- Kaiser Reef’s continuous diamond drilling at the operating high-grade A1 Mine is expected to conclude in approximately two months.
- KAU looks forward to commencing drilling on the granted Mining Licence at the high-grade Maldon goldfield.
- An initial programme includes over 20 drill holes from underground and may be extended if results warrant.
High-grade Australian gold producer and explorer Kaiser Reef Limited (ASX:KAU) has been continuing diamond drilling at the operating high-grade A1 Mine. The ongoing diamond drilling program has returned encouraging results and has been continuing since the beginning of the year.
KAU preparing to commence drilling at Maldon goldfield
Once the Company has completed the progressing diamond drilling at the operating high-grade A1 Mine, KAY looks forward to expanding the exploration at Maldon. A1 Mine drilling is expected to be completed in about 2 months.
For this purpose, a second diamond drilling rig and the drilling team have already arrived. Maldon goldfield, and KAU have secured regulatory approvals to commence drilling on the granted Mining Licence.
Under the initial drilling program, KAU looks to target the regions identified as being proximal to the current underground development and with historical encouraging results within the Union Hill decline. In the initial phase, this drilling shall test identified mineralised areas and advance to explore for and define economic ore zones.
Long Section showing the Union Hill decline and previous drill intercepts (Source: KAU Announcement 19/07/21)
Focus of drilling
Located between Bendigo and Ballarat in the Victorian Goldfields, KAU’s fully owned Maldon goldfield has produced more than 1.7 million ounces of gold at 28 g/t (average grade) and is a host to possibly the highest-grade historic gold mine of Australia, the Nuggety Reef, that produced 301,000 ounces of gold at 187 g/t.
High-Grade Maldon goldfield location plan (Source: KAU Announcement 19/07/21)
The Company believes that the following historic high-grade gold results warrant follow up:
Source: KAU Announcement 19/07/21
Notably, the Maldon goldfield includes the present extensive infrastructure and is close to the gold processing plant of KAU. There is a possibility for the implementation of rapid and low-cost development with the mining fleet owned by KAU and the experienced mining team for reduced capital cost.
Presently, the decline is permitted to begin production that shall enhance the opportunity for a rapid transition to production.
Plan view of the Maldon Goldfield with historic production (Source: KAU Announcement 19/07/21)
The initial program includes more than 20 drill holes from underground and is anticipated to continue for a prolonged period as there is a possibility for extension based on the results.
The established serviced decline enables excellent underground access for drilling high-grade shoots and enabling underground drilling and potential development.
KAU looks forward to providing drilling results in batches once assay results are received.
The KAU stock was noted at AU$0.260 on 19 July2021. The shares are currently trading at the same price at 2:36 pm (AEST) on 23 July 2021.