Black Cat Syndicate Ltd. · ASX:BC8
Black Cat Syndicate — Shareholder Meeting (November 2022)
44 slides from Black Cat Syndicate's shareholder meeting presentation, Nov 24, 2022
Slide 1: AGM Chair Address and Managing Director Presentation
ASX ANNOUNCEMENT 24 November 2022 AGM Chair Address and Managing Director Presentation Black Cat Syndicate Limited (“Black Cat” or “the Company”) provides a copy of the Chair Address and Managing Director Presentation in respect of the annual general meeting to commence at 10.00am (WST) today at Tri
Slide 2: Annual General Meeting – Chair Address
AGM Chair Address and Managing Director Presentation Annual General Meeting – Chair Address The past year has been significant for Black Cat: At Kal East we grew Resources by 9% to 1,294koz @ 2.1g/t Au. We committed to prepare Kal East for development and did so. This culminated in a Pre-Feasibility
Slide 3: Annual General Meeting
Annual General Meeting November 2022
Slide 4: Disclaimer, distribution and disclosure
Disclaimer, distribution and disclosure Disclaimer and not for US distribution This presentation includes forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential m
Slide 5: Investment Summary
Investment Summary • High-grade 2Moz Resources growing rapidly Upside • Multi-operation potential Coyote • Established processing infrastructure • Positioned for improving gold sentiment Paulsens • Optionality via multi-metals • Experienced team $106M Current Market Cap ~$70M Kal East 3 ASX: BC8 | 2
Slide 6: Positioned for improving gold sentiment
Positioned for improving gold sentiment • Gold producer margins squeezed since 2020 Global Avg Grade BC8 Grade BC8/Global Resource g/t Au* g/t Au Average* • Portfolio positioned for cost resilience and margin Coyote OP 1.29 3.0 2.3x • Installed infrastructure at Coyote and Paulsens Coyote UG 1.29 8.
Slide 7: Business overview
Business overview >2.0Moz @ 2.5 g/t 2,215km2 total Resources total landholding >$140M 750ktpa estimated infrastructure installed milling capacity at replacement cost Coyote (expandable) & Paulsens 2 243koz 800ktpa initial Ore Reserves targeted milling capacity at Kal East at Kal East s $105.9M $7.5M
Slide 8: Coyote Gold Operation
1 COYOTE GOLD OPERATION High grade, scale potential
Slide 9: High-grade gold and significant multi-metal potential
1 COYOTE GOLD OPERATION High-grade gold and significant multi-metal potential Infrastructure in place Background Extremely high-grade system Landholding (100%) ~885km² Significant near mine opportunities High-grade Resources 488koz @ 5.1g/t New geological models unlocking high-grade gold potential a
Slide 10: Large, high-grade gold system
1 COYOTE GOLD OPERATION Large, high-grade gold system Coyote Central – renewed growth • ~1,200m strike x 700m depth of underexplored mineralisation • New geology model highlights importance of Axial Core (“hinge”) Zone • Hinge provides a favourable stress regime for fluid flow • Drilling completed t
Slide 11: Rapid and strong growth in the Axial Core
1 COYOTE GOLD OPERATION Rapid and strong growth in the Axial Core Speedy – high-grade extended by ~25m towards Kavanagh • 3m @ 17.39 g/t Au from 2m • 3m @ 29.43 g/t Au from 82m • 1m @ 99.50 g/t Au from 86m • 6m @ 8.33 g/t Au from 152m • 4m @ 17.65 g/t Au from 161m • 9m @ 19.22 g/t Au from 172m Kavan
Slide 12: Multi-million ounce regional potential
1 COYOTE GOLD OPERATION Multi-million ounce regional potential Exploration upside – regional • Mineralisation is controlled by intersection of NW/NE faults and folded Coyote stratigraphy • Largest Tanami gold deposits occur in fold hinges • Multi-kilometre scale Au and As anomalies are priority targ
Slide 13: Coyote plan
1 COYOTE GOLD OPERATION Coyote plan Long-Term Incentive (LTI): Annual sustained production rate of 30,000 to 40,000oz (based on current mill) • Start-up cost expected to be moderate: • Potential to install additional mill capacity (already owned) to increase throughput and lower unit costs, based on
Slide 14: Paulsens Gold Operation
2 PAULSENS GOLD OPERATION Pathway to production 12
Slide 15: A high quality, well maintained operation
2 PAULSENS GOLD OPERATION A high quality, well maintained operation Well Background maintained infrastructure Landholding 100% ~530km² 450ktpa processing facility, ready Resources for low-cost 232koz @ 2.0g/t restart Infrastructure Significant ~$80M opportunities (450ktpa processing facility and cam
