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Mining
Black Cat Syndicate has proved there is plenty of meat left on the bone at the historic Paulsens gold mine in the Pilbara, with drilling hitting high-grade gold in assays from its first four holes.
Black Cat (ASX:BC8) picked up Paulsens from Northern Star Resources in a $44.5 million deal last year that also netted the high-grade Coyote mine in WA’s remote Tanami Desert.
Since drilling began on November 2, 14 diamond drill holes have been sunk into the Gabbro Veins at Paulsens, with assays now back for the first four.
The gold explorer is chasing targets immediately adjacent to existing underground development which could be readily accessed alongside its existing 217,000oz at 4.9g/t resource.
Significant results included 1.92m at 9.3g/t from 48m with visible gold in hole 22PGRD010, 0.67m at 12.5g/t from 20.19m and 0.44m at 18.1g/t from 60.98m in 22PGRD016 and 1.1m at 4.77g/t from 87.95m in 22PGRD019.
Assays from the final 10 holes are due in January with the first two holes testing the Paulsens Repeat target some 200m below the underground workings also completed.
“The first assay results from our drilling into the Gabbro Veins are highly encouraging and demonstrate the potential of these veins to host significant and readily accessible gold mineralisation adjacent to existing mine infrastructure,” Black Cat MD Gareth Solly said.
“Every hole to date has intersected multiple quartz-sulphide veins as predicted by our modelling. We will continue to test targets located close to existing infrastructure including the Gabbro Veins as well as the Apollo Extensions early in 2023.
“These results will be included in a Resource update for Paulsens in the first quarter of 2023.
“Furthermore, drilling to test for a Paulsens Repeat located ~200m from the decline and representing a large-scale, faulted-off gabbro targeting “another Paulsens” is progressing well.
“The two holes completed to date out of the three hole program align with our geology model. A more comprehensive update will be provided in early 2023.”
Another 21 holes are planned to be drilled into the Gabbro Veins.
Underground mining at Paulsens historically produced 907,000oz at 7.3g/t at an average rate of 75,000ozpa.
On care and maintenance since 2018, it is well placed for a fast, low cost restart with a well-maintained 450,000tpa processing plant and more than 110 person camp, with the mine fully dewatered and ventilated.
A mill restart capital estimate is due in early 2023, around the same time as drilling takes place at the Apollo extension target.
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.
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