ASX-listed Black Cat Syndicate on Wednesday announced approval to commence underground mining at the Myhree deposit, part of its Kal East gold project near Kalgoorlie, Western Australia.
Underground development is scheduled to begin after the completion of openpit operations in October, subject to operational requirements.
The approval marks a milestone in the company’s “more gold sooner” strategy, which aims to accelerate production across the Kal East project.
In parallel, Black Cat is progressing with re-optimisation of both openpit and underground mine plans using current gold prices, which are well above the previous A$2 300/oz assumption.
The company said it was also tendering contracts, dewatering the Majestic pit, and drilling for grade control and resource extensions.
MD Gareth Solly stated the underground approval added flexibility to the Kal East mine plan. “With Lakewood running well and the openpits ahead of schedule, we are looking forward to a smooth transition to additional mines,” he stated.
The Myhree underground resource stands at 815 000 t at 4.0 g/t gold and remains open at depth. The deposit lies 24 km from the 1.2-million-tonne-a-year Lakewood processing facility, where all ore from Myhree will be treated. Unlike the openpit, the underground component is not included in the existing turnkey funding and development arrangement.
Additional mine approvals for Kal East are expected in the near term. 