Kingwest Resources : Nickel sulphide exploration to commence at Lake Goongarrie

Kingwest Resources Ltd

ASX: KWR

onlyShares on Issue 242,973,025

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]

9 February 2022

Nickel sulphide exploration to follow current aircore extension drilling at Lake Goongarrie gold discovery

• 11km of the nickel-fertile Highway Ultramafic unit to be tested at Lake Goongarrie
• Limited previous exploration has been largely ineffective due to at times thick lake sediment cover
• The Highway Ultramafic hosts significant "Kambalda-style" nickel sulphide deposits along strike to the south including Auroch Minerals emerging Saints deposits1 as well as the historic Scotia Mine which produced 30,800t Ni metal between 1969 and 19772
• Initial 3,000m aircore drilling programme is scheduled to follow the current Sir Laurence Gold Discovery extension drilling, taking advantage of the drill rig already onsite

CEO, Ed Turner commented "We are now finally in a position to commence meaningful and effective exploration for nickel sulphide mineralisation within our Lake Goongarrie Project, following the flying of a detailed aeromagnetic survey in late 2021. Kingwest's Goongarrie tenement package hosts multiple nickel exploration targets directly along strike of the Kambalda-style,komatiite-hosted, 'Saints' channel nickel sulphide deposits. The 11km continuation of the nickel-fertile Highway Ultramafic within our land holdings holds great discovery potential for nickel. This potential is in addition to the excellent gold prospects we have within the Goongarrie Project".

DISCUSSION

Following the success of Kingwest's gold exploration on the western side of Lake Goongarrie, which has demonstrated their ability to access and explore this extremely difficult terrain, the company has now commenced nickel exploration on the eastern side of the lake.

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Kingwest will be exploring an 11km strike length of the nickel-fertile Highway Ultramafic within the

E29/996 and E29/966 licences (Figure 1). This section of the ultramafic is entirely covered by salt-lake sediments, and not unlike the Sir Laurence area, has had little effective previous exploration due to vehicle access and drilling problems in this boggy ground.

Just 500 metres south of the company's tenements, the same Highway Ultramafic unit is host to the 'Saints' nickel sulphide deposits. These are a series of nickel sulphide lenses that were discovered by Western Mining Corporation in the 1990s. They include a JORC 2012 resource of 1.05Mt @ 2.0% Ni, 0.2% Cu and 0.06% Co, for 21,400 tonnes of contained nickel, 1,600 tonnes of contained copper and 600t of contained cobalt1.

The Saints nickel deposits are currently being explored by Auroch Minerals, who have recently reported an intersection of 1.77m @ 6.72% Ni, 0.27% Cu, including 0.5m @ 9.98% Ni and 0.25% Cu1.

15km to the south of the Saints nickel deposits, the Highway Ultramafic is also host to the historic

Scotia underground nickel mine. This nickel sulphide body was mined by Western Mining Corporation from 1969 to 1977, when the mine was closed prematurely due to a crown pillar collapse. The Scotia

mine produced 30,800t of nickel at 2.2% Ni, and has a remaining ore reserve of 17,500t of nickel at 2.14% Ni2.

The company's nickel exploration target at Goongarrie is a series of repetitions of the Kambalda-style,komatiite-hosted, Saints channel nickel sulphide deposits, along the 11km of prospective ultramafic that lie beneath lake sediments within Kingwest's Goongarrie tenements.

Initial exploration will consist of approximately 3,000m of track-mounted vertical aircore drill holes. These will be drilled on seven cross sections, spaced at regular intervals along the aeromagnetically- interpreted strike of the ultramafic. This will confirm the subsurface limits of the ultramafic unit, as interpreted from Kingwest's recent high-resolution aeromagnetic survey, and locate the exact position of the prospective basal contact. It will also serve as a regional geochemical reconnaissance for nickel gossans and sulphides that have intersected the geochemically active alluvium/bedrock interface.

This drilling will follow on from the current 4,000m aircore program that is testing for extensions to the Sir Laurence Gold Discovery.

This will be followed by a program of detailed infill aircore drilling along strike between sections, which will directly target the geochemical haloes of any nickel sulphide deposits that lie between the reconnaissance sections.

