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Gold mining

Black Cat Syndicate Limited Announces Turn-Key Funding, Development, and Processing Package at Kal East Gold Project

Strategic Insights

— 1 min read

Black Cat Syndicate Limited, an Australian gold mining company, has announced a significant update on its Kal East Gold Project, specifically regarding the turn-key funding, development, and processing package at the Myhree/Boundary open pits. This development is a major milestone for the company, as it paves the way for the production of gold from the project. The update highlights key details of the agreement with Mineral Mining Services (MMS), including the production of 52koz of gold at 2.2g/t Au, and the sale of ore to the Paddington processing facility.

Key Takeaways:

  • The turn-key funding, development, and processing package at the Myhree/Boundary open pits will see the production of 52koz of gold at 2.2g/t Au.
  • Mineral Mining Services (MMS) is providing all funding to develop and haul ore from the Myhree/Boundary open pits for processing at Paddington.
  • The ore reserves at Myhree/Boundary were calculated at A$2,500/oz and are being re-optimized to reflect the current gold price.
  • The open pits will be mined and processed over approximately 18 months, with the first ore expected to be hauled to Paddington in the September 2024 quarter.
  • Following the recovery of start-up costs, the first $30 million of cashflow generated will be received by Black Cat, with MMS and Black Cat sharing profits thereafter.
  • The agreement allows Black Cat to maintain focus on the restart of the Paulsens Gold Operation while extracting value from the Kal East project.
  • The underground resource of 105koz @ 4.0g/t Au is excluded from this arrangement and will be processed separately.
  • The Ore Sale Agreement with Paddington provides for the processing of approximately 850kt of open pit ore, delivered in approximately 45ktpm stockpiles.

Statistics:

  • 52koz of gold expected to be produced at 2.2g/t Au.
  • A$2,500/oz estimated value of open pit ore reserves at Myhree/Boundary.
  • 18 months estimated duration of open pit mining and processing.
  • A$30 million expected cashflow generated after recovery of start-up costs.
  • 850kt of open pit ore expected to be processed.
  • 45ktpm stockpiles of ore to be delivered to Paddington.
  • 100% ownership of the Kal East Gold Project by Black Cat Syndicate Limited.

Sources:

  • Black Cat Syndicate Limited news release dated May 20, 2024.

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