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Kaiser Reef Limited (ASX:KAU) announced initial drilling results for newly acquired A1 gold mine

Summary

  • Initial drilling results reported for Kaiser Reef’s A1 gold Mine. The A1 and Maldon gold project have produced over 2 million ounces of gold in the past.
  • The ongoing drilling programme plans to delineate existing resource for the short- and medium-term periods.
  • Bulk tonne/wider lode at Queens Lode may hold the potential to supplement or enhance the current production levels.

Gold mining company, Kaiser Reef Limited (ASX:KAU) has announced initial drilling results for the current drilling program at the A1 gold Mine. The significant results received for the first batch of the drilling samples from the A1 gold mine includes 3.7 metres with 68.62 g/t gold.

The mining company believes that the high-grade results from the exploration program validates the past production of the A1 mine and reinforces confidence in the future of the mining operation. Kaiser has received a major head start towards the development of the future production plans.

Phase 1 Drilling Results Source: Kaiser Reef ASX Update 1 February 2021

The initial drilling is only a section of the work planned to resume the decline and did not target the lodes of mineralisation. Therefore, it is extremely encouraging for Kaiser Reef and the newly acquired A1 gold mine that such significant results have been obtained from the drilling program.

Must Read: Gold miner, Yes! Gold miner - Kaiser Reef Limited (ASX:KAU) re-lists on ASX

The drilling program is planned to continue and upgrade the resource estimates for short- and medium-term production horizons. The initial program targets 4,000 metres to be drilled and as of now 80 metres have been drilled. However, the plans are general and will be subject to changes as results dictate.

Logged visible gold (L) and Underground drill core (R) Source: Kaiser Reef ASX Update 1 February 2021

Kaiser seeks to identify Queens Lode project as a priority for 2021 mechanised mining to supplement the high-grade narrow vein airleg mining supporting the mining operations. The results from the Queens Lode are still pending and will be released in future.

Current UG diamond drilling program at Queens Lode

The current UG diamond drilling program includes multiple section of geotechnical/infrastructure advance, resource definition, advancement in infrastructure and exploration. The program will now advance to delineate resources especially at the Queens lode initially and will target deeper (150-300 metres) mineralisation targets beneath the deepest historical mine workings. The previous drill results from the Queens Lode includes:

  • A1UDH-325: 11.9m @ 16.3 g/t gold
  • L7-008: 25.0m @ 7.3 g/t gold

The current exploration program will include 5 sub-program which represent the specific regions of the Queens Lode requiring infill drilling, strike extension, width / depth delineation and the identification of the plunge of high-grade mineralisation trends.

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The bulk tonne/wider lode at Queens Lode may hold the potential to supplement or enhance the current production levels via air leg mining techniques which have been extracting the narrow vein high grade lodes. Any additional ores can be processed at the wholly owned Maldon processing plant which holds buffer capacity for processing the hold rich ores. The Maldon processing plant has a 150,000 tpa CIP capacity and hosts excellent existing infrastructure.

The A1 and Maldon projects have historically produced more than 2 million ounces of gold at exceptionally high grades. Kaiser Reef believes that the project has been limited exposed to modern exploration drilling techniques beneath the existing mining lodes and holds excellent potential for economic discoveries.

Important Read: Kaiser Reef to turn into a Gold producer, Acquiring Golden River Resources

Kaiser Reef closed at $0.450 a share on 2 February 2021 with a market capitalisation of $51.70 million.

*All financial information pertains to Australian Dollars unless stated otherwise.

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