- Black Cat Syndicate has entered into a Farm-in and Joint Venture Agreement with Pioneer Resources for the expansion of the Balagundi Project
- Black Cat’s aim is to expand its footprint around the Bulong Gold Project
- Balagundi has five priority targets which will be evaluated over the next two years
- Black Cat will earn a 75 per cent interest by spending $600,000 over five years
- Pioneer will retain a 25 per cent free carried interest to complete an approved Bankable Feasibility Study
Black Cat Syndicate has entered into a Farm-in and Joint Venture Agreement with Pioneer Resources at the east-of-Kalgoorlie Balagundi Project.
Pioneer has an impressive portfolio of lithium, gold, nickel and base metals projects. Whilst its initial focus was on lithium, it has actively pursued joint venture opportunities for gold, nickel and cobalt projects.
“Balagundi sits along a major structural trend immediately adjacent to our Bulong Gold Project,” Black Cat Managing Director, Gareth Solly said.
“This is a strategic move by Black Cat to expand our footprint around Bulong,”
The Balagundi Project is located 25 kilometres east of Kalgoorlie and is situated immediately adjacent to the north-west portion of the Bulong Gold Project.
Balagundi increases the size of Bulong by approximately 46 per cent – from 87 square kilometres to 128 square kilometres.
“Balagundi has four attractive gold targets and one base metal target which will be evaluated over the next two years,” Gareth said.
These high-priority targets include Black Widow, Funnel Web, Montana, Trap Door and Anvil.
The five targets boast significant gold-copper anomalies however very limited exploration has been conducted.
Pioneer and previous owners have collected excellent geochemical and soil data across Balagundi.
Similar to Bulong, Balagundi has seen mainly shallow drilling with previous aircore and reverse circulation holes drilled at an average depth of just 72 metres.
Key terms of the agreements include Black Cat spending a minimum $150,000 within two years. The company can earn a 75 per cent interest by completing the earning expenditure of $600,000 over five years.
In this case, Pioneer will retain a 25 per cent free carried interest to complete an approved Bankable Feasibility Study.
Black Cat will issue 122,820 fully paid ordinary shares to Pioneer which is subject to a 12-month voluntary restriction on trading.
“We look forward to working with the Pioneer team and to unlocking further value around our core landholding,” Gareth concluded.