Kaiser Reef Ltd (ASX:KAU, ASX:) has received encouraging gold results, including bonanza grades, from ongoing diamond drilling at the A1 Mine operations in eastern Victoria.
The drilling is targeting near-term mining and new deeper, medium-term discoveries and the company is pleased this work is delivering the intended results, providing the mining team with an increased range of mining options.
Meanwhile, activities at the Maldon development project in the Central Victorian Goldfields are also providing optimism for Kaiser Reef.
Careful modelling, resource estimation and validation work is ongoing at the historic Maldon underground workings.
Strong A1 results
At A1 Mine the latest drilling results include:
- 0.8 metres at 157.6 g/t gold from 3.4 metres;
- 0.5 metres at 154.3 g/t from 108.8 metres;
- 0.2 metres at 19.2 g/t from 3 metres;
- 1.9 metres at 17.45 g/t from 4.1 metres; and
- 1.45 metres at 11.8 g/t from 3.75 metres.
These new lode positions are key to the ongoing development and expansion plans for future production.
They provide critical mine planning information for future mining of the previously identified reef systems as well as suggesting potential discoveries of several new reef systems.
These results follow intervals returned in the June quarter that included 4.6 metres at 135.7 g/t gold and 1.92 metres at 43.2 g/t.
Kaiser Reef’s drilling program is ongoing in line with the company’s exploration plan with the rig/s moving between A1 and Maldon to allow processing of drill core, final assays and ongoing mineral resource estimate calculations.
Buoyed by these results, investors have sent shares as much as 19.36% higher to $0.185 intraday.
Work at Maldon
At Maldon, the company’s work is targeting the identification of mining opportunities focused on previously identified lodes as well as new conceptual exploration targets to test for large-scale and high-grade lodes as previously identified and mined.
Data is being compiled to support regional exploration for parallel reef systems to the east and north of Maldon where weathered sedimentary cover have obscured the surface expression of potential high-grade lodes.
Recent integrated structural, geophysical research and geological modelling have highlighted this opportunity.
Historic drill hole DDH005 returned 2 metres at 23.9 g/t gold from 218 metres and this hole was following up lower grade mineralisation identified in DDH002, in drilling by Carpentaria Exploration in 1980.
Kaiser Reef believes that this hole has potentially identified a new reef system parallel to Maldon, which substantially opens up the possibility for further discoveries to the east.