Kaiser Reef Charts Expansion Path for Gold Mines in Victoria and Tasmania
Profitable gold producer Kaiser Reef has leveraged the robust gold price to initiate a growth strategy, aiming to increase gold production, extend mine life, and unlock district-scale potential across its operations in Tasmania and Victoria. The company plans to fund all activities from operating cash flow, focusing on optimizing existing infrastructure and revitalizing exploration in historic Australian goldfields.
Henty Gold Mine in Tasmania: Boosting Production and Exploring New Lodes
At its flagship Henty underground mine in Tasmania, Kaiser Reef targets a 16 percent increase in production run rate to 35,000 ounces annually from 2027, driven by plant optimization and improved ore access. The high-grade mine currently holds a resource of 4.1 million tonnes at 3.3 grams per tonne gold, totaling 438,000 ounces. Since opening in 1996, it has produced over 1.3 million ounces, surpassing its initial five-year lifespan.
Exploration potential remains strong despite past ownership changes, with new lodes and extensions regularly discovered along a six-kilometre mineralised corridor. This area includes historical sites like the Tyndall copper mine and Lake Newton alteration zone.
Maldon Gold Project in Victoria: Dual Strategy for Growth and Exploration
In Victoria, Kaiser Reef is pursuing a dual approach at its Maldon gold project. This includes increasing production from low-grade stockpiles and reopening the Union Hill underground mine, while advancing a district-scale exploration program to identify new drill targets. The project features a fully operational 200,000 tonnes per annum gold processing facility and a history of 1.75 million ounces produced at an impressive 28 grams per tonne.
Recent diamond drilling at Union Hill yielded standout results, such as 5.8 metres at 5.37 grams per tonne gold from 39 metres, confirming grade continuity and high-grade spur veins. Although currently on care and maintenance, Union Hill hosts a resource of 186,000 ounces grading 4.4 grams per tonne gold.
Reprocessing Success and Financial Strength
Kaiser Reef has also turned old gold waste dumps near Union Hill into revenue, with trial processing of 3,567 tonnes averaging 1.6 grams per tonne gold and a 90 percent recovery rate. This marks a significant improvement from earlier trials, suggesting further reprocessing potential.
Brad Valiukas, managing director of Kaiser Reef, stated, "We are well-positioned to capitalise on a strong gold price and add significant value to our assets with targeted investment." The company has transformed into a profitable miner with a robust balance sheet over the past nine months.
Future Outlook and Asset Portfolio
With cash flow enabling meaningful exploration across both operations, Kaiser Reef is poised to enhance its asset portfolio. The Henty mine remains the company's most profitable asset, underpinning its growth strategy as it seeks to add more ounces and sustain long-term operations in Australia's key gold-producing regions.
