Gold explorer Black Cat Syndicate (ASX:BC8) has defined various growth opportunities following an updated Prefeasibility Study (PFS) for its wholly owned Kal East Gold Project in Western Australia.
The company, which has a $114.75 million market capitalisation, says it has defined ‘ample’ opportunities to build on its base-case production target in future studies.
These include the fact that 54% of resources, or 10.6 million tonnes @ 2 grams per tonne (g/t) for 694,000 ounces, have not yet been considered in the PFS, presenting the opportunity to increase the mine life beyond the initial 5.5 years.
Black Cat reports the study has factored in rehabilitation costs notwithstanding that there is ‘significant’ potential to increase mine life beyond 5.5 years, and no residual value has been attached to the processing facility notwithstanding its regional strategic value.
Meanwhile, Black Cat adds that the project has received all approvals to begin, with a mains power study completed and the consideration of owner-operator underground mining.
The final investment decision (FID) for Kal East is expected to occur when construction and accommodation conditions around Kalgoorlie improve. In the interim, Black Cat announces it will focus on the lower-capital-cost restart of the Paulsens Gold Operation.
Commenting on the update, Black Cat Managing Director Gareth Solly says: “The updated study demonstrates that Kal East is robust and generates strong cashflow. Attractive metrics are returned from less than half of the current 1.3Moz Resource base. The resources included in the study remain open, with strong potential for additional ore reserves.
“Our ambition to elevate Black Cat into a multi-operation gold producer is rapidly taking shape“
Paulsens represents a logical starter operation for the company to build cashflow from a proven project with a short ramp-up to gold production. Once Paulsens is up and running, we will turn our attention to building our other regionally strategic processing facilities at Coyote and Kal East, potentially using internal cashflows. Our ambition to elevate Black Cat into a multi-operation gold producer is rapidly taking shape.”
Black Cat Syndicate is an ASX-listed explorer that currently holds about 2,900km-square of ‘highly prospective’ tenements.
The company’s Kal East Gold Project is located to the east of the world-class mining centre of Kalgoorlie-Boulder, Western Australia, within a 30-minute drive from critical infrastructure, services, and access to experienced and skilled talent.
Black Cat Syndicate had $16.7 million cash at hand at the end of 31 March 2023 following the completion of a $17 million placement at a 6.9% premium to its 30-day VWAP, as stated in its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Black Cat Syndicate Ltd