Accelerates Exploration Drilling At Maldon Goldfield
Kaiser Reef Limited (ASX: KAU) is undertaking a capital raising programme to raise approximately A$5.1 million to develop the Queens Lode gold deposit at the A1 Mine and to drill test the high grade Maldon Goldfield in Victoria.
The drilling at the A1 Mine has nearly completed and a second diamond drilling rig will be mobilised to Maldon in approximately two weeks. Under the Placement, the company will raise A$2 million and issue a total of 10 million new Shares to sophisticated and professional investors at A$0.20 per share. Westar Capital Limited is acting as Lead Manager to the Placement.
The company also intends to conduct a pro-rata non-renounceable Rights Issue to raise up to A$3,122,472.
The company has entered into an Underwriting Agreement with Westar Capital Limited to act as the underwriter to the Rights Issue.
The Maldon Goldfield is located within the central portion of the Bendigo-Ballarat zone of the Lachlan Fold Belt. During the acquisition of the A1 gold mine, Kaiser Reef also acquired the Maldon Goldfield Project and subsequently owns the Union Hill Mine (care and maintenance) and Nuggety Mine (historic) at Maldon.
Historic production within the Maldon goldfield is recorded to be in excess of 1,700,000 ounces of gold @ 28 g/t gold. The Maldon goldfield is also home to Australia’s highest grade gold mine, the Nuggety Reef that produced 301,000 ounces of gold @ 187 g/t gold.
The company intends to conduct extensive exploration during 2021 with the intent to re-enter production upon delineation of sufficient resources and reserves to support a recommencement of mining if successful.
The A1 Gold Mine is one of the premier Victorian Goldmines. Running since 1861 the mine has historically averaged 25g/t gold production.
In January 2021, Kaiser acquired 100% of Centennial Mining Ltd 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 approximately 620,000 ounces of gold.
The A1 Gold Mine is located within a north-west trending belt of tightly folded Early Devonian sedimentary rocks. Mineralisation at the A1 Gold Mine 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 Au) ore. The intent is to expand into mechanised mining upon completion of successful underground exploration to delineate increased resources and reserves to support the operation expansion.
For further information please visit: https://www.kaiserreef.com.au/