UNDERGROUND

Kaiser marks first gold at Queens Lode

VICTORIAN gold miner Kaiser Reef has produced first gold from the Queens Lode deposit at its underground A1 mine.

Kaiser marks first gold at Queens Lode

Kaiser acquired the historical gold project this time last year from Centennial Mining and only began mining in April.

This month, Kaiser said it had reached Queens Lode and mined 1197 tonnes of ore over the space of a week, double its production expectations.

It has processed and poured its first bar from the gold deposit.

"The first batch of Queens Lode ore of approximately 1109t, was trialled through the processing plant with a detailed review of the performance of the ore underway following a recent gold pour," Kaiser said.

"The Queens lode exhibits an extensive area of alteration and mineralisation, which is amenable to mechanical stoping mining methods."

According to Kaiser, the Queens Lode ore returned approximately 94% recovery and will provide a "production step change" in the short term.

It will make some minor tweaks to its plant to optimise recovery further.

Ore is being processed at the nearby Maldon plant included in the A1 acquisition.

The A1 mine averaged about 25 grams gold per tonne over its 150 years of historic production.

"These metrics are indicative of a strong underground mine, and as such, the A1 is worthy of substantial investment and development," the company said.

Kaiser has so far invested a sizeable sum in exploration of the old mine, along with lateral and decline development.

In its latest shareholder update, Kaiser also published its final results from its long-running extensional exploration program.

This included two drillholes targeting an area in front of the current area of development, north of Queens Lode, which has not been previously mined or even explored.

The first drillhole, A1UDH-470 encountered 1.2 metres at 92.7gpt gold, 3.7m at 11.3gpt gold and 0.2m at 30.7gpt gold.

The second drillhole A1UDH-471 hit 500mm at 8.8gpt gold and 200m at 16.4gpt gold.

"These results demonstrate that the historic high grade reef system continues below the 19 level to the north of the historical shaft and the Queens Lode and represents an unmined opportunity not accessible to historic miners," Kaiser said.

"The company is very excited to have the opportunity to have, for the first time, reached projected reef mineralisation that have not been mined."

It predicts the region has potential to provide supplementary high-grade ore and is continuing its assessments in the short term.

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