Kaiser Reef Replaces Mined Gold to Hold Henty at 429koz With 6-Year Mine Life
Key Takeaways
- The Henty Ore Reserve stands at 198koz @ 3.22g/t Au (1.91Mt), with 25.8koz of FY2026 production depletion fully replaced and mine life maintained at approximately 6 years.
- Indicated Resources grew by 19koz to 366koz Au, reflecting the contribution of a second diamond drill rig operating since October 2025 and focused on extensional targets.
- The total Mineral Resource is 429koz @ 3.16g/t Au (4.23Mt), with 85% classified as Indicated — a high-confidence figure underpinned by 970,000m of drilling across 7,762 diamond drillholes since 1996.
- The Henty financial model returns a positive NPV at a A$4,000/oz gold price assumption, with 87% metallurgical recovery confirmed from FY2026 actual plant performance.
- Tailings storage facility permitting is underway to support production through to 2030, with work commenced on further capacity beyond that date.
Henty resource and reserve update maintains ~6-year mine life at 429koz
Kaiser Reef Limited (ASX:KAU) has released an updated JORC Code (2012 Edition) compliant Mineral Resource Estimate and Ore Reserve Estimate for its Henty Gold Mine in Tasmania’s West Coast region, effective July 2026. The updated Mineral Resource stands at 429koz @ 3.16g/t Au (4.23Mt), inclusive of an Ore Reserve of 198koz @ 3.22g/t Au (1.91Mt).
Production through the 12 months to 30 June 2026 totalled 25.8koz, and depletion from that production has been replaced, maintaining mine life at approximately 6 years based on Reserves only. Kaiser Reef is a profitable, multi-asset Australian gold producer with operations in both Tasmania and Victoria, targeting consistent production of approximately 30,000oz per annum at Henty.
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Key figures from the Henty update
| Category | Tonnes (Mt) | Grade (g/t Au) | Gold (koz) | Classification |
|---|---|---|---|---|
| Mineral Resource | 4.23 | 3.16 | 429 | Indicated + Inferred |
| — Indicated | 3.49 | 3.27 | 366 | Indicated |
| — Inferred | 0.74 | 2.61 | 62 | Inferred |
| Ore Reserve | 1.91 | 3.22 | 198 | Probable |
Additional highlights from the update include:
- Indicated Resource increased by 19koz to 366koz Au
- Inferred Resource: 62koz @ 2.61g/t Au (0.74Mt)
- A second diamond drill rig has been operating since October 2025, focused on extensional targets
- Drill programme expected to continue through at least FY2027
- Ore Reserve classified entirely as Probable, based on Indicated Resources only
- Processing plant nameplate capacity: 300,000tpa; carbon-in-leach (CIL) circuit with 87% metallurgical recovery (FY2026 actual)
Brad Valiukas, Managing Director, Kaiser Reef Limited
“This is a good result, maintaining Henty’s mine life and forecast production going forward. This result has been strongly assisted by the second diamond drill rig we have been running, since October 2025, largely focused on extensional targets. We expect to maintain this approach through at least FY2027… Kaiser is a profitable gold miner with a robust balance sheet and a strong pipeline of exploration and development opportunities. We are well-positioned to both capitalise on a strong gold price and add significant further value to our assets with targeted investment.”
What a resource and reserve update tells investors
When a mining company publishes a resource and reserve update, it is communicating two distinct things. A Mineral Resource is the total volume of mineralisation in the ground that has been estimated with reasonable geological confidence — it represents what is there, not necessarily what will be mined. An Ore Reserve, by contrast, is the economically mineable subset of the resource, determined after applying real-world mining, processing, and cost assumptions.
Ore Reserves directly drive mine life and production planning. When investors assess how many years of production a company has ahead of it, Ore Reserves are the figure that matters most.
The concept of “replacing depletion” works as follows:
- Mining draws down the Ore Reserve — every ounce produced reduces what remains.
- Ongoing drilling adds new geological data, allowing resources to be defined in previously untested areas.
- If enough new resource is added and converted, the reserve can be maintained or grown even after production.
- A stable or growing reserve signals that the company is reinvesting effectively in the mine’s future.
The Henty Ore Reserve is classified entirely as Probable, which under the JORC 2012 Code means it is derived from Indicated Mineral Resources. The high confidence in the modifying factors applied reflects actual operating performance currently being achieved at Henty — not theoretical assumptions.
Second drill rig and regional exploration add to the growth pipeline
The reserve replacement at Henty was, in Managing Director Brad Valiukas’s words, “strongly assisted” by the second diamond drill rig running since October 2025, which has been largely focused on extensional targets. The company intends to maintain this two-rig approach through at least FY2027.
In parallel with in-mine exploration work, Kaiser Reef has established a dedicated exploration role focused outside the existing mine footprint. Regionally, the Henty area carries meaningful exploration potential, with numerous historical occurrences and small workings both north and south of the mine. The company is currently advancing a period of data consolidation and early-stage works prior to drilling — consistent with the approach being taken at its Maldon Gold Project. These are early-stage regional targets, and no defined resources outside the existing mine footprint have been declared.
The confidence underpinning the existing resource model is substantial. The total drilling database incorporated into the Henty July 2026 Mineral Resource Estimate comprises 970,000m from 7,762 diamond drillholes, 1,528 sludge holes, and 6,500 face channels accumulated since 1996. That depth of data underpins confidence in the geological model and supports the classification of the majority of the resource as Indicated.
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Profitable operations, reserve replacement, and a strong gold price environment
The Henty update reinforces a straightforward investment proposition. The mine is targeting consistent production of approximately 30,000oz per annum, and its Ore Reserve has been maintained at roughly 6 years’ life following depletion replacement. That combination signals disciplined reinvestment in drilling rather than a mine running down its reserve base.
Kaiser Reef’s production growth trajectory provides useful context here, with the company having built toward its current ~30,000oz per annum target at Henty while simultaneously advancing the Maldon Gold Project in Victoria as a second production pillar.
The financial model for Henty demonstrates a positive net present value (NPV), based on a gold price assumption of A$4,000/oz. The announcement notes that the current gold price supports ongoing profitable mining operations. The Ore Reserve cut-off grade of 1.5g/t Au is consistent with current variable costs of underground mining, and the 87% metallurgical recovery applied in the reserve plan reflects FY2026 actual plant performance.
Kaiser Reef’s investment case also rests on its dual-asset platform. Alongside Henty, the company is advancing the Maldon Gold Project in Victoria, which has historically produced 1.75Moz at 28g/t and hosts a fully permitted 200,000tpa CIL processing facility with existing underground access.
The key investor-relevant takeaways from this update are:
- Depletion replaced; mine life maintained at approximately 6 years
- Indicated Resource grew by 19koz to 366koz Au
- Profitable operations with 87% metallurgical recovery confirmed for FY2026
- Two diamond drill rigs operating; dedicated regional exploration role established
- Henty tailings storage facility currently permitting an expansion to allow production through to 2030; work has commenced on further tailings capacity beyond 2030
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