How Black Cat’s New Auric Ore Deal Could Accelerate Gold Production
Black Cat Syndicate has inked a binding agreement to purchase up to 125,000 tonnes of ore from Auric Mining, aiming to boost gold production at its Lakewood facility starting September 2025.
- Binding Ore Purchase Agreement signed with Auric Mining
- Up to 125,000 tonnes of ore at 1.8 g/t gold targeted
- Ore processing scheduled from September 2025 to January 2026
- Lakewood facility utilization maximized ahead of mine ramp-up
- Agreement supports Black Cat’s More Gold, Sooner strategy
Strategic Partnership to Boost Production
Black Cat Syndicate Limited (ASX – BC8) has taken a significant step to accelerate its gold production by signing a binding Ore Purchase Agreement with Auric Mining Limited (ASX – AWJ). The deal involves the purchase of up to 125,000 tonnes of ore grading approximately 1.8 grams per tonne of gold, with an expected recovery of around 6,100 ounces. This ore will be processed at Black Cat’s 1.2 million tonnes per annum Lakewood processing facility, starting in September 2025.
Maximizing Mill Capacity Amid Mine Development
The agreement aligns closely with Black Cat’s “More Gold, Sooner” strategy, which aims to generate revenue and gold output ahead of the full ramp-up of its own mining operations, particularly at the Kal East (Fingals) site. By processing third-party ore from Auric, Black Cat intends to optimize the utilization of the Lakewood mill, ensuring steady production and cash flow during this transitional phase.
Operational Timeline and Delivery Details
The first delivery of ore from Auric is scheduled for September 2025, with processing campaigns planned to commence in October and conclude by the end of January 2026. The ore will be delivered to the Lakewood ROM pad, with gold content determined based on recovered gold during processing campaigns, adjusted for gold in circuit before and after treatment. Environmental standards will govern ore acceptance, maintaining compliance with regulatory requirements.
Mutual Benefits and Forward Outlook
Black Cat’s Managing Director, Gareth Solly, highlighted the win-win nature of the agreement, emphasizing that it ensures Lakewood remains productive and profitable while Black Cat’s own mines ramp up on an accelerated schedule. For Auric, the deal provides a reliable outlet for its ore, supporting its operational plans. This partnership underscores a collaborative approach within the ASX-listed gold mining sector to optimize resources and enhance near-term production.
Broader Exploration and Development Activities
Alongside this agreement, Black Cat continues to advance its exploration programs, including underground drilling at Paulsens, surface drilling at Kal East, and geophysical surveys in the Ashburton region. These activities signal ongoing efforts to expand resource bases and sustain production growth beyond the immediate benefits of the Auric ore purchase.
Bottom Line?
Black Cat’s strategic ore purchase deal sets the stage for stronger near-term gold output as its own mines come online.
Questions in the middle?
- Will actual gold recovery from Auric ore meet projected estimates?
- How will processing third-party ore impact Lakewood’s operational costs and margins?
- What are the implications for Black Cat’s production guidance once its own mines fully ramp up?
