KAU hits high grade gold at A1 Mine

Published 10-FEB-2025 12:58 P.M.

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On Friday our gold Investment Kaiser Reef (ASX: KAU) put out a batch of drill results from its A1 Gold Mine in Victoria.

KAU owns the historic A1 gold mine in Victoria that produced 600,000 ounces over its life.

KAU has previously managed to produce and sell ~3,000 ounces of gold in a quarter (a couple of times) in the last 2 years from its A1 mine in Victoria.

Those 3,000 ounce quarters were all done mining remnant ore…

(left over bits of rock that the old miners left behind)

But for the first time in over 40 years, KAU is about to mine parts of its A1 mine that have never been touched before.

Friday’s drill results were from the parts of the mine that KAU is looking to develop down to and start mining.

The best result from Friday was a 0.5m hit with gold grades of ~18.3g/t which for us is a good proof point that there are some really high grade (albeit narrow) gold structures at depth.

We also think it validates our KAU Investment Thesis which is to see the company drill out, find new high grade gold structures at depths that have not been mined which it can mine, process and sell while gold is trading at all time highs:

KAU is currently mining on 1200 Level and historic mining on 23 Level, and ahead of proposed development on 1190 and 1175 Levels.

And this is how drilling aims to find a set of repeating reef structure at these levels:

We’re Invested in KAU to see the ongoing drilling program in the Nova Zone (the deeper part of the A1 mine), where previous limited deeper drilling encountered grades of nearly 70 g/t gold, and lead to a significant increase in the mine's resource base and potentially extends its operational life.

We want to see KAU derive higher gold revenue that comes from finding new high grade gold at never before mined depths, which in turn, could help provide a strong foundation for KAU restarting another Victorian gold mine in the long-term.