Black Cat Syndicate Ltd. · ASX:BC8
Black Cat Syndicate — Diggers & Dealers Mining Forum 2023
35 slides from Black Cat Syndicate's conference presentation, August 2023
Slide 1: Diggers & Dealers Mining Forum
Diggers & Dealers Mining Forum Paulsens Restart – Just the Beginning | August 2023
Slide 2: Disclaimer, distribution and disclosure
Disclaimer, distribution and disclosure Disclaimer and not for US distribution Competent Person’s Statements This presentation includes forward-looking statements including, but not limited to, comments regarding the timing and content of The information in this announcement that relates to geology,
Slide 3: An emerging growth story in gold
An emerging growth story in gold + Three advanced gold projects in Western Australia • +2.4Moz Resources1, including two of the highest 645koz grade deposits in Australia – Paulsens & Coyote 471koz • Two installed plants, third ready to construct • Robust studies on all projects – only 50% of Resour
Slide 4: Low capital, internal funding to build substantial value
Low capital, internal funding to build substantial value Operation 1 Paulsens 2 Coyote 3 Kal East Strategy Study Phase Restart (PFS) Scoping Study PFS Sequential development Study Production 136koz @ 4.2g/t Au 200koz @ 3.6g/t Au 302koz @ 1.9g/t Au Conservative targets with upside Activity Refurbish
Slide 5: Simple structure, experienced team
Simple structure, experienced team Corporate Information Board of Directors Shares on issue 267M Gareth Solly • Former Senior Management roles with Norilsk Nickel, Silver Lake Managing Director Resources and Saracen Minerals Options 7.5M BSc (1st Class Hons.), Dip Business • Registered Mine Manager
Slide 6: Paulsens Gold Operation
1 PAULSENS GOLD OPERATION Restart to Drive Growth 6
Slide 7: Cornerstone to drive cashflow & growth
1 PAULSENS GOLD OPERATION Cornerstone to drive cashflow & growth ~1,250km2 of highly prospective ground Well maintained 450ktpa processing facility Dewatered and ventilated underground mine One of Australia’s highest-grade deposits - 328koz @ 9.9g/t1 Only gold processing facility within 400km Robust
Slide 8: Conservative Study Outcomes
1 PAULSENS GOLD OPERATION Conservative Study Outcomes Project Highlights Units Restart Study July 2023 Only 73% of Resources considered; Initial Years Years 3.0 Main Zone Extension not included Ore Mined Mt 1.0 Ore Grade (UG 4.3g/t; OP 3.4g/t; SP 1.6g/t) g/t Au 4.2 Ore Reserves - 64% of production G
Slide 9: Main Zone Extension, significant value driver
1 PAULSENS GOLD OPERATION Main Zone Extension, significant value driver • 1Moz @ 6.9g/t Au (2005- 2017), ~1,000oz/vm • Immediate success from new geological approach • Significant value potential: • ~175m plunge • ~100m vertical • Additional mineralisation up to 200m below current development. Refer
Slide 10: Main Zone Extension – significant upside to Restart Study
1 PAULSENS GOLD OPERATION Main Zone Extension – significant upside to Restart Study • Main Zone Extension discovery: • Thick quartz & sulphide shear zone • 100vm / 175m plunge extension • Known mineralisation for another 100m • All upside to Restart Study • Drilling includes: • 2.62m @ 8.10g/t Au •
Slide 11: Mine life is a function of drilling - >5 years already visible
1 PAULSENS GOLD OPERATION Mine life is a function of drilling - >5 years already visible • 7 months of drilling, has increased Resource 3.7x and generated 3-year mine plan • Historic average Resource of ~270koz and mine life of <2.5 years, yet mined over 1Moz • Strategy for Main Zone Extension to de
Slide 12: 26 Week Restart Plan
