Black Cat Syndicate Limited Announces Kal East 302koz Study Update

$BC8 Black Cat Syndicate Limited Announces Kal East 302koz Study Update

Black Cat Syndicate Limited (ASX: BC8) has provided an update on the Kal East Gold Project Preliminary Feasibility Study (PFS), reflecting the current market conditions. The study highlights the strong financial returns and significant strategic value of the project, positioning Black Cat as a multi-operation gold producer.

The Kal East Gold Project, located in the mill constrained area east of Kalgoorlie, has already obtained the necessary approvals, and the primary processing facility equipment has been acquired. The construction of the processing facility holds strategic importance for the region.

The base case production target for Kal East demonstrates promising results:

The initial production target is set at 302koz with an average gold production forecast of 56kozpa over a period of 5.5 years, with a processing rate of 0.8Mtpa.
80% of the production target consists of high confidence Ore Reserves of 243koz.
Despite considering only 46% of the current resources, the study reveals a conversion ratio of ... 50%.
The maximum cash drawdown, including pre-production capital, is estimated at $94.8M (including contingency).
The forecast all-in sustaining cost (AISC) is projected at $1,618/oz.
The operating cashflow, before tax and after all capital, is expected to reach $167.9M with a gold price of $2,900/oz.
The internal rate of return (IRR) is calculated at 44%.
The study also identifies growth opportunities for the project:

Approximately 54% of the resources, amounting to 10.6Mt, have not yet been considered in the PFS, indicating potential to extend the mine life beyond the initial 5.5 years.

Future studies will focus on exploring underground potential and infill and extensional drilling programs to further increase Ore Reserve and Resource growth.

The study has factored in rehabilitation costs, but it highlights the possibility of extending the mine life beyond the projected period.
Black Cat Syndicate has received full approval to commence the Kal East project, including the completion of the mains power study and consideration of owner-operator underground mining.

The company will make a final investment decision for Kal East once construction and accommodation conditions improve in the Kalgoorlie area. In the meantime, the company will concentrate on the lower capital cost restart of the Paulsens Gold Operation.

Gareth Solly, Managing Director of Black Cat Syndicate, expressed satisfaction with the robustness and strong cashflow generated by the updated study. He emphasised the potential for additional Ore Reserves from the remaining resources and highlighted the Paulsens Gold Operation as a logical starting point to build cashflow and establish a multi-operation gold producer. The company is committed to leveraging internal cashflows to expand its regionally strategic processing facilities at Coyote and Kal East.

Black Cat Syndicate is well-positioned to capitalise on the promising prospects of the Kal East Gold Project, taking significant strides towards becoming a prominent player in the gold production industry.

0 Likes