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Huge increase in gold production

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Kaiser Reef Limited (ASX: KAU) (‘Kaiser’ or the ‘Company’) is extremely pleased to present a defining March 2022 Quarterly report.

Gold mine
Photo courtesy Tarrangower Times

Kaiser saw a further increase in gold production of 45% over the previous quarter that delivered a positive cash flow of $1.8M. This major turning point in Kaiser’s A1 mine (located 300km east of Maldon) has ratified the significant effort made by the team to unlock the potential in this high-grade gold mine. The cash balance held by Kaiser increased by 36% during the quarter to $6.9M. This is an outstanding achievement as the Company move into full development and production of the Queens Lode during the balance of this year.

This outcome was delivered while operating two diamond drilling rigs for the majority of the quarter and expending considerable funds on equipment and further development work on the Queens Lode. The recent access to the deeper lodes is delivering strong results and providing confidence in the long-term future of the A1 mine as Kaiser moves into and exploits these new mining areas.

Kaiser Reef Managing Director Jonathan Downes said, “This robustly profitable quarter is an extremely pleasing turning point in the business. More remarkable is that a lot of work was conducted on the near-term development of the Queens Lode, with benefits yet to be realised and while running exploration with two diamond drilling rigs. Kaiser is moving to define itself as a self-funding explorer,” said Jonathan.

The Quarter drilling results were returned from the Maldon historic major gold mining centre (previous production of 1.74MOz at 28 g/t) from two areas: Union Hill Underground Drilling (ASX release 15 November 2021) with the best result being 1.8m @ 29.6 g/t gold and Nuggety Reef Surface Drilling (ASX release 1 March 2022) with a best result of 2.2m @ 10.3 g/t gold.

Jonathan said,” With two outstanding, and more importantly, historically proven 100% owned exploration projects at the Maldon goldfield (historic production 1.74Moz @ 28 g/t gold) and the A1 Mine, in operation, the future looks bright. As we get deeper at A1, we are discovering, as expected, an increasing amount of this extraordinary previously un-mined material that was just too hard in the late 1800s to exploit. Some of this material contributed to our quarterly mined head grade of 14.0 g/t gold.”

The results from the first pass of drilling were encouraging and resource modelling work has now advanced at Union Hill, which has been aided by the completion of recent drone surveys. The drilling options at Nuggety Reef were limited by the very narrow mining licence. Further drilling will be conducted at Nuggety Reef once the larger and surrounding Exploration Licence application is granted.

“Looking to the future, our processing plant remains well under capacity and Kaiser will focus on the continued expansion and development at the A1 mine and eventually, hope to bring Maldon, one of the great Victoria goldfields, back into production,” said Jonathan.

Quarter Production

Revenues: $7.0M
Mine Operating Cash Costs: $3.2M
Gold Head Grade (recovered): 14.0 g/t gold
Operating Cash Costs per Ounce: AUD$1,149/Oz
Gold Price Received: AUD$2,658/Oz
Gold Recovery (%): 96%.

Tarrangower Times 14 April 2022

This article appeared in the Tarrangower Times, 14 April 2022.

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