Slide 16: Drilling now underway
2 PAULSENS GOLD OPERATION Drilling now underway Substantial upside – near mine High priority targets for initial drilling: 1. Gabbro veins: extensions of high-grade mineralisation adjacent to decline 2. Repeat targets: 1 1,200m 3D seismic survey target parallel to Paulsens 3. Apollo extension: 3 2 u
Slide 17: 2022 drilling – Gabbro Veins
2 PAULSENS GOLD OPERATION 2022 drilling – Gabbro Veins Bonanza grade adjacent to decline All intercepts shown are unmined • New geology model contains numerous Current Resource is shown in blue new domains outside the existing Resource • Limited testing of lodes outside the main Paulsens quartz doma
Slide 18: 2022 drilling – another Paulsens
2 PAULSENS GOLD OPERATION 2022 drilling – another Paulsens Transformational targets • High priority potential “Paulsens Repeat” target identified in 2018 $2M 3D seismic survey • Similar host unit (Lower Gabbro) 200m below Paulsens Mine Gabbro • Offset by the same regional scale fault as the Paulsens
Slide 19: 2022 drilling – Apollo extension
2 PAULSENS GOLD OPERATION 2022 drilling – Apollo extension Near surface immediately east of decline All intercepts shown are unmined Current Resource is shown in blue • Apollo remains open down plunge • Limited historical drilling • Mining pre-2009 produced ~23koz @ 6.8g/t Au • Close to surface and
Slide 20: Significant regional potential with limited previous work
2 PAULSENS GOLD OPERATION Significant regional potential with limited previous work Significant multi-metal anomalies • Gold deposits form on second order splays of the Nanjilgardy Fault • Four open gold Resources outside of Paulsens with strong growth potential • Gold and base metal anomalism is ex
Slide 21: Belvedere
2 PAULSENS GOLD OPERATION Belvedere The beginning of another Paulsens? • 5km from Paulsens on granted mining lease • Current Resource: 30koz @ 3.9 g/t Au (reported above 1g/t) • High grade gold lodes remain open: • 4.0m @ 28.95 g/t Au & 91 g/t Ag from 69m • 9.0m @ 12.72 g/t Au from 73m • 5.0m @ 12.4
Slide 22: Mt Clement: Large Au-Ag-Cu-Pb-Sb system
2 PAULSENS GOLD OPERATION Mt Clement: Large Au-Ag-Cu-Pb-Sb system Significant multi-metal potential • 30km from Paulsens on mining leases • Resource1: 66koz Au, 1.6tkt Cu, 13.9kt Sb, 1.5Moz Ag & 18.7kt Pb (contained metal) • Third largest Australian antimony deposit • Strong growth potential – open
Slide 23: Paulsens plan
2 PAULSENS GOLD OPERATION Paulsens plan Paulsens LTI: Annual sustained production rate of 60,000 to 70,000oz • Shortest timeframe to restart in the portfolio • Start-up cost is expected to be low: • Refurbish processing facility • Recommence underground mining • Target for start-up: • >400,000 ounce
Slide 24: Kal East Gold Project
3 KAL EAST GOLD PROJECT Pathway to production 22
Slide 25: Initial production plan – development ready
3 KAL EAST GOLD PROJECT Initial production plan – development ready Large Resource in an active mining Project highlights region Landholding 100% Permits in place and long-lead time 800km² items acquired Resources >5 year mine life 1,294koz @ 2.1g/t Investment decision deferred with Ore Reserves low
Slide 26: Pre-Feasibility Study and Ore Reserve
3 KAL EAST GOLD PROJECT Pre-Feasibility Study and Ore Reserve Kal East LTI: Key Metrics Units Study Outcomes Annual sustained production rate of Ore Reserve Gold Price A$oz 2,300 50,000 to 60,000oz Study Gold Price A$oz 2,500 • High standard PFS supports a future investment decision Initial Producti
Slide 27: Myhree – in pole position
3 KAL EAST GOLD PROJECT Myhree – in pole position Near term cash flow potential • Final grade control RC drilling completed to 50m below surface: • 5m @ 19.63 g/t Au from 33m • 4m @ 17.47 g/t Au from 46m • 5m @ 11.51 g/t Au from 27m • 4m @ 12.38 g/t Au from 37m • 7m @ 7.36 g/t Au from 30m • High-gra
Slide 28: Investment Summary
INVESTMENT SUMMARY Pathway to production 26
Slide 29: Simple structure, experienced team
Simple structure, experienced team Corporate Information Board of Directors Shares on Issue 214M Gareth Solly Previous roles include senior management roles with Options @ ~$0.39 (av.) 14.7M Managing Director Norilsk Nickel, Silver Lake Resources and Saracen Gold BSc (1st Class Hons.), Dip Mines and
Slide 30: Track record of rapid Resource growth
