Kaiser Reef reports record gold production at Henty, extends mine life beyond six years, and advances exploration at Maldon, while transitioning A1 mine to care and maintenance.
- Henty Gold Mine produces 8,115oz gold with 89.1% recovery
- 29% increase in Henty Ore Reserves to 199koz extends mine life beyond six years
- 22-hole diamond drilling at Maldon reveals promising high-grade gold intersections
- A1 Gold Mine placed on care and maintenance due to lower than expected gold endowment
- Strong financial position with $29.4M cash and reduced gold loan debt
Record Production and Reserve Growth at Henty
Kaiser Reef Limited has delivered a standout quarter ending September 2025, marked by its first full period of ownership at the Henty Gold Mine in Tasmania. The mine produced 8,115 ounces of gold at an impressive 89.1% recovery rate, the best quarterly output since 2018. This performance underscores the company’s successful operational improvements and ongoing investment in processing plant upgrades and mobile equipment.
Significantly, Kaiser announced a 29% increase in Ore Reserves at Henty, now estimated at 199,000 ounces of gold, extending the mine life to over six years. This reserve growth, coupled with a Mineral Resource of 438,000 ounces, positions Henty as a cornerstone asset capable of sustaining consistent production above 30,000 ounces annually through fiscal 2026 and beyond.
Exploration Momentum at Maldon
In Victoria, the Maldon Gold Project is emerging as a key growth driver. Kaiser completed a 22-hole, 960-meter diamond drilling program targeting the historically productive Eaglehawk Reef beneath the Union Hill Open Pit. Early assay results, released post-quarter, revealed multiple high-grade intersections, including 6.9 meters at 6.05 grams per tonne and 5.8 meters at 5.37 grams per tonne gold. These findings confirm the presence of unmined mineralisation and support plans to re-establish underground exploration platforms in early 2026.
Maldon’s extensive historical production of over 1.75 million ounces and underexplored lodes present a district-scale opportunity. With renewed funding and operational stability following Henty’s success, Kaiser is well-positioned to accelerate exploration and resource definition at Maldon.
Strategic Shift at A1 Gold Mine
Conversely, the A1 Gold Mine in Victoria has been placed into care and maintenance after a strategic review revealed lower than expected gold endowment in the Nova Zone. Production ceased in late September, allowing the company to focus resources on its more promising assets. While this marks a pause in A1’s contribution, it reflects a disciplined approach to capital allocation and operational focus.
Financial Strength and Leadership Changes
Financially, Kaiser Reef strengthened its position with a closing cash balance of $29.4 million, up $4.7 million for the quarter, and reduced its gold loan debt by 312 ounces. The average realised gold price was a robust AUD$5,333 per ounce. Capital expenditure included $2.2 million on mobile equipment, supporting sustaining and growth initiatives at Henty.
Leadership transitions also took place, with Brad Valiukas appointed as Managing Director following Jonathan Downes’ resignation. The board welcomed Craig Dingley as a Non-Executive Director, bringing extensive commercial and capital markets experience. These changes signal a new phase in Kaiser’s evolution as a profitable and growth-focused gold producer.
Looking Ahead
Kaiser Reef’s focus for the coming quarters will be on optimising throughput at Henty, advancing exploration at Maldon, and carefully managing the care and maintenance phase at A1. The company’s strong cash position and operational momentum provide a solid foundation for delivering on its growth ambitions.
Bottom Line?
Kaiser Reef’s operational and exploration strides set the stage for sustained growth, but the market will watch closely how the company balances investment across its portfolio.
Questions in the middle?
- How will Kaiser prioritise capital allocation between Henty expansion and Maldon exploration?
- What are the timelines and expected outcomes for the underground exploration platform at Union Hill?
- Could the care and maintenance status of A1 be reversed if exploration results improve?