UPDATE: Kaiser Reef has just announced a significant boost in gold reserves at the Henty gold mine in Tasmania, increasing it by 29% to 199,000 ounces at a grade of 3.28 grams per tonne. This development secures an expanded mine life exceeding six years, marking a pivotal moment for the company and its stakeholders.
The latest figures were revealed alongside a mineral resource upgrade, now totaling 4.11 million tonnes at 3.32 grams per tonne, translating to 438,000 ounces of high-grade underground gold. This surge positions the Henty mine as a cornerstone asset for Kaiser Reef, which took control of the operation near Queenstown in May 2023, and has already produced over 8,000 ounces in its first full quarter.
The boost in reserves follows a depletion of 25,700 ounces from mining activities earlier this year. However, new resource conversions have driven a net gain, setting a production target of over 30,000 ounces annually, with even 35,000 ounces now within reach. The company has also upgraded its processing plant capabilities, which will enhance the annual run rate to 400,000 tonnes of ore, a 33% increase.
Kaiser Reef Managing Director Brad Valiukas emphasized the importance of these upgrades, stating, “We have committed to increasing the processing rate, which removes a significant constraint on underground production potential.” This enhancement allows for more efficient hauling of ore from underground to the mill, a crucial improvement in maximizing output.
With the increased reserves and processing capacity, Henty is poised to generate an estimated $220 million in gold at current market prices. The recent gold market surge has seen prices climb above US$4,000 (approximately A$6,300) per ounce, further solidifying the mine’s potential profitability.
In the first quarter, Henty has already contributed over $10 million in free cash flow to Kaiser, boosting the company’s cash reserves to more than $28 million by the end of July. This financial strength enables Kaiser Reef to pursue its ambitious goal of becoming a 50,000-ounce annual producer across Tasmania and Victoria.
Kaiser is also focusing on its Maldon project in Victoria, where it holds a permitted underground operation and a 200,000-tonne-per-annum processing facility. Recent drilling efforts at the historic Union Hill pit concluded in September, with assay results expected soon that could define new resources and kickstart development.
Strategically located between the gold-rich Bendigo and Ballarat regions, the Maldon plant is set to benefit from potential ore transfers from both its own projects and from Catalyst Metals, which could channel material from its Four Eagles project.
As Kaiser Reef ramps up its operations at Henty and prepares to explore the vast potential of Maldon, the company is well-positioned to capitalize on the booming gold market. With continued improvements in processing capabilities and resource extraction, Kaiser Reef is set for a promising future in the gold mining sector.
This news is developing rapidly and has significant implications for investors and stakeholders in the mining industry. Stay tuned for further updates as Kaiser Reef continues to make strides in its operations.
