Kaiser Reef reports promising drilling results and key infrastructure upgrades at its Maldon Gold Project, setting the stage for expanded exploration and production in Victoria’s historic gold district.
- Union Hill Mine decline refurbishment to access untested reef sections
- Tailings Storage Facility sterilisation drilling reveals significant gold intercepts
- Soil and resistivity surveys underway to generate new drill targets
- Surface drilling at Nuggetty South and main Nuggetty deposit progressing with permitting
- Maldon project offers district-scale potential with historic 1.75 million ounces production
Union Hill Mine Refurbishment Targets Untapped Reef Zones
Kaiser Reef Limited (ASX:KAU) is gearing up to breathe new life into the Union Hill Mine with refurbishment of the underground decline scheduled to start in early May. The initiative aims to establish a new drilling platform 250 metres down the decline, enabling access to previously untested sections of the Ladies and Eaglehawk Reefs. This move is a strategic pivot to unlock further mineralisation in a historically productive area.
The company is wrapping up extensive preparatory works including installation of water tanks and treatment systems, refurbishment of electrical and ventilation infrastructure, and recruitment of skilled operators. All necessary permits are in place, signalling a smooth transition to underground rehabilitation and subsequent drilling planned next quarter, aligned with Kaiser’s Strategic Plan for Maldon.
Sterilisation Drilling at Tailings Storage Facility Uncovers Gold Anomalies
A 1090-metre aircore drilling program at the proposed Tailings Storage Facility (TSF) 4 site has delivered encouraging results. Designed to inform geotechnical parameters for TSF expansion and to assess gold mineralisation missed by historical dredging, the program returned notable intercepts such as 8 metres at 2.99 g/t gold from 10 metres depth in in-situ material, and 1 metre at 16.99 g/t gold from alluvial material.
These findings highlight the potential for further resource definition and possible RC follow-up drilling. The drilling also confirms the suitability of the site for TSF development, a critical infrastructure component for expanding processing capacity.
Soil and Resistivity Surveys Drive New Target Generation
Kaiser has completed the first phase of a soil sampling survey covering 2.7 square kilometres north of Maldon, an area previously lacking surface geochemical data. Samples are currently being analysed with initial results expected soon, which will guide infill sampling and refine drill targets. Complementing this, a resistivity survey at the Nuggetty project has successfully mapped historical mine voids, with a broader survey underway to better delineate underground workings and identify remaining mineralisation.
Further geophysical work is planned with a low-altitude airborne magnetic and radiometric survey scheduled for the northern exploration tenure in Q1 FY2027. This will augment structural and lithological understanding, enhancing the targeting framework.
Surface Drilling Plans Progress at Nuggetty South and Main Deposit
Surface drilling at Nuggetty South is nearing final permitting stages, aiming to test a newly interpreted shallow plunge with a 170-metre strike gap between known mineralisation. Historical drill intersections in the area have shown high-grade gold, including 3.4 metres at 34 g/t and 4.3 metres at 11.2 g/t, underscoring the prospect’s potential.
At the main Nuggetty deposit, drilling is planned north of the Tarrengower Shaft to probe mineralisation up to 120 metres below the adit level. This program will also integrate resistivity data to confirm void locations and potentially identify unmined ore. The “West Lode” zone, believed to be largely unmined, will be a key focus.
This exploration momentum follows Kaiser Reef’s recent operational updates, including the company’s strong cash position and production growth in Q1 2026, reinforcing its capacity to fund these initiatives organically Q1 2026 production and cash growth.
Maldon’s District-Scale Potential and Strategic Importance
Maldon has a storied history, having produced approximately 1.75 million ounces of gold at an impressive grade of 28 g/t. Kaiser Reef’s Managing Director Brad Valiukas emphasised the district-scale opportunity, noting that many historical mines and reef lines remain underexplored despite their rich legacy.
The company’s multi-pronged approach, combining refurbishment, advanced geophysical surveys, and targeted drilling, reflects a commitment to unlocking value across the entire project. With a fully permitted 200,000 tonnes per annum CIL processing plant already in place, Maldon offers a tangible pathway to production expansion.
As Kaiser Reef continues to consolidate its position with a robust balance sheet and operational momentum, the unfolding exploration results and infrastructure developments at Maldon will be pivotal in shaping its growth trajectory.
Bottom Line?
Kaiser Reef’s layered exploration and refurbishment efforts at Maldon position it well to convert historic potential into future production, but upcoming drilling results and permit approvals will be critical milestones.
Questions in the middle?
- Will follow-up drilling confirm the extent of gold mineralisation indicated by the TSF sterilisation program?
- How quickly can Union Hill’s refurbishment translate into expanded underground production?
- What insights will the airborne magnetic and radiometric survey provide for refining Maldon’s exploration targets?