high-grade results confirm potential at bulong · drilling was designed to assess the potential for...

High-grade Results Confirm Potential At Bulong

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16 May 2018 ASX Code: BC8 CORPORATE STRUCTURE Ordinary Shares On Issue: 57.3M Market Capitalisation: A$16M (share price A$0.28) Cash (31 March): A$4.5M DIRECTORS Paul Chapman Non-Executive Chairman Gareth Solly Managing Director Les Davis Non-Executive Director Alex Hewlett Non-Executive Director CONTACT DETAILS Suite 6 16 Nicholson Road Subiaco WA 6008 PO Box 572 Floreat WA 6014 ABN 63 620 896 282 www.blackcatsyndicate.com.au

[email protected]

T +61 458 007 713

Black Cat Syndicate Limited (“Black Cat” or “the Company”) is pleased to announce the first results from its 2018 Phase 1 drilling program. RC Drilling to date has been highly efficient with 139 holes for 8,757m of RC drilling completed over a total of 3km of strike. Drilling is ahead of time and within budget. Targets where initial drilling has been conducted include Queen Margaret, White Horse offset, Slug Hill, Queen Margaret South, Strathfield and Vulcan. Major achievements to date have: - confirmed the 3D modelled geology along the Queen Margaret

Corridor; - proved high-grade mineralisation exists in the footwall to the

historic workings at Queen Margaret, Melbourne United and Strathfield;

- validated historic drilling results; and - provided encouragement for future open pit opportunities. HIGHLIGHT RESULTS Queen Margaret 18QMRC060, 3m @ 116.33 g/t Au from 0m

18QMRC056, 4m @ 9.16 g/t Au from 33m 18QMRC031, 4m @ 5.99 g/t Au from 42m 18QMRC001, 6m @ 2.97 g/t Au from 22m 18QMRC057, 3m @ 5.37 g/t Au from 32m 18QMRC046, 3m @ 5.30 g/t Au from 70m

White Horse 18QMRC065, 2m @ 11.01 g/t Au from 31m Strathfield 18SFRC004, 4m @ 5.03 g/t Au from 24m 18SFRC011, 1m @ 7.13 g/t Au from 71m Black Cat’s Managing Director, Gareth Solly said “the first phase of drilling over Black Cat’s southern targets has demonstrated the high-grade potential of the Bulong area. Although we have only completed 30% of our planned 2018 drilling, we have been buoyed by high-grade drill results to date, confirmed our geological model and validated the historical drilling on the southern leases. The next step is to extend the successful drilling at Queen Margaret and commence Phase 2 drilling over the many exciting targets on our northern leases.”

http://www.blackcatsyndicate.com.au/

mailto:[email protected]

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QUEEN MARGARET Drilling was designed to assess the potential for a shallow open pit resource and to provide critical geological information for targeting deeper mineralisation around the Queen Margaret Mine. The drilling was aimed at validating, infilling and extending previous programs that have yielded results including: 3m @ 9.94 g/t Au from 22m and 2m @ 34.84 g/t Au from 48m (BAC70) and 1m @ 25.6 g/t Au from 43m (BAC19)**. Drilling to date, which totals 58 holes at an average depth of ~60m for 3,801m has validated the conceptual 3D geological modelling of stratigraphic relationships and the position of gold mineralisation. Geological logging confirms that the footwall to the Queen Margaret Mine is a felsic porphyry containing numerous stacked lodes as well as the historically mined (hangingwall) contact mineralisation. Results from this first RC drilling program at the Queen Margaret delivered 91 individual intersections over 1 g/t Au. The drilling covered an area ~100m (E-W) x ~500m (N-S) on spacings designed to confirm and infill the historic drilling to a depth of ~60m vertical. Intersections occur on both porphyry contacts and on shallow dipping shears internal to the porphyry. Pleasingly, results (see Figure 1) are consistent with historic drilling with better results including:

18QMRC060, 3m @ 116.33 g/t Au from 0m 18QMRC056, 4m @ 9.16 g/t Au from 33m 18QMRC031, 4m @ 5.99 g/t Au from 42m 18QMRC001, 6m @ 2.97 g/t Au from 22m 18QMRC057, 3m @ 5.37 g/t Au from 32m 18QMRC046, 3m @ 5.30 g/t Au from 70m 18QMRC006, 1m @ 14.60 g/t Au from 0m 18QMRC027, 1m @ 13.70 g/t Au from 31m 18QMRC058, 4m @ 2.64 g/t Au from 51m 18QMRC063, 2m @ 4.95 g/t Au from 53m

