How Kaiser Reef Achieved a 33% Throughput Boost at Henty Gold Mine
Kaiser Reef Limited has achieved a 33% increase in processing capacity at its Henty Gold Mine, with ongoing ramp-up activities and exploration efforts aiming to extend mine life and reduce costs.
- Processing plant throughput tested at 400,000 tonnes per annum, 33% above nameplate
- Decline de-bottlenecking and equipment upgrades underway to improve productivity
- Second underground diamond drill rig operational, targeting resource extensions
- OEM equipment financing secured with no significant cash impact
- 2025 Resource and Reserve update expected soon, reflecting operational gains
Operational Breakthrough at Henty
Kaiser Reef Limited (ASX – KAU) has announced a significant milestone at its Henty Gold Mine in Tasmania, achieving processing plant throughput rates up to 33% above the original nameplate capacity. The plant, historically rated at 300,000 tonnes per annum, has been tested at a run rate of 400,000 tonnes per annum without major infrastructure changes. This improvement is the result of a series of progressive upgrades since Kaiser Reef took ownership, including adjustments to water balance, cyclone operation, and the addition of a mobile secondary crusher.
Enhancing Productivity and Reducing Constraints
Alongside the throughput increase, Kaiser is actively addressing bottlenecks in the mine’s decline infrastructure. Efforts include de-bottlenecking works, floor stripping in low areas, and constructing a decline bypass that will also access additional ore zones. These initiatives are expected to remove a key life-of-mine production constraint, allowing the use of larger haul trucks and improving overall haulage efficiency. The company has streamlined its jumbo fleet to twin boom jumbos and placed orders for larger, more productive trucks and loaders, financed through original equipment manufacturer (OEM) arrangements that will not significantly impact the company’s cash position.
Exploration and Resource Growth Focus
Kaiser Reef has also commissioned a second underground diamond drill rig at Henty, targeting resource extensions particularly in the Cradle Zone, which lies above a large portion of the mine. This dedicated drilling capacity aims to grow the mineral resource beyond the current depletion rate, potentially extending the mine’s life. The company’s Managing Director, Brad Valiukas, highlighted the importance of these productivity improvements and exploration efforts in driving down unit costs and supporting the upcoming 2025 Resource and Reserve statement.
Looking Ahead
The Henty Gold Mine currently holds a mineral resource of 449,000 ounces at 3.4 grams per tonne and an ore reserve of 154,000 ounces at 4.0 grams per tonne. With the recent throughput gains and ongoing ramp-up activities, Kaiser Reef is positioning Henty for enhanced operational resilience and longer-term value creation. The company’s forthcoming resource update will be closely watched by investors eager to see how these operational improvements translate into reserve growth and cost efficiencies.
Bottom Line?
Kaiser's throughput leap at Henty sets the stage for a potentially longer, more cost-effective mine life.
Questions in the middle?
- Will the increased throughput be sustained over the long term without further major upgrades?
- How will the upcoming 2025 Resource and Reserve statement reflect these operational improvements?
- What are the timelines and expected impacts of the new equipment and decline bypass on production costs?
