Kaiser Reef reckons the Queens Lode at its A1 gold mine is bigger than first thought
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Kaiser Reef’s diamond drilling at its A1 gold mine in regional Victoria has returned strong results below the current operations – including 18.9m at 12.1 g/t gold within 50.9m at 5.4 g/t gold.
The company is confident this could be an extension of the Queens Lode mineralisation – which has not been previously exploited by historical mining and is amenable to mechanical stoping mining methods.
The drilling program has already been extended twice since the beginning of the year and Kaiser Reef (ASX:KAU) executive director Jonathan Downes said he was pleased to see continuing strong results from the exploration work.
“The increased understanding comes from the fact we have already drilled more metres into A1 in 2021 than in the past cumulative five years,” he said.
“An operating mine needs this level of data to allow proper planning.
“The Queens Lode now starts only 10 metres below the current level, and we are excited by the future prospects offered by developing into the Queens Lode.”
Crew availability and decline progress at the Queens Lode has been impacted by border restrictions and COVID-19 impacts.
Decline development continues towards the 19 Level (1260mRL – top of Queens) and has passed the 19 Level Intermediate (1280mRL).
This is the first new exposure of areas for modern mining in several years and Kaiser expects to have working faces for airleg mining at the 19 Level Intermediate shortly and 19 Level in October.
The company is using the development delays as an opportunity to re-optimise the decline trajectory towards the Queens Lode and to conduct updated technical studies with external contractors which will utilise newly available data for mine planning.
The A1 team will refocus on increasing the rate of high-grade airleg mining production until the finalisation of the Queens Lode drilling and studies on the resource and mining plans.
Notably, airleg stoping is a mining method that has averaged recovered grades of 10.1 g/t gold over the past 22 months.
The company has also engaged Mining One to conduct a technical study to provide the optimal development plan for the Queens Lode.
Kaiser is also drilling at Maldon – a major historic goldfield with recorded production of 2.1M ounces of gold at an average grade of 28 g/t gold situated between Ballarat and Bendigo.
The company has received approval to drill the Nuggety Reef historic gold mine from the surface, subject to certain conditions/submission of work plans and is planning to mobilise a second diamond drilling rig to Maldon/Nuggety Reef.
The Nuggety Reef mine is one of the highest-grade gold mines in Australia with historic production of 301,000 ounces of gold production with a recorded average grade of 187 g/t gold – and some very limited later drilling encountered grades up to 205 g/t gold.
This article was developed in collaboration with Kaiser Reef Limited, 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.