Black Cat Syndicate Ltd. · ASX:BC8
Black Cat Syndicate — Investor Presentation (December 2020)
28 slides from Black Cat Syndicate's investor presentation, December 2020
Slide 1: Transitioning to Mining
TRANSITIONING TO MINING December 2020
Slide 2: Disclaimer and Disclosure
Disclaimer and Disclosure Disclaimer This presentation includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-looking statements. Although Black Cat Syndicate
Slide 3: Investment Case
Investment Case • One of the largest landholders within 50km of Kalgoorlie (756km2): o Significant growth potential • Targeting Resources >1Moz, including 3 years Ore Reserves: o Positive initial mining studies completed, multiple open pit and underground mines • Centralised processing facility lo
Slide 4: The Company
The Company Simple Structure, Strong Support, Experienced Team Corporate Information Board of Directors Share Price (1 December 2020) $0.65 Paul Chapman Previous roles include founding Chairman of Silver Lake Resources, directorships with Reliance Mining, Rex Minerals Non-Executive Chairman B.C
Slide 5: Kal East Gold Project: Premier Location
Kal East Gold Project Premier Location • Historical mining: o >600,000oz produced • Excellent infrastructure: o All weather roads o Local service providers o Local workforce • Most processing facilities located to the west of Kalgoorlie December 2020 ASX│BC8 5
Slide 6: Kal East Gold Project: Enviable Ground Position
Kal East Gold Project Enviable Ground Position • Proven gold region: o 756km2 of prospective holding o 76% of leases granted o 26% granted mining leases • One of the largest landholders within 50km radius of Kalgoorlie, others include: o Northern Star, o Zijin Mining, o Evolution Mining, and o Ho
Slide 7: High Grade Resources
High Grade Resources Line of Sight to 1Moz of Resource • Current Resource: Resources Tonnes Grade Contained In Study Out of Study 11.8Mt @ 2.3g/t Au for 884,000 oz ‘000 g/t Au ‘000 Oz ‘000 Oz ‘000 Oz Myhree Mining Centre+ 2,880 2.8 259 139 120 • 60,000m drill program targeting: Queen M
Slide 8: Positive Initial Mining Studies
Positive Initial Mining Studies Multiple Open Pit and Underground Mines • First pass of studies: Fingals Imperial/ Myhree Boundary Myhree o 3 open pits Summary (by mine) Units Fortune Majestic Open Pit Open Pit Underground Underground Total Open Pit o 2 underground mines Material Movement
Slide 9: Positive Initial Mining Studies: Strong Cashflow
Positive Initial Mining Studies Strong Cashflow - Early Payback • Operating cashflow $117.5M $'M, cumulative Operating Cashflow after Capital and BTAX o Produced over first 4 years 120 117.5 o Payback in 2 years o $2,650 gold price 100 80 • Ready for growth: 64.0 60 o For every $50 change in gold
Slide 10: Positive Initial Mining Studies: Solid Foundation for Future Growth
Positive Initial Mining Studies Solid Foundation for Future Growth • Initial 4 years (just the start): Mined Indicated Resource Inferred Resource o 70% Indicated Resource Year (koz) (koz) (koz) Year 1 46 46 - Year 2 43 39 4 • Excluded - subject to drilling and Year 3 43 18 25 additional Studies: Y
Slide 11: Myhree Open Pit and Underground
Myhree Open Pit and Underground Low Capital, Ready to Mine Myhree Units Pit Underground Material Movement - Waste kt 9,258 189 Material Movement - Ore kt 617 390 Grade g/t Au 2.3 2.7 Contained Metal, Mined koz 46 33 Recovery % 94% 91% Recovered Metal koz 43 30 Revenue A$m 114.5 8
Slide 12: Imperial/Majestic Underground
Imperial/Majestic Underground High Grade Mining Potential Imperial Majestic Units Underground Material Movement - Waste kt 237 Material Movement - Ore kt 533 Grade g/t Au 3.3 Contained Metal, Mined koz 57 Recovery % 91% Recovered Metal koz 51 Revenue A$m 136.3 Operating Costs A$m 5
Slide 13: Fingals Fortune
Fingals Fortune Potential for a Substantial Open Pit Fingals Fortune Units Open Pit Material Movement - Waste kt 6,319 • Large, growing, shallow system Material Movement - Ore kt 496 • Recent intercepts outside Resource1 include: Grade g/t Au 1.6 o 3m @ 8.55 g/t Au from 25m Contained Metal, Mined k
Slide 14: Milling Strategy: Centralised Processing Facility
Milling Strategy Centralised Processing Facility • 50km east of Kalgoorlie • Near Imperial/Majestic • Designed to treat typical Kalgoorlie ore types • Como Engineering design - January 2021 • Adsorption tanks purchased: o $190k - including delivery to site • New ball mill – tendered/shortlisted: o ~
Slide 15: Milling Strategy: Expansion Planned from Outset
