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Black Cat Syndicate (ASX:BC8) granted co-funding for Balagundi drilling

ASX News, Mining
ASX:BC8      MCAP $587.3M
11 November 2021 08:25 (AEST)

Kal East Gold Project. Source: Black Cat Syndicate

Black Cat Syndicate (BC8) has successfully secured up to $146,970 in funding to support diamond drilling at the Balagundi project in Western Australia.

The funding was received by the Department of Mines, Industry Regulation and Safety under its Exploration Incentive Scheme (EIS) which is a state government initiative to encourage the exploration for potential mineral discoveries.

The Balagundi area, which is part of the Kal East gold project, is known to be prospective for both gold and volcanic massive sulphide-style base metal deposits.

As announced in July 2019, Black Cat is earning up to a 75 per cent interest in Balagundi from fellow ASX-lister Essential Metals (ESS). To achieve this, BC8 needs to spend $600,000 on the project within five years.

The EIS grant will co-fund diamond drilling at Balagundi to define the potential of multiple targets, including the Anvil, Brontes and Asterope targets.

Managing Director Gareth Solly commented on the EIS grant.

“The EIS grant process is highly competitive and is determined by an independent panel of experts. To be successful in receiving EIS funding adds further weight to the prospectivity of our base and precious metals targets at Balagundi. Balagundi has not seen significant exploration in the last 30 years and is an exciting project for Black Cat.”

Diamond drilling is expected to begin in the March 2022 quarter.

Company shares ended the day trading 11.9 per cent higher at 61 cents.

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