Kaiser Reef (ASX:KAU) has poured over 1,200 ounces of gold in the first 10 days of its ownership of the Henty Gold Mine in Tasmania.
The company, which has a market capitalisation of $97.9 million, labels this first pour “record-breaking”, with the gold now heading to the Perth Mint for refining and outturn.
Kaiser completed the acquisition of the Henty operation from Catalyst Metals (ASX:CYL) on 16 May, which the miner says establishes it as a over 30,000-ounce-per-annum gold producer providing it with immediate cashflow.
This comes at a time of record high gold prices, with the safehaven metal today selling for just under US$3,350 ($5,129) an ounce – potentially valuing Kaiser’s first haul at over $4 million.
Kaiser says the current record gold price environment provides the company with the opportunity to generate strong margins from an operation that has historically held a stable cost base.
Production in the 2024 financial year amounted to 25,000 ounces at an all-in sustaining cost of $2,876 an ounce.
Executive Director of Operations Brad Valiukas says the team is transitioning well and operational performance has been excellent.
“We are well positioned to build on the success that Catalyst has had at Henty, as it becomes our flagship asset,” he says.
Henty, which historically produced 1.4 million ounces of gold @ 8.9 grams per tonne, is operating under a five-year mine plan based on reserves of 1.2 million tonnes @ 4g/t for 154,000 contained gold ounces.
The project also hosts a resource of 4.1 million tonnes @ 3.4g/t for 449,000 contained gold ounces.
The processing plant has a 300,000-tonne-per-annum capacity.
Kaiser is a gold producer and exploration company with a portfolio of projects located in Australia’s Victorian goldfields and Tasmania’s Mount Reed Volcanic Belt.
Write to Angela East at Mining.com.au
Images: Kaiser Reef
