Introduction: Bold: Black Cat Syndicate has significantly increased its gold resources at the Paulsens project in Western Australia's Pilbara region through continuous drilling, setting a robust foundation for the upcoming restart study.
Resource Enhancement and Project Development: As of October 23, the latest underground resource update at Paulsens has led to a 24% increase in gold resources, totaling 406,000oz at a grade of 9.5 grams per tonne. This maintains Paulsens' status as one of Australia’s highest-grade mines, even with a 0.4gpt reduction. The increased measured and indicated resources, now at 309,000oz at 9.7gpt, will play a crucial role in the revised restart study, expected to be released soon.
Growth and Expansion Prospects: Since acquiring the project from Northern Star Resources in June 2022, Black Cat has achieved a remarkable 350% increase in resources at Paulsens. Managing Director Gareth Solly expressed optimism about the project’s potential for further growth and reserves replacement, especially with the resumption of underground drilling aligned with development plans.
Financial Insights and Production Goals: The initial restart study, completed in July, projected the recovery of 136,000oz over three years, with an average head grade of 4.2gpt and all-in sustaining costs of A$1892/oz. With spare capacity at the 450,000tpa mill, Black Cat anticipates increased production, enhanced recoveries, reduced upfront capital costs, and stronger cash flow in the updated strategy. The company aims to kick-start production by mid-2024.
Strategic Funding and Future Developments: Black Cat recently secured a A$60 million funding package from Fuyang Mingjin and Southeast Mingqing, each becoming a 19.9% shareholder. This funding reduces the reliance on debt and contributes to the $39 million required for Paulsens’ restart. Sales from Paulsens are expected to support the planned restart of the Coyote operations in the Northern Territory, with the Kal East project as a potential third development.
Operational Focus and Market Position: The operational focus at Paulsens is transitioning to surface exploration, with plans to test the Paulsens Eastern Zone, Belvedere, and Pantera areas. Black Cat’s shares were last traded at 21c, bringing the company’s market capitalization to $63 million.
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