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- Kaiser Reef (KAU) hits high-grade gold at the Nuggety Reef historical gold mine in Maldon, Victoria
- The four-hole diamond drilling program returned 0.4 metres at 52.8 g/t gold within a broader intercept of 2.2 metres at 10.3 g/t gold
- This drill hole also returned bismuth mineralisation which appears to define a north-northeastern trend that may be associated with the main Nuggety gold mine trend
- Kaiser Reef plans to conduct follow-up drilling at the mine to test down-dip and down-plunge positions and will also aim to delineate the bismuth mineralisation trend
- Company shares close 2.56 per cent in the red to trade at 19 cents
Kaiser Reef (KAU) has received first results from drilling at the Nuggety Reef historical gold mine in Victoria.
The mine is located at the northern end of the Union Hill gold mine in Maldon and was reportedly one of the highest-grade significant gold mines in Australia.
The Nuggety Reef mine was discovered in 1856 and produced 301,000 ounces of gold from 50,000 tonnes of ore averaging 187 grams of gold per tonne (g/t) over 10 years.
Kaiser Reef completed a small, four-hole surface diamond drilling program which aimed to provide a better understanding of the mineralisation controls in the eastern and western reefs.
Results include 2.2 metres at 10.3 g/t gold including 0.4 metres at 52.8 g/t gold in hole NG_SDH_002 which also returned bismuth mineralisation.
The company said the bismuth mineralisation seems to also define a north-northeastern trend that appears to be associated with the main Nuggety gold mine trend.
Modelling these trends identified an untested target that extends up and down plunge and is in addition to deeper down plunge trends.
The company plans to conduct follow-up drilling at the Nuggety mine to test down-dip and down-plunge positions. Drilling will also aim to delineate the bismuth mineralisation trend.
Additionally, Kaiser Reef is progressing drilling at the Maldon goldfield which is targeting extensions to historical high-grade mineralisation.
Company shares have closed 2.56 per cent in the red to trade at 19 cents.
