Kaiser Reef takes first steps to expand gold resource for its A1 Mine
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Special Report: Australian gold company Kaiser Reef has announced a maiden drilling result for its recently acquired A1 Mine in Victoria’s Maldon gold field.
The operator of the A1 Mine for gold in Victoria, Kaiser Reef (ASX:KAU), said the high-grade drilling results validate the exploration company’s acquisition of the project.
Significant hits from the drilling campaign include 3.7m at 68.62 grams per tonne (g/t) gold.
The company believes that very little exploration drilling has been undertaken beneath the mine’s existing mined lodes in recent times, leaving high potential for economic discoveries.
The maiden drilling program is designed to expand production at A1 Mine and did not target any know mineralisation at the project.
“Therefore, it is highly encouraging that significant results have been obtained in this component of the program,” said the company.
Kaiser Reef has mapped out a clear pathway to increasing production at its A1 Mine which has historic production of 500,000 ounces of gold at an average grade of 25.9 g/t.
The gold company is seeking to delineate its Queens Lode project as a high priority in 2021.
Kaiser Reef’s Victoria gold operation comprises its 100 per cent-owned A1 Gold mine, and adjacent Maldon gold processing plant and Maldon gold exploration project.
Both projects have a historic gold production of 2 million ounces of gold at high grades.
The gold company was able to make a solid start in progressing its production plans for the A1 Mine because of the flexibility shown by the asset’s administrator KordaMentha.
The assets emerged debt-free from administration and into a high gold price environment.
Shareholders responded well to a capital raising for Kaiser Reef that delivered $7.5m.
Stuart Town is directly south of Alkane Resources’ (ASX:ALK) Boda gold prosect in the LFB, for which a large scale soil anomalism and magnetic target has been detected.
Macquarie North is at the northern end of the Macquarie Arc in the Lachlan Fold Belt which is host to some of Australia’s largest gold mines.
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.