Milling Strategy Expansion Planned from Outset • Como Engineering design and cost estimate includes allowance for substantial increase in future capacity • Incremental costs associated with: o Addition of tertiary crushing o Additional grinding infrastructure o Increased leach tank capacity • Option
Slide 16: Milling Strategy: Planning for the Future
Milling Strategy Planning for the Future • Initially 500,000tpa, readily 500ktpa Mill Capital Cost (by area) $M expandable Engineering, Procurement, Construction, Management 4.2 General 2.5 • Mill capital ± 25%, $32.5M: Electrical 5.0 o With crushing and elution potentially Earthworks 0.1 outsourced
Slide 17: Transformation: Timeline for Development and Production
Transformation Timeline for Development and Production • 2020: Milestone 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 o Complete mill designs Mining Studies - Ongoing o Grow Resources/Ore Reserves Mill - Long Lead Time Items • 2021: Mill - Design & Engineering Mining – Appro
Slide 18: Transformation: Approvals for Production
Transformation Approvals for Production • Granted Mining Leases o All Production Targets in current Study o >97% of all Resources Imperial • Mining Proposal/Project Management Plans: o Myhree Stage 1 - approved o Myhree Stage 2 - submitted o Majestic UG - December 2020 submission o Mill construction
Slide 19: Significant Regional Potential - 756km2
Significant Regional Potential - 756km2 Project Pipeline Refer ASX releases: 24 September 2019 and 29 May, 10 & 24 July, 7 & 30 October and 12 November 2020 Hampton –Victory Corridor Numerous targets along prospective corridor Anomaly 38 Targeting source of mineralised paleochannel 2m @ 47.6 g/t Au;
Slide 20: Future Growth: Extensional Drilling at Rowe's Find
Future Growth Extensional Drilling at Rowe’s Find • Underexplored greenstone • Current Resource: o 148kt @ 3.5 g/t Au for 17koz • Intercepts within Resource include1: o 6m @ 34.00 g/t Au from 6m o 10m @ 10.02 g/t Au from 39m o 2m @ 27.59 g/t Au from 62m • Intercepts not in Resource: o 6m @ 45.67 g/t
Slide 21: Strong Growth Potential
Strong Growth Potential Just the Beginning…. DISCOVERY & UPGRADES 60,000m drilling program EXCLUDED RESOURCES 7.5Mt @ 2.2 g/t Au for 527koz Including: EXPANDED STUDIES Myhree UG - below 185mRL Majestic UG - below 120mRL Fingals Fortune - big pit CURRENT 168koz for $117M cashflow December 2020 ASX│B
Slide 22: Investment Case
Investment Case • One of the largest landholders within 50km of Kalgoorlie (756km2): o Significant growth potential • Targeting Resources >1Moz, including 3 years Ore Reserves: o Positive initial mining studies completed, multiple open pit and underground mines • Centralised processing facility lo
Slide 23: Connect with us
Connect with us 8 / 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014 +61 (0) 458 007 713 | admin@blackcatsyndicate.com.au Twitter / Facebook | @blackcatsyn8 ABN 63 620 896 282 www.blackcatsyndicate.com.au
Slide 24: Appendix 1 - JORC 2012 Resource Table
Appendix 1 - JORC 2012 Resource Table Measured Resource Indicated Resource Inferred Resource Total Resource Notes on Resource table for Bulong, Fingals and Rowe’s Find: Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal Deposit (‘000s) (g/t Au) (000s oz) (‘000s) (g/t Au) (‘0
Slide 25: Appendix 2 - Detailed Study Financials
Appendix 2 - Detailed Study Financials Fingals Imperial/ Myhree Boundary Myhree Summary (by mine) Units Fortune Majestic Open Pit Open Pit Underground Total Open Pit Undergrounds Physicals Material Movement - Waste kt 9,258 1,591 6,319 237 189 17,595 Material Movement - Ore kt 617 131 496 533 390 2,
Slide 26: Appendix 3 - Sensitivity Analysis
Appendix 3 - Sensitivity Analysis • Operating Cashflow (after Capital & BTAX) for the combined Studies is most sensitive to gold price and gold grade and increases/reduces as follows: $2,550 oz $2,600 oz Base $2,650 oz $2,700 oz $2,750 oz 102.4 110.0 117.5 125.0 132.5 Gold price sensitivity analysis
Slide 27: Appendix 4 - Mill Operating Cost and Ancillary Works
Appendix 4 – Mill Operating Cost and Ancillary Works • Mill ownership: Operating Cost (by area) A$ per tonne o reduces cost of production Site Administration 1.08 Personnel Transport 0.51 o reduces business risk Process & Maintenance Labour 10.49 o increases life of operations Reagents & Operating C
Slide 28: Appendix 5 - 60,000m Drilling Program
Appendix 5 - 60,000m Drilling Program 12,000 80,000 70,000 10,000 Results lag behind drilling 60,000 8,000 50,000 6,000 40,000 30,000 4,000 20,000 2,000 10,000 0 0 July August September October November December January February March April May June RC Actual RC Planned DD Actual DD planned Samples
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