Gold developer Black Cat Syndicate has entered into a A$1.41-million option to acquire a 1.5-million-tonne-a-year milling facility, comprising two mills, for its Kal East gold project, in Western Australia's Goldfields.

Black Cat plans to build a processing facility near the Imperial/Majestic deposits, about 50 km east of Kalgoorlie this year.

The company will install one of the two mills initially, while the second is reserved for future milling capacity expansion.

The traditionally configured gravity and carbon-in-leach gold plant will be ideally suited to Black Cat’s deposits and potentially any third party free milling ores in the region.

The benefits of the option include security and reduced lead time of critical equipment supply, the potential to reduce capital costs, and equipment and infrastructure that enables for future milling capacity expansion.

The equipment detailed with the option includes both a 1.85 MW and a 1.45 MW Outokumpu ball mill and infrastructure surrounding the mills including steel columns, floor grating and stairs. It also includes all related ball mill auxiliaries, such as motors, trunnion, lube systems, trommels and pipe work.

In addition, the option includes all critical ball mill spares including girth gear, trunnion bearings, pinion shafts and gearbox; as well as other ancillary equipment, such as a 60 t lime silo and motor control centre.

Black Cat MD Gareth Solly says the milling facility was operated for less than five years, has been well maintained and is in excellent condition. “We have engaged a team of experts to assist with detailed due diligence and to estimate removal and relocation costs.”

During the first quarter, he says the company also plans to estimate the impact this milling facility has on its construction schedule and build up cost estimates for both the initial facility as well as the potential expansion case.

“Acquiring this facility would be a major milestone for Black Cat as it immediately secures the supply of about 60% of the equipment required to construct our planned processing facility.”