Gold: Black Cat closes the golden gap at Bulong
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When it listed in January 2018, explorer Black Cat Syndicate (ASX:BC8) released an exploration target of up to 500,000oz for its flagship Bulong project.
Since then, the gold explorer has established an “interim” resource of 109,000oz at Bulong, near Kalgoorlie in WA, with another update due in the September quarter.
But this barely scrapes the surface. This initial resource only covered 14 per cent of three mineralised “corridors” – totalling 17km — that run the length of Bulong. All deposits are open along strike and at depth.
One of these corridors is the 6km-long Myhree-Boundary.
Today, Black Cat said the mineralised strike across the Myhree and Boundary deposits is now about 965m long, while the untested area between the deposits has been reduced to 600m.
Here’s what that looks like:
Basically, there’s a lot of gold to be found.
Black Cat used SAM surveys — a technique that tests the magnetic and electrical properties of the ground in high definition – to zero-in on drilling targets.
So far, every single one of these targets has returned gold mineralisation. SAM Target 1, for example, returned 6m at 4.67 grams per tonne (g/t) gold, 60m from the surface.
Given SAM’s success, another survey will kick off to the north and south of the Myhree-Boundary corridor in the September 2019 quarter, Black Cat managing director Gareth Solly says.
“In the meantime, extensional drilling has already recommenced at SAM Target 3 where exceptional mineralisation (28m at 5g/t) was drilled during April 2019,” he says.
“We continue to close the undrilled gap along this strongly mineralised corridor.”
Fledgling producer Red 5 (ASX:RED) says a 3.1moz resource at King of the Hills (KOTH) could “form the cornerstone of a substantial mid-tier Australian gold business”.
Red 5 boss Mark Williams says KOTH, in the Eastern Goldfields of WA, now has the “resource base, production profile and mine life required to attract global institutional investor interest”. The updated resource supports a pre-feasibility study into a potential open pit/underground standalone operation at KOTH, initially focused on the 2moz open pit resource.
Matsa Resources (ASX:MAT) has inked another deal to process ore at the nearby Sunrise Dam gold mine, owned by tier 1 miner AngloGold Ashanti (ASX:AGG). Matsa’s strategy is to mine smaller gold deposits at its Lake Carey project in Western Australia’s Eastern Goldfields, then to process that using third party processing plants.
Matsa previously successfully delivered ore from its Fortitude and Red Dog mines to Sunrise Dam; now it’s moved on to the 99,000oz Red October deposit. Its expects to deliver first ore by the end of June.