Kaiser Reef Limited (ASX: KAU) Announces Maldon Mine Restart Study
Kaiser Reef Limited (“Kaiser” or “the Company”) reports significant progress in its Mining Study, which seeks to transition the Union Hill Gold Mine at Maldon from care and maintenance to production. The study positions the project as poised to leverage the current gold price environment, estimated at over AUD $4,000 per ounce compared to approximately AUD $1,650 six years ago.
Strategic Development Outline
The restart study results indicate a rapid startup potential, utilising the existing infrastructure including a fully permitted mining licence and an established decline. Kaiser plans a phased development approach, commencing with an eight-month program followed by an additional 15-month exploration and production plan.
The initial phase expects to exploit the Union Shoot, part of the Eaglehawk Reef that historically produced significant gold yields. A subsequent stage will involve further decline development to access the Alliance Shoot and the Alliance South lode, both of which offer defined minerals.
Infrastructure and Environmental Considerations
The proximity of the Maldon gold processing plant, only 4.2 km away, offers Kaiser significant logistical advantages. The plant currently operates at around 20% capacity, presenting ample room to accommodate newly produced ore. The existing infrastructure has been preserved, ensuring minimal start-up costs while also maintaining environmental stewardship.
Further, the processing plant has undergone improvements, enhancing its recovery rates and decreasing metallurgical risks.
CEO Commentary
Managing Director Jonathan Downes emphasised the importance of this study, stating, “Kaiser is focused on ramping up the A1 Mine while leveraging its 100% ownership of the Maldon project as a second production centre. With no debt, no hedging, and a proven multimillion-ounce high-grade goldfield, Maldon offers a prime opportunity to restart operations quickly.”
Kaiser Reef aims to position the Maldon mine as a key contributor to its production portfolio, enhancing overall growth potential in a volatile market.
Future Outlook
Kaiser’s future plans include an extensive drilling program to upgrade existing inferred resources and explore further opportunities within the historic goldfield. The study notes a current defined JORC resource of 186,000 ounces at 4.4 g/t gold and highlights substantial growth potential.
By strategically re-establishing the Union Hill operation, Kaiser Reef Limited seeks to expand its production capacity, align with current market conditions, and deliver value to its shareholders.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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