In a significant development for Victoria's historic goldfields, Kaiser Reef has successfully wrapped a resource around historical waste dumps at its Union Hill site within the Maldon gold project. The company has delivered a substantial stockpile estimate that promises to bolster its operations for years to come.
Substantial Stockpile Resource Defined
Kaiser Reef's comprehensive assessment has revealed a stockpile resource of 566,000 tonnes grading 0.48 grams per tonne gold, containing approximately 8,649 ounces of the precious metal. This resource was calculated through a meticulous program involving 163 drill holes totaling 2,212 metres, combined with advanced volumetric drone estimates and detailed bulk density work.
Low-Cost Feedstock for Processing Operations
The newly defined low-grade stockpile will provide Kaiser Reef with substantial feedstock for ongoing operations at its Porcupine Flat processing plant, which has a capacity of 200,000 tonnes per annum. Company officials indicate this material should sustain operations through to at least 2030, offering a remarkably cost-effective solution.
By utilizing existing stockpiles, Kaiser eliminates the expenses associated with traditional mining operations, leaving only the operating costs at Porcupine Flat. This approach creates what the company describes as a low-cost revenue generator while they work toward potentially restarting mining operations at the broader Maldon project.
Recent Processing Success and Future Plans
Recent performance at the Porcupine Flat plant demonstrates the viability of this approach. In January alone, the facility processed 3,234 tonnes of ore grading 1.61 grams per tonne gold, achieving an impressive 90.7 percent recovery rate that yielded 152.3 ounces from Union Hill material.
Simultaneously, Kaiser is progressing with permitting to reclaim the Nuggetty stockpiles located 1.5 kilometres north of the current operation. This follows a 321-rock chip sampling program that returned an average grade of 1.8 grams per tonne gold across 16,000 square metres.
Strategic Vision for Maldon's Revival
The company is preparing to release a comprehensive Maldon strategic plan focused on sustained processing and exploration success. The objective is to cost-effectively revive what was once a high-grade gold-producing star - the very namesake of the accompanying town.
"For a goldfield that operated long before modern mining equipment existed, Maldon's historical production of 1.75 million ounces before 1926 represents a staggering achievement," noted industry observers. "That level of output, accomplished with hand-held tools, timber shafts and stamp batteries, places Maldon among Australia's major gold camps of that era."
Historical Significance and Future Potential
Maldon's historical gold production of 1.75 million ounces at an exceptional grade of 28 grams per tonne gold represents what Kaiser describes as a district-scale opportunity. The area contains numerous historical mines and workings that remain substantially underexplored by modern standards.
The Union Hill mine itself still contains a significant 186,000-ounce gold resource grading a robust 4.4 grams per tonne. Fully permitted and currently on care and maintenance, this asset awaits its next chapter as Kaiser advances its broader strategy.
Tasmanian Operations Provide Solid Foundation
Across Bass Strait, Kaiser's Henty gold mine in Tasmania continues to serve as the company's core producer. With a mineral resource of 438,000 ounces at 3.3 grams per tonne gold, the operation is supported by a 300,000-tonne-per-annum plant that has historically produced over 1.4 million ounces at an impressive 8.9 grams per tonne gold.
Since its acquisition in May of last year, Henty has consistently produced profitably, with production now on track to exceed 30,000 ounces annually. Company leadership notes that with continued exploration and reinvestment, there remains substantial room for expansion both within the mine and across the broader region.
Favorable Market Conditions Support Strategy
The timing appears favorable for Kaiser's dual-strategy approach. With gold prices holding firm above US$5,000 (approximately A$7,100) per ounce, the Union Hill stockpile adds low-cost ounces to the company's production mix. This allows management to focus resources on deeper exploration at Maldon while Henty continues to deliver reliable cash flow from Tasmania.
This balanced approach - combining low-cost stockpile processing in Victoria with steady production from Tasmania - positions Kaiser Reef strategically as it pursues its ambitions to restart Victorian mining operations while maintaining financial stability through established production.
