Kaiser Reef Limited reported encouraging drilling results from the A1 Mine that have extended high-grade mineralisation, in particular northerly extensions to Jupiter Reef and beyond the historic mining of Dukes Reef on the 22 Level. The drillholes from A1 continued to target both near term mining and new deeper medium-term discoveries. Kaiser is pleased that the drilling delivered significant results which have given the mining team future mining options and have justified the investment in the operation.

This drilling program resumed after a hiatus of three months drilling and back-reaming service holes for future High Voltage power installation. Nine drillholes were completed from the 1254, including one targeting across the western shale boundary testing the sedimentary sequence for potential dyke repetitions. Drillhole A1UDH-515 was drilled approximately parallel to the strike of the main A1 Dyke, following up on previously reported intersections of the northern extension of Jupiter Reef.

It successfully achieved the goal and intersected extensively brecciated and patchy stylolitic quartz veins in moderately sericite altered sediments. Drillholes A1UDH-516 and -517 were drilled obliquely to the strike of the main A1 Dyke, also following up on previously reported intersections beneath Jupiter Reef. Both holes on this drilling azimuth showed pronounced gold background of 1-3 g/t gold with moderate-strongly carbonate-albite altered through the core of the dyke, with narrow spikes to 8 g/t Au.

Drillhole A1UDH-519 was drilled obliquely to the strike of the main A1 Dyke beneath significant mineralisation in holes A1UDH-501 to -503 reported previously. This hole also showed pronounced gold background of 1-3 g/t gold with moderate-strongly carbonate-albite altered through the core of the dyke and high-grade shoots including 0.8m @ 12.15 g/t Au from 43.0m and 0.6m @ 26.54 g/t Au from 68.8m. Also, a significant quartz reef was in the footwall sediments of 1.1m @ 16.7 g/t from 22.1m which is interpreted as a potential northern extension to Dukes Reef.

Drillholes A1UDH-520 and -521 were drilled perpendicular to the strike of the main A1 Dyke. A1UDH-520 also showed pronounced gold background of 1-3 g/t gold including 15.2m @ 3.01 g/t Au from 51.4m with moderate-strongly carbonate-albite altered through the core of the dyke. Unfortunately, A1UDH-521 failed and was abandoned.

Drillholes A1UDH-522 and -523 were the final two holes that were drilled from the 1254 cuddy. These were drilled obliquely in a southeasterly azimuth to the strike of the main A1 Dyke, directed at Dukes Reef. Both showed visible gold and elevated assays on quartz reef within the sediments adjacent to the main A1 dyke.

These were strongly mineralised, 0.2m @ 2005.7 g/t Au in A1UDH-522 from 66.65m and 0.2m @ 385 g/t Au in A1UDH-523 from 50.7m. The first of these intercepts is a flat tension vein in the footwall of the reef, but is still part of the reef system. Dukes Reef was mined historically on the 22 Level and these intercepts show there is potential to go further north than the old workings.

This creates a small but potentially rich ore block. Drillhole A1UDH-518 was drilled in a westerly azimuth exploring the western sediments adjacent to the main A1 dyke. The entire hole was interbedded grey and black turbiditic sediments with occasional graphitic shears.

No significant mineralisation, quartz veining, or diorite dykes were intersected and the hole was abandoned due to very bad drilling conditions at 169.3m. A total of two holes were drilled form the 1410 south. Both holes ended in previously unknown voids, likely historic stopes or rises.

Unfortunately, the drilling angle was at a low angle to this potential extension of the reef and the void was too wide to tag the other side within 3.6m. A1UDH-525 may have drilled into a backfilled rise/winze which descends from 14 level to 16 level and caving issues with backfill precluded continuation of the drilling through to the other side. However, both holes intersected mineralised quartz veining.

A1UDH-524 intersected visible gold in a 0.35m vein, at a depth of 1m, interval 0.85m @ 134 g/t Au. This is likely the down dip of a reef mined in the 1410 south. A1UDH-525 intersected a series of veins which may correspond with or are related to the Welcome Reef.

The best interval was 0.2m @ 9.74g/t Au from 24.2m.