The investments have left Kaiser what it says is a minimum readymade 5-year mine plan to exploit the current 4.1Mt resource grading some 3.4g/t for 449,000 ounces of gold, with considerable opportunities for near-mine expansion with scope to extend the current mine life.
Kaiser Reef managing director Jonathan Downes said: “We are delighted to officially welcome the Henty Gold Mine and its team into the Kaiser portfolio. The acquisition of the profitable Henty Gold Mine significantly strengthens our production base, provides compelling near-mine exploration opportunities, and establishes the Company as a leading high-grade gold producer in Australia.”
The deal now allows Catalyst to sharpen its focus on its mainland operations, including the potential to expand the now 50/50 joint venture (JV) at Kaiser’s Maldon processing plant in Victoria’s gold-soaked Bendigo-Ballarat goldfields.
The JV setup could supercharge processing capacity, letting Kaiser feed high-grade ore from its existing A1 gold mine while Catalyst channels material from its Four Eagles project north of Bendigo which boasts 70,000 ounces at a stonking 26g/t at Boyd’s Dam.
Kaiser bankrolled the deal to pick up Henty with a successful $30M placement following shareholders giving the thumbs-up earlier this month. It also locked down a $10M funding package from Auramet International and is now well placed in terms of working capital.
With more than 25-kilometres of Henty fault line screaming for more attention, that Darwin target zone could be just the tip of the iceberg at a gold mine with plenty of legs for expansion.
For Kaiser, Henty slots seamlessly into its high-grade playbook. Its A1 Gold Mine in Victoria holds its owned storied history of high-grade legend, dating back as far as 1861.
A1’s historical 800 ounces per vertical meter, with some levels cracking 1,000 ounces, puts it in elite company in the high-grade Victorian gold fields.
The Maldon JV down the road could prove the secret sauce for a reviving Victorian gold scene. The companies believe the 200,000tpa plant at Maldon could turn into a regional processing hub, handling A1’s high-grade ore and Four Eagles’ blockbuster grades.
With Henty’s more than 90 per cent recovery rate and stable recent cost base of just $2631/oz, the new acquisition should show solid margins for Kaiser. Throw in A1’s high-grade revival adding that extra spark and it may not be too long before Kaiser is replicating the success of fellow mid-tier gold players like its partner Catalyst or Ora Banda Mining.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