1 PAULSENS GOLD OPERATION 26 Week Restart Plan Processing Facility Underground Mining Tailings Storage Facility (TSF) • 26 week refurbishment plan • Build 20kt stockpile 8 weeks prior to • 8 week TSF raise • Upgrades: electrical system, power commissioning station, crusher, CIL tanks • Owner-operato
Slide 13: Capability to deliver
1 PAULSENS GOLD OPERATION Capability to deliver • Established infrastructure and long operating history lowers restart risk • Refurbishment plan by GR Engineering, independently reviewed, current WA costs • Independent ongoing cost/progress supervision supporting internal controls • Mark Davies, Gen
Slide 14: Resource growth – Hangingwall
1 PAULSENS GOLD OPERATION Resource growth – Hangingwall • The hangingwall is under-explored • Hangingwall Resources - 33.4koz @ 13.1g/t Au • Paulsens East Trend • 2.5km long mineralised structure • Current Resources - 12.7koz @ 10.8g/t Au • Projects to surface: • Historical rock chips of up to 20.7g
Slide 15: Resource growth – Paulsens Repeat
1 PAULSENS GOLD OPERATION Resource growth – Paulsens Repeat • Paulsens Repeat target identified in 2018 $2M 3D seismic survey • Similar Gabbro host unit located ~300m below the Paulsens Mine Gabbro • 1,250m strike paralleling Paulsens • First phase drilling completed: • Validated geology model • Con
Slide 16: Resource growth – Belvedere
1 PAULSENS GOLD OPERATION Resource growth – Belvedere • Potential for a Paulsens-scale deposit from surface: • 6.5km from plant on Mining Lease • major regional fault with high-grade mineralisation at surface • ~2.5km trend, ~100m of which has been drilled • Polymetallic Au-Cu-Ag • Current Resource:
Slide 17: Resource growth – Pipeline of Projects
1 PAULSENS GOLD OPERATION Resource growth – Pipeline of Projects • Robust pipeline of projects at all stages • Focus on increasing mine life 17 ASX: BC8 | August 2023
Slide 18: Coyote Gold Operation
2 COYOTE GOLD OPERATION High-grade gold with scale and exploration potential 18
Slide 19: High-grade Resource and untested multi-metal potential
2 COYOTE GOLD OPERATION High-grade Resource and untested multi-metal potential 819km2 of highly prospective ground Installed processing facility and camp – to be expanded with owned mill Robust Scoping Study • $176m cashflow @ $2,900/oz Only gold processing facility for +200km – high strategic value
Slide 20: Conservative Study Outcomes
2 COYOTE GOLD OPERATION Conservative Study Outcomes Project Highlights Units Scoping Study July 2023 Strong base case, not yet optimised for cashflow $ Initial Years Years 5.0 debottlenecking Ore Mined (including stockpiles) Mt 1.7 Ore Grade (UG 5.4g/t; OP 2.8g/t; SP 1.7g/t) g/t Au 3.6 372koz @ 4.8g
Slide 21: Coyote Central – one of Australia's highest-grade deposits
2 COYOTE GOLD OPERATION Coyote Central – one of Australia’s highest-grade deposits Open Pit 49koz @ 2.8g/t Au 102koz @ 11.4g/t Au excluded from study Underground 125koz @ 5.4g/t Au Refer BC8 ASX announcement 16/01/2023, 19/07/2023 and Resource tables in the Appendices 21 ASX: BC8 | August 2023 21
Slide 22: Multi-million ounce and multi-metal regional potential
2 COYOTE GOLD OPERATION Multi-million ounce and multi-metal regional potential • Mineralisation is controlled by intersection of NW/NE faults and folded stratigraphy • Fold hinges host the largest Tanami deposits • Multi-km scale Au, As and Bi anomalies: • Potential for multi-million ounce deposits
Slide 23: Kal East Gold Project
3 KAL EAST GOLD PROJECT 1.3Moz Resource in Australia’s premier gold mining region 23
Slide 24: Development ready with upside
