts and dolerite sill in the east, followed by a fine grained graphitic metasedimentary unit, then a zone of schistose felsic metasediment to the west that is interpreted to be a 'wacke' metasediment by the GSWA, followed by the main conglomerate sequence in the west. The conglomerate sequence includes a narrow meta- basalt unit that was intersected in the bottom KGA0627.

The main channel sediments lack the gold mineralised vein quartz gravels of the main channel on Line 5 and contain little gold, but the underlying bedrock is highly gold anomalous in six holes towards the eastern and western ends of Line A. Bedrock is clearly gold mineralised in these areas, and the mineralisation may be structurally associated with the basalt and dolerite units that are present there. This now presents a major gold exploration target.

For personal use only

Table 1: Significant aircore intersections (>0.1 g/t Au) within Sir Laurence Discovery

Line	Hole ID	Depth From (m)	Depth To (m)	Interval (m)	Au (g/t)	Comment
A	KGA0619	24	28	4	0.11	Alluvial
A	KGA0619	28	32	4	0.31	Bedrock
A	KGA0626	12	20	8	2.20	Alluvial
A	KGA0626	56	60	4	0.10	Bedrock
A	KGA0627	20	32	12	2.10	Alluvial
A	KGA0627	32	48	16	1.60	Bedrock
A	KGA0627	56	60	4	0.17	Bedrock
B	KGA0629	32	34	2	0.13	Bedrock
B	KGA0632	60	76	16	0.18	Alluvial
B	KGA0632	80	87	7	0.16	Bedrock
B	KGA0633	68	72	4	0.18	Alluvial
B	KGA0636	68	72	4	0.11	Bedrock
C	KGA0638	80	81	1	0.14	Bedrock
C	KGA0639	40	44	4	0.15	Alluvial
C	KGA0639	80	84	4	0.60	Bedrock
C	KGA0642	64	68	4	0.19	Alluvial

Vein Quartz Gravel Assay Results

In addition, KWR resampled a mineralised single metre from the first round of aircore drilling in order to ascertain the exact material that contained the gold within the paleochannel sediments.

Two samples of individual vein quartz gravel clasts were hand-picked from the basal gravel intervals in KGA0409, which was drilled on Line 5 in the first round of drilling. An original composite assay of 3m

• 6.5g/t Au from 86m was reported within KGA04091. The quartz clasts were then washed in detergent and carefully rinsed to remove any fine detrital gold or gold-bearing clay adhering to them. Two samples of clasts were then submitted to SGS in Kalgoorlie for fire assay gold analysis. This was done to confirm if the gold in the alluvial channel was in the quartz gravels or in the clays that contain the gravels.

Sample RBS71119 returned 30.98g/t Au and sample RBS71120 returned 5.38g/t Au. The gold is therefore present within the actual vein quartz, rather than as fine-grained free gold within the associated alluvial clays. The presence of high gold values in the vein quartz clasts demonstrates that the gold in these gravels is being directly derived from high-grade,gold-bearing vein quartz reefs somewhere in the immediate vicinity. It confirms that the bedrock at the Sir Laurence gold discovery is gold mineralised and contains high grade auriferous quartz reefs. Deeper, more penetrative diamond and RC drilling is required to locate these reefs.

For personal use only

Next Steps

Approximately 2,000m of aircore drilling is planned to better test several targets outside of Sir Laurence (Figure 3). This will commence immediately following the current Sir Laurence extension lines.

Significant results were returned from first pass drilling in five targets including 11m @ 250 ppb Au from 15m in KGA0546, 4km to the north of Sir Laurence, and 2m @ 260 ppb Au from 66m in KGA05861, 1.5km to the north of Sir Laurence. The KGA0546 gold intersection is open at depth and occurs in an intensely altered, chloritised, siliceous metasediment. It shows similarities to the Sir Laurence bedrock gold mineralisaton and lies at the intersection of a NW-trending D4 fault zone with a magnetically prominent stratigraphic unit. Also of interest are the significant intersections in drill holes KGA0433 and KGA0594 which lie on the important Victorious Basalt/Black Flag Sediments contact that hosts numerous multimillion ounce deposits further to the south including the 1.7M oz Aphrodite Deposit.

Approximately 1,000m of diamond core drilling is also planned to commence at Sir Laurence in late November to determine the three-dimensional controls of the primary mineralisation (Figure 1).