Kaiser Reef Ltd (ASX:KAU) has poured its 100th gold bar as it continues to ramp up operations at the A1 Gold Mine in eastern Victoria.
In a project update, the company said high voltage (HV) service power drill holes had also now been 70% completed, with power distribution planned to begin in the first quarter of next year.
As well, the associated power infrastructure items, including power cables and substations have arrived on site, while the power distribution board is being manufactured locally.
Unexpected intercepts
The first HV pilot drill hole, UGSH-020, unexpectedly intercepted numerous zones of strong mineralisation, including visible gold. Assay highlights include:
- 0.7 metres at 44.8 g/t gold from 55.8 metres;
- 0.4 metres at 27.0 g/t from 64.6 metres;
- 0.2 metres at 25.9 g/t from 24 metres; and
- 0.2 metres at 22.9 g/t from 60.1 metres
Cross section looking south showing the HV drill hole trace.
Ramp-up continuing
Meanwhile, a new leach tank and direct drive agitator system have been installed at the Maldon processing plant, while other upgrading works are continuing.
Kaiser has also increased its mining fleet as well as refurbished some of the original fleet in anticipation of higher production rates in the future.
Trucks collecting some of the additional new mining fleet to support further production mining rate improvements.
About A1 Gold Mine
The A1 Gold Mine is one of the premier Victorian gold mines and is 23 kilometres south-southeast of Jamieson and 300 kilometres east of Maldon by road.
Running since 1861, the mine, which is in the extensive and prospective Lachlan Fold Belt extending from NSW to Victoria, has historically averaged 25 g/t gold production.
In January 2021, Kaiser acquired 100% of Centennial Mining Ltd (ASX:CTL), including a 100% interest in the Centennial assets - A1 gold mine, Maldon goldfield (care and maintenance) and the Maldon processing plant, which treats ore from A1.
Ongoing mining is conducted using air-leg mining techniques targeting the high-grade (+10 g/t gold) ore.
The intent is to expand into mechanised mining upon completion of underground exploration to delineate increased resources and reserves to support the operational expansion.