Black Cat Syndicate Eyes 302oz Gold Production on Release of Kal East PFS
THE DRILL SERGEANT: Black Cat Syndicate (ASX: BC8) released results from a Preliminary Feasibility Study (PFS) completed on the company’s Kal East gold project in Western Australia.
Black Cat Syndicate reported the PFS has defined initial Ore Reserves and a robust, base case production plan for Kal East, which already has approvals in place and a short pathway to commencement of construction when labour market conditions improve.
The PFS has determined a robust, base case, production plan for Kal East of 301,700 ounces to generate an Operating Cashflow (after all capital and before tax) of $105.9 million at an All-in Sustaining Cost of $1,510 per ounce ($2,500/oz gold price).
The initial production plan is based on 5.5 years of production at an average of 56,000 ounces per annum with growth potential beyond that.
The company indicated that a final investment decision for Kal East will be deferred until construction conditions improve with near-term development focus on the newly acquired Coyote and Paulsens operations.
Drilling is scheduled to resume at Kal East this month to support Resource upgrades and Ore Reserve increases including final grade control drilling at Myhree.
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“In just four years Black Cat has gone from a junior explorer with 80 square kilometres of ground and nil Resources to a multi-project near term gold producer with Kal East and the near finalised acquisitions of Coyote and Paulsens,” Black Cat Syndicate managing director Gareth Solly said in the company’s ASX announcement.
“This initial Kal East Ore Reserve and the base case production plan from the PFS is encouraging and shows attractive metrics from only a portion of the growing 1.3 million ounces Resource base.
“Our stated objective was to define an initial three-year Ore Reserve which has been exceeded with clear near-term growth potential.
“Recent mining cost increases have been factored into the Study capital and operating costs and Kal East remains highly competitive against other operating WA gold operations.
“The company has deferred the decision to build the Kal East processing facility until labour availability conditions improve and allow construction to commence.
“The project is fully permitted and we will use the deferral period to further enhance the Kal East opportunity.
“The Resources included in the base case remain open with strong potential for additional Ore Reserves.
“We are also considering options to mine and toll treat the Myhree/Boundary deposits to generate early cashflow while working on restart plans at Coyote and Paulsens.
“Coyote and Paulsens are regionally significant assets in gold rich regions.
“The installed infrastructure at these projects has an estimated replacement value of more than $140 millionn.
“The in-situ high-grade Resources at each project have the potential to deliver rapid cashflow due to the anticipated low capital restart costs.
“Black Cat is working towards a five-year vision and plan to have all three of our operations producing gold.”
Email: admin@bc8.com.au
Web: www.blackcatsyndicate.com.au
