Kaiser Reef Limited (ASX:KAU) reports that mining operations at its A1 Gold Mine in Victoria have successfully reached the top of the Queens Lode mineralisation, with first ore already shipped for processing.
Results are still incoming from exploration drilling at the lode, with recent grades including:
- Hole A1UDH-456: 26.1m @ 6.2 g/t gold from 33.6; including
- 12.2m @ 10.3 g/t gold from 39.8m
- Hole A1UDH-457: 8.4m @ 7.2 g/t gold from 14m; and 9.3m @ 9.4 g/t gold from 38.4m; within 24.6m @ 4.7 g/t gold from 38.4m
- Hole A1UDH-460: 9.6m @ 5.5 g/t gold from 13.7m; and24.4m @ 6.7 g/t gold from 36.6m; including
- 12.4m @ 10.9 g/t gold from 38.6m
- Hole A1UDH-462: 2.1m @ 18.3 g/t gold from 11.2m
The company reports that access to the lode has been provided by the extension of the decline from 1300mRL which commenced in June. Mechanical stoping is set to commence once further development is completed.
The Queens Lode is described by Kaiser Reef as ‘high-grade and attractive’ due to its wide zones of alteration. The lode was not exploited by previous mining activity at A1, with records stretching back to 1861. Importantly, it is also capable of being mined using mechanical stoping methods, which will complement air-leg mining which is currently being used.
Production rates are expected to be ‘strongly increased’ by development activity at Queens Lode, with lower cost-per-tonne rates expected.
Images: Kaiser Reef Limited