In an innovative move for Australia's gold sector, ASX-listed Kaiser Reef is set to transform historic mining waste into a revenue stream at its Maldon Gold Project in central Victoria. The company is launching a systematic drilling program to assess vast waste dumps left from the region's prolific gold mining past.
Unlocking Value from the Past
The focus is on the Union Hill waste dump, which contains an estimated 410,000 cubic metres of material. Previous sampling throughout the year has already shown promising results, with channel sampling averaging 0.6 grams per tonne (g/t) gold. A trial processing run in October of 2,628 tonnes delivered an even better result, reconciled at 0.86g/t gold, indicating the material is favourable for mill feed.
Kaiser Reef's Managing Director, Brad Valiukas, is overseeing the plan to drill through the dump to better define the grade, volume, and specific gravity. This crucial work will allow for the conversion of this material into a JORC-compliant resource, paving the way for formal mining operations.
A Multi-Pronged Strategy for Growth
The potential of the waste dumps is a key part of Kaiser Reef's broader strategy. Success here would provide a low-cost, free-digging feedstock for the company's nearby Porcupine Flat processing plant, which has a capacity of 200,000 tonnes per annum. Keeping this mill operating profitably creates cash flow to fund other ambitious exploration targets.
This includes continued drilling at the Union Hill open pit and underground resources. Recent diamond drilling there has yielded outstanding intersections, including 5.8m at 5.37g/t gold from 39m and 6.9m at 6.05g/t gold from 30m, confirming high-grade spur veins and grade continuity.
Just 1.5 kilometres north, another target known as the Nuggetty waste dump awaits testing pending permits. This smaller dump of over 16,000 cubic metres has already shown high potential from rock sampling that averaged 1.8g/t gold.
District-Scale Opportunity and a Tasmanian Jewel
The Maldon project sits within a district that boasts a remarkable historical production legacy of 1.75 million ounces of gold at a spectacular average grade of 28g/t. Despite this rich history, Kaiser Reef believes the area remains significantly underexplored, representing a major opportunity.
While the Victorian assets develop, Kaiser's current crown jewel is the recently acquired Henty gold mine in Tasmania. This profitable underground operation produced over 8,000 ounces of gold in the first quarter under Kaiser's ownership and is targeting consistent annual production of over 30,000 ounces. With a current mine life exceeding six years, Henty provides a solid production and financial base.
By combining the cash flow from a profitable operation like Henty with the blue-sky potential of systematically re-evaluating historic assets like Maldon, Kaiser Reef is building a compelling, multi-faceted growth story for Australian investors.
