Gold company Black Cat Syndicate has increased and upgraded the underground mineral resource at its Paulsens operation, in Western Australia, which now boasts 406 000 oz at 9.5 g/t.
This is a 24% increase from the July resource and more than a 350% increase from when Paulsens was acquired in June last year.
“The high-grade resource at Paulsens has again been increased and upgraded both substantially and rapidly. The upgraded resource will provide a strong foundation for the November 2023 restart study targeting increased production, improved recoveries, a lower upfront capital cost and stronger cashflow,” commented MD Gareth Solly.
He noted that future underground drilling would form part of the mining cycle and that the company’s focus would shift to the surface drilling programme starting in November.
Paulsens was mined for 13 years from 2005 to 2018. During that period, the resource averaged about 270 000 oz, yet the mine produced one-million ounces at 1 000 oz per vertical metre.
“With our A$60-million funding package progressing to plan, everything is now aligned at Paulsens for a restart in the first half of next year, with gold expected to be poured in the September 2024 quarter,” said Solly.
The July 2023 restart study included planned production of 136 000 oz over the first three years at an all-in sustaining cost of $1 892/oz. The November 2023 restart study is expected to deliver increased production, improved recoveries, a lower upfront capital cost and stronger cashflow.