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Black Cat releases updated study for ‘cash cow’ Paulsens

8th May 2024

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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ASX-listed Black Cat Syndicate has released the May 2024 restart study for the Paulsens gold mine, which details substantially higher returns than the November study on the back of a stronger gold price.

The latest study is based on a gold price of A$3 500/oz, compared with A$2 900/oz in November 2023, which bolstered operating cash flow by 81% to A$201-million.

Every A$100/oz increase in the gold price lifts operating cash flow by A$16-million.

“The May 2024 study demonstrates that Paulsens is a cash cow,” said MD Gareth Solly.

The study is a subset of an internal operating plan, which includes additional mining areas that do not meet requirements for public release. Black Cat is using the May 2024 study as a base case and the internal operating plan as an upside case.

Solly said the internal operating plan included additional selective mining of high-grade veins to build a high-grade stockpile for immediate processing once the processing facility is commissioned. This has the potential to increase and accelerate initial and life-of-mine cash flow.

“The high-grade stockpile strategy, while excluded from the May 2024 study will commence immediately upon full funding,” said Solly.

Edited by Creamer Media Reporter

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