Kaiser Reef Ltd (ASX:KAU) has been granted a large 144-square-kilometre exploration licence which covers an area substantially larger than the combined Maldon mining licences (Figure 1) and provides access to the “uniquely exciting” exploration target around the Nuggety Reef Mine in Victoria.
Figure 1: Plan view showing the Kaiser mining licences as well as the newly granted Exploration Licence 7029.
Accessing ideal drilling positions has been extremely challenging from within Kaiser’s very narrow mining licence (MIN5528) which covers the Nuggety Reef project.
Kaiser has keenly awaited the grant of its large surrounding exploration licence that will facilitate far more effective drilling in the future.
The aim of future drilling at the Nuggety Mine will be to test down dip positions near the granite contact and following the down plunge positions of the Nuggety Mine (Figure 2).
Figure 2: Long section of the Maldon goldfield showing the relationship between the Harcourt Granodiorite and gold mineralisation at Nuggety.
Drilling will also be designed to delineate the bismuth mineralisation trend and coincident for a high-grade gold mineralisation.
Kaiser is currently undertaking a major infrastructure program at the A1 Mine site including the installation of a high voltage power upgrade, expanded underground remote mining fleet and ongoing development to facilitate upcoming mining opportunities.
While this is the immediate focus, exploration drilling permits will be sought and drilling will be conducted once the infrastructure program has been implemented.
Maldon Goldfield - Union Hill Mine
The Maldon Goldfield is wholly owned by Kaiser and it is a priority plan to bring the Union Hill gold mine at Maldon back into production.
Last year, Kaiser identified high-grade gold including 2.2 metres at 10.3 g/t gold from drilling at the Nuggety Reef historic gold mine at the northern end of the Union Hill gold mine.
Nuggety was one of, if not the, highest grade significant Australian gold mine with recorded production of 301,000 ounces at 187 g/t recovered gold.
Next steps
Kaiser believes that the Union Hill Mine has the potential to be the next significant gold mine to come online in Victoria.
The preliminary engineering and drill planning has identified that future work required will comprise of targeted re-bolting of the decline, limited drill platform development which includes second egress and ventilation options, drill planning, power and ventilation upgrade investigations/planning and various other work, as required.
One of Maldon’s key advantages is the extensive existing infrastructure and proximity to Kaiser’s operating gold processing plant (3 kilometres away) and that it is held under a granted Mining Licence.
When exploration proves successful, rapid and low-cost development will be implemented utilising Kaiser’s mining fleet and experienced mining team for minimal capital cost.