Underground Mining Begins at Majestic: What Risks Lie Ahead for Black Cat?
Black Cat Syndicate has officially commenced underground mining at its Majestic deposit within the Kal East Gold Operation, marking a significant step in its growth strategy. With Macmahon Underground contracted and initial production targets set, the company is poised to boost gold output in the coming years.
- Majestic underground mining operations have begun under contract with Macmahon Underground
- Initial production target of 80,000 ounces of gold from 776,000 tonnes at 3.2g/t grade
- Approximately 63% of targeted production already secured in Ore Reserve
- Underground drilling planned to expand resource base beyond current limits
- Fingals open pit mining preparations underway to complement Majestic feed to Lakewood
Majestic Underground Mining Begins
Black Cat Syndicate Limited has taken a major operational leap with the commencement of underground mining at its Majestic deposit, part of the Kal East Gold Operation located approximately 45 kilometres southeast of Kalgoorlie, Western Australia. The project is strategically positioned within 40 kilometres of the company’s 1.2 million tonnes per annum Lakewood processing facility, ensuring efficient ore transport and processing.
The contract for underground mine development and production services has been awarded to Macmahon Underground Pty Ltd, a respected name in mining services. Macmahon has already mobilised and begun underground mining activities, signaling a smooth transition from development to production.
Production Targets and Resource Expansion
Black Cat’s initial production target at Majestic is set at 776,000 tonnes grading 3.2 grams per tonne gold, aiming to yield approximately 80,000 ounces of gold. Notably, about 63% of this target is already classified within the Ore Reserve at a gold price assumption of AUD 2,300 per ounce, underscoring the project’s robust economic foundation.
Importantly, the resource remains open at depth and along strike, with underground drilling planned to commence promptly. This drilling aims to both extend the resource base and improve grade control, which could enhance future production profiles and extend mine life.
Supporting Infrastructure and Complementary Operations
Alongside mining, Black Cat is advancing critical infrastructure such as long-term dewatering systems and portal ground support to ensure safe and efficient underground operations. Meanwhile, at the Fingals open pit, equipment mobilisation and site establishment are accelerating in preparation for mining commencement, which will provide additional feed to the Lakewood facility.
These dual operations at Majestic and Fingals are expected to underpin steady feed to Lakewood for years, supporting Black Cat’s strategy of delivering “More Gold, Sooner.”
Broader Operational Context and Outlook
Majestic’s development is part of a broader portfolio that includes the Paulsens and Coyote Gold Operations, as well as the Mt Clement antimony project. Black Cat continues to invest in exploration and resource growth across these assets, with ongoing drilling programs and geophysical surveys planned through the coming months.
Managing Director Gareth Solly highlighted the significance of the milestone, emphasizing the company’s commitment to expanding production and resource potential. The successful ramp-up at Majestic will be closely watched by investors as a key driver of Black Cat’s medium-term growth trajectory.
Bottom Line?
Majestic’s underground mining launch sets the stage for Black Cat’s next phase of gold production growth.
Questions in the middle?
- How quickly will underground drilling results translate into resource upgrades at Majestic?
- What are the expected timelines and production rates for the Fingals open pit operation?
- How will Macmahon’s contract performance impact operational efficiency and costs?
