Name of the Project
Kal East gold project.

Location
About 50 km east of Kalgoorlie, Western Australia.

Project Owner/s
Gold explorer Black Cat Syndicate.

Project Description
An update to the 2022 prefeasibility study (PFS) has again demonstrated strong financial returns from the base case Kal East production target, with initial production targeted at 302 000 oz at 1.9 g/t gold.

Eighty per cent of the production target is high-confidence ore reserves of 243 000 oz at 2 g/t gold.

The updated PFS – as in the 2022 PFS – still estimates the recovery of 278 000 oz.

The updated PFS forecasts average gold production of 56 000 oz/y at a processing rate of 800 000 t/y over an initial life-of-mine of 5.5 years.

A turnkey funding, development and processing arrangement to mine and mill the Myhree and Boundary openpit deposits, which form part of the Kal East project, is under way. 

Separately and in the future, Black Cat plans to build a central processing facility near the Majestic deposit, about 50 km east of Kalgoorlie. The 800 000 t/y processing facility will be a traditional carbon-in-leach, gold-processing facility, which is ideally suited to Black Cat’s Resources and third-party free milling ores located around Kalgoorlie.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an internal rate of return of 44%.

Capital Expenditure
Preproduction capital expenditure has increased from A$87.9-million, estimated in June 2022, to A$99-million.

Planned Start/End Date
Not stated.

Latest Developments
Black Cat Syndicate announced approval to start underground mining at the Myhree deposit on April 16. 

Underground development was scheduled to start after the completion of openpit operations in October, subject to operational requirements.

The approval marks a milestone in the company’s “more gold sooner” strategy, which aims to accelerate production across the project. 

The Myhree underground resource of 815 000 t at 4 g/t gold remains open at depth. The deposit is situated 24 km from the 1.2-million-tonne-a-year Lakewood processing facility, where all ore from Myhree will be treated. Unlike the openpit, the underground component is not included in the existing turnkey funding and development arrangement.

In parallel, Black Cat is progressing with re-optimisation of openpit and underground mine plans using current gold prices, which are well above the previous A$2 300/oz assumption.

The company is also tendering contracts, dewatering the Majestic pit, and drilling for grade control and resource extensions.

Additional mine approvals for Kal East are expected in the near term.

Key Contracts and Suppliers
MMS (funding, staff and equipment).

Contact Details for Project Information
Black Cat Syndicate, tel +61 458 007 713 or email admin@bc8.com.au.