The Queens Lode – forming part of the A1 Mine gold mine in Victoria – will now form a production baseload for 2022, on top of being supplemented with continuing high-grade airleg production, Kaiser’s MD tells Stockhead.

Shares in Kaiser (ASX:KAU) jumped sharply higher on Tuesday, after the local goldie reported a strong lift in production from high-grade lodes at the 1280mRL, confirming the mine continues to deliver, “a strong increase in head grades”.

These areas have only become accessible to Kaiser through the extension of the decline which started in mid-2021, something that is reflected in production from the four weeks up to February 13.

This is where gold feed grade at the plant was estimated at 20 g/t gold and an estimated 98% gold recovery after milling and processing.

More high-grade material to come

KAU managing director Jonathan Downes said, “a lot of exploration and development work” was required to get to this point.

“As we reach lower levels in this mine, we can expect to see increasing amounts of this high-grade material which is also very exciting,” he added.

Encountering previously unmined lodes is a trend which the company believes will continue as the operations approach a depth in the mine that has seen progressively less historic mining.

An increase in grade is anticipated when the historic mining limit is reached, bearing in mind that the historic recovered grade of around is 26 g/t gold.

Looking ahead

Drilling is continuing at the high-grade Maldon goldfield where ongoing positive results underpin Kaiser’s vision to become a multi-mine high grade gold producer.

Maldon is located between Bendigo and Ballarat in the Victorian Goldfields and the licence area has produced over 1.74M ounces of gold at 28 g/t.

This gold field is host to one of Australia’s highest grade historic gold mines, the Nuggety Reef, that produced 301,000 ounces of gold at 187 g/t gold.

Drilling has initially targeted the projected extensions to historic high-grade mineralisation at the Eaglehawk reef, one of Maldon’s largest high grade and largest historic mines.

A drill rig is planned to return to A1 once this program has been completed and will continue to work at A1 whilst results are processed from Maldon.




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.