Black Cat sharpens its claws on bonanza grade gold at Paulsens

Black Cat continues to sink its teeth into sweet mineralised veins with nuggety gold including a bonanza grade intercept within the Main Zone of its Paulsens operation in the Pilbara.

While the ongoing infill and extensional drilling has already seen multiple high-grade gold hits, the latest intercept of 0.26m grading 197 grams per tonne (g/t) gold from 50.24m within a broader 1.7m zone at 33.03g/t gold from 49m in hole PGRD23101 takes the cake.

Equally importantly for Black Cat Syndicate (ASX:BC8), most holes in the program have intersected multiple mineralised veins with high-grade nuggety gold – and indication that the structure is “live” and likely to deliver a significant upgrade to current underground resources of 258,000oz at 10.8g/t gold.

Drilling is ongoing while the next resource update is expected later this month.

“More robust results continue to highlight the near-term mining potential located in and around the existing Paulsens underground workings,” managing director Gareth Solly said.

“The Main Zone was the source of the majority of the +900koz produced to date and we are uncovering extensions to the Main Zone and more high-grade gold with every hole we drill.

“These promising new results will be included in the May 2023 Resource upgrade, which will form the basis for making a decision to restart the operation in the middle of 2023.”

Bringing Paulsens back to life

An old parable states that cats have nine lives and the company is certainly keen to breathe new life back into the high-grade Paulsens mine, which had historically produced over 900,000oz of gold over its first 13 years of operations.

Once a foundation asset of Northern Star Resources (ASX:NST), the mine was acquired along with the Western Tanami project on Western Australia’s border as part of a combined $44.5m deal last year.

With a resource upgrade in February sending total resources at Paulsens up 73%, an increase to 401,000oz at 3.3g/t and higher confidence Measured and Indicated resources also increasing 65% to 163,000oz at 8.0g/t, the purchase seems to be well worth its price.

This is especially so since the project has an existing and well-maintained 450,000tpa mill and camp infrastructure which will make a restart of operations much more straightforward as drilling continues to uncover more gold mineralisation missed by previous owners.

This article was developed in collaboration with Black Cat Syndicate, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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