Black Cat Syndicate Ltd (BC8)

Maiden RC drilling program at Bulong confirms previous work

21/05/18 - Current Price: $0.28

Key Points

The aim of the maiden drill program at Bulong

  • BC8 has released the first results from its maiden drill program at the Bulong Gold Project located 25km east of Kalgoorlie in Western Australia.

  • BC8’s initial focus was to drill and study the economics of developing an open cut gold operation at Queen Margaret, within a project otherwise showing potential for a narrow-vein, high-grade underground mining environment.

  • The development of an open pit operation would enable BC8 to generate a cashflow whilst undertaking development to establish a suitable position for an underground portal to access narrow-vein, high-grade mineralisation at depth.

  • The first phase of the program was to verify the historic geology interpretation and grade information along the Queen Margaret corridor on a number of prospects and to extend the previous known mineralisation envelopes.

  • Information gathered in this first part of the 2018 drilling program will be used to refine geological models and inform drill targeting for a Phase 2 program to begin in June.

Results achieved

Queen Margaret

  • Previous drilling programs in the area around Queen Margaret included 3m @9.94g/t Au from 22m and 2m at 34.84g/t from 48m.

  • BC8 believe the recent drilling to date at Queen Margaret, totalling 58 holes for 3,801m with an average depth of just 60m, has validated the conceptual 3D modelling and confirmed the structural position of the previously intersected gold mineralisation.

  • Best results include 3m@ 116.3g/t Au from 0m; 4m @ 9.16 g/t from 33m and 4m @5.99 g/t from 42m.

  • From a geological point of view, the drilling has confirmed the high-grade potential of a porphyry unit that sits in the footwall of the Queen Margaret Mine. Historic workings only exploited the Hangingwall position of the porphyry and ignored the footwall contact and numerous veins within the porphyry body itself.

  • BC8 site plentiful veins within the porphyry body and a mineralised footwall position, both open along strike and down dip.

  • Refining of the model will now commence with a view towards starting the next phase of drilling at Queen Margaret in June.

  • Drilling of the Queen Margaret Deeps is slated to begin in September 2018.

RCAN1479 Disclaimer

This Research report, accurately expresses the personal view of the Author.

DJ Carmichael Pty Limited, members of the Research Team; including authors of this report, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions in stocks mentioned in this report. DJ Carmichael Pty Limited acted as Lead Manager in the Black Cat Syndicate Limited Initial Public Offering and was paid a fee for that service. Directors and employees of DJ Carmichael Pty Limited currently hold 2,628,421 fully paid ordinary shares in the Company, of which interests associated with the Directors of DJ Carmichael comprise 1.35 million shares (or 4% of the shares in the Company), as well as 3,625,000 unquoted Company options exercisable at $0.20 expiring five years from the date of BC8’s ASX quotation.

DJ Carmichael Pty Limited is a wholly owned subsidiary of DJ Carmichael Group Pty Ltd ACN 114 921 247.

In accordance with Section 949A of the Corporations Act 2001 DJ Carmichael Pty Limited advises that this email contains general financial advice only. In preparing this document DJ Carmichael Pty Limited did not take into account the investment objectives, financial situation and particular needs (‘financial circumstances’) of any particular person. Accordingly, before acting on any advice contained in this document, you should assess whether the advice is appropriate in light of your own financial circumstances or contact your DJ Carmichael Pty Limited adviser. DJ Carmichael Pty Limited, its Directors employees and advisers may earn brokerage or commission from any transactions undertaken on your behalf as a result of acting upon this information. DJ Carmichael Pty Limited, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly, from client transactions. DJ Carmichael Pty Limited believes that the advice herein is accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained in this publication and no responsibility for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence), is accepted by DJ Carmichael Pty Limited or any officer, agent or employee of DJ Carmichael Pty Limited. This message is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient or employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication and its attachments is strictly prohibited.

The Author of this report made contact with the Black Cat Syndicate Limited for assistance with verification of facts, admittance to business sites, access to industry/company information. No inducements have been offered or accepted by the company.

© 2018 No part of this report may be reproduced or distributed in any manner without permission of DJ Carmichael Pty Limited.

Paul Adams

Head of Research

Paul joined DJ Carmichael in 2006 as a Resource Analyst. Paul has an honours degree in Geology, is a member of the Australian Institute of Mining and Metallurgy and has 16 years experience in the mining industry in exploration, open pit, underground and operational roles, both in Australia and overseas. Before joining the company, he was Chief Geologist and Evaluations Manager at Placer Dome's Granny Smith mine. Paul has a Graduate Diploma in Applied Finance and Investment, fromthe Financial Services Institute of Australasia.