Importantly these results confirm the high-grade potential of the porphyry unit that sits within the footwall of the historic Queen Margaret Mine (see Figure 2). Historic mining was focussed on the hangingwall contact of the porphyry while the footwall contact and the internal veins were largely overlooked. However, the mineralised veins are plentiful, begin from surface and are open both along strike and down dip. Black Cat is encouraged by the results to date and work has commenced on refining the mineralisation model. Additional drilling will commence in June 2018 to extend the mineralisation below the current drilling and along strike to the south as an extension to Phase 1 (see Figure 3). Resource modelling to validate the viability for a potential open pit will commence after this extensional drilling is completed. The refined mineralisation model will also be used to predict mineralisation at Queen Margaret Deeps where there has been no effective drilling below the old workings with drilling planned to commence in September 2018. Historic reports indicate that the lowest level of the old workings ~210m below surface stopped in ore when the mine closed in the early 1910’s after producing ~96,000oz @ >1oz/t.

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Figure 1: Queen Margaret plan showing drill collars coloured by maximum downhole gold grade.

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Figure 2: Queen Margaret cross section at 6597525mN (A-B on plan) with historic and new drilling.

Figure 3: Queen Margaret long section with all drilling and planned drill phases shown. WHITE HORSE AND MELBOURNE UNITED Drilling at White Horse Offset target consisted of 15 RC holes (810m) to test whether the White Horse mineralisation was offset by a late-stage, north east striking fault. Historic ore drives continue to the north, however stoping of ore ceased at the inferred fault position. Drilling results confirm that the stratigraphy is offset by ~25m and likely links to the Melbourne United workings which lie ~200m to the north in an under drilled area (see Figure 4). Hole 18QMRC065 contained two intersections (3m @ 1.05 g/t Au from 25m and 2m @ 11.01 g/t Au from 31m) and provides encouragement that mineralisation from White Horse was offset by the north east striking fault to become Melbourne United. Minimal historic drilling has targeted the footwall zone of the Melbourne United workings. Hole 18QMRC065 provides evidence, along with other historic intercepts, including 2m @ 27.11 g/t Au from 39m (92BRC100)**, that suggests the footwall porphyry at Melbourne United is similarly mineralised to that at Queen Margaret. Black Cat intends to refine the geological interpretation with the information from this program and design drilling to test extensions of the footwall mineralisation.

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Figure 4: White Horse Offset plan showing drill collars coloured by maximum downhole gold grade. SLUG HILL The historic Slug Hill mine is positioned ~ 200m east of the Queen Margaret Mine. There is limited documentation on the extent of the old workings at Slug Hill. Shallow drilling over this area was completed to gain geological context as to the nature of any potential mineralisation in this area. Accordingly, 11 holes (680m) were completed either side of the mine shaft (see Figure 1) with historic workings intersected in only one hole. Modelling of the Slug Hill geology suggests the workings would be located near the contact between sediment and ultramafic rocks which has been supported by the geological logging. Interpretation was made difficult by the deep weathering profile. Although no shallow mineralisation was intersected in this first pass drilling, the potential for deeper mineralisation and parallel lodes between Queen

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Margaret and Slug Hill still exists. Samples are being selected for geochemical analysis to confirm the geological interpretation. The geology of the Slug Hill area will be remodelled in light of the results obtained. STRATHFIELD A program of 25 RC holes (1,978m) was drilled (see Figures 5 and 6) to test the northern strike extension to the Queen Margaret stratigraphic corridor around the historic Strathfield workings. The program was successful in identifying the Queen Margaret stratigraphy and intersected mineralisation in several holes. Mineralisation is typically discrete and in the form of quartz veining +/- fuchsite alteration. The geometry of the porphyry unit is complex at Strathfield, appearing to be displaced by small-scale faulting. Geology and assay data from this drilling will be used to update the geological model and to target future drilling.

Figure 5: Strathfield plan showing drill collars coloured by maximum downhole gold grade.

