Kaiser Reef (ASX:KAU) has made an announcement about a key resource.

Following the announcement shares of Kaiser Reef fell 5.882% to $0.160.

Kaiser Reef is pleased to report 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.

When a mining company releases an update about a key resource it?s exciting times for shareholders.

A lot of capital goes into exploration and when a new deposit is found there?s usually a share price boost.

Discovery is the reward stage for investors, particularly of junior mining stocks, searching for undiscovered deposits of natural resources.

When discussing new resource discoveries it?s beneficial to know the difference between greenfield and brown exploration.

Greenfield exploration is looking for mineral deposits in areas that have not been explored.

In brownfield exploration deposits are being sought near or next to an already existing mine.