Kaiser Reef is back as the ASX’s newest gold producer
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Special Report: Kaiser Reef (ASX:KAU) has re-listed on the ASX as a gold producer following the completion of an oversubscribed $7.5m capital raising.
The funds were raised through the issue of 25 million shares priced at 30c to eligible shareholders and the public.
Kaiser poured first gold following the acquisition of the operating A1 mine, Maldon processing plant and exploration project in Victoria.
A1 has historical production of ~500,000oz of gold since 1861 while the Maldon gold field produced 1.74 million oz of gold at an average grade of 28 grams per tonne.
The company plans to continue exploration at its current projects in New South Wales and its newly acquired Victorian tenements.
It is currently drilling prospective mineralisation at the A1 mine and plans to prudently increase production from the current reduce rate to use the carbon-in-pulp processing plant’s full capacity of 150,000 tonnes per annum.
Kaiser has also issued 53.3 million shares to the shareholders of Golden River Resources’ which had held the A1 mine and Maldon project.
The A1 project is located 8km northwest of Woods Point and 120km west of Melbourne within the Melbourne Zone of the Lachlan Fold Belt.
It was discovered in 1861 at an outcrop known as Castle Reef.
Underground mining accessed by two shafts with mining to a depth of approximately 700 metres below surface continued until 1992. Mining resumed in 2016 while the Union Hill mine was reopened in 2017.
The Maldon Goldfield with historic production of 1,740,000 ounces of gold at an average grade of 28 g/t gold including the historic Nuggetty Mine which was one of the highest-grade gold mines in Victoria, having produced 301,000 ounces at an extraordinary average grade of 187 g/t gold.
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.