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Figure 6: Strathfield Cross Section (C-D on plan) with historic and new drilling. QUEEN MARGARET SOUTH

The Queen Margaret South shaft is positioned ~800m south of the Queen Margaret shaft (see Figure 7). A small program of 8 holes (588m) was completed around the shaft to test the stratigraphy and follow up on isolated historic intercepts of 2m @ 3.51 g/t Au from 57m (RQR047) and 1m @ 3.91 g/t Au from 80m (Y02)**. Geology logged from the drill holes confirm similar stratigraphy to that at Queen Margaret. Results were intersected on a hangingwall contact and footwall contact of a porphyry and include: 1m @ 4.53 g/t Au from 51m and 1m @ 3.20 g/t Au from 66m (18QMRC080). The confirmation of the lode-bearing Queen Margaret host stratigraphy 800m south of the main historic mine enhances the potential of the system to increase along strike with future drilling. VULCAN

Broad spaced stratigraphic drilling of 22 holes (1,188m) was completed around the Vulcan workings which sit between the Melbourne United Mine and the Strathfield historic workings (see Figure 7). Geology logged in this area is consistent with the Queen Margaret/Strathfield stratigraphy and is being used to refine geological models and new targets. Assays show anomalism associated with felsic units with best result of 2m @ 1.56 g/t Au from 15m in 18VURC018. Further exploration will focus on expanding the felsic units and gold anomalism south towards the Melbourne United Mine. Summary Of Phase 1 Drilling Phase 1 drilling was originally planned as ~12kms over ~200 holes designed to test the targets along strike of the Queen Margaret Mine (the Queen Margaret Corridor), including: Myhree, Queen Margaret, Queen Margaret South, Slug Hill, Strathfield and White Horse as well as stratigraphic drilling in the Vulcan area. To date, Black Cat has drilled 139 holes for 8,757m and submitted 8,706 samples to the laboratory. RC drilling at Myhree remains to be completed as part of Phase 1. An extension of Phase 1 drilling at Queen Margaret has also been approved due to encouraging intersections in the southern line of Phase 1 drilling and geological confidence in the 3D model at depth. This drilling will extend the currently drilled area ~200m further south and cover an additional 20m vertical depth. Regulatory approvals are already in place for this drilling. Results to date:

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- confirm predicted geology along the Queen Margaret Corridor; - prove high-grade mineralisation in the footwall to the historic workings at Queen

Margaret, Melbourne United and Strathfield; - show consistency with historic drilling; and - provide encouragement for future open pit opportunities. The remainder of the Phase 1 program will be completed by mid-August 2018 in conjunction with Phase 2 drilling. UPCOMING DRILLING As previously reported (ASX 8 March 2018) Phase 2 drilling was designed as ~280 holes and ~17kms of drilling. Phase 2 will commence in June 2018. In this drilling phase, a number of existing targets will be tested: Anomaly 38, Boundary, Queen Margaret Deeps and Trump. New target areas also to be tested including Anomaly 38B and Galore. Phase 2 will also include follow up drilling from Phase 1. Key targets of the Phase 2 drilling include: - Queen Margaret Deeps: Minimal drilling has been undertaken below the Queen Margaret

Mine that has produced ~96,000oz @ >1oz/t. Interpretation of both historic and current drilling results infers a structural control causing grade continuity to plunge shallowly to the south. Drilling at depth below the Queen Margaret workings will be optimised with information obtained from the Phase 1 drilling and will most likely include diamond drill holes;

- Anomaly 38: Drilling will test an inferred NW oriented structure for grade continuity. This structure aligns with previous high-grade intersections of 2m @ 41.66 g/t Au from 82m (BURC023), 2m @ 13.65 g/t Au from 14m (BURC031), 2m @ 47.6 g/t Au from 116m (BURC025) and 7m @ 9.40 g/t Au from 31m (BURC026)**;

- Anomaly 38B: Another NW structure, parallel to Anomaly 38 has been interpreted in the magnetic data, 600m to the south of Anomaly 38. This structure is coincident with previous anomalous drilling results including: 2m @ 4.84 g/t Au from 58m (AC hole BA074) and 4m @ 2.39 g/t from 48m (AC hole BA080)**;

- Galore: Galore is an exciting newly identified NS stratigraphic contact immediately south of a major NW trending fault. A significant nugget patch including quartz hosted gold has recently been worked within the target area by prospectors with negligible transported cover. No drilling is recorded in this location with only broad spaced soil sampling historically completed;

