Black Cat Syndicate has published its November restart study for its Paulsens gold operation in the Ashburton Basin of the Pilbara region in Western Australia.
Paulsens was placed on care and maintenance in 2017, and Black Cat officially acquired the mine from Northern Star Resources in June 2022.
Since then, the company has conducted detailed studies while carrying out an exploration campaign to expand the mine’s resource.
Now, the WA gold explorer has released an updated restart study for the mine, which “significantly” improves from the July study.
Such highlights from the latest study includes $110.6m in operating cashflow after all capital and tax at $2900 per gold ounce (oz), compared to the $81.2m recorded in July.
Paulsens recorded an initial three-year mine life in July, and this has increased to 4.2 years and growing. The maximum cash drawdown has also reduced to $38.5m from $41.8m.
“In only four months, the November study has achieved our key objectives for Paulsens: increased production; improved recovery; reduced upfront capital cost; and stronger cashflow,” Black Cat managing director Gareth Solly said.
“With all approvals and a $60m funding package in place, focus for Paulsens now moves to the internal operating plan, which will incorporate the many high-grade veins sitting unmined within existing development but outside the current resource.”
Black Cat will continue its current surface drilling program at the Apollo and the Eastern Zone deposits, which is expected to help the company reach its long-term incentive target of producing 60,000–70,000oz per year from Paulsens.
“Regionally, we will continue exploration drilling to build our significant resources as we progress our vision of being the dominant player in three prolific gold districts – Paulsens in the Pilbara, the Coyote Gold Operation in the Western Tanami, and the Kal East Project, east of Kalgoorlie,” Solly said.
“The November study is major step forward in achieving that vision.”
It is expected for Black Cat to deliver first gold from Paulsens in the second half of 2024.
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