Track record of rapid Resource growth 2.5Moz Resource growth to >2Moz in four years: • 1.3Moz Resource acquired • 0.8Moz Resource discovered 2.0Moz • For every 1oz acquired, 1.5oz discovered (before Coyote & Paulsens acquisition) 1.5Moz 981,000 Inferred Measured/Indicated 1.0Moz 523,000 Active and g
Slide 31: High volume of newsflow from multiple operations
High volume of newsflow from multiple operations 8th Newly identified high-grade 9th High-grade infill and drill results from Paulsens extensions from Kavanagh at 13th Junior Mineral Exploration Coyote Incentive - $1.25M tax credit 12th Drilling commences at 22ndDiamond drilling Balagundi base metal
Slide 32: Multiple catalysts for re-rating
Multiple catalysts for re-rating • Coyote – demonstrate high-grade continuity throughout the Axial Core Zone and decision on plant expansion • Paulsens – discovery of another Paulsens and low cost restart decision • Kal East – toll treatment cashflow potential • Resource growth • Regional discoverie
Slide 33: Investment Summary
Investment Summary • High-grade 2Moz Resources growing rapidly Upside • Multi-operation potential Coyote • Established processing infrastructure • Positioned for improving gold sentiment Paulsens • Optionality via multi-metals • Experienced team $106M Current Market Cap ~$70M Kal East 31 ASX: BC8 |
Slide 34: Thank you
Thank you Level 3, 52 Kings Park Road, West Perth WA 6005 PO Box 184, West Perth WA 6872 +61 (0)458 007 713 admin@bc8.com.au ABN 63 620 896 282 www.blackcatsyndicate.com.au
Slide 35: Appendices
BLACK CAT SYNDICATE APPENDICES
Slide 36: Gold margin squeeze – a global view
Gold margin squeeze – a global view • Gold price increased sharply with COVID-19 in 2020 2,400 60% • and has remained at elevated levels Margin (%) 2,300 45% 48% 2,200 30% • Lower-grade, higher-cost, gold mined at global 2,100 30% 15% average of 1.29 g/t Au* 2,000 0% 1,900 US$/OZ Gold -15% AISC • AI
Slide 37: Tanami – elephant country
1 COYOTE GOLD OPERATION Tanami – elephant country 35 ASX: BC8 | 24 November 2022 35
Slide 38: Scale potential
1 COYOTE GOLD OPERATION Scale potential Coyote central geology model • Historical open pit and underground workings to ~320m below surface produced a combined ~168koz @ 6.0g/t Au from the South Limb lodes; • Current Resources (South Limb) - 122koz @ 7.8g/t Au (open at depth); • Current Resources (Ax
Slide 39: Optionality of metals: Au-Ag-Cu-Pb-Sb-Zn
2 PAULSENS GOLD OPERATION Optionality of metals: Au-Ag-Cu-Pb-Sb-Zn Significant multi-metal potential in region Mt Clement – Pb & Sb +/- Au & Ag & Cu • 14kt Sb metal – third largest and second highest grading Sb Resource in Australia • Plus: 19kt Pb, 2kt Cu, 1.5Moz Ag & 66koz Au • Rock chips include:
Slide 40: Comparison to 2010
2 PAULSENS GOLD OPERATION Comparison to 2010 • Acquisition cost: • NST acquired for $40M in 2010 • BC8 acquired for ~$22M in 20221 • ~50% of Paulsen / Coyote acquisition • Mine plan at acquisition: • Intrepid left a mine plan of 45,000oz • NST left a mine plan of 42,000oz • Mill throughput at acquis
Slide 41: Kal East – five year production plan
3 KAL EAST Kal East – five year production plan MYHREE MINING CENTRE MAJESTIC MINING CENTRE FINGALS MINING CENTRE 259koz @ 2.8 g/t Au 528koz @ 2.0 g/t Au 275koz @ 2.2 g/t Au • Open at depth • 204koz @ 4.5 g/t Au (UG) (open) • Scale will grow with drilling • >1000 oz per vertical metre Myhree open pi
Slide 42: Gold Resources summary
Gold Resources summary Measured Resource Indicated Resource Inferred Resource Total Resource Operation/ Project Grade Metal Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade (g/t Metal Tonnes (‘000s) (g/t Au) (‘000oz) (‘000s) (g/t Au) (‘000oz) (‘000s) (g/t Au) (‘000oz) (‘000s) Au) (‘000oz) Open Pit
Slide 43: Polymetallic Resources summary
Polymetallic Resources summary Grade Contained Metal Resource Zone Tonnes (‘000 t) Category Au (g/t) Cu (%) Sb (%) Ag (g/t) Pb (%) Au (koz) Cu (kt) Sb (kt) Ag (koz) Pb (kt) Inferred 415 - 0.4 0.2 76.9 - * 1.6 0.7 1,026 - Western Total 415 - 0.4 0.2 76.9 - * 1.6 0.7 1,026 - Inferred 794 - - 1.7 17.0
Slide 44: Ore Reserves – Kal East
Ore Reserves – Kal East Probable Total Deposit Tonnes (‘000s) Grade (g/t Au) Ounces Tonnes (‘000s) Grade (g/t Au) Ounces Myhree 584,500 2.4 45,600 584,500 2.4 45,600 Boundary 119,500 1.5 5,700 119,500 1.5 5,700 Open Pit Ore Reserves Jones Find 349,500 1.5 16,500 349,500 1.5 16,500 Fingals Fortune 2,
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