- Trump: Several NW oriented structures are interpreted in the magnetic data over the historic Trump workings. Grade continuity in this orientation will be tested with RC drilling. These structures are interpreted to be coincident with historic high-grade intersections including: 1m @ 12.60 g/t Au from 54m and 3m @ 14.17 g/t Au from 57m (94BRC65), 1m @ 15.20 g/t Au from 41m (94BRC68)**. A geochemical sampling program will also be undertaken to confirm geology of this deeply weathered, historically mined area; and

- Boundary: The Boundary deposit occurs approximately 1.5km north of the Strathfield/Trump area in a package of shale and porphyry wedged between two ultramafic units, analogous to the Queen Margaret stratigraphy further south. Previous drilling at Boundary of ~73 holes (on a 20m x 10m grid) yielded results including 7m @ 12.80 g/t Au from 51m (92BRC33) and 6m @ 11.11 g/t Au from 34m (92BRC29). Boundary remains open to both the south and the north**.

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Near Term Activities - June Quarter: September Quarter 2018: Initial drilling at Myhree, Galore, Anomaly 38,

Anomaly 38B, Trump, Boundary and extensional drilling at Queen Margaret. - September Quarter 2018: Follow up RC drilling on high priority targets. - December Quarter 2018: Diamond drilling at Queen Margaret Deeps.

Figure 7: Map showing planned drilling locations at the Bulong Gold Project.

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Further announcements will be forthcoming when the data from drilling is available.

For further information, please contact:

Gareth Solly Managing Director +61 458 007 713 [email protected] Competent Person’s Statement The information in this announcement that relates to geology and exploration results and planning was compiled by Mr Gareth Solly, who is a Member of the AusIMM and an employee, shareholder and option holder of the Company. Mr Solly has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Solly consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information in the original reports, and that the form and context in which the Competent Persons findings are presented have not been materially modified from the original reports.

** Information on historical results outlined in this Announcement together with JORC Table 1 information, is contained in the Independent Geologists Report within Black Cat’s Prospectus dated 27 November 2017, which was released in an announcement on 25 January 2018.

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Table 1. Queen Margaret Drill Results

QUEEN MARGARET DRILLING - APRIL 2018 Downhole

Hole ID MGA East

MGA North RL Dip Azi From

(m) To (m)

Interval (m) Au Grade (g/t)

18QMRC001 382904 6597426 377.1 -60 93 14 17 3 1.09

22 28 6 2.97

18QMRC002 382893 6597423 377 -60 92 52 53 1 2.72

55 56 1 3.04

18QMRC003 382873 6597417 376 -60 90 57 58 1 4.25

18QMRC004 382945 6597442 377 -60 90 No Significant Intercept


18QMRC006 382926 6597438 377 -60 90

0 1 1 14.60

19 21 2 2.77

28 30 2 2.89

18QMRC007 382918 6597438 377 -60 90

16 17 1 2.11

20 22 2 1.79

25 26 1 2.05

29 33 4 1.35



18QMRC010 382875 6597439 377 -60 91

44 45 1 3.17

49 50 1 1.13

61 66 5 2.00

18QMRC011 382925 6597478 377 -60 90 9 10 1 1.58

21 24 3 0.99

18QMRC012 382907 6597478 377 -60 90 51 52 1 1.36

18QMRC013 382886 6597479 377 -60 90

37 38 1 6.05

40 41 1 3.45

46 47 1 2.31

50 51 1 2.90

55 56 1 3.98

18QMRC014 382877 6597479 377 -60 90 49 50 1 1.51

53 54 1 1.03



18QMRC024 382913 6597633 379 -60 90 42 43 1 1.36


18QMRC026 382947 6597674 379 -60 90 24 26 2 1.19

18QMRC027 382927 6597548 379 -60 90

22 25 3 2.01

28 29 1 1.59

31 32 1 13.70

18QMRC028 382919 6597549 379 -60 90 30 34 4 1.37

42 43 1 1.40

18QMRC029 382907 6597548 379 -60 90 25 26 1 8.64

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Hole ID MGA East


(m) To (m)


