KAU appoints Catalyst board representative

Our gold producing Investment Kaiser Reef (ASX: KAU) has just announced an addition to its board.

KAU has just appointed Craig Dingley as a Non-Executive director to the company.

Craig is the head of corporate development & investor relations at $2BN Catalyst Metals.

Catalyst took a 19.99% stake in KAU earlier this year when KAU acquired its Henty Gold mine in Tasmania.

(Source)

We see Catalyst coming onto KAU’s board as a good sign they are committed to their investment in KAU.

KAU is capped at just $148M so having a $2BN major shareholder involved at the board level is a good thing to see.

What’s next for KAU?

Cost optimisation and exploration at Tasmanian project (Henty) 🔄

The main thing we want to see at Henty is for KAU to increase production rates and optimise costs.

Here is the plan KAU set in a recent investor presentation:

(Source)

Exploration program at Maldon 🔄

Now with KAU drilling at Maldon, we want to see the results from drilling.

Because KAU is drilling with a diamond rig, we could see early visuals with visible gold in drillcores (which is usually a good sign the company is hitting the right rocks).

The reason we think exploration success at Maldon could be material for KAU is because of how close it is to KAU’s operating processing plant AND because Maldon was previously home to Australia’s highest grade gold mine - Nuggety Reef - which produced ~301k ounces of gold at ~187g/t gold grades.

Although not guaranteed, a major discovery at Maldon (even 1/10th of the grades Nuggety produced at) could be a game changer for KAU primarily because of the proximity to a mill which is currently operating at 20% of its capacity:

Read our prior article on the drilling commencement: KAU: Gold exploration drilling has begun. Gold’s next leg up also begun…