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Kaiser Reef Limited (ASX:KAU) Story, next leg of growth at A1 gold mine

Source:Sunshine Seeds, Shutterstock

Summary

  • Kaiser Reef re-listed on ASX on 28 January 2021 after successfully transitioning to a gold producer.
  • Kaiser owns the Stuart Town gold project and the Macquarie North project in the Lachlan Fold Belt.
  • Recently, Kaiser Reef had been conducting a drilling campaign at A1 gold mine which intersected extremely high gold intercepts with grade up to 68.6 g/t gold.

As per the energy and resource quarterly (December edition), the demand for jewellery in China and India, the two largest consumers, dropped 25% and 48% (y-o-y basis), respectively. The report further states that the physical gold demand would surge by 25.7% during the current calendar year. The rise in demand needs to be complemented by increase in mined gold production globally.

Iconic gold mining and exploration company Kaiser Reef Limited (ASX:KAU) debuted on the ASX in February 2020 after gaining an overwhelming response from the investors at the lean IPO listing. The stock relisted on 28 January 2021 after successfully transitioning to a gold producer upon completion of the acquisition of operating Victorian gold assets.

Our latest virtual meet with Mr. Jonathan Downes, MD , Kaiser Reef Ltd at the Executive Corner.

Impressive growth story in a short span

Despite the pandemic, the gold explorer continued efforts to plan and execute a systematic exploration program including the maiden drilling campaign at the Stuart Town gold project which is located between the one of the lowest cost copper-gold mine in Australia, the Newcrest Mining’s Cadia Ridgeway and the most significant gold discovery in the Lachlan Fold Belt (LFB) of NSW, the Alkane Resources’ Boda prospect.

In April 2020, KAU acquired the Macquarie North project which is located on the northern extent of the Macquarie Arc of LFB and is interpreted to be highly prospective for Copper gold porphyry mineralisation.

Source: Kaiser Reef Presentation 21 December 2020

Transition to the Gold Producer

In October, Kaiser Reef entered into an agreement with Golden River Resources to acquire the Victorian goldfields project. The acquisition agreement includes the operational A1 gold mine, 4 granted mining licences at Bendigo Block and at Woods Point, and the highly prospective Maldon goldfields project along with the Porcupine Flat gold processing plant.

Similar to the LFB, Victorian goldfields has been a premium hotspot for gold mining and hosts one of the most profitable and highest-grade gold mines at Fosterville. The super high grade Swan zone discovery has enabled the Fosterville mining operations to quadruple its gold production from over 151 kilo ounces in 2016 to 619 kilo ounces in 2019. The Fosterville gold mine holds mineral reserve of 2.7 million ounces of gold.

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

Exploration Programs at the Victorian gold assets

Recently, Kaiser Reef updated the investors with the drilling results of the ongoing drilling campaign at A1 gold mine. The company had intersected extremely high gold intercepts, including 3.7 metres with grade up to 68.6 g/t gold.

The company considers the initial phase 1 assay results as exciting and plans to advance to development in these areas in the short term.

Kaiser Reef traded at $0.335 a share on 23 March 2021 at 1:01 PM AEDT with a market capitalisation of $39.06 million.

All financial information pertains to Australian Dollars unless stated otherwise.

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