18QMRC030 382897 6597548 378 -60 90

42 43 1 6.78

45 46 1 1.53

50 51 1 1.02

56 57 1 3.45

60 61 1 1.19

63 64 1 1.73

18QMRC031 382887 6597548 378 -60 90

42 46 4 5.99

48 49 1 1.82

52 53 1 1.57


18QMRC033 382917 6597579 379 -60 90 26 27 1 1.65

29 30 1 1.69


18QMRC035 382895 6597577 379 -60 90 36 37 1 1.36


18QMRC037 382948 6597600 380 -60 90 3 4 1 1.96

12 15 3 1.21

18QMRC038 382936 6597599 379 -60 90 19 20 1 1.02


18QMRC040 382915 6597598 379 -60 90 48 49 1 1.70

53 54 1 2.90


18QMRC042 382914 6597320 376 -60 90 20 21 1 2.25




18QMRC046 382871 6597319 375 -60 90 60 61 1 1.11

70 73 3 5.30

18QMRC047 382864 6597318 375 -60 90

48 49 1 1.90

66 67 1 1.41

72 73 1 1.20

76 78 2 2.99



18QMRC050 382896 6597337 377 -60 90 53 54 1 1.28


18QMRC052 382889 6597377 377 -60 90 0 1 1 1.67

45 46 1 5.38

18QMRC053 382876 6597377 376 -60 90 56 57 1 3.00

18QMRC054 382868 6597377 376 -60 90 74 75 1 1.36

18QMRC055 382911 6597509 378 -60 90 24 25 1 1.38

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Hole ID MGA East


(m) To (m)


27 28 1 1.26

33 35 2 1.34

38 39 1 7.19

18QMRC056 382899 6597509 378 -60 90

33 37 4 9.16

54 55 1 3.11

57 58 1 2.35

18QMRC057 382890 6597508 377 -60 90

32 35 3 5.37

45 46 1 1.09

48 49 1 1.84

61 62 1 3.47

18QMRC058 382878 6597508 377 -60 90

51 55 4 2.64

69 70 1 2.31

74 75 1 1.08

18QMRC059 382949 6597527 378 -60 90 0 3 3 1.65

18QMRC060 382936 6597525 378 -60 90 0 3 3 116.33

17 18 1 8.10


18QMRC062 382908 6597525 378 -60 90

23 26 3 1.48

31 32 1 2.72

52 53 1 2.59

18QMRC063 382896 6597528 378 -60 90

37 38 1 2.48

43 44 1 2.96

48 49 1 1.04

53 55 2 4.95

60 61 1 1.47

18QMRC064 382884 6597528 378 -60 90

50 51 1 1.47

58 59 1 1.39

64 65 1 1.25

18QMRC081 382872 6597388 376 -60 98 64 65 1 1.29

Note: All significant intercepts are reported at 1 g/t Au cut; maximum of 1m continuous internal dilution.

Table 2. White Horse Drill Results

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WHITE HORSE OFFSET DRILLING - APRIL 2018 Downhole

Hole ID MGA East


(m) To (m)








18QMRC021 382978 6597673 379 -60 90 53 54 1 2.88

18QMRC065 382964 6597857 383 -60 90 25 28 3 1.05

31 33 2 11.01









Table 3. Slug Hill Drill Results

SLUG HILL DRILLING - APRIL 2018 Downhole

Hole ID MGA East


(m) To (m)


18SHRC001 383160 6597559 378 -60 90 No Significant Intercept












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Table 4. Strathfield Drill Results

STRATHFIELD DRILLING - APRIL 2018 Downhole

Hole ID MGA East


(m) To (m)


18SFRC001 383271 6599361 398 -60 100 No Significant Intercept



18SFRC004 383210 6599375 395 -60 100

14 19 5 1.37

24 28 4 5.03

39 42 3 1.13

18SFRC005 383195 6599375 394 -60 100

44 45 1 1.11

51 52 1 1.03

54 55 1 3.03

18SFRC006 383178 6599377 394 -60 100 54 55 1 1.24

77 78 1 2.70



18SFRC009 383210 6599294 395 -60 100 27 28 1 2.26

18SFRC010 383189 6599295 394 100 No Significant Intercept

18SFRC011 383168 6599299 393 -60 100

44 45 1 1.07

71 72 1 7.13

74 75 1 2.41

18SFRC012 383149 6599304 393 -60 98 99 100 1 2.74








18SFRC020 383162 6599261 393 -60 98 75 76 1 1.07


18SFRC022 383173 6599222 393 -60 100 40 41 1 1.63

18SFRC023 383161 6599224 392 -60 100 24 25 1 1.73

33 34 1 1.44

18SFRC024 383143 6599229 392 -60 100 36 37 1 1.86

65 67 2 1.42



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Table 5. Queen Margaret South Drill Results

