Kaiser Reef Targets 410,000m³ Waste Dump with 0.6g/t Gold Grade

A New Chapter for Maldon's Historic Goldfields

Kaiser Reef Limited (ASX, KAU) is advancing its exploration efforts at the Maldon Gold Project in Victoria with the imminent start of a large-scale drilling program targeting the Union Hill waste dumps. This initiative marks a strategic pivot towards unlocking value from historical mining residues, potentially transforming low-grade stockpiles into profitable mill feed.

The planned program comprises 240 reverse circulation holes totalling approximately 3,191 metres, designed to systematically test the grade and volume of more than 410,000 cubic metres of waste material. Previous channel sampling across the waste dumps has returned an encouraging average grade of 0.6 grams per tonne of gold, while trial processing of over 2,600 tonnes yielded a reconciled grade of 0.86 grams per tonne with an impressive 99% recovery rate.

Expanding the Resource Base with Waste Dumps

Union Hill’s waste dumps cover a footprint exceeding 50,000 square metres, representing a substantial volume of material that has historically been overlooked. The upcoming drilling campaign aims to better define this resource, with the potential to convert it into a meaningful low-grade stockpile that could sustain operations at Kaiser’s 200,000 tonnes per annum Porcupine Flat processing plant.

In parallel, Kaiser is progressing permitting for exploration at the Nuggetty waste dumps, located about 1.5 kilometres north of Union Hill. Rock chip sampling at Nuggetty has returned an average grade of 1.8 grams per tonne, highlighting it as a high-priority target. Historical bulk sampling in 2018 processed material at 2.5 grams per tonne with an 87% recovery, underscoring the potential for profitable extraction pending further drilling and test work.

Strategic Outlook and Future Exploration

Managing Director Brad Valiukas emphasised the district-scale opportunity Maldon represents, with a production history exceeding 1.75 million ounces at an average grade of 28 grams per tonne. He noted that the waste dump drilling is part of a broader, systematic approach to the project, which includes multiple surface exploration targets currently being developed.

Looking ahead, Kaiser plans to rehabilitate the Union Hill underground decline early next year, aiming to re-establish it as an exploration platform following recent strong drilling results within the open pit. This underground access will be critical for advancing exploration and potentially supporting a mining restart.

While the initial sampling and trial processing results are promising, Kaiser cautions that these are preliminary and further infill drilling, bulk sampling, and metallurgical test work will be necessary to confirm the economic viability of the waste dump material. Nonetheless, the company is well-positioned with full permits in place for ongoing works, haulage, and processing at Union Hill.