Nova Zone Development Extends 20m Vertically with 40 g/t Gold Intercept at Dukes Reef
Kaiser Reef Limited reports significant progress in its Nova Zone, extending development and ramping up ore production with promising high-grade gold intercepts. Infrastructure upgrades support the transition to increased output at the historic A1 Gold Mine.
- Decline development extends 20m vertically into Nova Zone at 1148m RL
- High-grade gold intercepts including 40 g/t from Dukes Reef and 4,700 g/t grab sample
- Diamond drilling confirms multiple mineralised reefs with 100% mineralisation encounter rate
- Mill foundation rehabilitation and tailings storage facility lift completed
- Production ramp-up underway with improved ventilation and access to multiple lodes
Transitioning to Increased Production in the Nova Zone
Kaiser Reef Limited (ASX: KAU) has announced a pivotal advancement in its operations at the A1 Gold Mine, Victoria, with development now extending over 20 vertical metres into the Nova Zone. This milestone marks a strategic shift from remnant ore mining to accessing higher-grade ore bodies, underpinning the company’s production ramp-up plans.
The recent decline development has reached 1148m RL, enabling access to key lodes including Austral, Mawson, Bass, Tasma, and Orion. Notably, the decline intersected the Dukes Reef, returning a high-grade grab sample of 40 g/t gold, indicative of a northerly plunging high-grade shoot extending from previously mined areas at 1190m RL. This discovery suggests significant upside potential within the Nova Zone’s mineralisation framework.
Encouraging Drilling Results and Ore Development
Diamond drilling continues to deliver robust results, with a 100% mineralisation encounter rate across recent holes. Highlights include intercepts such as 0.20m at 65.1 g/t gold and 11.0m at 3.7 g/t gold, reinforcing the presence of multiple mineralised reefs. These results support the geological model of narrow, high-grade quartz reefs associated with the A1 dyke and surrounding sediments.
Development headings are rapidly increasing, with 1190 level headings set to access multiple lodes within weeks. This expanded access is expected to translate into higher ore tonnage and improved production metrics. Concurrently, stoping on the 1200m RL horizon continues with stope grades averaging above 8 g/t gold, including an exceptional grab sample of 4,700 g/t gold, underscoring the high-grade nature of the resource.
Infrastructure Upgrades Supporting Growth
Supporting the operational ramp-up, Kaiser Reef has completed critical infrastructure works. The tailings storage facility (TSF5 Lift D) has been raised, adding 220,000 tonnes of tailings capacity, essential for sustained production. Additionally, the company undertook a significant rehabilitation of the mill foundations, replacing deteriorated concrete with high-strength material to ensure long-term structural integrity of the processing plant.
Ventilation improvements have nearly doubled airflow in the upper mine levels, addressing bottlenecks and enabling safer, more efficient underground operations. Dewatering efforts are progressing to open up further access to ore zones, with final stages scheduled imminently.
Outlook and Strategic Implications
Kaiser Reef’s progress in the Nova Zone signals a promising phase of growth, moving beyond decades of remnant mining to exploit higher-grade, more continuous ore bodies. The combination of strong drilling results, expanding development headings, and infrastructure enhancements positions the company well to increase gold production and improve operational efficiencies.
While the company remains cautious about inherent mining risks and market uncertainties, the current trajectory suggests potential for materially enhanced gold recovery per vertical metre compared to historical benchmarks. Investors and analysts will be watching closely as Kaiser Reef advances its drilling program through Q2 2025 and transitions into sustained production from the Nova Zone.
Bottom Line?
Kaiser Reef’s Nova Zone development is unlocking high-grade gold potential, setting the stage for a meaningful production uplift.
Questions in the middle?
- How will ongoing drilling results influence resource estimates and mine planning?
- What are the timelines and expected production volumes from the newly accessed lodes?
- How will gold price fluctuations impact the economics of mining higher-grade but potentially narrower reefs?
