THE DRILL SERGEANT: Black Cat Syndicate (ASX: BC8) has taken some long strides towards development of the company’s Kalgoorlie-based gold production aspirations.
Black Cat Syndicate controls a healthy tract of ground, some 756 square kilometres, east of Kalgoorlie that contains JORC 2012-compliant Mineral Resources of 884,000 ounces of gold.
The company’s stated objective is to construct a 500,000 tonnes per annum processing facility – be designed to be readily expandable – capable of treating multiple feed sources and targeting full production in the March 2022 quarter.
Initial Scoping Studies have demonstrated a strong case for development exists as drilling continues to grow Resources.
The company’s first round of Studies used only 40 per cent (357,000oz) of current Resources, leaving a healthy 527,000 ounces in Resources for future Studies.
“The Studies demonstrate that Black Cat is well on its way to achieving its strategic objectives,” Black Cat Syndicate managing director Gareth Solly said in the company’s announcement to the ASX.
“This first round of Studies is just a starting point with only 40 per cent (357,000oz) of our current Resources considered and upgrades expected on the back of our current +60,000 metres drilling program.
The Studies are robust with around 70 per cent of Production Targets sourced from Indicated Resources and skewed heavily towards the initial production years.
“Myhree provides strong early cashflow and Imperial/Majestic has excellent high-grade underground mining potential.
“The existing Resource at Imperial/Majestic was modelled mainly for open pit mining and current drilling is validating the higher-grade underground potential.
“Importantly, 2020 drilling at Imperial/Majestic is yet to be included in the Study and will be incorporated into an updated Resource along with revised underground designs.
“The Fingals Fortune Resource was increased by 53 per cent after only the first drill program.
“Results from the second drill program are already showing the potential for further extensions.
“Accordingly, there is strong potential for a substantially larger open pit at Fingals Fortune in the near term.
“A processing facility solution is advancing with design, procurement and timing on track as per our detailed announcement, also issued today.
“We have also expedited our +60,000 metres drilling program given our recent success.
“Drilling has only just started at Imperial/Majestic and Fingals Fortune.
“In addition, there is still plenty of opportunity at Bulong and we have not even touched Rowe’s Find.
“We will continue to optimise this first round of Studies as Resources and Ore Reserves are defined and grown over the coming months.
“Updates will be provided on an ongoing basis. So, this is a great start and plenty more to come.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE