Black Cat Syndicate Joins Forces to Unlock Star of Mangaroon Gold

Strategic Partnership to Unlock High-Grade Gold

Black Cat Syndicate Limited (ASX, BC8) has formalised a joint venture with Dreadnought Resources Limited (ASX, DRE) to develop the Star of Mangaroon gold deposit, a high-grade open pit located approximately 330 kilometres southwest of Black Cat’s Paulsens Gold Operation. This collaboration marks a significant step in Black Cat’s growth strategy, leveraging its existing processing infrastructure to maximise value from new ore sources.

The Star of Mangaroon deposit boasts an upgraded scoping study projecting the mining of 93,000 tonnes at an impressive grade of 8.3 grams per tonne, yielding approximately 24,000 ounces of gold within a one-year timeframe. Operating cashflow is estimated at around $78.2 million after capital and tax considerations, with an all-in sustaining cost of about $2,020 per ounce, underscoring the project’s economic potential.

Funding and Operational Responsibilities

Under the agreement, Black Cat will take the lead in managing contractors and funding the mining development, committing up to $10 million initially. Should costs exceed this threshold, both parties will share additional funding equally. Ore mined, up to 110,000 tonnes, will be processed at Black Cat’s Paulsens facility under a dedicated Ore Purchase Agreement, allowing the company to prioritise higher-grade material through its plant while stockpiling lower-grade ore for later processing.

This arrangement not only enhances operational flexibility but also aligns with Black Cat’s broader production objectives. The joint venture’s profit-sharing mechanism features a 50/50 split of surplus cashflow up to $80 million, shifting to a 70% share for Dreadnought and 30% for Black Cat beyond that point. Additionally, Dreadnought will receive advance payments equating to 5% of revenue (net of processing costs) from each processing campaign until the project achieves positive cashflow.

Strategic Rights and Future Growth Potential

Black Cat has secured first rights to negotiate similar agreements for other mining operations around the Star of Mangaroon tenements and holds a right of first refusal on any third-party offers to acquire Dreadnought’s interests in the area. This positions Black Cat to capitalize on further discoveries and expansions in a highly prospective region.

Managing Director Gareth Solly highlighted the synergy between the Star of Mangaroon project and Paulsens, noting that the high-grade ore feed will complement existing underground operations and potentially increase total gold production in the near to medium term. The JV also underscores Black Cat’s commitment to strategic growth through both organic development and collaborative ventures.

Next Steps and Regulatory Milestones

Dreadnought is tasked with securing all necessary permits and approvals by April 30, 2026, after which Black Cat will finalize contracts to commence mining activities within 60 days. The establishment of a new Black Cat entity to oversee and fund the development is underway, alongside integrated mine planning and scheduling to align with Paulsens’ processing strategy.

While the agreement includes termination clauses tied to economic viability and compliance, the partnership reflects a calculated approach to unlocking value from the Star of Mangaroon deposit, balancing risk with the potential for meaningful cashflow and production growth.