Black Cat Syndicate Extends Bulong Ground Position

THE BOURSE WHISPERER: Black Cat Syndicate (ASX: BC8) has entered into Farm-in and Joint Venture Agreements in respect of the Balagundi project (E27/558) with Pioneer Resources (ASX: PIO).

Balagundi sits adjacent to the north-west portion of Black Cat Syndicate’s Bulong gold project in Western Australia and runs parallel to a major structural trend bounding the Balagundi and Bulong Subdomains.

The company explained the 40.6 square kilometre tenement increases the size of Bulong by around 46 per cent from 87sqkm to 128sqkm.

Balagundi currently comprises five key gold and base metal targets:

Black Widow (gold);
Funnel Web (gold);
Montana (gold);
Trap Door (gold); and
Anvil (base metals).

The Farm-in involves a minimum spend by Black Cat of $150,000 over a maximum period of two years, at which time Black Cat can withdraw.

Black Cat can earn 75 per cent by completing earning expenditure of $600,000 over five years and Pioneer would retain a 25 per cent free carried interest to completion of an approved Bankable Feasibility Study.

Black Cat is the Manager of the Joint Venture.

“Balagundi sits along a major structural trend immediately adjacent to our Bulong gold project,” Black Cat Syndicate managing director Gareth Solly said in the company’s announcement to the Australian Securities Exchange.

“This is a strategic move by Black Cat to expand our footprint around Bulong. Balagundi has four attractive gold targets and one base metal target which will be evaluated over the next two years.

“This work can be done in conjunction with other activities planned for our existing landholdings.

“We look forward to working with the Pioneer team and to unlocking further value around our core landholding.”

Work already completed at Balagundi includes that by Pioneer and previous owners that has collected geochemical and soil data across the project.

Historic drilling has been limited to 281 RAB and AC holes and a further 20 RC holes at an average depth of 72m.

Black Cat draws similarities between Balagundi and Bulong, saying that Balagundi has seen mainly shallow drilling and remains underexplored and highly prospective.

Black Widow: is an extensive gold in soil anomaly partly drilled by Anglo/Redback in the 1990s.

Several discrete geochemical trends exist that split this area into a number of sub anomalies that trend onto Black Cat’s existing leases.

This broad target is hosted by mafic volcanic, gabbro and high magnesian basalt near the eastern margin of the Balagundi Subdomain.

Minimal historic work has been conducted in this area.

Black Widow has only been tested with first pass RAB drilling on a 400m by 100m spaced grid.

Funnel Web: is a large gold in soil anomaly generated by Acacia in the 1990s.

Drill intercepts are interpreted to contain both paleochannel and bedrock hosted gold.

Historic drilling shows bedrock mineralisation is associated with mafic rocks and the southern end of a large, interpreted magnetic alteration zone.

Previous intersections include: 2m at 6.33g/t gold from 49m, 2m at 5.34g/t gold from 42m, and 1m at 8.54g/t gold from 56m.

Montana: is an extensive gold in soil anomaly developed over the contact between high-magnesian basalt and ultramafic units on the eastern boundary of the Balagundi Subdomain.

Montana has only been tested with first pass RAB drilling on a 300m by 100m spaced grid that insufficiently tested the anomaly and warrants further work to identify the source of the gold anomalism.

Trap Door: is a discrete linear gold in auger anomaly which also contains a copper anomaly.

The gold anomalism is associated with an extensive potassic alteration zone, hosted in felsic volcaniclastic sediment and cut by a NW trending structure.

RAB drilling returned intersections of 4m at 3.2 per cent copper from 20m, and 1m at 2.2g/t gold from 10m.

RC drilling chips show copper being hosted by fine veinlets/fracture zones in the volcaniclastic.

Further work is warranted to assess the gold and copper potential in this area.

Anvil: was defined on a 400m by 100m auger grid, with results showing a discrete copper anomaly with values up to 634ppm over an approximate 1.5km of strike length.

Infill soil sampling subsequently defined a coincident copper-lead-zinc (Cu-Pb-Zn) anomaly that remains untested by drilling.