Black Cat Syndicate (ASX: BC8) has increased its gold project resource east of Kalgoorlie in Western Australia to 826,000 ounces after buying three nearby projects and is now eyeing lifting that to 1 million ounces.
The company is paying Aruma Resources (ASX: AAJ) $500,000 for its Trojan, Slate Dam and Clinker Hill gold projects, with Trojan containing the new 115,000oz resource.
The acquisitions increase Black Cat’s landholding, most of which lies within 50km of Kalgoorlie, by 52% to 756sq km.
Trojan is located 15km by road east of Fingals, which is the likely location of Black Cat’s processing plant.
New ground has “significant” upside
Black Cat said the new ground contains “significant” exploration upside, both near mine and regionally.
Trojan was mined between 2000 and 2004 by the former New Hampton Goldfields producing 125,129oz gold at an average 1.7 grams per tonne.
Slate Dam lies 10km east of the Bulong project and is an advanced exploration project over prospective areas of Lake Yindarlgooda.
Clinker Hill is also located close to Fingals and is an early stage exploration project which, according to the company, contains structures that link the million-ounce Mt Monger mining centre with its Bulong gold project.
Mt Monger is operated by Silver Lake Resources (ASX: SLR).
In July, Silver Lake Resources announced it had become a substantial shareholder in Black Cat, taking an 8.74% stake.
This followed its sale to Black Cat of Fingals and Rowe’s Find, in return for 8.4 million shares in Black Cat.
The July acquisitions increased the company’s resources by 145% with the newly acquired projects located on granted mining leases with strategic proximity to Black Cat’s Bulong gold project.
Advances move toward more than 1Moz
After completion of this latest acquisition, Black Cat will have a resource of 10.8 million tonnes at 2.4g/t gold, comprised of Bulong (294,000oz), Fingals (515,000oz) and Rowe’s Find (17,000oz).
Black Cat managing director Gareth Solly said the Trojan deposit has strong synergies to the company’s Fingals gold project and presents a near-term opportunity.
“This acquisition accelerates Black Cat’s move towards a target of more than 1 million ounces of resources,” he added.
Trojan has paid a non-refundable deposit of $50,000 with the remaining $450,000 due on settlement, which is expected to occur in early October.
Aruma Resources today said the sale of these projects have left it free to focus on its other four gold projects, Saltwater and Melrose in the Pilbara, Scotia South in southeast WA, and Capital in the Goulburn region of New South Wales.