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Kaiser Reef (ASX:KAU) strike high-grade gold on A1 Mine, extends depth of mineralisation

Summary

  • Kaiser has shared another tranche of assay results from its diamond drill campaign on the A1 Gold Mine.
  • The drilling program established that the gold host-rock in the mine is extended toward depth and remains open.
  • Significant gold intercept up to 802.9 g/t Au was received from the ongoing drilling campaign.
  • The result for the drilling concluded at the bulk tonnage Queens Lode is awaited, and the Company is planning further drilling.
  • The shares of KAU moved 5.8% today on the backdrop of encouraging intercept results.

In its continuous endeavour to unlock the gold potential of its Victorian gold project, Kaiser Reef Limited (ASX:KAU) is going strength to strength on A1 Gold Mine. Kaiser had launched a diamond drilling campaign on the project to evaluate near-term mining opportunities and extension of the host-rock in the subsurface.

Good read: Kaiser Reef Limited’s (ASX:KAU) A1 Gold Mine witnesses record high revenues in June, Ramp-up strategy pays off

The drilling campaign on the mine area is ongoing since the beginning of this calendar year, and Kaiser keep updating the market with the assay results. The latest of the drill intercept results have yielded gold value up to 802.9g/t from one of the holes. Significant intercept results are:-

Most significant gold intercept result came from the hole A1UDH-441- 0.2m @ 802.86 g/t Au from 54m.

Also read: Kaiser Reef Limited’s (ASX:KAU) A1 operations transitioning to owner operatorship, Decline development commenced

Drilling campaign

The drilling program is ongoing in the mine area since the beginning of this year.  The program was designed in a fashion to extract information regarding the near-term mining activity. The campaign saw increased density of drilled holes to instil confidence in medium-term bulk tonnage stope mining. The drilling program was also intended to test the depth for extensions of the gold-bearing host rocks at depths.

Objective of ongoing drilling program(Data source: Company update, 15 July 2021)

The results show the campaign has been successful in delineating the positions of the gold-bearing reef system. The reef is being mined currently on the project. The result for bulk tonnage at Queens Lode is still pending. The mineralisation at the Queens Lode is open, and further extensional drilling is required.

Read here: Kaiser Strikes new gold mineralisation at Queens Lode, Ramping up of Gold operations in full Swing

Diamond drill traces on A1 Mine with depiction of Queens Lode interpreted alteration outline(Image source: Company update, 15 July2021)

Diorite dyke is the host rock on the A1 Mine. Depth extension of more than 200m (vertical) was indicated by the drilling results. Drillholes A1UDH-422 & A1UDH-423 were designated for depth extension. The drilling has delineated the presence of host-rock to at least a depth of 140m below the deepest workings and remains open at depth.

Good read: Kaiser Reef Limited (ASX:KAU) committed to ramping up gold production and exploration at Victorian assets

Share price

The shares of KAU were trading at AU$0.27, up by 3.846% on 15 July 2021, whereas its currently trading at AU$0.26 at 2:36 pm (AEST) on 23 July 2021.

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