Kaiser drilling unlocks new gold mining reef at its A1 Mine

Successful drilling at Kaiser Reef’s producing A1 Mine has opened up the opportunity to develop an intermediate reef close to the previously mined Victory and Welcome reefs.

Diamond drilling at the 1410 South mining development returned standout assays such as 0.3m at 315 grams per tonne (g/t) gold from 1.5m (A1UDH-536) and 9.45m at 25.6g/t gold from 10.95m including 0.5m at an eye-popping 356g/t gold from 12.1m (A1UDH-537).

The prospect for more resources to mine from is always going to be welcome, particularly since Kaiser Reef (ASX:KAU) has been sustaining an increased monthly ore production rate of between 4,000t and 5,000t since mid-June, which is about double its previous throughput.

Adding further interest, the 1250-840 reef that is currently being mined has delivered spectacular visible gold.

Doubling ore production and mining high grade ore could deliver a substantial improvement to the economics of operating the A1 Mine, which reported free cash flow in the March 2023 quarter.

The mine delivered $9.48m in revenues from the sale of 3,376oz of gold in the quarter versus total costs of $8.09m.

Exploration drilling

Kaiser Reef noted that the 1410 South drill program targets the southern A1 Dyke stratigraphy between the 1410mRL to just below the 1350mRL.

Hole A1UDH-536 intersected a significant mineralised quartz vein that returned the 0.3m hit at 315g/t gold.

The vein orientation is very low-angled and potentially extends to the first interval of 0.5m at 356g/ gold in A1UDH-537, which had intersected significant quartz veining, often with visible gold specks and occasionally associated with stylolitic sulphides, from between 10m and 20m down-hole.

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.