Nickel sulphide prospects generated by this aircore drilling can be then drilled out using the lake- capable diamond drilling rig that is currently being prepared for the Sir Laurence follow up program.

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Figure 1: Lake Goongarrie tenement holdings and Highway Ultramafic location which is prospective for nickel

sulphide mineralisation

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ABOUT KINGWEST's MENZIES GOLD PROJECT (MGP) AND GOONGARRIE GOLD PROJECT (GGP)

The MGP is one of Western Australia's major historic gold fields. Located 130km north of the globally significant gold deposits of Kalgoorlie (Figure 2). The MGP covers a contiguous land package over a strike length in excess of 15km. Within the MGP a series of structurally controlled high-grade gold deposits have been historically mined and display extensive exploration potential for high-grade extensions. Modern exploration since closure over 20 years ago has been limited.

Figure 2: MGP and GGP locations

The MGP has recorded historical production of 643,200 oz @ 22.5g/t Au3 from underground (U/G) between 1895 and 1943 plus 145,000 oz @ 2.6g/t Au3 open cut between 1995 and 1999, for a total of

787,200 oz @ 18.9g/t3 Au.

The MGP is hosted within the Menzies Shear Zone. All deposits lie within granted Mining Leases and are 100% owned by KWR (Figure 3). Current JORC mineral resources total 475,100 oz @ 1.35 g/t Au4 using a 0.5 g/t Au cut-off (Table 1) or 346,100 oz @ 2.06 g/t Au4 using a 1.0 g/t Au cut-off (Table 2).

Importantly the MGP lies on the Goldfields Highway, has power and water and is within trucking distance of numerous Gold Processing Plants.

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Figure 3: MGP aerial view showing the main mineralised systems as well as the MRE locations

Table 1: Menzies Project Mineral Resource Estimates, September 2021 above 0.5 g/t Au4

Deposit		Indicated				Inferred			Total
> 0.5 Au	Mt	Au g/t		Ounces	Mt		Au g/t		Ounces	Mt	Au g/t	Ounces
Yunndaga*	1.27	1.31		53,600	2.50	1.40		111,600	3.76	1.36	165,300
Pericles	2.31	1.27		94,600	1.64	1.21		63,900	3.95	1.25	158,500
Stirling	0.24	1.48		11,500	0.74	1.52		36,300	0.98	1.52	47,800
Lady Shenton					0.85	1.59		43,300	0.85	1.59	43,300
Lady Harriet	0.17	2.11		11,800	0.32	1.14		11,600	0.49	1.48	23,300
Bellenger	0.32	0.92		9,400	0.08	0.89		2,400	0.40	0.91	11,800
Selkirk	0.03	6.25		6,200	0.14	1.21		5,300	0.17	2.15	11,500
Warrior	0.03	1.37		1,200	0.19	1.11		6,700	0.22	1.15	8,000
Lady Irene					0.10	1.73		5,600	0.10	1.73	5,600
Total	4.37	1.34		188,300	6.56		1.35		286,700	10.92	1.35	475,100
Table 2: Menzies Project Mineral Resource Estimates, September 2021 above 1.0 g/t Au4
Deposit		Indicated				Inferred			Total
> 1.0 Au	Mt	Au g/t		Ounces	Mt		Au g/t		Ounces	Mt	Au g/t	Ounces
Yunndaga*	0.44	2.51		35,400	0.97		2.54		79,100	1.40	2.53	114,600
Pericles	1.16	1.82		68,000	0.83		1.67		44,300	1.99	1.76	112,300
Stirling	0.15	1.94		9,500	0.43		2.12		29,300	0.58	2.08	38,800
Lady Shenton	-	-		-	0.63		1.87		38,000	0.63	1.87	38,000
Lady Harriet	0.13	2.62		10,700	0.13		1.68		7,000	0.26	2.14	17,700
Selkirk	0.03	6.35		6,200	0.03		2.95		3,200	0.06	4.55	9,400
Bellenger	0.09	1.43		4,400	0.02		1.24		1,000	0.12	1.39	5,400
Warrior	0.02	1.93		1,000	0.09		1.55		4,400	0.10	1.61	5,400
Lady Irene	-	-		-	0.06		2.40		4,500	0.06	2.40	4,500
Total	2.02	2.08		135,200	3.19		2.05		210,800	5.20	2.06	346,100