Kaiser Reef prepares for maiden drilling, Matches Gold Price Rally

Summary

• Kaiser Reef prospective Stuart Town gold project prepares for upcoming maiden RC and diamond drilling program
• Priority drill targets from the high resolution magnetic and radiometric survey and the existing exploration data
• Drilling rig & all drilling permits received, site preparation activities progress

The recent strength in the gold prices surpasses the investment returns by almost any conventional instruments and has delivered consistently to both individual and the institutional investors. Gold proves its worth as a hedge against financial investments offering skyrocketing returns in the weak economic conditions amid pandemics.

Gold on the bull run, ETF and Central Bank Buying continues to grow

Gold prices have surged by 32% since the beginning of 2020, and a strong rally encourages the gold explorers and developer to strengthen the mining facilities further and develop prospective gold projects in the gold output in the upcoming years.

Quarterly gold production by Value Source: World Gold Council

Amid the coronavirus pandemic, the gold demand has surged registering impeccable growth in the net inflows in the Gold backed ETFs and the consistent central bank buying by the central banks.

As per the Australian department of industry, Science, Energy and Resources, Australia intends to emerge as the largest gold producer in 2021. At times when the mined ore grades have been declining, Australia gold miners and explorer continue to explore new gold prospects and ramp up supply consistently.

Gold traded at US$2,005 an ounce on 18 August 2020 at 5:55 PM AEST, registering an increase of over 16% in the past 3 months.

Gold Price Performance Source: World Gold Council

Gold stocks present a strong case as investible instruments amid strong volatility in the equity markets leveraging high gold prices and strong exploration results. Since the 2008 gold rush, a strong rally in the gold prices hit the highs during 2011, the resurgence of Gold prices in 2020 has now hit the record gold prices exceeding US$2,070 an ounce of Gold during August 2020.

Kaiser Reef Limited (ASX: KAU), the Lachlan Fold Belt focussed gold explorer, is set to commence maiden drilling program at the flagship Stuart Town gold Project. Kaiser recently announced the receiving all mandatory permits and landowner access agreement required for the first phase of the drilling program.

Stuart Town - Premium Project in the prolific Lachlan Fold Belt

Stuart Town Gold project is located between the Alkane Resources Ltd’s (ASX:ALK) recent Boda discovery and Newcrest Mining Limited’s (ASX:NCM) Cadia Valley operations in the Lachlan Fold Belt in New South Wales.

Source: Kaiser Reef Limited

The Stuart Town gold project is home to over 80+ gold mining operations with recorded gold production of ~5,000 kilograms since 1875. The largest historic gold mining operations is Kaiser Wilhelm which produced over 112 kilograms of gold at an average sorted grade of 24 grams a tonne of gold.

Must Read: Kaiser Reef, showing strength on ASX, aims to develop the Stuart Town Gold project

In order to identify the priority targets for the first phase of drilling program, Kaiser completed a high resolution airborne magnetic and radiometric survey. The geophysical programs aimed at identifying key prospects with potential for gold mineralisation and for the drill planning.

The initial targets identified are as follows-

1. Kaiser Wilhelm – Intrusive prospects associated bulk gold mineralisation. The Kaiser Wilhelm hosts the largest historic gold workings within the Stuart Town ground.
2. Specimen Hill – intrusive source
3. Red Britton, Splitters Gully, Beehive, Horseshoe, Fitzsimmones, Mascotte, Iron Duke,

Lady Carrington, Swallows Nest – Historical mine workings

4. Perseverance and Ginger Reef –shear hosted gold mineralisation

Read Here: Kaiser Reef Highlights Specimen Hill for the Upcoming maiden Drilling Program at Stuart Town

Kaiser Reef has secured a drilling rig from Australian Mineral & Waterwell Drilling, capable of upcoming RC and diamond drilling program. Kaiser is currently progressing on site preparation activities such as the drilling program and plans to commence RC drilling initially and then advance to diamond drilling at the Stuart Town gold project.

Must Read: Kaiser Reef Secures further Exploration License Applications

Kaiser closed at $0.360, up by 1.4%, on 2 September 2020 (AEST: 01:01pm), with a market capitalisation of $11.87 million.

All financial information pertains to Australian currency unless stated otherwise.