Kaiser drilling hits high-grade gold, outlines potential depth extensions
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Drilling at Kaiser’s A1 gold mine in Victoria have returned some very high-grade results that successfully delineated the positions of the currently mined reef systems.
Notable results include narrow, bonanza grade intersections of 0.2m at 802.9 grams per tonne (g/t) gold and 0.2m at 105.1g/t gold along with hits such as 2.4m at 33.1g/t gold.
Importantly, depth extensions of two earlier ‘scissor’ holes have confirmed the diorite dyke that hosts the mineralisation at A1 extends to a depth of at least 140m below the deepest workings and remains open at depth.
Kaiser Reef (ASX:KAU) added that assays from drilling at the bulk tonnage Queens Lode, which is open and warrants extensional work, are still pending.
The drill program was carried out to provide information that the company can use to direct near-term mining activity, increase drill density and confidence in medium-term bulk tonnage stope mining at Queens Lode, and test for depth extensions of the gold-bearing intrusive, diorite host-rock at significant depth.
Earlier this month, the company reported that it had milled 2,377 tonnes of ore at 9.55g/t gold in June to produce 688oz of gold, of which 630oz was sold at an average price of $2,384 per ounce.
This highlighted the impact of Kaiser’s ramp-up strategy as the mine had produced 754oz of gold during the first two months that it was owned by the company.
The company attributes this increase to strong early production from the 19 Intermediate (19INT) section, which is the first new level and ore to be accessed in several years.
And there’s more.
While Kaiser’s decline development has accessed the 19INT, its ultimate goal is to access the Queens Lode, a bulk tonnage exploration target that will make use of mechanical stope production.
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.