Black Cat Syndicate (ASX:BC8) is looking to update the Mineral Resource Estimate (MRE) at its Paulsens Gold Operation in Western Australia as ongoing drilling work continues to deliver ‘high-grade’ results.
The $51.12 million market capitalisation company says the upgrade will be delivered in October, ahead of a revised Restart Study scheduled for November.
Black Cat says the Restart Study will aim to increase production, improve recoveries, lower upfront capital costs, and generate stronger cashflow.
The company’s recent extension-focused underground drilling targeted the middle of the Main Zone outside the current resource near existing or planned development, potentially meaning a reduced need for capital.
Key intercepts include hole PGRD23223 with 0.24m @ 90.1 grams per tonne (g/t) gold from 31.42m, hole PGRD23226 with 0.58m @ 11.8g/t gold from 43.08m, and hole PGRD23228 with 0.80m @ 11.7g/t gold from 32m and 0.25m @ 34.1g/t gold from 70.75m.
The company is currently engaged in wall mapping and sampling that it says could also increase planned production.
Managing Director Gareth Solly says continued resource growth and additional mine production are in the company’s sights.
“Underground drilling results continue to show significant gold outside of our July Study plan. These extensional results highlight the potential for ongoing resource growth and additional mine production.
Adding ounces through drilling has potential to increase gold production which will be incorporated in our November 2023 Restart Study.”
“Adding ounces through drilling has potential to increase gold production which will be incorporated in our November 2023 Restart Study”
Black Cat Syndicate has key pillars in place to become a gold producer through its 3 wholly owned operations in Western Australia. These operations include the Paulsens, Coyote, and Kal East gold projects.
Paulsens is located about 180km west of the town of Paraburdoo and consists of an underground mine, a 450,000-tonnes-per-annum processing facility, a 128-person camp, and numerous potential open pits and other related infrastructure.
Black Cat Syndicate had $4.656 million cash and cash equivalents at hand as of 30 June 2023, although announced in September it had received a $60 million funding package from 2 Chinese investors to help drive the restart of Paulsens.
Write to Adam Drought at Mining.com.au
Images: Black Cat Syndicate
