Kaiser Reef — Henty Throughput Up to 33% Above Nameplate; Ramp-Up Underway - A Gold Production Story
- Noel Ong
- 5 hours ago
- 6 min read
Announcement
Kaiser Reef Limited (ASX: KAU) has reported materially higher processing performance and a coordinated ramp-up program at the Henty Gold Mine in Tasmania (Figure 1), alongside actions to de-bottleneck underground access, modernise the fleet, and accelerate resource growth drilling. Management frames these steps as critical to lowering unit costs and underpinning near-term Reserve calculations.
Figure 1: Henty project location (source: KAU)
Highlights - A Gold Production Story
Processing rate tested at ~400,000 tpa — up to 33% above the 300,000 tpa nameplate, achieved without major infrastructure changes; circuit fine-tuning continues.
Decline de-bottlenecking in progress — floor stripping equipment on site; a decline bypass is underway (also providing additional ore access), enabling larger trucks and removing a life-of-mine production constraint.
Fleet uplift committed — jumbo fleet now standardised to twin-boom jumbos; larger trucks and loaders on order; OEM equipment finance secured with no significant effect on cash balance.
Second underground diamond rig commissioned — dedicated capacity to target resource additions and extensions, initially the Cradle Zone above a large portion of the mine.
Context — Henty Mineral Resource 449 koz @ 3.4 g/t Au; Ore Reserve 154 koz @ 4.0 g/t Au; updated 2025 Resource & Reserve statement is “due shortly.”
Kaiser’s Managing Director, Brad Valiukas, commented:
“We continue to see significant upside at Henty, and I’m very pleased with the progress to date. Increasing the processing rate, de-bottlenecking the decline and bringing in more productive equipment are key improvements to drive down unit costs per tonne across the business, noting that a large portion of Henty’s costs are considered fixed.
“We are looking to build both mine life and resilience at Henty over the next 12 months. Our 2025 Resource and Reserve statement is due shortly, and productivity and unit costs are important to Reserve calculations.
“Bringing in the second underground diamond drill rig gives us dedicated capacity, targeting Resource growth beyond the rate of depletion for mining and, subject to success, further extensions of mine life.”
Processing: What Changed and Why It Matters
Kaiser attributes the higher throughput to several incremental, practical modifications:
Circuit water balance & distribution changes.
Cyclone operation tweaks that improved material classification.
Cyanide detox capacity increased by converting a water tank to additional reactor capacity (back end of circuit).
Mobile secondary crusher (on hire) to reduce feed size.
These measures collectively allowed the recent throughput trials to demonstrate sustained operation well above historical rates (~20 years at/near nameplate). The Company plans progressive upgrades to plant items (pumps/screens) historically tuned to 300 ktpa as it fine-tunes for higher sustained rates.
Underground: Removing the Bottlenecks
A targeted decline bypass and floor-stripping campaign addresses geometry constraints that have limited haulage. Management expects the works to enable larger trucks, remove a life-of-mine production constraint, and lift overall material movement capacity. The bypass also accesses additional ore, adding operational flexibility.
Fleet & Financing
Standardising to twin-boom jumbos and introducing larger trucks/loaders aims to increase development and haulage productivity. OEM equipment finance is in place and is not expected to materially impact cash, aligning capital efficiency with the ramp-up timeline.
Drilling: Building Life and Resilience
A second underground diamond rig is now operational. Initial focus is the Cradle Zone, strategically positioned above a large portion of the mine. The goal is to add and extend resources beyond depletion rates, supporting mine-life growth and Reserve renewal.
Why This Matters (Operational Take)
Throughput uplift + haulage capacity → lowers unit cost per tonne where a large cost base is fixed.
Fleet modernisation → productivity leverage during ramp-up.
Dedicated drilling → optionality for Resource/Reserve growth heading into the 2025 statement.
About Kaiser Reef
Kaiser is a profitable ASX-listed gold producer with Henty (Tas.) (Figure 2) and Maldon (Vic.) assets. Henty hosts a 300 ktpa plant (tested to ~400 ktpa run-rate in trials), 449 koz @ 3.4 g/t Resource and 154 koz @ 4.0 g/t Reserve. In Victoria, the Maldon project (including Union Hill at 186 koz @ 4.4 g/t) and a 200 ktpa plant complement the portfolio; the A1 Gold Mine is being transitioned to care and maintenance.
Figure 2: – Henty Project Map And Resources (source: KAU)
Samso Concluding Comments
Henty’s processing uplift is the first real signal that KAU can squeeze more out of an existing plant without heavy capex. When a circuit consistently tests 30%+ above nameplate, the path to lower unit costs becomes tangible rather than theoretical. This was always going to happen. As they say, a loved asset is always going to be treated with more care than one that is not loved.
Removing the decline bottleneck and standardising the fleet is the unglamorous work that actually changes tonnes moved per day. If the bypass and bigger trucks deliver as planned, throughput gains at the mill can translate into sustained mine output—closing the classic gap between nameplate and reality.
When you have a seasoned operator like Brad going through the details, items such as the second underground rig are the quiet catalyst. Extending resources ahead of depletion is what protects cash flow, supports Reserve renewal, and buys time for optimisation to compound. The initial focus on the Cradle Zone adds sensible near-mine ounces to the critical path rather than chasing far-flung targets.
There have been recent announcements that have been released since this Samso News was published, but a good understanding of the steps is a good foundation for understanding the Kaiser story.
Execution is now the story. Keep an eye on how quickly the haulage upgrade bites, whether higher mill rates are maintained without recovery slippage, and how the drill bit converts into Resources/Reserves. If these pieces hold together, the investment case shifts from turnaround potential to operating leverage. DYOR.
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