Brought to you by BULLS N’ BEARS
Andrew Todd
Kaiser Reef has wrapped a resource around the historical waste dumps at its Union Hill site within the Maldon gold project in Victoria, delivering a stockpile estimate of 566,000 tonnes at 0.48 grams per tonne (g/t) gold for 8649 ounces.
The company drilled 163 holes for 2212 metres before combining assays with volumetric drone estimates and bulk density work to calculate the resource.
Kaiser says the low-grade stockpile will provide it with a substantial feedstock for ongoing operations at its 200,000 tonne per annum Porcupine Flat plant through to at least 2030.
In January, the plant handled 3234 tonnes of ore grading 1.61g/t gold, with a 90.7 per cent recovery rate, yielding 152.3 ounces from the Union Hill material.
The on-deck material will provide the company with a low-cost option. By removing the expenses associated with actual mining, the only cost remaining will be the operating costs at Porcupine Flat – a low-cost revenue generator for the company – while it works towards a potential restart of mining at the broader Maldon.
‘With historical gold production of 1.75moz @ 28g/t gold, Maldon represents a district -scale gold opportunity for Kaiser’
Kaiser Reef managing director Brad Valiukas
Kaiser says simultaneous permitting is in motion to also reclaim the Nuggetty stockpiles 1.5 kilometres north, following a 321-rock chip sampling program that averaged 1.8g/t gold over 16,000 square metres.
A Maldon strategic plan is due soon, centred on sustained processing and exploration success to cost-effectively bring on the high-grade former gold-producing star that the accompanying town was named after.
Kaiser Reef managing director Brad Valiukas said: “With historical gold production of 1.75moz @ 28g/t gold, Maldon represents a district -scale gold opportunity for Kaiser, with numerous historical mines and lines of working that remain substantially underexplored.”
For a goldfield that worked long before modern mining equipment existed, Maldon’s 1.75 million ounces produced before 1926 is a staggering feat. In an era of hand-held tools, timber shafts and stamp batteries, that level of output places Maldon in the same league as Australia’s major gold camps of the day.
The Union Hill mine still contains a 186,000-ounce gold resource grading a strong 4.4 grams per tonne, is fully permitted and currently on care and maintenance, quietly waiting for its next chapter to begin.
Across Bass Strait, Kaiser’s Henty gold mine in Tasmania remains the core producer. With a mineral resource of 438,000 ounces at 3.3g/t gold, it is backed by a 300,000 tonnes per annum plant that has churned out over 1.4 million ounces historically at 8.9g/t gold.
Since its acquisition in May last year, it has consistently produced profitably, with production now on track to exceed 30,000 ounces per year.
The company says with exploration and reinvestment, there remains plenty of room for expansion in-mine and regionally as it pursues its Victorian restart ambitions.
With gold prices once again holding firm above US$5000 (A$7100) per ounce, the Union Hill stockpile adds low-cost ounces to Kaiser’s mix, freeing up focus for deeper exploration at Maldon. At the same time, Henty continues to deliver reliable cash flow.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
