How Black Cat Syndicate Is Accelerating Gold Production at Kal East
Black Cat Syndicate reports robust operational progress at its Kal East Gold Operation, surpassing expectations at the Lakewood processing facility and achieving early cash flow positivity at the Myhree open pit. Development activities at Majestic and Fingals advance as the company expands production capacity.
- Lakewood processing facility exceeds throughput and recovery targets
- Myhree open pit achieves cash flow positive status ahead of schedule
- Majestic underground development underway with approvals and dewatering complete
- Fingals open pit progressing with drilling and contractor selection
- Boundary open pit expanded with additional cutback to increase gold output
Strong Start at Lakewood Processing Facility
Since acquiring the Lakewood processing facility at the end of March 2025, Black Cat Syndicate has reported performance exceeding initial expectations. Approximately 140,000 tonnes of ore from the Myhree deposit have been processed with gold recoveries exceeding 95%, underscoring the facility’s efficiency. A scheduled maintenance shutdown was completed in late May, and toll treatment of ore from Westgold Resources is underway, reflecting strategic partnerships and operational flexibility.
Advancing Underground and Open Pit Operations
At the Majestic underground site, all necessary approvals have been secured, and dewatering efforts are progressing on schedule to enable portal development by July 2025. The selection of a preferred mining contractor signals readiness to ramp up underground mining activities. Meanwhile, Fingals open pit mining is advancing with safety approvals in place and environmental assessments ongoing. Grade control drilling is active on site, supporting resource definition and mine planning.
Myhree and Boundary Deliver Early Cash Flow and Expansion
The Myhree open pit has become cash flow positive as of May 2025, well ahead of projections, driven by accelerated mining schedules and a favourable gold price environment. Nearly half a million tonnes of ore have been mined safely and ahead of schedule, with strong operating cash flow anticipated in the upcoming half-year. The Boundary open pit is also ahead of schedule, with pre-strip work completed and ore stockpiling underway. Notably, Black Cat has initiated a cutback to expand the Boundary pit, aiming to bring forward additional gold production.
Looking Ahead – Exploration and Growth Initiatives
Black Cat’s Managing Director, Gareth Solly, highlighted the company’s strategic focus on accelerating gold production and expanding resource potential. Ongoing and planned activities include underground drilling at Paulsens, surface drilling at Kal East, and regional exploration programs. These efforts are designed to sustain growth momentum and enhance the company’s resource base across its portfolio.
Bottom Line?
With operational milestones met and expansion plans underway, Black Cat is poised to strengthen its position in the gold sector, though environmental approvals and contractor performance remain key watchpoints.
Questions in the middle?
- How will ongoing environmental assessments at Fingals impact the timeline for open pit development?
- What are the financial implications of the toll treatment agreement with Westgold Resources on Lakewood’s processing capacity?
- Can accelerated mining at Myhree and Boundary sustain cash flow momentum through 2025 and beyond?
