Kaiser Reef October 2025— Henty Reserve +29%, Plant Hits ~400 ktpa Run-Rate, Maldon In-Pit Drilling Confirms High-Grade Gold Continuity
- Noel Ong
- 3 days ago
- 7 min read
Announcement
This Samso News is all about Kaiser Reef Limited (ASX: KAU) at the Henty Gold Mine, West Coast, Tasmania, announcing a 29% lift in Ore Reserves to 199 koz @ 3.28 g/t, strengthening mine-life visibility, while the processing plant demonstrated ~400 ktpa run-rate—about one-third above nameplate—through targeted, low-capex debottlenecking.
When the acquisition of the mine was consummated, I mentioned that this was always going to be on the cards. On the 27th April 2025, we published "Kaiser Reef Limited (ASX:KAU) - A Lesson in How To Become A Gold Producer Overnight," and I discussed in length why a revaluation of the ounces and a recalibration of operating costs was what someone like Brad Valiukas was going to produce. This is clearly what is happening now.
At Maldon–Union Hill, Central Victorian Goldfields, Victoria, shallow in-pit drilling has confirmed high-grade continuity along the Eaglehawk Reef over a meaningful strike length, indicating potential for near-term underground access and follow-up drilling.
Figure 1: Map Location of Henty Gold Mine, Maldon Plant & Union Hill Gold Mine (source: KAU)
Together, these updates tighten the operating plan: more ounces in reserve, higher throughput capacity to monetise them, and fresh drill evidence to grow the pipeline.
(Figure 2)
Figure 2: Maldon Gold Project (source: KAU)
22 holes / 960 m program inside the Union Hill Open Pit targeting unmined Eaglehawk Reef (EHR) extensions; 18 of 19 effective holes intersected gold, confirming continuity over ~160 m strike (Figure 3).
Standout intercepts (down-hole):
5.8 m @ 5.37 g/t Au from 39.0 m (incl. 2.5 m @ 10.25 g/t).
6.9 m @ 6.05 g/t Au from 30.4 m (incl. 1.98 m @ 16.44 g/t).
8.6 m @ 4.99 g/t Au from 18.4 m (incl. 2.0 m @ 15.69 g/t).
Next steps: re-establish underground access as an exploration platform (decline rehab planned to commence in January) and set a northern drill position.
Context: Union Hill Resource 187 koz @ 4.4 g/t; district hosts multiple historical reefs.
Figure 3: Long Section of 2025 In-Pit Drilling program holes (Blue) with assay results. Note: Only recent drilling shown (source: KAU)
Kaiser’s Managing Director, Brad Valiukas, commented:
“This recently completed drilling at Union Hill tested a shallow gap zone between known workings, and these are great results in an area that was historically left behind.
“Without taking away from the bigger picture approach to the entire Maldon Gold Project, the next step at Union Hill will be to re-establish the underground as an exploration platform. We expect to commence active work on re-accessing and rehabilitating the decline in January, to allow follow-up drilling. Additionally, we plan to establish a drill position giving access to the north.
“Maldon represents a district-scale gold opportunity for Kaiser, with numerous historical mines and lines of working that remain substantially underexplored. Kaiser has not previously had the funds to progress the Maldon Gold Project as actively as warranted, but with Henty now bedded in and Kaiser’s transformation into a profitable gold miner complete, we are now in a great position to drive Maldon forward as a key growth asset.”
(Figure 4)
Figure 4: Mineralisation Domain Wireframes and historical mining - Long-Section Projection Looking West (source: KAU)
Ore Reserve increased 29% to 199 koz @ 3.28 g/t Au (1.89 Mt @ 3.28 g/t) from 154 koz; depletion to 30 June 2025: 25.7 koz.
Mineral Resource updated to 438 koz @ 3.32 g/t Au (4.11 Mt @ 3.32 g/t) at 1.5 g/t cut-off, reported within underground shape optimiser constraints (Figure ).
Company indicates >6-year mine-life outlook targeting >30 koz pa Au as operations build through FY26; second underground diamond rig now focused on exploration/resource extension (Figure 5).
Figure 5: Mineralisation Domain Wireframes and planned mining (Reserve and other LOM designs) - LongSection Projection Looking West (source: KAU)
Kaiser’s Managing Director, Brad Valiukas, commented:
“We continue to see significant upside at Henty, and I’m very pleased with the near 30% increase in Reserves we are now reporting.
“We are focused on building both mine life and resilience at Henty over the next 12 months. We have brought in the second underground diamond drill rig, giving us dedicated capacity for exploration and resource extension, ultimately targeting continued Resource growth.
“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, and bringing in more productive equipment as key improvements to drive performance. We expect to see continued improvements across the business during the financial year.
This is another step that confirms Kaiser’s transformation into a profitable gold producer, with Henty providing a solid production and cashflow base on which to build the Company.”
Samso Concluding Comments
Kaiser’s October updates are strengthening the operating story with more booked ounces at Henty, a demonstrably faster plant, and fresh shallow drilling at Union Hill that hangs together along strike. For a gold mining business, the positive news on reserves, throughput, and geological continuity is simply all about better mine-life clarity and optionality.
The processing uplift to ~400 ktpa without major capex is meaningful, but the proof is sustaining that rate with consistent underground delivery. The decline in de-bottlenecking, fleet changes, and the second rig at Henty are the right levers; execution over the next quarters matters more than the single data point.
At Maldon, the other project, confirming high-grade continuity inside the Union Hill pit can be a path to de-risk near-term underground work. Re-establishing underground access and setting a northern drill platform will indicate whether the ~160 m strike of hits can convert to mineable shapes and, ultimately, cash flow.
So for investors and shareholders, it will be important to watch underground productivity and dilution control at Henty. Sustaining plant stability at higher tonnage, timing on Maldon access works, and assay flow from both programs will be key points of observation as well. If those boxes tick, the pathway to >30 koz p.a. becomes more credible; if not, the market will discount the stretch targets until the data catches up. DYOR.
Market Status - A Discount for New Shareholders?
As we write this Samso News, KAU is just coming off a low price point from a fall in the last week (Figure 6). With a strong gold price sentiment globally, with predictions of further growth, I would see this moment as primed for taking positions.
Figure 6: Share price chart for Kaiser Reef Limited as of 14th November 2025. (source: CommSec)
Conversations with people working in the capital markets have now convinced me that the recent fall in gold price is a time for reloading or getting into positions in this sector, whether it is in gold equities or physical, or ETF gold. The deficit in physical delivery is good evidence that the gold pricing situation is very different from previous times. There will be ups and downs, but I think from a retail end, we can see inflationary pressure being very obvious.
DYOR, and I think readers should start reducing themselves for this growing story.
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