Kaiser Reef Limited (ASX: KAU), the unique gold explorer, released the activities report for the March quarter, which is also the first such report since the listing of Kaiser on 28 February 2020.
The listing closed well before the tentative date of 7 February on account of the overwhelming response from the investors leading to heavy oversubscription of the initial public offering (IPO). Soon after the listing, the Company faced the challenges related to the outbreak of Coronavirus which was declared a global pandemic by the WHO on 11 March 2020. This unprecedented event had hit the global equities market hard, Kaiser reef’s stock showed extreme resilience and stood strong.
KAU is trading at $0.255 a share on 5 May 2020 (AEST:11:49 am), offering a return of more than 20% against the listing price, with a market capitalisation of $8.86 million. Kaiser reef remains committed to value generation for its investors and shareholders and utilised the time focussing on the exploration of Gold which broke all records and emerged as the strongest beneficiary of the quantitative easing initiative by the governments worldwide.
Airborne Geophysical Survey
Following the IPO, Kaiser appointed Resource Potentials Pty Ltd to evaluate the project areas in detail and target the large-scale gold mineralisation within Stuart Town tenements. Resource Potentials holds extensive experience in processing, interpreting and modelling magnetic and gravity fields and other geophysical survey such as Radiometric , Electromagnetic (EM), Induced Polarisation (IP), Ground penetrating radar survey (GPR) and seismic data under different geological conditions and on different commodities. Resource Potentials also have extensive experience of working on other projects in the Stuart Town’s locality.
Area covered by the airborne survey Source: Kaiser Reef
Kaiser initiated a high resolution airborne magnetic and radiometric survey on Stuart Town project and completed the same in April. The data from the airborne survey will be processed and the results would model and interpreted with the assistance of Resource Potentials. Following which Kaiser could commence the drilling plan.
The maiden exploration step will enable Kaiser to efficiently prioritise the drilling targets for the proposed drilling program, as the previous data could not support to the extent that Kaiser required.
Based on the historic geophysical data and interpretations, one of the models targeted to explain the 80+ historic gold mines by the origin to be sourced from the underlying felsic intrusive and porphyry style mineralisation. The intrusive bodies are structurally controlled and can be best identified using magnetic survey. Additionally, a radiometric survey will assist mapping in identify extended rock types and alterations.
Large Scale Gold in Soil Anomalies
During the quarter, Kaiser also completed importing, auditing and reprocessing the portions of historical exploration data by CRA (now a Rio Tinto Group subsidiary) and recalibrated the same to the JORC 2012 reporting guidelines.
The historic results indicated large scale and strong gold anomalism over the Stuart Town project. Kaiser is excited by the possibility of a extensive and high tenor gold anomalism. The elaborate and extensively distributed historical gold workings form a strong background to target bulk tonnage gold mineralisation.
Here are the highlights to the soil sampling results -
- large gold mineralisation, up to (4,000m x 1,000m)
- High order soil anomaly with gold grades up to 0.7 grams per tonne
- Extensive Arsenic and Antimony anomaly (with soil grades up to 2146 ppm As & 205 ppm Sb)
- Over the high target area, the anomalies coincide and are mapped as inner propylitic alteration within sulphidic rhyolite intrusives hosting historic gold workings
The mapping would assist in identifying drill targets for gold-copper porphyry mineralisation. The gold anomalism also overlaps the Arsenic (As) and Antimony (Sb) anomalism, further strengthening its case to target bulk tonnage gold mineralisation.
Kaiser Reef anticipates to locate the priority drill targets by accurate mapping and the characteristics of porphyry system to exhibit metal zonation from deep central region to distant higher regions.
Kaiser expanded the Stuart Town Project by acquiring 2 new exploration license applications in the vicinity. The board considers the new exploration license applications (ELA 5937 and ELA 5921) to complement the Stuart Town’s current tenure.
ELA 5937 is subject to Kaiser’s own application while ELA 5921 was acquired by Kaiser Reef from the Executive Director Jonathan Charles Downes in lieu of no payment required whatsoever except for the reimbursement of licence application costs ($1,556). Such events of generosity and support to the company by its management is unusual and displays the motivation of the leadership to develop the Stuart Town gold project successful.
The Exploration license application ELA 5854 was granted and was renamed to EL 8952.
Kaiser’s Acquisition of Macquarie North
Recently, Kaiser acquired exploration tenure at the “Macquarie North” project, north of mineral blessed Macquarie Arc in New South Wales. The Macquarie Arc is located within the Lachlan Fold Belt. The exploration licences, ELA 5948 and ELA 5949, holds prospective Au-Cu porphyry mineralisation and has been considered highly prospective by Kaiser’s board.
Macquarie North Project Source: Kaiser Reef Limited
The Macquarie North project is located north of FMG Resources and Kincora Copper Australia tenements in the Tier 1 mining jurisdiction. Kaiser recognises the Stuart Town project as an underdeveloped greenfield project and is excited to explore when possible. The flagship Stuart Town continues to be the priority for the gold explorer
Kaiser holds over $4.23 million in cash and spent over $463,138 during the quarter with majority being spent on the public offering ($313,754) and on exploration ($44,234). Amid these grim times, Kaiser Reef remains committed to explore the gold projects in the Lachlan Fold Belt of New South Wales.