Kaiser Reef Identifies Priority Gold Targets, Completes Airborne Magnetic and Radiometric Survey

Summary

• Completion of Airborne Magnetic and Radiometric Survey, allows the flagship Stuart Town Gold Project to Advance to Maiden Drilling program
• Survey reveals similarities to McPhillamys gold deposit and Bodangora Gold Mine
• Drilling programme being prepared, anticipated to commence as soon as possible

Kaiser Reef Limited (ASX: KAU) announces identification of priority gold targets for the upcoming drilling program at the flagship Stuart Town Gold project. The Company with the assistance of Resource Potentials Pty Ltd has identified and prioritised the targets from the recently completed airborne geophysical survey.

The targets indicate potential for large scale gold mineralisation located within the Kaiser’s exploration ground. The wholly owned gold project is strategically placed in the neighbourhood of the largest gold mining operations such as Newcrest’s Cadia as well as mega gold discoveries such as Alkane’s Boda prospect within the Lachlan Fold Belt.

The Stuart Town mining centre has the potential to host large-scale gold mining prospects. The tenements under the Stuart Town project will be tested for large gold-copper porphyry systems and McPhillamys lode style gold resources.

Source: Kaiser Reef

Kaiser Reef on 6 April 2020, had announced the appointment of Resource Potentials Pty Ltd, a leading Geophysical Consultancy Firm, for the evaluation of Stuart Town Gold prospects targeting bulk tonnage mineralisation within the project area.

Following the appointment, a large scale, high resolution airborne magnetic and radiometric survey was undertaken, which resulted in the defining new high priority gold prospects with varying mineralisation styles including structurally controlled lode-gold and intrusions.

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The initial prospects which have been identified are as follows-

1. Kaiser Wilhelm: Intrusions associated with large scale superficial mineralisation extending to the surface and anomalies with copper mineralisation coinciding over a magnetic anomaly which is understood to be sourced from intrusions
2. Specimen Hill: Gold associated with sulphide mineral hosted in Rhyolite deposit types
3. Perseverance and Ginger Reef: Gold mineralisation hosted in the shear zone
4. Red Britton, Splitters Gully, Beehive, Horseshoe, Fitzsimmones, Mascotte, Iron Duke, Lady Carrington, Swallows Nest: Historically mined gold deposits along the North-west structural trend

Magnetic Intensity image (L), Potassium alteration and prospects over the project area (R) Source: Kaiser Reef Limited

Insights from the airborne magnetic and radiometric survey

The exploration modelling is based on the geophysical results as well as the site observations. The massive intrusions hosted various gold mining operations historically and are interpreted to be structurally controlled and enclosed within the compromised rocks.

The magnetic survey completed by Kaiser marks the completion of a significant milestone in defining the regional and local mineralisation structures and has highlighted the regional Ilgingarry Fault containing gold mineralisation. The other gold bearing sympathetic mineralisation structures need to be reinterpreted, thereby increasing the prospective area at the Stuart Town Gold project.

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Additionally, KAU also completed the airborne survey which helped to identify variations in deposit types and the changes due to hydrothermal alteration leading to detecting the most prospective rocks.

Radiometric information may further assist in identification of halos and alterations for highlighting the underlying systems during the drilling program. The Stuart Town mining district held over 80 mining operations with a cumulative recorded production of ~170,000 ounces of Gold.

The radiometric survey indicated alterations to be linked with structural trends and orogenic gold mineralisation. Similar combinations have been observed at the Regis Resources’ mega McPhillamys gold deposit, almost 70 kilometres south of Stuart Town.

Kaiser Reef observed the similarity of the Stuart Town mineralisation with the high-grade Bodangora Gold Mine, which is just 3 kilometres southwest of the much-discussed Alkane’s Boda prospect. The associated sulphide is interpreted to be held within the rhyolite units which are derived from underlying acid igneous intrusion.

Kaiser expects that planned relaxation in the current restrictions will accelerate the progress of the Stuart Town project amidst COVID-19 pandemic. Kaiser Reef is committed towards the health, safety and environment of employees, vendors and the local community and is taking measures to ensure the same.

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The Way Forward: Advancing to the Drilling Programme

The Company anticipates continuing the systematically planned exploration program of which portion of field mapping and identification of target areas has been done. The further steps include a drilling programme which is currently being planned and is under discussion with the drilling contractors. With some approval requirement pending for now, Kaiser plans to advance to drilling as soon as possible.

Kaiser Reef closed at $0.285 a share on 1 June 2020, with a market capitalisation of $9.53 million.