3 KAL EAST GOLD PROJECT Development ready with upside +1,000km2 in premier gold mining region Large 1.3Moz Resource, multi-million ounce potential July 2023 Study Update • $168m cashflow @ $2,900/oz 800ktpa mill designed, permitted, major components acquired Strategic - only plant east of Kalgoorlie
Slide 25: Key Study Outcomes
3 KAL EAST GOLD OPERATION Key Study Outcomes Project Highlights Units Updated PFS July 2023 Robust, base case, production target of 302koz Initial Years Years 5.5 Ore Mined Mt 4.8 Ore Grade (OP: 1.7g/t; UG: 3.2g/t) g/t Au 1.9 Ore Reserves - 80% of production Gold in Ore koz 302 Recovery % 92 Gold Re
Slide 26: Projects summary
Projects summary Paulsens Coyote Kal East • 136koz / $81M cf / +3-5 yrs • 200koz / $176M cf / +5 yrs • 302koz / $168M cf / +5 yrs • High-grade underground • High-grade underground • 1.3Moz Resource Resource: 328koz @ 9.9g/t Resource: 356koz @ 14.6g/t • Premier mining region • Only processing facilit
Slide 27: Upcoming activity schedule
Upcoming activity schedule Activity Schedule Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 5 Qtr 6 Decision to Mine/Funding Processing Facility Refurbishment TSF Paulsens Underground Mine Development Commissioning and First Gold Operations Underground and Surface Drilling Coyote Resource Drilling Regional Exploration
Slide 28: Production re-rating potential
Production re-rating potential • Average Enterprise Value (“EV”) per production ounce for Australian gold producers is $4,740/oz • Notional EV’s based on peer average: • 50koz @ $4,740 = $240M • 100koz @ $4,740 = $480M • 150koz @ $4,740 = $720M $16,000 $14,000 Enterprise Value / Annual Production Ou
Slide 29: Investment Summary – significant re-rating potential
Investment Summary – significant re-rating potential Proven strategy to a new multi-operation producer with potential first gold in H1 2024 Low risk sequential development plan using cashflow to fund growth and minimise dilution High grade, high margin projects with low start-up capital; in the bott
Slide 30: 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 www.bc8.com.au ABN 63 620 896 282 30 ASX: BC8 | August 2023
Slide 31: Gold Resources summary
Gold Resources summary Measured Resource Indicated Resource Inferred Resource Total Resource Mining Centre Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal (‘000s) (g/t Au) (‘000s oz) (‘000s) (g/t Au) (‘000s oz) (‘000s) (g/t Au) (‘000s oz) (‘000s) (g/t Au) (‘000s oz) Kal E
Slide 32: Polymetallic Resources summary
Polymetallic Resources summary Resource Tonnes Zone Au (g/t) Cu (%) Sb (%) Ag (g/t) Pb (%) Au (koz) Cu (kt) Sb (kt) Ag (koz) Pb (kt) Category (‘000) 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 2.4 * - 13.2 434 18.7 Ea
Slide 33: Ore Reserves
Ore Reserves Proven Reserves Probable Reserves Total Reserves Operation Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal (‘000s) (g/t Au) (‘000s oz) (‘000s) (g/t Au) (‘000s oz) (‘000s) (g/t Au) (‘000s oz) Kal East Open Pit - - - 3,288 1.8 193 3,288 1.8 193 Underground - - - 437 3.6 50 437 3.
Slide 34: Long Term Incentive – Employee Performance Rights
Long Term Incentive – Employee Performance Rights The performance rights are designed as Long-Term Incentives (“LTI’s”) to align the Senior Leadership Team with the creation of shareholder value over the long term and form part of the Company’s remuneration and retention strategy. Key pillars are in
Slide 35: Supporting Information
Supporting Information Resources Reserve / Production Target Production Measured Resource Indicated Resource Inferred Resource Total Resource Proven Probable Target Total Reference Year Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal Tonnes Grade Metal
Black Cat Syndicate — Diggers & Dealers Mining Forum 2023 on 6ix