QUEEN MARGARET SOUTH DRILLING - APRIL 2018 Downhole

Hole ID MGA East


(m) To (m)




18QMRC075 382872 6596504 365 -60 90 54 55 1 1.06





18QMRC080 382860 6596587 366 -60 90 51 52 1 4.53

66 67 1 3.20


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Table 6. Vulcan Drill Results


VULCAN AREA DRILLING - APRIL 2018 Downhole

Hole ID MGA East


(m) To (m)


18VURC001 383169 6599055 393 -60 88 No Significant Intercept








18VURC009 383107 6598856 390 -60 90 33 34 1 1.26









18VURC018 383077 6598659 386 -60 90 15 17 2 1.56






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BULONG 2012 JORC TABLE 1

Section 1: Sampling Techniques and Data Criteria JORC Code Explanation Commentary Sampling techniques Nature and quality of sampling (eg cut channels,

random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Black Cat has recently undertaken sampling activities at Queen Margaret via RC drilling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Recent RC drilling undertaken by Black Cat provides high quality representative samples that are carried out to industry standard and include QAQC standards.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

Black Cat’s recent RC drilling is sampled into 1m intervals via a cone splitter on the rig producing a representative sample of less than three kilograms (3kgs). Samples are selected to weigh less than 3kg to ensure total sample inclusion at the pulverisation stage. RC samples are crushed, dried and pulverised to a nominal 90% passing 75µm to produce a 40g or 50g sub sample for analysis by FA/AAS.

Drilling techniques Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

RC drilling was completed using a face sampling percussion hammer at the Bulong Gold Project between Queen Margaret South and Strathfield. The RC bit size was 123mm diameter for early phase drilling and 133mm diameter for infill drilling at the Queen Margaret Mine.

Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed.

RC samples are visually checked in the field. Recoveries for recent RC drilling have been recorded based on laboratory weights. It is unknown if historic recoveries were recorded.

Measures taken to maximise sample recovery and ensure representative nature of the samples

Sample recovery and representivity were maintained through industry standard maintenance of the cone splitter and verified through the use of duplicate samples.

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Section 1: Sampling Techniques and Data Criteria JORC Code Explanation Commentary

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Any historical relationship is not known.

Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

Logging of RC chips record lithology, mineralogy, texture, mineralisation, weathering, colour, alteration and veining. Chips from all Black Cat RC holes are stored in chip trays and photographed for future reference. These chip trays are archived in Kalgoorlie.

The total length and percentage of the relevant intersections logged.

All recent drilling has been logged in full.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

Not applicable – no core drilled.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

All Black Cat’s RC sampling to date have been cone split to 1m increments on the rig apart from the Vulcan stratigraphic drilling which has been a mixture of 1m cone split samples and composited 4m spear samples, depending on logging geology. All samples to date have been dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

For all new drilling, samples are submitted to the laboratory as taken from the rig. The laboratory preparation of RC samples adhere to industry best practice. It is conducted by a commercial laboratory and involves oven drying, coarse crushing then total grinding to a size of 90% passing 75 microns.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

All subsampling activities are carried out by commercial laboratory and are considered to be satisfactory.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second half sampling.

Black Cat’s RC field duplicate samples are carried out at a rate of 1:50 and are sampled directly from the on-board splitter on the rig. These are submitted for the same assay process as the original samples and the laboratory are unaware of such submissions.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Sample sizes of 3kg are considered to be appropriate given the grain size (90% passing 75 microns) of the material sampled.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

RC chip samples are analysed by an external laboratory using a 40g fire assay with AAS finish. This method is considered suitable for determining gold concentrations in rock and is a total digest method.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

No geophysical tools were used to estimate mineral or element percentages.

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Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Recent drilling adhered to strict QAQC protocols involving weighing of samples, collection of field duplicates and insertion of certified reference material (blanks and standards). QAQC data are checked against reference limits in the SQL database on import. The laboratory performs a number of internal processes including repeats, standards and blanks. Analysis of this data displayed acceptable precision and accuracy.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

Black Cat significant intercepts are verified by database, geological and corporate staff.

The use of twinned holes. Black Cat will use twinned holes to assist in verification of historic results from time to time. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

All primary data related to logging and sampling are captured on paper logs and entered and into Excel templates. All paper copies of data have been stored. All data is sent to Perth and stored in the centralised Access database with an SQL backend, managed by a database consultant.

