Western Australian gold producer Black Cat Syndicate (ASX:BC8) has begun underground mining at its Majestic Project, a key component of the broader Kal East Gold Operation.
The initial production target from Majestic is 776,000 tonnes @ 3.2 grams per tonne gold for 80,000 ounces.
Macmahon Holdings (ASX:MAH) has been awarded the underground mining services contract by Black Cat, valued at $55 million. The scope of the work, running for 12 months, includes all underground mine development, production services, and associated works.
Drilling from underground positions will begin as soon as possible to further grow resources which are drill constrained and remain open at depth and along strike.
Other service-related components for the new underground project are advancing, including installing long-term dewatering infrastructure and portal support.
Managing Director Gareth Solly says dewatering is complete, portal ground support is installed and development of the first underground mine at Kal East is underway.
“Developing Majestic underground marks another milestone as we deliver on our strategy of more gold, sooner,” Solly says.
Meanwhile at the Fingals open pit, ongoing mobilisation of equipment is gaining pace while site establishment activities continue ahead of the start of mining.
Majestic and Fingals aim to underpin the feed to the 1.2 million tonnes per year Lakewood processing facility for years to come.
The Kal East Gold Operation, covering 650km2, has a gold resource of 18.8 million tonnes @ 2.1g/t gold for 1.294 million ounces. The operation has historically produced about 600,000 ounces of gold.
Black Cat Syndicate is a gold producer focused on its mines and processing facilities in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Black Cat Syndicate
