Kaiser Reef Ltd (ASX:KAU, ASX:) is encouraged by results from underground drilling at the A1 Gold Mine in eastern Victoria with high-grade mineralisation extended substantially deeper.
This drilling has identified mineralisation about 115 metres below the current decline face with visible gold encountered in these deeper unknown reef systems with returned assays up to 69 g/t gold.
The drilling is targeting near-term mining and new deeper medium-term discoveries with the company pleased that this work is delivering the intended results.
Increase mining options
They provide the mining team with an increased range of mining options and justifying the investment and ramp-up plans being pursued at the operations.
Recent drilling has returned results including:
- A1UDH-504 - 0.20 metres at 9.9 g/t gold from 60 metres;
- A1UDH-505 - 0.25 metres at 17.5 g/t from 41.6 metres;
- A1UDH-509 - 0.4 metres at 69.2 g/t from 229.4 metres;
- A1UDH-510 - 2.2 metres at 23.8 gold from 73.8 metres, including 0.4 metres at 47.3 g/t from 73.8 metres and 0.2 metres at 136.7 g/t from 75.8 metres;
- A1UDH-511 - 0.4 metres at 14.1 g/t from 79.8 metres;
- A1UDH-512 - 4.0 metres at 11.9 g/t from 34.65 metres, including 1-metre at 42.0 g/t from 36.65 metres; and
- A1UDH-514 - 0.2 metres at 21.4 g/t from 101.10 metres and 0.3 metres at 23.3 g/t from 103.0 metres.
This program delineated quartz reefs with substantial strike extensions that emanate north of the Queens Lode within the A1 Dyke.
Under-drilled portion
The drilling area targeted represents one of the most under-drilled portions of the A1 Dyke and has no historical stoping.
This work has informed short- to medium-term mining plans for the down-dip extension of the Jupiter Reef which is being mined from the 1250-820 strike drive.
A recent intersection of the Jupiter Reef development face returned a face-weighted grade of 11.2 g/t gold.
The intersection returned from hole A1UDH-509 is the deepest known quartz reef with visible gold and is estimated to project down almost 50 metres below the deepest historic workings.
A 0.4-metre quartz reef intersected in A1UDH-509 at 229.4 metres.
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 /t gold production.
In January 2021, Kaiser acquired 100% of Centennial Mining Ltd (ASX:CTL) and therefore a 100% interest in Centennial assets - A1 gold mine, Maldon goldfield (care and maintenance) and the Maldon processing plant which treats A1 ore.
The A1 gold mine was discovered in 1861 at an outcrop known as Castle Reef and underground mining accessed by two shafts continued until 1992. Historical records show total production of about 620,000 ounces of gold.
This mine is within a northwest trending belt of tightly folded Early Devonian sedimentary rocks. Mineralisation is hosted within, or immediately adjacent to diorite dykes.
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 operation expansion.