KAU (ASX) Ann: Maldon Gold Resource

Originally posted by ronme: ↑

Key Takeaway Points From Today's Announcement from an unnamed broker issued this evening.

KAU has announced for the first time its maiden resource estimate at the Maldon Gold Project and we can say it hasn’t disappointed. This initial JORC Inferred 186koz estimate is largely located within the downward projected historic high-grade Alliance South shoot.
We understand the resource estimate is believed to be significantly conservative in nature, (particularly in grade) and encouragingly takes into consideration realistic mining widths and dilution which will provide significant confidence to the new mining studies which have now commenced.
KAU on focussed drilling in the Alliance South shoot area in 2021 after uncovering and recognising encouraging drill and resource data reported by previous owner Octagonal Resources Limited. The drilling intercepts which outlined what we would describe now as a ‘mineral inventory’ for that area which would have not passed current JORC (2012) requirements, nevertheless provided exceptional encouragement.
The initial drilling KAU has undertaken has allowed for a new JORC compliant Inferred estimate which the Company can now build on and upgrade to higher confidence Indicated category with additional drilling. Resources in an Indicated category are required for mining production panels to be confidently established. Whilst this means more drilling, this infill drilling is a routine process and furthermore, we speculate that drilling will likely uncover higher grade components to the shoot, potentially providing further upside.We again highlight the strategic locational significance of this initial resource estimate which whilst we have mentioned this before, we believe we cannot overstate. The Maldon Goldfield presents itself as an outstanding, massively under-explored exploration and mine development opportunity for KAU, advantageously located only 3km from the Company’s underutilized Maldon ore treatment facilities.The resource estimate announced is located within immediate proximity to the fully permitted modern Union Hill decline which has access to power, water, and ventilation, and whilst the Company has indicated modern egress (emergency escape ways) need to be established and approved prior to production commencing, this is all considered feasible within a reasonable time frame.2022 for KAU is about increasing profitability as well as defining mineable resources at Maldon with the aim of commencing a second operation in the medium term (circa 12 months). Establishing such an operation only 3km from the mill which has ample capacity has the potential to provide significant commercial benefits to KAU.Underground drilling will now continue to infill and target extensions to the Alliance South shoot which is located within the Eaglehawk reef. This drilling remains a top priority target for KAU’s exploration team and based on recent and historical drilling success, we are confident the Company will likely continue to deliver further high-grade intercepts which importantly lie immediately proximal to current workings.

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while the grade of the MRE at 4.4 g/t is lower than the A1 mine at 10 ( but they’re getting 14 now), they wouldn’t have to truck it the 300km to the Maldon mill. The mill is actually only 2km from the decline.
So apart from those much lower costs in trucking ( fuel,labour,repairs). It would also mean less time driving the ore and more mill throughput .The mill only working at 20% of capacity ATM.
If they’re looking to start within the year, the double input ( Maldon, A1) may mean other local mining operations may want to secure some tolling before then.

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(20min delay)
Last 14.5¢		Change -0.005(3.33%)		Mkt cap ! $29.64M

Open	High	Low	Value	Volume
14.5¢	14.5¢	14.5¢	$14.93K	103K

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