THE BOURSE WHISPERER: Black Cat Syndicate (ASX: BC8) has reached the second stage of the earn-in it has in place with Essential Metals (ASX: ESS) at the Balagundi Joint Venture, part of the Kal East gold project in Western Australia.
Recent work carried out by the JV at Balagundi has demonstrated it to be prospective for both gold and VMS style, base metal deposits.
Surface geochemical programs overlayed on structural interpretation identified new targets including:
Dingo Dam (copper-gold-zinc): a 2km long copper-gold-zinc anomaly containing historical mine shafts;
Anvil (copper-lead-zinc-gold): a discrete, approx. 1.5 kilometres long copper-lead-zinc-gold anomaly with values up to 634 ppm copper; and
Brontes and Asterope (copper): two gossans, within 500m east of Anvil.
“Balagundi has the potential to host both gold and base metal deposits and we look forward to the second stage of the farm-in with Essential Metals,” Black Cat Syndicate managing director Gareth Solly said in the company’s ASX announcement.
“Black Cat controls a pipeline of exploration projects to fortify the longevity of the Kal East Gold Project and our systematic exploration across the tenement package is only just starting to hint at that potential.
“Balagundi is a prime example of an overlooked historical high-grade goldfield and we have identified numerous excellent geochemical targets in the area; our upcoming geophysical surveys will greatly aid in both gold and base metal targeting.
“Black Cat is rapidly moving towards production while continuing to actively explore our large and underexplored land holding.”
Black Cat entered into Farm-in and JV Agreements with Essential in July 2019 to earn 75 per cent of Balagundi by spending $600,000 on the project within five years.
The earn-in period has two stages, Stage 1 sees $150,000 of expenditure spent within the first two years, while stage 2 sees a further $450,000 spent in the next three years.
Black Cat has now completed Stage 1 of the earn-in and is proceeding with Stage 2.
TO READ THE FULL ANNOUNCEMENT: CLICK HERE