Kaiser Reef Limited reported encouraging drilling results from the A1 Mine that have extended high-grade mineralisation substantially deeper than previously achieved. The drilling has identified mineralisation approximately 115m below than the current decline face with visible gold encountered in these deeper unknown reef systems with returned assays up to 69 g/t gold. The implications are extremely encouraging for the future of the A1 Mine and Kaiser remains more committed than ever to expand, extend and improve the A1 operations.

In addition, the diamond drilling rig onsite has undergone a power upgrade and is currently drilling the high voltage cable holes required to facilitate ongoing production increases. The drill holes from A1 continue to target both near term mining and new deeper medium- term discoveries. Kaiser is pleased that the drilling is delivering the intended results which are to provide the mining team with an increased range of mining options and justifying the investment and ramp up plans currently being pursued.

High grade drilling results continue from the northern A1 Dyke with the exploration program being drilled from the 1254mRL drill cuddy. The most recent program was successful in delineating quartz reefs with substantial strike extensions that emanate north of the Queens Lode within the A1 Dyke. The drilling area targeted represents one of the most under-drilled portions of the A1 Dyke and has no historical stoping.

Critically, this work has informed short to medium term mining plans for the down-dip extension of the Jupiter Reef which is being mined from the 1250-820 strike drive which is a recent intersection of the Jupiter Reef development face which returned a face weighted grade of 11.2 g/t gold. Drill holes A1UDH-504 & 505 were drilled approximately perpendicular to the strike of the A1 Dyke and positioned to intercept quartz reefs within, at lengths 80.8 and 96.6m respectively. In similar fashion to previously drilled sections, the A1 dyke bulge intersected in these 2 holes hole showed pronounced sericite /hydrothermal alteration in close association with up to 3 reefs showing typical brecciated textures with stylolitic contacts.

Mineralisation in quartz reefs is generally driven by coarse visible gold. In instances where down-dip extensions of known reefs were intersected with the absence of visible gold, typically the reef structure returned elevated grades compared to the hanging-wall and footwall contacts. A1UDH-507--509 targeted known quartz reefs in the southern strike extent of the A1 dyke beyond historic workings.

Historic mining conditions in 1992 at the 23 Level largely precluded the advancement of effective mining campaigns through inherent limitations such as ventilation, power and water ingress that Kasiser is addressing with a power upgrade. Unfortunately drill holes A1UDH-507 & 508 were ineffective after encountering historic mining development voids. A1UDH-509 successfully drilled beyond the 23 Level and intersected 2 newly discovered auriferous reefs within the A1 Dyke.

A quartz vein was intersected over 75 vertical metres below the base of historic workings returning 0.4m @ 69.17 g/t gold. Whilst previous exploration identified that hydrothermal alteration in the A1 dyke extends at depth below historical mining areas, this intersection is the deepest known quartz reef with visible gold and is estimated to project down almost 50 metres below the deepest historic workings. A1UDH-510 (-15 -> 000) was planned to be the last hole drilled before moving to drill the HV cable holes, however considering the prospective reef intersection in this hole it was decided to drill A1UDH-511 beneath.

These two holes are located on the most northern azimuth ring in the 1254 cuddy and have delineated visible mineralisation in several quartz veins close to current development. A1UDH-510 was targeting the northern extent of the dyke and has successfully achieved this aim, and the dyke has narrowed up dip but widens at depth based on preliminary results from A1UDH-511. A1UDH-511 delineated notable quartz vein arrays with visible gold in the under-explored footwall area of the Jupiter Reef and probably down-dip on the Jupiter Reef itself.

Figure 5 is a cross -section of the target dyke and hosted quartz veins. Previously reported A1UDH-497 returned 3.5 g/t gold from 99.2m in stylolitic quartz vein breccias informing the longer term mining plans and the prospectivity of the A1 Dyke at depth. Both A1UDH-510 and 511 are informing short to medium term production given their proximity to the 1250 level development.

Figure 6 presents A1UDH-512&513 which were optimally positioned to intersect any potential quartz reef extensions in the footwall of the Jupiter Reef. Critically, A1UDH- 512&513 identified that the combination of dyke off-sets (faulting) at depth and increased dyke thickness confirmed the existence of repeat structures along the northern strike extent of the a1 dyke and associated sediment contacts. Both holes on this drilling azimuth show pronounced gold background of 1-3 g/t gold through the core of the dyke with A1UDH-512 returning 1m @ 41.98 g/t gold from 36.65m.

A1UDH-514 which was the last hole of the program. This hole was infilling previous drilling rings targeting previously discussed reef systems in the footwall of the Jupiter Reef. Target reefs in this structural domain returned 0.2m @ 21.41 g/t and 0.3m @ 23.3 g/t gold from 101.1m.

These discrete discoveries have increased the narrow vein mining target inventory for the A1 Mine informing both in short- and long-term planning.