Discuss any adjustment to assay data. No adjustments or calibrations are made to any assay data, apart from resetting below detection values to half positive detection. First gold assay is utilised for exploration work.

Location of data points Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Black Cat has used a licenced surveyor to pick up all completed holes using RTK GPS. Down hole surveys are either through digital multishot for holes less than 70m in depth and north seeking gyro for any deeper drilling.

Specification of the grid system used. Black Cat uses the grid system GDA 1994 MGA Zone 51. Previous data in grid systems AGD 1966 AMG Zone 51 and AGD 1984 AMG Zone 51 have been converted to MGA 94 Zone 51.

Quality and adequacy of topographic control. RLs have been assigned using the Shuttle Radar Topography Mission (SRTM) digital elevation model. RTK GPS pickups will be used to build up local topographic models over exploration areas.

Data spacing and distribution

Data spacing for reporting of Exploration Results. The nominal drillhole spacing is 20m (northing) by 20m (easting) in the core of the Queen Margaret deposit and increases to the margins of the deposit. Black Cat has infilled some parts of the Queen Margaret deposit to a 20m by 10m spacing with recent drilling.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Not applicable as a Mineral Resource or Ore Reserve is not determined.

Orientation of data in relation to geological structure

Whether sample compositing has been applied.

Not applicable as a Mineral Resource or Ore Reserve is not determined.

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

The deposit is drilled towards grid east at angles varying from -600 and -900 to intersect the mineralised zones at a close to perpendicular relationship for the bulk of the deposit.

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If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

All drilling from surface has been drilled as close to perpendicular as possible. This has reduced the risk of introducing a sampling bias as far as possible. No orientation-based sampling bias has been identified at Queen Margaret in the data at this point.

Sample security The measures taken to ensure sample security. Black Cat samples prepared on site by Black Cat geological staff. Samples are selected, collected into tied calico bags and delivered to the laboratory by staff or contractors directly and there are no concerns with sample security.

Audits or reviews The results of any audits or reviews of sampling techniques and data.

Black Cat has recently created appropriate sampling procedures.

Section 2: Reporting of Exploration Results Criteria JORC Code Explanation Commentary Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The Queen Margaret prospect is located on M25/0024. Mining Lease M25/024 is currently held by Bulong Mining Pty Ltd (“BMPL”). The tenements are the subject of a purchase agreement with Black Cat (Bulong) Pty Ltd which has been executed and is awaiting transfer. Mining Lease M25/024 is held until 2028 and is renewable for a further 21 years on a continuing basis. All production is subject to a Western Australian state government NSR royalty of 2.5%. Tenement M24/025 may be subject to a 1.5% NSR royalty on gold upon commencement of production. There are no registered Aboriginal Heritage sites or pastoral compensation agreements over the tenements.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

No known impediment to obtaining a licence to operate exists and the remainder of the tenements are in good standing.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

There has been extensive mining and exploration carried out in the Queen Margaret Area since gold was discovered in 1893. Between mine closure (~1913) and 1970 very little occurred with only three diamond holes drilled by Paringa in the 1940. Activities in the 1970s and 1980s mainly focused on assessment of old workings along the Queen Margaret‐Melbourne line. Queen Margaret NL, which floated in 1980 and was subsequently taken over by Spargos Mining NL, drilled a number of diamond and RC holes into the main lode, with a view to reopening the historic Queen Margaret Mine. Geology, assays and collar files are recorded, but the core is no longer available. Spargos farmed out to MMGP (Mount Monger Gold Project ‐ a joint venture of General Gold and Ramsgate Resources) who drilled a further 165 RC holes into the Queen Margaret system. No resources were publicly identified. Queen Margaret was never reopened, and attention turned to wider exploration in the Bulong area. Around 1996 Acacia Resources sought to consolidate, by way of farm‐in and acquisition, much of the land holdings in Bulong Belt. Acacia was the manager of New Bulong Joint Venture, and Queen Margaret joint Venture. Acacia was taken over by Anglo Gold who undertook much more soil geochemistry and did systematic transect drilling across known prospects and into greenfield areas. Anglo consolidated the soil and drill‐hole datasets. After the identification of a string of gold deposits which did not meet their corporate

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Section 2: Reporting of Exploration Results Criteria JORC Code Explanation Commentary

objective of plus‐million-ounce target, Anglo tendered out their rights to the tenements and the database to ASX listed Yilgarn Gold in 2002. Yilgarn Gold’s strategic objective was to develop high‐grade, narrow‐vein underground mining opportunities. It further consolidated its land holding by acquiring properties of Central Kalgoorlie Gold Mines. In 2005 Yilgarn Gold completely changed its corporate focus to off‐shore energy, disposed of its mineral assets, and changed its name to Kairiki Energy. A local prospecting syndicate BMPL secured an option in 2009 and in 2012 fully acquired the properties and the database. BMPL undertook serious metal detecting and limited RAB drilling until early 2018 when the tenements were acquired by Black Cat Syndicate Limited.

