Black cat to acquire Coyote and Paulsens gold operations in WA

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Aussie mining company Black Cat Syndicate has announced that it has inked agreements with Northern Star Resources to acquire the Coyote and Paulsens gold operations in Western Australia.

According to the ASX Announcement, the company has completed a $35 million two tranche placement at $0.55 per share with a target decision to mine within 18-24 months.

“This is a transformational transaction for Black Cat. We listed on the ASX in January 2018 with 80km2 of land, no Resources and no mill. This transaction will have us at 1,770km2 containing >2Moz @ 2.5 g/t Au with 2 mills and a third well advanced,” said Black Cat Chairman, Paul Chapman.

The move is in line with the company’s vision to become a mid-tier Western Australian gold producer.

Adertisement

“The Coyote deposit sits in an exciting high-grade Callie style environment with serious potential to significantly grow ounces quickly. Paulsens has been a consistent high-grade producer for a long period,” Mr Chapman said.

“There is ample opportunity at the assets to find another Paulsens like deposit as well as near-mine opportunities. Realising these opportunities will be an immediate focus for us. An exploration review by Dr Jon Hronsky OAM has already identified numerous high-quality targets in this regard.”

The Coyote Gold mine is located in the remote Tanami Desert in the Kimberley region of Western Australia, while Paulsens is located 105 km south of Pannawonica, in the Ashburton Basin in the Eastern Pilbara region.

In the ASX Announcement, Mr Chapman also revealed that the company has deferred the decision to build the planned processing facility at Kal East, citing constraints on labour supply, engineering and construction materials around Kalgoorlie, exacerbated by Covid.

“The Board remains fully supportive of Kal East, which will be ready to commence at the right time with all regulatory approvals now received, i.e. mining and milling at Kal East is now fully approved with the Tailing Storage Facility just recently approved,” he said.

“However, in the interim, and in response to interest from a number of regional mills, we will be considering options to mine and toll treat the Myhree/Boundary deposits during 2022/23.

“The potential acquisitions could see us producing from three operations after we have rapidly grown the existing Resources and announced Ore Reserves. We are targeting completion of feasibility studies at each operation followed by decisions to mine.”

According to Mr Chapman, the company will first start mining at Coyote in 2023, with 2 years of drilling planned for Paulsens before a decision to mine.

Image credit: https://www.nsrltd.com/investor-and-media/asx-announcements/2022/april/bc8-funded-acquisition-of-coyote-paulsens-gold-ope