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Murray Ward
Profitable dual-asset gold producer Kaiser Reef Limited has defined an initial resource for the historical tailings at its A1 gold mine in Victoria, outlining a neat parcel of low-hanging fruit that can be fed into its nearby processing plant.
The company has estimated the historical stockpile contains 77,427 tonnes grading 1.25 grams per tonne (g/t) gold for 3100 ounces of contained gold. The tally, which is based on a 28-hole air-core drilling program, has been classified as an inferred mineral resource.
The material is slated to be trucked to Kaiser’s, 200,000-tonne per annum, Porcupine Flat processing plant at Maldon, where it will serve as a higher-grade supplement to the low-grade ore currently being treated. Metallurgical test work has indicated gold recoveries of more than 80 per cent from the ore.
Whilst the A1 tailings resource provides a useful operational bonus it represents just one part of Kaiser’s broader strategy in Victoria’s revered golden triangle. The company’s ability to self-fund its work is underpinned by a robust balance sheet, which recently reported a healthy $37.2 million in cash and bullion as at June 30.
‘Kaiser is a profitable gold miner with a robust balance sheet and a strong pipeline of exploration and development opportunities.’
Kaiser Reef Limited managing director Brad Valiukas
That financial muscle is being put to good use at Maldon, where an aggressive exploration push is underway. A recently completed soil survey at its Maldon North prospect has identified multiple new anomalies, including a significant 850-metre-long gold trend.
Kaiser isn’t sitting on its hands, with a 4350m surface drilling program already underway across four initial targets. Early signs from previous work are encouraging with a solid eight-metre hit at 4.16g/t gold from just 10m returned at the ‘Quill’ target. Follow-up drilling has been completed with assays pending.
Kaiser Reef Limited managing director Brad Valiukas said: “This is a good result, and with gold again recently touching A$200 per gram, it makes sense to reclaim this historical material, adding to the processing options at our Maldon gold project and cleaning up the A1 site. We are currently working on our plans for execution.”
In parallel, work has kicked off on refurbishing the decline at the Union Hill mine to establish a new underground drill platform, opening up new angles to test the historic high-grade system from below. The Maldon field has a rich history, having previously produced a hefty 1.75 million ounces of gold at an eye-watering average grade of 28g/t.
Notably, the engine room for the company’s ambitions lies across the Bass Strait at its second operation, the Henty gold mine in Tasmania. Henty is an established underground operation that makes Kaiser a profitable producer,churning out 5563 ounces of gold in the last quarter. Combined with 437 ounces from initial Maldon processing, the company produced a total of 6000 ounces for the quarter. The company has reaffirmed its 2027 financial year production guidance of 32,000 ounces of gold across both operations.
The Tasmanian operation is underpinned by a 199,000-ounce ore reserve and boasts a processing plant with a capacity of more than 300,000 tonnes per annum.
With its saddlebags full of cash from Henty and a pipeline of high-potential targets at Maldon now seeing the drill bit, Kaiser appears to be executing a well-defined strategy. By using its existing infrastructure, the company is squeezing value from forgotten assets such as A1 while simultaneously drilling for the next big prize in one of Australia’s most celebrated goldfields.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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