Kaiser Reef Ltd (ASX:KAU, ASX:)’s share price is continuing to rise after revealing further encouraging drill results from its ongoing diamond drilling program at the A1 Mine operations in eastern Victoria.
The drill holes are targeting near-term and deeper lode positions, including a new high-grade lode.
This newly discovered lode, the Neesham Reef, returned a bonanza-grade result of 2.4 metres at 215 g/t gold and is close to existing planned development drives.
Kaiser’s latest batch of drill results returned significant high-grade intervals including:
- A1UDH-484 - 2.4 metres at 215 g/t gold from 51.9 metres;
- A1UDH-485 - 0.34 metres at 506.8 g/t from 4.1 metres;
- A1UDH-485 - 1.1 metres at 31.4 g/t from 47.6 metres; and
- A1UDH-486 - 1.6 metres at 11.0 g/t from 5.7 metres.
Long section looking west showing drilling traces, drives and the interpreted main dyke margin (purple).
These results follow previous standout drilling results from earlier in this program including 4.6 metres at 135.7 g/t gold from 36 metres, 1.92 metres at 43.2 g/t from 3.2 metres and 1.2 metres at 127.7 g/t from 3 metres.
Kaiser’s drilling was targeting near-term mining targets to the south of the Queens lode where very little previous drilling has been conducted and is an encouraging outcome.
Further drill results are awaited, and the drilling remains ongoing.
Maiden Maldon resource
Kaiser shares surged earlier this week after notching up a maiden mineral resource estimate (MRE) of 1.2 million tonnes at 4.4 g/t gold for 186,656 ounces at the Maldon Gold Project within the Central Victorian Goldfields.
Encouragingly, the initial resource estimate has exceeded the company’s expectations and will be the subject of mining studies with an engineering and geological team to be dedicated to investigating further drilling requirements and planning toward profitable mining at Maldon.
Investors have responded positively to A1 Mine and Maldon Gold Project news, sending shares about 33% higher to $0.20 intra-day on Thursday from $0.15 on Monday.