Black Cat Syndicate (ASX:BC8) on Monday published a mineral resource estimate (MRE) upgrade for the underground mine at its WA-based Coyote project, officially locking in Coyote as one of the highest-grade deposits in Australia.
Investor information provider Undervalued Equity classifies high grade gold as that in concentrations over five grams of gold per tonne of ore (5g/t).
The new MRE for the underground arm of the mine sits at 356,000 ounces of gold at an average grade of 14.6g/t.
Black Cat’s shares were up 15% in the first hour of trade to 44c.
“With our new geology model and just five months of drilling, we have demonstrated that Coyote Central is one of the highest-grade underground deposits in Australia,” company MD Gareth Solly said.
The results outline above only look at the underground resource. The first combined resource at Coyote (including existing open-pits) now sees total resources climb to 645koz @ 5.5g/t gold, a 32% increase from the last combined resource published back in 2008.
“The new Resource currently extends to 400m below surface even though there is known mineralisation down to 700m and remains open beyond that. We expect to further extend the Resource with additional drilling,” Solly added.
The Coyote project is over 800sq.km and is 100% owned by Black Cat.
It is composed of an open pit mine and an underground mine with maintenance being regularly carried out since 2013. No exploration has been carried out on-site in over a decade.
The mine is less than 1km away from prolific WA mining haul route Tanami Highway, with Canberra already having pledged funding to seal the road ahead of shipments.
The project already has an airstrip on-site as well as potable water sources and a camp allowing for over 180 workers.
While Black Cat kicks off 2023 with a new resource at Coyote and a plan to carry out further resource drilling, there are several considerations investors can learn about the company by using free Market Index data.
Company’s share price is 44c*
Market cap of $95.7m*
One year returns down -30.7%
Year to date returns up 23.9%
Average 4 week trading volume of 204,631 shares
Ranked 235 of 942 constituents in Materials sector
Black Cat had $13.3m in cash at the end of September
Company spent $1.4m in opex over the same period
Company spent $3.3m in investing activities over period
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