Kaiser Reef Limited has raised its production target at the Henty Gold Mine to 35,000 ounces per annum by late FY2027 while accelerating exploration and development activities at its Maldon Gold Project, all funded through operational cash flow.
- Henty Gold Mine production target increased to 35kozpa Au by late FY27
- Near-mine and regional exploration programs planned at Henty
- Systematic district-scale exploration and development underway at Maldon
- Union Hill refurbishment progressing with drilling and rehabilitation scheduled
- Self-funded growth strategy supported by improved balance sheet and liability reduction
Strategic Growth at Henty Gold Mine
Kaiser Reef Limited (ASX, KAU) has announced a significant step-up in its operational ambitions at the Henty Gold Mine in Tasmania, targeting a production run-rate of 35,000 ounces of gold per annum by late fiscal year 2027. This marks a notable increase from previous outputs and reflects the company’s confidence in both the mine’s existing infrastructure and its exploration potential.
The company is investing in the mine and processing plant, including maintaining a second diamond drill dedicated to expanding resources and reserves. Near-mine exploration is set to commence in the first half of FY27, leveraging the existing infrastructure to identify extensions and new mineralised zones. Regional exploration will follow in the second half of the year, signalling a broader approach to unlocking value from the surrounding mineralised trend, which has seen limited modern exploration.
Unlocking Maldon’s District-Scale Potential
Meanwhile, at the Maldon Gold Project in Victoria, Kaiser Reef is pursuing a systematic strategy to realise the district-scale potential of this historically rich goldfield. The approach involves concurrent workstreams including data consolidation, target generation, and drilling priority targets. The Union Hill Gold Mine, a key asset within the project, is undergoing refurbishment with services such as power, water, and air being re-established to support rehabilitation and exploration drilling.
Processing of low-grade material continues on a two-shift basis from April, providing a base load of production while exploration advances. Permitting efforts are underway to enable surface drilling and low-grade reclamation at key targets like Nuggetty, South Nuggetty, and Porcupine Flat. The company has appointed experienced personnel to manage exploration and project development, underscoring its commitment to advancing Maldon towards potential production.
Financial Discipline and Self-Funding Model
Kaiser Reef emphasises that all growth initiatives at both Henty and Maldon will be self-funded, drawing on a portion of cash flow generated from operations. This disciplined approach is supported by a strengthened balance sheet, with liabilities such as call options to Auramet and deferred payments to Catalyst being progressively reduced or closed out. The company’s managing director, Brad Valiukas, highlighted the transformation into a profitable gold miner with a robust financial position, enabling both organic growth and the pursuit of inorganic opportunities.
Exploration campaigns will be conducted on a focused basis, with Union Hill rehabilitation and development managed by a single crew to maintain operational efficiency. The company plans to provide further detailed production guidance and exploration updates as FY27 budgets are finalised and programs commence.
Looking Ahead
Kaiser Reef’s dual focus on increasing production at Henty while methodically advancing exploration and development at Maldon positions the company well to capitalise on favourable gold market conditions. The integration of operational improvements, targeted exploration, and financial prudence suggests a balanced growth trajectory that could enhance shareholder value over the medium term.
Bottom Line?
Kaiser Reef’s strategic investments and self-funded growth set the stage for a potentially transformative year ahead.
Questions in the middle?
- How will exploration results at Henty and Maldon influence production forecasts beyond FY27?
- What are the timelines and potential hurdles for permitting surface drilling at Maldon targets?
- Could Kaiser Reef pursue acquisitions or partnerships to accelerate growth given its improved balance sheet?