Samso News: Kaiser Reef Limited – Strategic Plan for Henty & Maldon and Union Hill Stockpile Resource Defined - The Growing Gold Mining Story.
- Noel Ong
- 1 day ago
- 7 min read
Announcement
Union Hill Waste Dump Drilling Results & Stockpile Estimate- 11 February 2026 ( view announcement )
Strategic Plan for Henty & Maldon - 16 February 2026 ( view announcement )
I have been a keen follower of the Kaiser Reef Limited (ASX: KAU) story since it became literally an overnight gold producer. Kaiser made the transition to become a profitable Australian gold producer operating in Tasmania and Victoria when it acquired the Henty Gold Mine. The Company currently owns and operates the Henty Gold Mine in Tasmania and the Maldon Gold Project in Victoria, including the Union Hill Gold Mine and the Porcupine Flat Processing Plant.
Henty has a Mineral Resource of 438koz @ 3.3g/t Au and Ore Reserves of 199koz @ 3.3g/t Au. Maldon includes Union Hill with a Resource of 186koz @ 4.4g/t Au and a historical production record of over 1.75Moz Au prior to 1926.
The two February announcements outline:
A defined Inferred Resource for the Union Hill waste dumps (now classified as a stockpile).
A forward strategic plan for Henty and Maldon focused on production growth, exploration, and balance sheet management.
Kaiser Reef Limited– Defined Low-Grade Stockpile and District-Scale Strategic Plan
The 11 February 2026 release confirmed the successful conversion of historical Union Hill waste dumps into a defined Inferred Mineral Resource stockpile. This work provides a quantified low-grade base to support ongoing processing at Porcupine Flat.
The 16 February 2026 release outlines Kaiser’s strategic plan for both Henty and Maldon, targeting:
Increased production run rate at Henty to 35kozpa Au from late FY27
Near-mine and regional exploration programs
Advancement of Union Hill underground works
Continued low-grade processing to underpin cash flow
Balance sheet reduction initiatives
Together, the announcements define both short-term operational continuity and medium-term growth initiatives.
Highlights – Union Hill Stockpile Defined and Strategic Growth Path Outlined
Union Hill Waste Dump Converted to Inferred Stockpile Resource
(Figure 1 and Figure 2)
The Union Hill waste dumps have been estimated at:
566kt @ 0.48g/t Au for 8,649oz Au
(Classified as Inferred Mineral Resource under JORC 2012)
163 RC drill holes
2,212m of drilling
20m x 10m grid spacing
Inverse Distance (ID1) block modelling
Top cut of 5g/t
Bulk density of 1.91
Processing in January included:
3,234t @ 1.61g/t Au
90.7% recovery
152.3oz Au produced
Processing was exclusively Union Hill stockpile material during that period.
Figure 1 Union Hill Stockpile (Green) with topography and Union Hill Pit. (source: KAU)
Figure 2: Union Hill Waste Dump Drill Hole Locations and Waste Dump Outline (Yellow). (source: KAU)
Nuggetty Waste Dump Investigation
(Figure 3)
At Nuggetty (1.5km north of Union Hill):
Approximate area: 16,000m²
321 rock chip samples averaging 1.8g/t Au
Permitting underway for reclamation and processing
Figure 3 Nuggetty Waste Dum p Outline (Yellow). (source: KAU)
Henty Gold Mine – Production and Exploration Plan
(Figure 4)
Strategic plan for Henty includes:
Production run-rate target increased to 35kozpa Au from late FY27
Continued underground development to open additional stopes
Second underground diamond drill targeting resource and reserve growth
Near-mine exploration commencing H1 FY27
Regional exploration commencing H2 FY27
Processing capacity currently exceeds underground output, with focus on increasing aggregate development.
Figure 4: Maldon Gold Project Strategic Plan. (source: KAU)
Maldon Gold Project – District-Scale Strategy
(Figure 5)
Strategic workstreams at Maldon include:
Continued low-grade base load processing
Ongoing data consolidation
Target generation and drilling at Nuggetty, South Nuggetty and Porcupine Flat
Re-establishment of Union Hill underground services
Drill positions at Union Hill expected Q1 FY27
Targeting ore development at Union Hill commencing H2 FY27
Figure 5: Maldon Gold Project Map. (source: KAU)
Balance Sheet Management
The 16 February release confirms:
Final Auramet gold call option (1,000oz @ A$5,300) to be closed out in February
Gold loan and deferred payments being progressively reduced
All growth and resilience works to be self-funded from underlying cash flow
Management Commentary
Managing Director Brad Valiukas stated that:
The Union Hill waste dumps have been converted into a defined stockpile resource.
Processing at Porcupine Flat can continue while exploration and rehabilitation works progress.
Maldon represents a district-scale gold opportunity with multiple historical workings.
Henty has near-mine and regional exploration potential along a broader mineralised trend.
Balance sheet liabilities continue to be reduced.
Near-Term Milestones to Watch
Ongoing processing of Union Hill stockpile
Permitting for Nuggetty surface reclamation
Recruitment of exploration team at Henty
Commencement of near-mine exploration (H1 FY27)
Union Hill underground drill positions available Q1 FY27
Ore development targeting H2 FY27
Updated production guidance for FY27
Samso Concluding Comments
The February announcements outlines the obvious. The KAU story is one that I have liked since it morphed itself out of nothing in the beginning of the new company narrative with the acquisition of the Henty Gold Mine. It was like the rise of the Phoenix. The news on the Union Hill stockpile provides an additional quantified low-grade material source that supports continued utilisation of the Porcupine Flat plant.
Figure 6: Union Hill Stockpiles – Plan View. (source: KAU)
In the current gold price environment, this will be the icing on the cake for Kaiser Reef that was not in existence when the gold price was significantly lower six months ago. Investors should be very keen to see how this develops as if the studies are positive, this will indeed add to the fortunes of Kaiser Reef.
Figure 7: Union Hill Stockpiles – Long Section – looking East. (source: KAU)
At Henty (Figure 8), the focus is on increasing underground development to match existing processing capacity. The production run-rate target of 35kozpa from late FY27 is supported by development and exploration programs. Without elaborating on the obvious merits of being part of a money printing business to existing shareholders, I have always said that an operator like Brad will make this work and with the rising gold price, his job got significantly easier.
Figure 8: Henty Project Map. (source: KAU)
The Maldon strategic plan outlines concurrent workstreams including target generation, permitting, rehabilitation and potential ore development. The district-scale approach is supported by multiple historical mines and infrastructure already in place (Figure 9).
Figure 9: Central Victorian Goldfields. (source: KAU)
The balance sheet update indicates progressive reduction of legacy liabilities while funding exploration and development internally. The announcements collectively provide operational data, resource definition and forward activity timelines without revising existing resource and reserve assumptions.
Market Implication - The Investor Lens
There is not much to say about the market implication as we all know that any gold producer now is laughing all the way to the bank. All shareholders of a gold producer are doing the same, so Figure 10 is all you need to understand the fortunes of Kaiser Reef Limited.
Figure 10: The share price chart for Kaiser Reef as of 24th February 2026. (source: commsec)
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