A1 gold mine ramp-up delivering stronger revenues for Kaiser Reef
Link copied to
Kaiser’s ongoing ramp up strategy for its A1 gold mine in Victoria has been vindicated with a strong uplift in June revenue that exceeds mine operating costs.
The company milled 2,377 tonnes of ore grading 9.55 grams per tonne (g/t) gold in June to produce 688oz of the precious metal. It sold 630oz of gold at an average price of $2,384 per ounce delivering operating cash of $418,241.
Highlighting the scale of this improvement, the A1 mine produced 754oz of gold during the first two months (February and March 2021) that it was owned by Kaiser Reef (ASX:KAU).
While the costs exclude the development costs of the decline and exploration drilling, which are ongoing, the company has already started the new financial year on a strong footing with July production starting with a substantial tonnage of ore estimated at the run of mine (ROM) pads at both A1 and at the Maldon processing plant.
Plans to ramp up production at the A1 mine, which has produced about 500,000oz of gold since 1861, include mechanised mining at the Queens Lode and moving to an owner-operator model over portions of the mining fleet.
Part of the uplift is due to strong early production from the recently accessed 19 Intermediate level, which is the first new level and ore to be accessed in several years.
The success provides growing confidence that the operations will continue to deliver high-grade ore to Kaiser’s processing plant at Maldon, where ramp-up planning and staffing has also commenced in anticipation of stronger production.
Production during June also included some liberated gold from a mill reline.
This article was developed in collaboration with Kaiser Reef, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.