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  • Black Cat Syndicate (BC8) has completed a preliminary feasibility study (PFS) for its Kal East gold project in WA
  • The company says the study demonstrates a “robust” production plan of 301,700 ounces of gold over an initial 5.5-year period
  • Black Cat says it’s particularly encouraging, as the production plan only includes a portion of the resource base, meaning there’s potential to increase production with future drilling and studies
  • The Kal East Project will require nearly $88 million in pre-production capital costs and is expected to generate $105.9 million in operating cashflow
  • BC8 will soon have two more gold projects under its belt — the Coyote and Paulsens projects — to support its five-year plan of having three gold-producing operations
  • Company shares are up 2.27 per cent to trade at 45 cents at 12:52 pm AEST

Black Cat Syndicate (BC8) has completed a preliminary feasibility study (PFS) for the Kal East gold project in Western Australia.

The company said the PFS demonstrated a “robust” base case production plan for Kal East, forecasting production of 301,700 ounces at 1.9 grams per tonne (g/t) gold at an average of 56,000 ounces per annum over an initial 5.5 years.

The production targets comprise 80 per cent probable ore reserves, 16 per cent inferred resources and 4 per cent indicated resources.

As of March 2022, Kal East has a mineral resource estimate (MRE) of 18.8 million tonnes at 2.1 g/t gold for 1.3 million ounces. Of this, 8.2 million tonnes at 2.3 g/t gold for 599,000 ounces were included in the PFS.

Black Cat said the 694,000 ounces of resources not included in the PFS may potentially increase ore reserves as well as the 5.5-year mine life should they be included in future studies.

“The initial Kal East ore reserve and the base case production plan from the PFS are encouraging and show attractive metrics from only a portion of the growing 1.3-million-ounce resource base,” Managing Director Gareth Solly said.

In terms of costs, the Kal East Project will require $87.9 million in pre-production capital before production commences.

Future development capital, including mine development and establishment, and tailings storage facility construction, is expected to total $82.6 million.

After all capital costs and before tax, operating cashflow is expected to be $105.9 million.

Black Cat has deferred a final investment decision for Kal East until construction conditions improve, and near-term development will be focused on its new Coyote and Paulsens operations.

“In just four years, Black Cat has gone from a junior explorer with 80 square kilometres of ground and nil resources to a multi-project, near-term gold producer with Kal East and the near-finalised acquisitions of Coyote and Paulsens,” Mr Solly said.

The company said the Coyote and Paulsens projects, which it was acquiring from Northern Star Resources (NST), were “regionally significant” assets that would support Black Cat’s five-year plan of having three of its operations producing gold.

Drilling at Kal East is expected to resume this month and will aim to support resource and ore reserve upgrades.

Company shares were up 2.27 per cent to trade at 45 cents at 12:52 pm AEST.

BC8 by the numbers
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