Black Cat Syndicate (ASX:BC8) reports that it has tripled the underground gold resource at its Paulsens Gold Operation in Western Australia.
The company says the resource has increased 190% to 258,000 ounces @ 10.8g/t gold (Au) with the new resource including all underground drilling completed to 31 December 2022.
The measured and indicated resources have also increased ‘significantly’ to 144,000 ounces @ 11.3g/t Au, which represents about 56% of the total underground resource.
“To triple the underground resource after only 2 months of drilling is a sensational start to our growth and mining ambitions at Paulsens”
The total gold resource at the project has increased 73% to 401,000 ounces @ 3.3g/t Au, and the total measured, and indicated resource has increased by 65% to 163,000 ounces @ 8g/t Au.
Since acquiring Paulsens in June 2022, the company has focused on growing near mine resources through developing a new geological model, remodelling areas of historic drilling, and drilling for resource extensions.
Commenting on the resource growth, Black Cat Syndicate Managing Director Gareth Solly says: “To triple the underground resource after only 2 months of drilling is a sensational start to our growth and mining ambitions at Paulsens. We see huge upside potential in the near mine area as well as potential repeat targets and the greater region.
Paulsens produced over 900,000 ounces at 7.3g/t Au in the first 13 years that it was mined, averaging around 1,000 ounces per vertical metre. The high-grade and prolific nature of the mineralisation both within the main lodes and in the Gabbro Veins provides strong potential for restarting operations in the near term.
With a second rig commencing this month, our drilling activities will increase and expedite additional discovery and resource growth to enable a decision to restart production at Paulsens, which is targeted for mid-2023.”
Black Cat reports Paulsens has a history of ‘high-grade’ production with an endowment of over 1 million ounces, and production has historically focused on 2 veins within the Quartz Zone, while the Gabbro Veins were generally not pursued.
It also notes the 7km of decline is fully dewatered, with ventilation, power, and services active to the bottom of the mine. This ‘extensive’ mine infrastructure represents a low capital start-up opportunity to access the rapidly growing ‘high-grade’ resource.
Black Cat reports there is a ‘high’ level of prospectivity at Paulsens both around the existing underground infrastructure, and regionally. Drilling is ongoing with a second underground rig to commence this month in order to further accelerate resource growth, and to target near mine discoveries. Advanced regional targets will also be drilled from surface during 2023.
The company’s drilling has focused on the unmined footwall Gabbro Veins which are located adjacent to, and up to 200m from the existing decline.
The Gabbro Veins occur in the footwall over a 1km plunge length and can form in swarms over the areas up to 4m wide. The company also notes the Gabbro Veins represent a potentially new, ‘high-priority’, start-up mining area.
Results from the Gabbro Veins received after 31 December 2022 and have not yet been contained in the resource include 22PGRD001 with 3.42m @ 16.21g/t Au from 69.70m including 0.22m @ 80.60g/t Au from 72.90m; and 22PGRD002 with 0.55m @ 67.20g/t Au from 47.63m, and 0.51m @ 29.86g/t Au from 69.15m.
Black Cat Syndicate is an ASX-listed multi-operational gold producer focused on its portfolio of projects in Western Australia. These projects include the Coyote Gold Operation near the border with the Northern Territory, the Paulsens Gold Operation located 180km west of Paraburdoo, and the Kal East Gold Project near Kalgoorlie.
