Show time for Kaiser Reef as decline reaches the Queens Lode
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Kaiser Reef is poised for a step change in production from its A1 gold mine in regional Victoria after the decline hit the target Queens Lode.
Mining the Queens Lode is expected to provide a strong increase in gold production rates at a lower cost per tonne.
This is thanks to its wide, high-grade zones of mineralisation that are amenable to mechanical stoping methods, which is markedly different from the narrow but very high-grade veins exploited at the A1 deposit using airleg stope mining.
Kaiser Reef (ASX:KAU) adds that exploration and resource drilling completed at Queens Lode prior to mining continues to deliver excellent results such as 12.2m grading 10.3 grams per tonne (g/t) gold from 39.8m within a broader 26.1m zone at 6.2g/t gold from 33.6m and 12.4m at 10.9g/t gold from 38.6m within a 24.4m intersection at 6.7g/t gold from 36.6m.
Final assays from the now completed drill program are due shortly and will be incorporated into the resources and mining studies at A1.
First ore from the Queens Lode has also been shipped for processing.
The push to access the Queens Lode is driven by the company’s plans to increase production at the A1 gold mine that it acquired recently.
Mechanical stoping of the ore body will begin once further development is completed, though development of the decline has also opened up new areas for airleg mining activities.
These include the 19 Level Intermediate and the 19 Level, which is adjacent to the top of, and into, the Queens Lode.
The latter is intriguing as very coarse gold was extracted during its development.
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.