Black Cat’s drilling at Paulsens has the company close to pulling the trigger on a decision to mining underway. Pic via Getty Images.
Mining
Originality is a pair of fresh eyes, and that is an approach that could open up significant new sources of gold at Black Cat’s ultra high grade Paulsens gold mine, where a decision to mine is due this year.
Drilling by Black Cat Syndicate (ASX:BC8) is targeting the upper sections of the underground mine, which historically delivered over 900,000oz before entering care and maintenance in 2018.
Close to existing infrastructure, it could open the near surface mining areas for development for the first time since before 2010.
Drilling in near surface has delivered promising grades, and all outside of the current resource of 401,000oz at 3.3g/t gold.
Recent strikes include:
A second underground diamond drill rig has now started drilling to expedite resource growth near the mine.
It comes after Black Cat reimagined the potential of the Pilbara mine, acquired from Northern Star Resources in a combined $44.5m deal with the Western Tanami project on WA’s border with NT, focusing on its high grade Gabbro Veins to outline a high grade underground resource of 258,000oz at over 10g to the tonne.
“The shallow areas of Paulsens were primarily mined pre-2010 and remain overlooked as subsequent operations focussed on the main Quartz Zone. These areas remain attractive due to already installed infrastructure and their proximity to surface,” Black Cat managing director Gareth Solly said.
“With two rigs now drilling from the Paulsens underground we expect strong news flow to continue ahead of the next Resource update in May 2023 and a decision regarding restarting operations by mid-year.”
Black Cat’s primary aim this year is to identify resources close to existing infrastructure like the Gabbro Veins, Quartz Zone and Apollo target to build up inventory that can be readily accessed and mined in the early stages of development.
It is also looking for a large-scale prospect at the Paulsens Repeat target, around 200m from the current decline.
The mine has plenty of advantages, with its underground assets dewatered and a 450,000tpa processing plant which has been maintained in good condition, avoiding the capital requirements most junior miners face opening new operations.
This article was developed in collaboration with Black Cat Syndicate, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Mining
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