Geology Deposit type, geological setting and style of mineralisation.

The Queen Margaret deposit is located in the Gindalbie Domain of the Kurnalpi Terrane of the Archaean Yilgarn Craton. Project-scale geology consists of granite-greenstone lithologies that were metamorphosed to greenschist facies grade. The Archaean lithologies are cut by Proterozoic dolerite dykes. The style of mineralisation is Archaean orogenic gold. Locally the deposit is situated within a sheared ultramafic, shale and porphyry sequence. The shear zone strikes roughly north-south and dips moderately (50-60degrees) to the west and extends along a 5km strike between Queen Margaret South and Strathfield in the north. Mineralisation has been tested at Queen Margaret itself for over 350m of strike.

Drillhole information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar; • elevation or RL (Reduced Level – elevation; • above sea level in metres) of the drill hole collar; • dip and azimuth of the hole; • down hole length and interception depth; • hole length; and • if the exclusion of this information is justified on

the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Tables containing drill hole collar, survey and intersection data are included in the body of the announcement.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high-grades) and cut-off grades are usually Material and should be stated.

All aggregated zones are length weighted. No high-grade cuts have been used.

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Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

Reported intersections using a 1 g/t Au lower cut-off with maximum waste zones between grades of 1m. For consistency, historic intersections have also been reported at a 1 g/t Au lower cut-off with maximum waste zones between grades of 1m. Previously, historic results were reported as intersections >1.00 g/t Au and minimum 2 gram metres with a grade cut-off of 0.1 g/t Au and no internal waste.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Not applicable, as no metal equivalent values have been reported.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

All intercepts are reported as downhole depths as true widths are not yet determined.

Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Appropriate diagrams have been included in the body of the announcement.

Balanced reporting Where comprehensive reporting of all Exploration Results are not practicable, representative reporting of both low and high-grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Black Cat has not previously reported exploration results. All results have been tabulated in this release.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Geophysical surveys including aeromagnetics surveys have been carried out by previous owners to highlight and interpret prospective structures in the project area.

Further work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological

Black Cat is continuing an exploration program which will identify areas of opportunity to extend or enhance the Queen Margaret style mineralisation.

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interpretations and future drilling areas, provided this information is not commercially sensitive.


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INVESTMENT HIGHLIGHTS Black Cat controls 100% of ~82km² of the Bulong Gold Project (“the Project”) of which ~84% of tenements are granted. In addition, there are numerous targets on mining leases meaning low barriers to exploration and production hence strong expected news flow. The Project is situated just 25km east of Kalgoorlie by sealed road. Mains power runs through the Project with five regional mills, support services and a residential workforce nearby. The Project has a history of complex, unconsolidated ownership and small scale, high-grade production:

- mine production in the Project area ceased in the early 1910s with a total of ~152,000oz @ >1oz/t produced to date;

- the Queen Margaret Mine was the main producer with ~96,000oz @ >1oz/t. Despite the mine’s high-grade production record, average depth of drilling has only been 39m with no effective drilling below the old workings;

- despite encountering mineralised lodes in a 200m deep drive to the east of Queen Margaret, minimal drilling for parallel lodes has been undertaken;

- prospectors have seen high specimen and nugget production with multiple +100oz nuggets discovered; and

- the complex and unconsolidated ownership structures have hampered exploration and mining at the Project.

Black Cat has now consolidated the Project bringing together a number of high-grade, near term, underground production targets along with shallow open cut positions. Black Cat’s initial focus is to drill and study the economics of developing an open cut mine at Queen Margaret then declining from the open cut into footwall and eastern zones and developing across to historic workings while assessing backfill volumes and grade.

Figure 8: Regional map of Kalgoorlie showing the location of the Black Cat Bulong tenements and

nearby infrastructure.

high-grade results confirm potential at bulong · drilling was designed to assess the potential for...

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