Kaiser Reef, the publicly listed company that owns Maldon’s Union Hill Mine, operates the processing plant at Porcupine Creek and is exploring areas in Nuggetty, has provided the Australian Stock Exchange and a mining conference with an update of its activities. The company shared a financial estimate of the stockpile material that it has been processing from the historical waste dumps at Union Hill – a process that has some Maldon locals asking questions.

New staff

The announcement on Wednesday, 11 February, states that the company has hired an Exploration Manager, who has been collecting data about the waste dump material in Nuggetty.

“Kaiser continues to investigate the potential for processing this material, and is in the process of applying for the required permits,” it said.

A Project Manager for Union Hill has also been appointed, the announcement said, along with new drilling activities, drone surveys and work to determine the bulk density and grade of the historic waste dumps at the open-cut mine.

Viability testing

Estimating the viability of such a project requires specialised calculations around many factors, including the type of mining and the amount of material (the tonnage) and its potential yield (gold content) based on the gold per tonne (g/t). Low-grade deposits are usually only worth mining on a very large scale, while high-grade gold deposits are obviously the preferred targets for mining companies. 0 – 0.5 gold grams per tonne is considered low grade, while 5 g/t and above is considered high grade. The process for determining the grades is speculative, based on samples and averages; modern technology makes a big difference.

Kaiser Reef reports that at Nuggetty, the grade average has been found to be 1.8g/t, which is higher than that found at Union Hill, reported as 0.48g/t.

Drilling of the stockpiles at Union Hill has led to the company estimating that they contain 566 kilotonnes of material. The announcement says: “Kaiser is currently reclaiming and processing this material at the Porcupine Flat Processing Plant. This work is expected to continue on an ongoing basis.”

Detailed plans presented

On Monday 16 February, Kaiser Reef followed up with a Strategic Plan for its mines in Maldon and Henty, Tasmania. It said of the local project: “Maldon represents a district-scale gold opportunity for Kaiser, with numerous historical mines and lines of working that remain substantially underexplored. We are committed to generating the most value from the entire project, and are undertaking works that will both grow the Project as a whole and advance towards production.”

The document outlines various plans for the region while it continues processing material from Union Hill, running two shifts from April. The company is progressing towards re-establishing power, water and air services at the Union Hill Mine and positioning drills there, while sampling and exploration continues in other areas such as Nuggetty.

A more detailed presentation for investors was made at the Riu Explorers Conference in Fremantle this week; a slide show containing maps and graphs, as well as financial information, can be found on the company’s website. It reports about the continued exploration activities as well as the capacity of the Porcupine Creek plant to process more than 200,000 tonnes per year. It says it currently has the capacity to store 190 kilotonnes of tailings and is permitted to expand to 650 kilotonnes, with plans for 2,200 kilotonnes of storage. The document shows plans to re-establish long-term drill access and potentially a production platform in the 3km underground “decline” along the Eaglehawk Reef, under Maldon.

Residents still concerned

Meanwhile, residents of Maldon have reported that works around Union Hill have been evident, mainly due to the movement of trucks and the generation of dust during the dry weather. Some residents have held meetings to discuss their concerns and queries; some have told the Tarrangower Times that they are still unclear about the ramifications of the mine’s operations on the town and the community. The TT [Tarrangower Times] has contacted Kaiser Reef for comment. Documents and updates are available at: www.kaiserreef.com.au.

This article appeared in the Tarrangower Times, 20 February 2026.
Related stories: Kaiser Reef Limited ASX: KAU