How Kaiser Reef Transformed Union Hill Waste Dumps into 8,649oz Gold Stockpile
Kaiser Reef has transformed the Union Hill waste dumps at its Maldon Gold Project into a significant low-grade gold stockpile, supporting profitable processing at Porcupine Flat through 2030. The company also announced new management appointments and ongoing exploration initiatives.
- Union Hill waste dumps converted to 566kt @ 0.48g/t Au stockpile
- Stockpile contains an estimated 8,649 ounces of gold
- Porcupine Flat plant processing stockpile material at 10,000t/month until 2030
- January processing achieved 90.7% gold recovery
- New exploration and permitting activities underway at Maldon
Union Hill Waste Dumps Reimagined
Kaiser Reef Limited (ASX – KAU) has announced a pivotal development at its Maldon Gold Project, converting the historical Union Hill waste dumps into a substantial low-grade gold stockpile. The recent drilling program, comprising 163 reverse circulation holes totalling 2,212 metres, has enabled the company to estimate the stockpile at 566,000 tonnes grading 0.48 grams per tonne gold, equating to approximately 8,649 ounces of gold.
This stockpile now underpins ongoing operations at the Porcupine Flat Processing Plant, which has a capacity of 200,000 tonnes per annum. Kaiser plans to process around 10,000 tonnes per month of this material, sustaining plant throughput and revenue generation through to 2030.
Operational Performance and Management Strengthening
In January, the Porcupine Flat plant processed 3,234 tonnes of Union Hill stockpile material, achieving a robust gold recovery rate of 90.7% and producing 152.3 ounces of gold. This performance demonstrates the metallurgical amenability of the stockpile material and validates the company’s strategy to leverage existing infrastructure.
Kaiser Reef has also bolstered its operational team with the appointment of Adam Elliston as Exploration Manager for Maldon and Mingma Sherpa as Project Manager for Union Hill. These experienced professionals bring valuable expertise to advance exploration and operational readiness, including re-establishing essential services such as power, water, and air at Union Hill.
Exploration and Permitting Progress
Beyond Union Hill, Kaiser is investigating additional waste dump material at the nearby Nuggetty deposit, where rock chip sampling has returned encouraging average grades of 1.8 grams per tonne gold. The company is actively pursuing permitting to enable reclamation and processing of Nuggetty stockpiles, potentially adding further feedstock to the Porcupine Flat plant.
Data compilation and exploration preparations are ongoing across the Maldon Gold Project, which boasts a rich history of over 1.75 million ounces produced at an impressive average grade of 28 grams per tonne. Kaiser’s strategic plan for Maldon, to be released shortly, will be anchored by continued processing operations supported by these stockpile resources.
Resource Classification and Technical Details
The Union Hill stockpile estimate has been classified as an Inferred Mineral Resource under the JORC Code (2012), reflecting the inherent uncertainties in geological and grade continuity typical of stockpile material. The estimation employed rigorous sampling, drone surveys, and density measurements, with no variogram modelling due to the heterogeneous nature of the stockpiles.
Kaiser’s Managing Director, Brad Valiukas, highlighted the significance of this milestone – "Converting waste dumps into a profitable low-grade stockpile allows us to sustain processing operations while exploring the broader Maldon district, which remains substantially underexplored despite its rich historical production."
Bottom Line?
Kaiser's conversion of waste dumps into a valuable gold stockpile sets the stage for sustained processing and exploration momentum at Maldon.
Questions in the middle?
- Will Kaiser Reef upgrade the Union Hill stockpile resource classification with further drilling?
- How will permitting progress at Nuggetty impact feedstock and production timelines?
- What exploration targets beyond Union Hill and Nuggetty could unlock further value at Maldon?
