Kaiser Reef has consolidated its recent strong financial performance, tabling strong quarterly operating revenues of $7.3 million and positive cash flow of $2.3 million from its Victorian gold operations. It ended the financial year with $6.58 million in the bank and no debt.
The company reported an annual operating revenue of $22.8 million and net cash from operating activities of $5.27 million.
Operating cash costs for the quarter were $1650 per ounce of gold with the gold price received being $2,629 per ounce of gold.
The recovered head grade at Kaiser’s Maldon gold plant was 10.1 g/t gold and a 93.3 per cent recovery for the quarter.
Kaiser reported significant bonanza-grade gold discoveries at its A1 mine during the period. The company also released an inferred resource estimate for its Maldon mine of 1.2 Mt at 4.4 g/t gold for 186,656 ounces of gold.
Kaiser appears to have made important breakthrough discoveries at its A1 mine.
The Sovereign reef discovery hole returned 4.6m grading 135.7 g/t gold and has been rapidly brought into production.
The company’s Neesham reef discovery included 2.4m at 215 g/t gold and many other mineralised zones were located. The company says recent access to the deeper lodes is delivering exceptional results.
At Maldon, the company completed a substantial upgrade and refurbishment of its wholly owned processing plant. The work is expected to deliver both lower operating costs and down times in addition to enabling increased production.
It is worth reflecting the solid quarterly performance came after the processing plant was offline for almost 15 per cent of the quarter and an estimated 20 per cent reduction in productivity caused by Covid-19 over the quarter.
With the release of an inferred resource of 186,656 ounces of gold at a grade of 4.4 g/t gold and an even bigger exploration target, Kaiser is making consistent progress towards production from its fully permitted Maldon mine. The company has a newly upgraded processing plant at Maldon and existing underground access suitable for production via its serviced decline.
Kaiser’s Maldon drill results this quarter were up to 0.6m at 52.9 g/t gold with more on the way. The data is consistent with the production from the Maldon historical goldfield that exceeded 1.74 million ounces at 28 g/t gold. Exploration has also targeted the potential for new parallel mineralised zones east of Maldon. During the quarter, a drill result of 2m at 23.9 g/t gold confirmed the possibility of new mineralised zones in what could prove to be an important discovery.
The company says recent discoveries at the A1 mine are providing confidence in the long-term future of the mine as new areas are opened for production. Management believes that the A1 mine is increasingly looking like a jewel in its crown of future business plans due to meeting its objective of being a consistent high-grade producer.
With profitable production, recent exploration success at the A1 and Maldon moving towards a possible reopening, Kaiser looks like it’s shaping into a reliable Victorian high-grade gold producer.
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