Black Cat Syndicate is moving closer to a decision on whether to restart mining at the Paulsens mine and prospect in WA’s Pilbara after announcing a new round of solid-looking assays from a diamond drilling campaign.
After releasing the latest drill results on Tuesday, Black Cat says it will produce an updated resource estimate for Paulsens by the end of May and a decision on whether to start mining by mid-year.
The latest results are from shallow areas near the existing mine that were mined before 2010 and then overlooked.
The underground Paulsens mine was bought by Black Cat in mid 2022 from industry major, Northern Star and work has been continuing on seeing just what remains at the site in terms of resource and mineable reserves.
CEO Gareth Solly said in Tuesday’s statement, “These areas remain attractive due to already installed infrastructure and their proximity to surface.”
“With two rigs now drilling from the Paulsens underground we expect strong news flow to continue ahead of the next Resource update in May 2023 and a decision regarding restarting operations by mid-year,” Solly said in the ASX statement.
The latest drilling at Paulsens is targeting readily accessible, near-mine growth opportunities, including the Gabbro Veins, Quartz Zone and Apollo. A second drill rig has commenced at Paulsens and will provide results for an updated Resource in May.
The company said engineering and mining studies are underway to support a potential restart decision in mid-2023. According to the company, the 450,000 tonnes a year Paulsens processing plant is currently on care and maintenance and remains in good condition.
Black Cat said the latest drilling has been in the near-surface levels of Paulsens and “have delivered promising results outside of the current Resource. Areas targeted include upper areas of the mine, with significant assays.”
The company said the total gold resource at Paulsens rose 73% to 401 ounces of gold at 3.3g/t. Total measured and indicated reserves were up 65% at 163 ounces at 8 g/t and the Paulsens underground resource was 190% higher at 258 g/t.
In that statement, Black Cat said “significant opportunities to grow the Underground Resource exist within close proximity of the existing decline. This includes Apollo Extension, the Paulsens Repeat, offset positions, the Gabbro Veins and new discoveries.
Black Cat claimed that it now “owns 100% of two of the highest-grade gold deposits in Australia” – Coyote Central: 356koz @ 14.6g/t (51% Indicated); and Paulsens: 258koz @ 10.8g/t Au (56% Measured & Indicated).
Black Cat shares were unchanged at 37 cents yesterday, despite gold’s early run up (and later fade on Comex).
