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Murray Ward
Profitable producer Kaiser Reef has kicked a goal at its Henty gold mine in Tasmania, unveiling an updated resource of 429,000 ounces and a new ore reserve of 198,000 ounces that replaces depletion and maintains the operation’s six-year mine life.
The updated mineral resource for the underground operation near Queenstown on Tasmania’s west coast now stands at 4.23 million tonnes grading an average of 3.16 grams per tonne (g/t) gold for 429,000 ounces. Within that global figure, the higher-confidence indicated resource category saw a solid 5.5 per cent lift, growing by 19,000 ounces to 366,000 ounces.
Notably, for any producer, the company also delivered a new ore reserve of 1.91 million tonnes at a tidy 3.22g/t gold for 198,000 ounces. Kaiser says the new reserve successfully replaces the 25,800 ounces it mined in the 12 months to the end of June this year, effectively keeping the existing mine life intact based on reserves alone. The reserve and resource models were based on a cut-off grade of 1.5g/t gold and a gold price assumption of A$4,000 per ounce.
The company is now targeting a consistent production rate of 30,000 ounces of gold per annum from Henty.
‘This is a good result, maintaining Henty’s mine life and forecast production going forward.’
Kaiser Reef chief executive officer Brad Valiukas
Kaiser Reef chief executive officer Brad Valiukas said: “This is a good result, maintaining Henty’s mine life and forecast production going forward. This result has been strongly assisted by the second diamond drill rig we have been running, since October 2025, largely focused on extensional targets. Henty has some fantastic exploration potential, with numerous historical occurrences and small workings, both north and south of the mine.“
Kaiser has also moved to keep Henty’s 300,000-tonne-per-annum processing plant well fed, recently striking a deal with ASX-listed Flynn Gold to buy and process third-party ore or concentrates through the facility, thereby squeezing additional income from its established western Tasmanian infrastructure.
At the same time, the company is looking to build its own future feed, with a second drill rig becoming a key plank of its strategy to not only replace the ounces mined at Henty but actively grow the operation’s reserve base. To that end, management has carved out a dedicated exploration role by hiring veteran geologist Colin Skidmore, with the drill bit now targeting extensions beyond the known mine footprint, especially at numerous historical gold occurrences and small-scale workings to the north and south of its ground, hunting for fresh lodes.
The mine site has also been the beneficiary of an investment push, with Kaiser recently pouring $2.7 million into a ROM pad expansion and its tailings storage facility, which now has approval for a six-metre height lift to help keep production rolling through to at least 2030. Work has already started on securing capacity beyond that date.
Henty sits in the heart of the richly endowed Mount Read volcanics belt, a geological sweet spot that has historically produced monsters such as the Rosebery and Mount Lyell polymetallic mines.
Meanwhile, at its Maldon gold project in Victoria, the company recently kicked off an underground drilling program at its Union Hill gold mine to test the potential of one of Australia’s highest-grade historical goldfields. The project remains substantially under-explored despite having historically produced 1.75 million ounces at a hefty 28g/t. It comes with a fully permitted and operating 200,000-tonne-per-annum processing plant at Porcupine Flats, a permitted mining lease, and a refurbished decline capable of supporting future production.
Maldon already features an inferred mineral resource at Union Hill of 1.31 million tonnes grading a solid 4.44g/t gold for 187,000 ounces. In addition, a surface stockpile holds a further 570,000 tonnes at 0.48g/t for a further 8600 ounces of contained gold.
The market has been rewarding long-life underground gold operations with clear, drill-driven growth paths and savvy planning. For a producer, simply replacing what you dig out is a win; however, actively exploring for extensions and new regional discoveries is how you build a long-term business.
With a second drill rig spinning, a new exploration hire on the books and a robust gold price, Kaiser appears to be doing just that.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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