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- Seven diamond holes completed targeting Axial Core Zone at Coyote Central
- Part of FY27 discovery and growth strategy
- Five infill holes targeted Inferred portions of current resource
- Two deep step-out holes completed testing for down plunge extensions to the Axial Core Zone
Black Cat Syndicate (ASX: BC8) has obtained high-grade results from near-mine drilling at the Coyote gold operation in the Tanami region of Western Australia.
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Highlights included 1.46m at 47.05 grams per tonne (g/t) from 313.54m, 0.91m at 4.88 g/t from 219.00m, 1.00m at 11.07 g/t from 224.00m, 1.00m at 11.07 g/t from 224.00m and 1.00m at 10.30 g/t from 322.95m.
Two step-out holes returned 0.30m at 1.07 g/t from 593.81m and 0.30m at 1.36 g/t from 653.20m.
MD, Chris Stone, said the extensional results are considered significant because they show that the dolerite intrusion sitting within the Axial Core Zone at depth is gold bearing and could have been the source for gold at Coyote Central.
Additional drilling targeting above this intrusion farther to the south is planned when exploration activities resume.
“We are encouraged by the infill drilling at Coyote, which continues to demonstrate grade continuity and provides additional confidence in the resource,” Mr Stone said.
“Deep exploration drilling has also intersected mineralised dolerite at depth and although these grades are low it does show that the dolerite is mineralised.
“We have put the current program on hold for the remainder of FY27 so that we can re-deploy capital to focus on extending our current operations at Paulsens and Kal East.”
Coyote consists of 1,160 sq. km of prospective tenure, including the high-grade Coyote Central Resource, for contained 430,000 ounces Indicated.
Coyote Central was discovered by AngloGold Ashanti in 1998 and was acquired by Tanami Gold in 2003. Between 2006 and 2013, Coyote produced 211,000 ounces from an average underground mined grade of 8.0 g/t through a processing plant treating 300,000 to 350,000 tonnes per annum with recoveries averaging 96%. Sub-optimal underground decline dimensions constrained equipment selection, limited development rates, created inefficiencies and significant productivity challenges.
Declining revenues, compounded by equipment reliability, rendered continued underground operations uneconomic under the previous operating model and the project was placed on care and maintenance in April 2013.
Black Cat acquired Coyote in 2022 and completed a 16,350m infill and extension program targeting the Coyote Central and completed a Scoping Study in 2024 outlining a production scenario of 200,000 ounces over an initial five-year processing period.
Importantly, this study excluded 307,000 ounces of Inferred resources, including 114.5 koz at Coyote Central, which was a focus of the FY27 drilling program.
Of the 73 holes drilled since ownership, including this program, Black Cat has intersected significant gold in 63 of those.
BC8 was steady at 67.0¢ with a Mkt cap of $488.3M prior to markets opening.
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