Black Cat’s plan to restart Paulsens gathers steam with visible gold on the menu already
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Black Cat’s first underground infill diamond holes have backed the potential for resource upgrades at its Paulsens Gold Operation after intersecting visible gold.
All six holes successfully intersected wide quartz veins of up to 2m width in the interpreted positions with visible gold observed in three holes hosted in both thick quartz veins and narrow shears within the gabbro.
These results have been well received by investors with a 14% stock price jump on the opening of the market.
This is a significant step forward for Black Cat Syndicate’s (ASX:BC8) plan to restart mining using the existing processing facility as gabbro vein mineralisation has been intersected in historical drilling along 1km of strike and represents a potential long-term feed source.
Drilling will continue infilling the gabbro veins over a 600m strike length before moving to the first holes testing the Paulsens Repeat target later in November 2022.
“Our first holes at Paulsens are targeting potential production areas adjacent to existing workings,” managing director Gareth Solly said.
“The gabbro veins are an overlooked opportunity that we believe have the potential to lead a restart scenario while we undertake the hunt for another Paulsens in both offset and repeat target positions.
“We are excited by what we see in these first holes given they intersect our interpreted structures and contain visible gold. Drilling will be ongoing at Paulsens to delineate near-term mining opportunities throughout the December 2022 quarter.”
Black Cat acquired Paulsens, the project which started the rise of Northern Star Resources, in June 2022 with the goal of restarting production.
The mine has an existing resource of 217,000oz, of which 89,000oz at an average grade of 5.9g/t is located underground.
Importantly, it also has a well maintained 450,000tpa processing facility that is expected to need minimal capital to restart, and plenty of exploration potential.
This includes the Paulsens Repeat structural target located about 200m below and parallel to the decline that has never been drill tested.
Paulsens Repeat is structurally similar to the Paulsens deposit, raising the likelihood that the company could find a repeat of its mineralisation.
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.