• Kaiser Reef receives $5m investment from Ragnar Metals to advance development of Nova gold project
  • Nova is part of Kaiser’s producing A1 mine, down below historical levels previously reached
  • Output targeted to 2X from 12,000ozpa to 24,000ozpa


Special Report: Gold miner Kaiser Reefs has received a strategic investment commitment worth $5 million from Ragnar Metals to develop the Nova gold project and double production from its A1 mine in Victoria.

Kaiser Reefs (ASX:KAU) is currently the only ASX-listed gold producer in the rich Victorian goldfields, producing 30,537t @ 11.6g/t for 11,350oz last financial year from the historic A1 mine.

Assay results from drilling at the A1 Mine in October last year extended high-grade gold mineralisation exceeding below the 23 level – well beyond levels historical miners could reach, with grades from drilling returning >50g/t.

KAU named the area the Nova gold project.


Strategic investment into Kaiser

KAU has received a firm commitment of $5m from Ragnar Metals (ASX:RAG) via share placement to develop Nova.

Terms of the placement include the issue of 5,010,000 Kaiser shares to Ragnar at 15c per share (that’s no discount to the share price) via two tranches.

Tranche 1 consists of $930,000 for 6.2 million shares, while tranche 2 consists of $4.08m for 27.2 million shares – making Ragnar the company’s largest shareholder with 16.4%.

Ragnar will also receive a 1.5% net smelter royalty on gold produced from the A1 Gold Mine for a period of five years commencing from 1 July 2025, and appoint someone to the Kaiser board.


Nova development

KAU plans to commission a significant increase in gold production through the development of its Nova gold project down the A1 mine. It will be the first time in 40 years a new area of the mine has been accessed.

“The funds will be applied to a development-focused second team that will execute the inaugural development of the Nova gold project,” KAU MD Jonathan Downes says.

With adding Nova to the A1 mine, the miner expects to double current production from approximately 12,000ozpa up to 24,000ozpa at an AISC of $2400/oz – (gold is currently >$3600/oz).

Ore will be easily processed through KAU’s Maldon plant, which is currently operating at between 20-30% of capacity.

“Drilling results and geological modelling have shown that the high-grade reef system continues beyond the levels historical miners could not reach, with grades returned from drilling exceeding 50 g/t gold (ASX release 30/10/2023),” Downes says.

“Accessing the Nova gold project is a goal that Kaiser has been working towards over the past two years, and it is an extremely exciting development.

“Production is expected to increase, with the cost base of the operations having a substantial fixed component. This initiative is expected to be the game changer our shareholders have patiently awaited.”



This article was developed in collaboration with Kaiser Reef, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.