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- Black Cat Syndicate (BC8) acquires the Coyote and Paulsens gold operations from Northern Star Resources (NST)
- The company now controls 1770 square kilometres of land in three prime WA gold regions and its resources total more than two million ounces
- The purchase consists of a $14.5 million cash consideration, which has been paid, and a further $15 million payable on or by June 30, 2023
- Upcoming drilling at Coyote will focus on growing and upgrading the JORC mineral resource while drilling at Paulsens will aim to grow the existing underground resource
- Black Cat ends the day 3.7 per cent in the green with shares trading at 35 cents
Black Cat Syndicate (BC8) has acquired the Coyote and Paulsens gold operations from Northern Star Resources (NST).
The company now controls 1770 square kilometres of land in three prime WA gold regions and its resources total more than two million ounces.
The purchase consists of a $14.5 million cash consideration, which has been paid, and a further $15 million payable on or by June 30, 2023.
Additionally, Northern Star has been issued 8.34 million fully-paid ordinary shares which are subject to voluntary escrow until June 30, 2023.
Coyote
The Coyote gold operation spans an area of around 440 square kilometres and has historical production of 211,000 ounces at 4.9 grams per tonne (g/t) gold from an underground mine and multiple open pits.
It also hosts a 300,000-tonnes-per-annum gold processing facility, a camp that holds more than 180 people, water extraction and storage facilities, a diesel power generation station, fuel storage tanks, an airstrip, and telecommunication equipment.
Black Cat will begin drilling in early July with a focus on growing and upgrading the JORC mineral resource of three million tonnes at 5.1 g/t gold for 488,000 ounces.
Paulsens
Paulsens spans an area of 530 square kilometres and has historical production of 970,000 ounces at 7.3 g/t gold from an underground mine.
It hosts a 450,000-tonnes-per-annum processing facility, a 110-person camp, a diesel power generation station and fuel storage tanks, water extraction and storage facilities, telecommunication equipment, and a nearby airstrip.
Initial drilling at Paulsens will focus on growing the existing underground resource of 89,000 ounces at 5.8 g/t gold.
“With the acquisition of Coyote and Paulsens completed, we will now focus on significant drilling campaigns at both operations to grow and upgrade the current high-grade resources. Drilling results from this activity will be released regularly throughout 2022,” Managing Director Gareth Solly said.
“Concurrently, Black Cat’s management team will be assessing the substantial infrastructure and completing studies aimed at demonstrating the inherent value underpinning these established, low-capital restart operations.”
Black Cat has ended the day 3.7 per cent in the green with shares trading at 35 cents.
