Kaiser drilling hits high grade gold at Queens Lode

Kaiser’s plans to start mining the Queens Lode bulk tonnage target in the second half of 2021 are looking positive after drilling intersected high grade gold.

Results such as 8.5m grading 9.26 grams per tonne (g/t) gold from 58m and 1.6m at 11.3g/t gold from 86m within a broader 21m zone at 5.03g/t gold from 45m compare well with previous drilling.

Queens Lode is the most advanced bulk tonnage exploration target with well-defined resource potential in the near term at A1 and the broader objective of Kaiser Reef’s (ASX:KAU) drilling program is aimed at supporting the definition of a resource for Queens Lode.

Drilling will also assist in increasing the understanding of the strike and mineralisation extension within the A1 mine.

Production at A1 is currently operating on a reduced basis as it was prior to being handed over to Kaiser in January.

The company is currently preparing a ramp up plan that is designed to access increased production sources from airleg and mechanical methods.

Gold production

Ore is currently being exploited using airleg mining methods at a rate of between 400t and 500t per week.

This is then treated at the company’s wholly-owned carbon-in-leach processing facility at Maldon.

Queens Lode is central to Kaiser’s plan to ramp up production in the medium term as it is mineralisation and greater thickness lends itself to mechanical mining that will increase overall output.

A decline bypass to provide access for larger equipment required to mine the lode has been completed.

kaiser reef gold bypass decline — Decline bypass break through. Pic: Supplied

The decline targeting the Queens Lode is also planned to intercept several high-grade gold reefs as encountered in the most recent drilling programs, including the interpreted lower extension of the high-grade Apollo Reef.

Kaiser plans to exploit these reefs by using airleg mining techniques to supplement the planned mechanical bulk mining.

The company has also started to address operation issues such as power upgrades, upgrading ventilation and sourcing mechanical mining along with additional airleg mining equipment.

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.