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The second underground diamond drill rig gives a completely dedicated capacity to extend resources while the first rig can primarily focus on reserve conversion.
Kaiser Reef Managing Director Brad Valiukas said: “We have committed to increasing the processing rate, which removes a significant constraint on underground production potential, de-bottlenecking the decline so we can deliver to the processing plant and bringing in more productive equipment as key improvements to drive performance. We expect to see continued improvements across the business during the financial year.”
The reserve increase and plant upgrades position Henty to capitalise on a recent red-hot gold market with prices pushing above US$4000 (A$6300) per ounce in recent weeks.
The operation has already delivered over $10 million in free cash flow to Kaiser in the first quarter, boosting its cash pile to more than $28 million by July’s end.
The processing plant’s new 400,000 tonne capacity outstrips its 20-year historical benchmark, allowing Kaiser to push ore throughput to match the expanded reserve base.
Kaiser has a broader ambition to become a 50,000 ounce per annum producer in the short-term across Tasmania and Victoria. That ambition pulls focus to Maldon in Victoria where Kaiser holds a permitted underground project with historic mines and a working 200,000 tonne per annum processing plant.
Drilling under its historic Union Hill pit wrapped in September with assays due shortly that will aim to define fresh new resources towards a kickstarted development.
Maldon’s processing facility ties into a 50/50 joint venture with Catalyst Metals.
Strategically placed between the gold-rich Bendigo and Ballarat regions, the Maldon plant opens the doors for Kaiser to feed Maldon ore into the plant while Catalyst could channel material from its Four Eagles project packing 70,000 ounces at a staggering 26 grams per tonne in the Boyd’s Dam deposit.
With Henty’s reserves and throughput firing, Kaiser has a firm platform and funding source now to test Maldon’s vast potential which may end being the big game for Kaiser.
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