Kaiser Reef has quantified a 77,000-tonne tailings stockpile at its A1 Gold Mine in Victoria, containing an inferred 3,100 ounces of gold at 1.25g/t grade. Plans are underway to reclaim and process this higher-grade material alongside existing operations at Maldon.
- A1 tailings stockpile estimated at 77kt grading 1.25g/t Au
- Inferred Mineral Resource classification under JORC 2012
- 28 air-core drill holes underpin resource estimate
- Metallurgical testing indicates over 80% gold recovery
- Tailings to supplement processing at Porcupine Flat Plant
A1 Tailings Stockpile Adds New Resource to Victorian Operations
Kaiser Reef Limited (ASX:KAU) has completed a maiden stockpile estimate for historical tailings at its A1 Gold Mine near Woods Point, Victoria, revealing approximately 77,000 tonnes of tailings material grading 1.25 grams per tonne gold. This equates to around 3,100 ounces of gold classified as an Inferred Mineral Resource under the JORC 2012 Code.
The stockpile estimate is based on 28 air-core drill holes completed earlier this year, with assays feeding into a detailed resource model. The tailings represent residual material from historical mining operations dating back to the 1800s and have been assessed as a discrete resource to be reclaimed and processed.
Processing Plans to Boost Feed Grade at Maldon
The company intends to truck the tailings from the A1 site to its Porcupine Flat Processing Plant at Maldon, where it already processes stockpile material from the Union Hill operation. The A1 tailings offer a higher-grade feed complementing the current low-grade stockpiles, potentially enhancing overall plant throughput and gold recovery.
Metallurgical testing to date suggests gold recoveries exceeding 80%, supporting the economic viability of reclaiming this historical material. Kaiser’s Managing Director, Brad Valiukas, emphasised the strategic value: "With gold prices recently touching A$200 per gram, reclaiming the A1 tailings makes economic sense and provides additional processing flexibility."
Technical Rigor and Classification
The resource estimate incorporates a robust sampling and modelling approach, including a three-pass block estimation using inverse distance and nearest neighbour methods. Despite the inherently discontinuous nature of tailings deposits, the company applied stringent top-cutting and validation techniques to ensure a reasonable global estimate.
The stockpile is classified entirely as an Inferred Resource, reflecting moderate confidence due to the nature of tailings and limited geological continuity. No independent verification of the drilling results has been conducted, and the estimate excludes any potential deleterious elements.
Environmental and Operational Considerations
Extraction will employ open-pit mining techniques to reclaim the tailings with minimal environmental disturbance, as the material is unconsolidated and surface-exposed. The company is progressing detailed plans for reclamation and integration into its Victorian operations, which also include ongoing work at the Nuggetty surface material and underground mining at Union Hill.
Kaiser Reef’s Victorian assets sit within the prolific Golden Triangle, a region known for its high-grade gold deposits. The A1 tailings stockpile adds a new dimension to the company’s resource base, potentially extending mine life and improving cash flow at Maldon.
Bottom Line?
Kaiser Reef’s A1 tailings estimate offers a modest but strategically valuable resource that could enhance processing feed quality and operational flexibility at Maldon.
Questions in the middle?
- How quickly can Kaiser integrate A1 tailings reclamation into existing processing schedules?
- What are the potential cost implications and environmental approvals required for tailings extraction?
- Could further exploration unlock additional resources around the A1 site or Nuggetty surface material?