UPDATE: Kaiser Reef has just announced a significant boost to its gold reserves at the Henty gold mine in Tasmania, increasing them by 29 percent to an impressive 199,000 ounces at 3.28 grams per tonne (g/t). This development secures the mine’s operational life for well over six years, marking a pivotal moment for the company.
The reserves upgrade, revealed alongside a mineral resource enhancement of 4.11 million tonnes at 3.32 g/t for 438,000 ounces of high-grade underground gold, underscores Henty’s importance as a cornerstone asset for Kaiser Reef. The company took control of this underground operation near Queenstown in May 2023 and has already extracted more than 8,000 ounces in its first full quarter.
Kaiser Reef’s recent production surge comes as the company aims for a target of over 30,000 ounces annually, with aspirations to reach 35,000 ounces. This ambitious goal follows a depletion of 25,700 ounces from mining activities up to mid-year, but the new reserve conversions have more than compensated for this loss.
Recent upgrades to the processing plant, which now boasts an annual run rate of 400,000 tonnes of ore—up by a third—have effectively removed a bottleneck that previously constrained production. Kaiser Reef’s Managing Director, Brad Valiukas, stated, “We have committed to increasing the processing rate, which removes a significant constraint on underground production potential, de-bottlenecking the decline so we can deliver to the processing plant.”
This expanded capacity positions Henty to potentially generate around $220 million worth of gold at current market prices, which have recently surged above US$4,000 (A$6,300) per ounce. The operation has already delivered over $10 million in free cash flow to Kaiser during the first quarter, boosting its cash reserves to over $28 million by the end of July.
Kaiser Reef is also ramping up efforts at its historic Maldon gold mine in Victoria, where it holds a permitted underground project. The company has deployed a second underground diamond drill rig to focus on resource extensions while enhancing its operational capabilities with larger haul trucks and twin-boom jumbo drills.
With exciting developments underway, Kaiser Reef is aiming for a production rate of 50,000 ounces per annum across Tasmania and Victoria. The Maldon processing facility, strategically located between the gold-rich regions of Bendigo and Ballarat, could significantly contribute to this goal.
The recent reserve increase and processing upgrades not only strengthen Kaiser Reef’s financial position but also enhance its ability to capitalize on the booming gold market. As the company continues to explore its vast potential, industry experts and investors alike will be closely monitoring these developments.
Stay tuned for further updates as Kaiser Reef embarks on this promising trajectory in the gold mining sector.
