Kaiser Reef Kicks Off Underground Drilling at Historic 1.75Moz Maldon Goldfield
Key Takeaways
- Kaiser Reef has commenced underground diamond drilling at the Union Hill Gold Mine within the Maldon Gold Project, targeting Linscott's, Eaglehawk, and Ladies Reef structures from existing underground access.
- Maldon's district has historically produced 1.75Moz at 28g/t — historical production only, not a current resource or reserve — signalling the grade potential of the reef structures now being drilled.
- The Union Hill deposit carries a current resource of 1.3Mt at 4.49g/t for 187koz, providing a defined base from which underground drilling can expand the resource inventory.
- Kaiser is running a day-shift-only underground operation to manage capital spend, a deliberate cost-control measure that limits cash burn while advancing exploration.
- Maldon is fully infrastructure-ready — a permitted 200ktpa CIL processing plant, a fully permitted mining lease, and an existing underground decline are all in place, meaning discovery can translate to production without major capital outlays.
Kaiser Reef kicks off underground diamond drilling at Maldon’s historic 1.75Moz goldfield
Kaiser Reef (ASX:KAU) has commenced underground diamond drilling at its Union Hill Gold Mine, part of the Maldon Gold Project in Victoria. The company — a profitable, multi-asset Australian gold producer with operations in Tasmania and Victoria — is drilling from within existing underground access to target reef structures that surface drilling cannot reach. Maldon is a district-scale opportunity that has historically produced 1.75Moz at 28g/t — historical production only, not a current resource or reserve. This underground programme complements the existing surface drilling campaign, accelerating exploration across the project.
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What the drilling campaign is targeting
The new development allows improved targeting north of existing workings, giving Kaiser the access, drill positions and drilling angles needed to hit multiple reef structures. The company is taking a phased approach to the underground campaign:
- First phase targets Linscott’s and Eaglehawk mineralisation
- Drilling of the Ladies Reef to follow
- Planning underway for additional targets, including untested sections of Eaglehawk, Linscott’s, Ladies and Sailor’s Reefs
- Drilling expected to continue on an ongoing basis, subject to results
Kaiser is running a day shift only operation to manage spend. This is capital discipline — the company is drilling where the geology matters most whilst keeping costs controlled, a positive signal for investors watching cash burn rates at exploration-stage assets.
Underground drilling unlocks angles and targets that surface drilling cannot reach, materially improving the odds of defining new mineralisation. When you are targeting steeply dipping reef structures, proximity and angle are everything.
Brad Valiukas, Managing Director
“Maldon represents a district-scale gold opportunity for Kaiser, with numerous historical mines and lines of working that remain substantially underexplored, despite having historically produced an enviable 1.75Moz at 28g/t. Drilling from underground is crucial to the project, allowing Kaiser the access, drill positions and drilling angles required to optimally target the multiple reef structures at Maldon. Commencing underground drilling at Maldon is another important milestone for Kaiser, and a credit to our team for the progress made. Maldon is supported by a fully permitted and operating processing plant, a fully permitted mining lease and an existing decline that is now facilitating exploration and allows for potential future production.”
Why underground drilling matters
Underground diamond drilling is exactly what it sounds like: drilling from within an existing underground mine rather than from surface. When you are targeting steeply dipping gold reefs — near-vertical structures where gold has precipitated along fault lines — drilling from underground gives you better angles, closer proximity, and lower cost per metre once the access already exists.
A “reef” in this context is a mineralised vein or zone where gold has concentrated during geological deformation. The term comes from Victoria’s orogenic goldfields, where high-grade gold occurs along narrow, steeply dipping structures. Reef lines (like Eaglehawk, Ladies, and Linscott’s) are the traces of these structures as they run through the rock. Kaiser is now positioned to drill across multiple reef lines from a single underground position.
Successful intercepts can grow the resource base and support potential future production through Maldon’s existing infrastructure. That infrastructure includes:
- Fully permitted and operating 200ktpa CIL processing facility
- Existing underground decline (from 2006–2008) now facilitating exploration
- Fully permitted mining lease
- Union Hill Mine resource: 1.3Mt @ 4.49g/t for 187koz (Union Hill deposit only)
The dual-asset investment case
Kaiser operates two gold assets across two jurisdictions, with Maldon providing strategic growth optionality alongside the producing Henty Gold Mine in Tasmania. The table below shows how the two assets complement each other:
| Asset | Location | Status | Key Figure | Infrastructure |
|---|---|---|---|---|
| Henty Gold Mine | Tasmania | Producing | 199koz Ore Reserve; ~30,000oz p.a. target | +300ktpa processing plant |
| Maldon Gold Project | Victoria (Golden Triangle) | Exploration / permitted | 1.75Moz @ 28g/t historical production | 200ktpa CIL plant + decline |
The 1.75Moz @ 28g/t figure for Maldon is historical production — what the district produced between the 1850s and mid-20th century. It is not a resource or reserve, but it tells you the grade and scale of what has already been mined. The 199koz at Henty is the current Ore Reserve — what the company has proven up for future production there.
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What comes next
Drilling continues on an ongoing basis subject to results, with Ladies Reef and additional targets to follow the first-phase work at Linscott’s and Eaglehawk. The company has noted that Maldon’s existing decline “allows for potential future production” — conditional language because no production decision has been made yet. The strategic thesis here is disciplined production growth, reserve expansion, and leveraging dual processing infrastructure in Tier-1 Australian jurisdictions. Kaiser now has two permitted processing plants, two mining operations, and underground drilling underway at a goldfield that has already proven itself historically. The next few months will show whether the modern drilling can replicate that historical success.
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