Waste Dump Drilling to Commence at Maldon Gold Project (Victoria) - High Gold Price Creating Opportunities From Waste Dump.
- Noel Ong
- 1 day ago
- 6 min read
Announcement
Union Hill Waste Dump Drilling to Commence 25 November 2025 (click here to view the announcement)
Kaiser Reef Limited (ASX: KAU) has released an operational update outlining the commencement of a substantial drilling program across the Union Hill waste dumps at the Maldon Gold Project in central Victoria (Figure 1). The Project includes multiple historical high-grade underground mines and an operating 200ktpa processing plant at Porcupine Flat.
The planned program forms part of Kaiser’s renewed strategy to identify near-surface, readily accessible material to support continued processing while longer-term mining options are assessed.
Figure 1: Maldon Gold Project in central Victoria (source: KAU)
The Business of the Company: Focus – Gold
Kaiser’s activities span two core operating regions:
Victoria – Maldon Gold Project
Union Hill Mine – fully permitted, on care and maintenance
Historical production: 1.75Moz @ 28 g/t Au (pre-1926)
Current resource: 186koz @ 4.4 g/t Au
Operating 200ktpa Porcupine Flat Processing Plant
Tasmania – Henty Gold Mine
Operating underground mine
438koz @ 3.3 g/t Au MRE, 199koz @ 3.3 g/t Au Ore Reserve
300,000tpa processing plant
At Maldon, the waste-dump program reflects Kaiser’s broader approach: leveraging existing infrastructure to unlock value from surface and near-surface material while planning larger-scale underground re-establishment.
Highlights – Union Hill and Nuggetty Waste Dump Evaluation
Major Union Hill Waste Dump Drilling Program Underway
240-hole, ~3,191m slimline RC program scheduled to commence before month-end.
Waste dump footprint: >50,000m²; estimated volume >410,000m³.
Insert Figure: Planned Union Hill Waste Dump Drill Hole Locations – Figure 1, Page 3.
Channel sampling over accessible areas returned average 0.6 g/t Au, with variability across the dump.
October trial processing of 2,628t reconciled at 0.86 g/t Au with 99% recovery.
Trial captured a portion of underlying “battery sands”, extent currently unknown.
Initial screening test work indicates potential to upgrade mill feed.
Further bulk sample work underway to establish specific gravity and convert cubic metres to tonnes.
A second-pass infill program may be required to refine understanding of grade distribution.
Figure 2: Planned Union Hill Waste Dump Drill Hole Locations and Waste Dump Outline (Yellow) (source: KAU)
Nuggetty Waste Dump – High Early Grades, Permitting in Progress
Located 1.5 km north of Union Hill; ~16,000m² footprint.
Insert Figure: Nuggetty Waste Dump Outline – Figure 2, Page 4.
Surface rock-chip samples (321 samples) averaged 1.8 g/t Au.
Historical (2018) bulk sample: 2,401t @ 2.50 g/t Au, 87.1% recovery.
Rock chips and legacy bulk samples are not considered definitive—drilling and new test work required for tonnage and grade confidence.
Figure 3: Planned Union Hill Waste Dump Drill Hole Locations and Waste Dump Outline (Yellow) (source: KAU)
Leadership Commentary
Kaiser’s Managing Director, Brad Valiukas, commented:
“With historical gold production of 1.75moz @ 28g/t gold , Maldon represents a district-scale gold opportunity for Kaiser, with numerous historical mines and lines of working that remain substantially underexplored.
“Successful drilling of the Union Hill waste dump could potentially convert it to a substantial low-grade stockpile. Between Union Hill and Nuggetty, we have an estimated 450,000m 3 of potential material. Success will allow Kaiser to continue operating the 200ktpa Porcupine Flat Processing Plant profitably, while we explore the Project overall work towards a potential restart of mining. The grades to date at Nuggetty make it a high priority, and we are working on permitting now.
“This drilling is part of our renewed and systematic approach to the Maldon Gold Project. As a result of taking a much wider view of the Project, we are currently working up multiple, from surface, exploration targets within the Project footprint, and will update the market as these are firmed up.
“The next exploration steps at the Union Hill Mine, following the recent strong drilling results from within the open pit, will be to re-establish the underground as an exploration platform. We expect to be tendering the electrical works later this week as part of setting up to rehabilitate the decline early next calendar year ”.
About the Project – Waste Dump Strategy at Maldon
Union Hill
Kaiser is advancing a systematic assessment of the Union Hill waste dump with drilling on a 20m x 10m grid where topography allows. The work follows channel sampling programs that tested accessible surfaces across the dump.
The aim is to:
Determine the spatial distribution of gold grade.
Convert the large waste dump (estimated >410,000m³) into a classified stockpile.
Assess the potential of “battery sands” and screened fractions as upgraded feed.
Nuggetty
Nuggetty represents a second, higher-grade opportunity, with early results showing promise but requiring a full drill program to quantify grade and volume (Figure 4). Work is currently focused on permitting and planning.
Figure 4: Maldon – 2.1 Moz of Production (ASX 7 Dec 2020) (includes alluvial production) (source: KAU)
Near-term Milestones to Watch
Commencement of 240-hole drilling at Union Hill.
Return of assay results from the initial drill program.
Decision on second-pass drilling based on grade continuity.
Completion of bulk density/specific gravity test work for tonnage conversion.
Permitting advancement for drilling at Nuggetty.
Tendering and commencement of Union Hill underground rehabilitation works.
How Samso Understands the Investment Memo for the Company
From the Samso perspective, Kaiser is demonstrating a pragmatic approach to generating value from existing assets. The waste dump strategy fits into a broader operational philosophy—leveraging processing infrastructure, testing low-cost, near-surface material, and building optionality while larger-scale underground pathways are reassessed.
This approach has two dimensions:
Operational Continuity
Waste dumps offer a low-risk material stream to keep the plant operating, reducing fixed-cost pressure.
Strategic Optionality
Positive results may provide a bridge to more substantial exploration outcomes across the Maldon system.
The near-term focus is on defining grade and volume with confidence before making decisions that feed directly into production planning.
Samso Concluding Comments
Looking across the Project, Kaiser appears to be positioning itself for operational flexibility. In a rising and extremely buoyant gold price environment that traditionally rewards low-cost ounces, the strategic use of waste dumps makes sense as it will generate cash flow, and support further exploration.
The larger picture at Maldon remains compelling. Historical mines, underexplored trends, and established infrastructure all point to a multi-layered opportunity—but success depends on disciplined technical execution.
The focus on re-establishing underground access is a significant step—strong underground platforms often unlock deeper, higher-grade extensions in Victorian gold systems. However, I think anything that is close to be capable to be mined and processes will need to be seriously considered.
Investors should watch the drilling results closely. If the waste dumps convert into meaningful tonnage at consistent grades, Kaiser may strengthen its operational base heading into 2026.
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