Union Hill Drilling Yields 18 Gold-Intersecting Holes Over 960 Metres

Exploration Success at Union Hill

Kaiser Reef Limited (ASX – KAU) has announced promising results from its recent diamond drilling campaign at the Union Hill Open Pit, part of the broader Maldon Gold Project in Victoria. The 22-hole program, spanning 960 metres, targeted unmined extensions of the historically productive Eaglehawk Reef beneath the pit floor. Impressively, 18 of 19 effective holes intersected gold mineralisation, confirming the continuity of high-grade veins over a 160-metre strike length.

Significant High-Grade Intercepts

The drilling revealed multiple noteworthy intercepts, including 5.8 metres grading 5.37 grams per tonne (g/t) gold starting at 39 metres depth, with a standout 2.5-metre section at 10.25 g/t Au. Other highlights include 6.9 metres at 6.05 g/t Au and 8.6 metres at 4.99 g/t Au, featuring spur veins with grades up to 16.44 g/t Au. These results not only validate the presence of high-grade mineralisation but also align with historical production trends from the Eaglehawk Reef, which produced nearly half a million ounces before 1926.

Strategic Next Steps

With the Union Hill Gold Mine currently on care and maintenance, Kaiser Reef’s Managing Director Brad Valiukas outlined plans to re-establish underground access early next year. This move aims to facilitate follow-up drilling from underground platforms, targeting down-dip extensions and northern strike extensions of the reef. The company’s recent transformation into a profitable gold miner, bolstered by its Henty operations in Tasmania, positions it well to accelerate exploration and development at Maldon.

Broader Maldon Gold Project Potential

The Maldon Gold Project encompasses multiple historical underground mines and a 200,000 tonnes per annum processing plant at Porcupine Flat. The Union Hill resource currently stands at 186,000 ounces at 4.4 g/t Au. Kaiser Reef’s exploration success here underscores the district-scale opportunity presented by the largely underexplored goldfields in the region, with several major reefs yet to be fully evaluated.

Technical Rigor and Historical Context

The drilling program employed industry-standard diamond core techniques with rigorous quality control, including fire assay analysis at a NATA-accredited laboratory. The Eaglehawk Reef’s geological setting; a steeply dipping quartz vein system within folded Ordovician sediments; supports strong vertical continuity of mineralisation, which the recent drilling has confirmed. Notably, some drill holes encountered previously unknown historical workings, highlighting the complex mining history of the area.