Kaiser Reef Ltd (ASX:KAU) Further High-Grade Gold Results
17 February 2025
Price Sensitive Announcement $
Highlights:
- Capital development has now extended 20m vertically into the Nova Zone (1148mRL). Availability of single boom ore development rapidly increasing and production
ramp up now underway. - 1190 development headings will access the Austral, Mawson and Bass Lodes within the next four weeks and continue the Tasma development already underway.
- Dukes Reef intercepted as expected in the decline, representing the extension of a high-grade shoot, previously mined on the 1190m RL. First ore sampling returned
40 g/t gold. - Diamond drilling is ongoing
- Mill Foundation rehabilitation works and tailings lift (TSF5 Lift D) complete
Overview:
Kaiser Reef Limited has detailed recent progress as it transitions from a primary focus on development into the Nova Zone, into combined development and increasing ore production. This planned shift is supported by improved access to ore zones established by the recent decline development performance.
Kaiser remains focused on development in the Nova Zone and moving beyond the past 30 years of mining remnant ore. Operating almost continuously since 1861, the A1 Gold Mine historically yielded approximately 800 ounces of gold per vertical metre, with some levels surpassing 1,000 ounces per vertical metre, an established benchmark for significant gold mines.
In contrast, modern remnant mining over the last three decades has seen production limited to less than 237 ounces per vertical metre at the A1 mine, with the highest grades having been previously exploited. The important implication is that Kaiser expects to recover significantly more gold per vertical meter than before, and potentially at higher grades.
Development and Production Update
Development of the decline has reached 1148mRL, which is now over 20m vertically into the Nova Zone.
The decline has intersected the Dukes Reef which indicated positive grade results with one 40g/t gold grab sample from decline development material. This was soon followed by development through the Tasma and Orion Lodes below the 1150m RL horizon (see Figures 1 and 2). Observed indicator minerals (certain sulphide species such as bournonite and chalcopyrite) and face sampling results provide evidence of gold bearing potential.
The Dukes Reef intersection indicates the extension of a high-grade shoot, previously mined on the 1190mRL, may extend with a northerly plunge and be within development headings on the 1165mRL (1175-780 drive) and 1150mRL horizons over the coming months – see Figure 3.
Development of the 1150 Access and 1148 Sump is now complete and reconfiguration of the lower mine dewatering system is currently underway to enable final dewatering of the old
workings on the 23 Level plat/crosscut. Dewatering is scheduled to commence within two weeks. Dewatering of the old workings has been ongoing as the mine worked through remnants and this final stage, when completed, will mark another milestone as we transition to the Nova Zone.
The initial 1150 Access development has also enabled recommencement of development on the 1165mRL horizon with extension of the access across the dyke to be followed by strike
development of the Tamsa and Orion Lodes starting by the end of February.
Final dewatering will open up access for single boom jumbo development on the 1190-490 heading to the Austral, Mawson and Bass lodes accessed via an un-named reef in the next four weeks and we are expecting to see some high-grade faces based on drilling.
The development will shortly pass the 1140mRL level which will permit a return to the 1150mRL horizon, which is being established as a sill pillar. Development of the Dukes, Tasma and Orion lodes along with extension of the primary ventilation circuit into the Nova zone will commence in approximately six weeks.
This increased availability of development headings on lode structures is a rewarding result of
recent capital advance and will lead to an increase in both metres achieved and subsequent ore tonnage in the coming months.
Ventilation works in the upper portion of the mine have been completed with positive results, the 7 level fans now moving close to 100m³/s nearly doubling the previous movement and also showing improvement to the lower mine flows. The work has helped identify the next major items of work required, namely the excavation of vent rises to bypass a section of the old workings that has now been confirmed as a bottle neck to improved ventilation for the lower mine. It is expected this work will commence during February.
In parallel to this, stoping has continued on the 1200mRL horizon with stope grades averaging above 8g/t gold and recent sample results providing very encouraging returns, one grab sample returning a 4,700g/t gold.
Diamond Drilling has continued from the 1200mRL in the southern area of the mine with encouraging results from both above and into the Nova zone.
On completion of the dewatering system re-configuration the relocation of the Diamond Rig to SP25 will take advantage of a short drilling window in the central portion of the Dyke. A program of steep holes down the dyke will be undertaken giving a look at potential mineralisation well into the Nova zone in the central area.
Availability of Stockpile 27 as a drilling platform for the drilling of the Northern portion of the Nova zone will be available once strike drive development of the 1165mrl has advanced sufficiently for internal level stockpile availability. This is scheduled to occur late into March.
Diamond Drilling
Drilling is currently ongoing within the prepared drill corridors (Figure 5), and has had early success in identifying multiple mineralised interpreted new reef systems. Recent drilling results have returned a 100% rate of encountering mineralisation and include:
- A1UDH567: 0.20m @ 65.1 g/t gold from 24.7m and 0.40m @ 40.9 g/t gold from
46.9m - A1UDH568: 0.80m @ 32.7 g/t gold from 28.4m
- A1UDH569: 0.50m @ 18.3 g/t gold from 97.1m
- A1UDH571: 11.0m @ 3.7 g/t gold from 22m
For full details refer to ASX announcement dates 7 February 2025 “Further Results from A1 Drilling.” Further updates are expected on a regular basis.
Full ASX Announcement: Kaiser Reef Ltd ASX Announcement