Four months after the initial study, Black Cat Syndicate on Tuesday unveiled an improved restart plan for the Paulsens gold mine, with higher production and cashflow, as well as improved recoveries and lower upfront capital costs.
The November study, which is based on a 33% increase in resources to 406 000 oz, will deliver 163 000 oz of gold at an all-in sustaining cost of A$1 836/oz, over a 4.2-year mine life.
At a gold price of A$2 900/oz, Paulsens will deliver operating cashflow of A$110.6-million. Each A$100/oz change in the gold price impacts the operating cashflow by A$16-million.
“With all approvals and a A$60-million 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.
“Further upside is expected from our current surface drill programme at Apollo and the Eastern Zone, which are both accessible from the Paulsens underground mine. These opportunities are all expected to contribute towards achieving our long-term incentive target of producing 60 000 oz to 70 000 oz a year from Paulsens,” commented MD Gareth Solly.
Production in the November study is predominantly sourced from the Paulsens underground mine, with additional feed from Belvedere.