Black Cat Syndicate : Coyote & Paulsens High-Grade JORC Resources Confirmed

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ASX ANNOUNCEMENT

25 May 2022

Coyote & Paulsens High-Grade JORC Resources Confirmed

Black Cat Syndicate Limited ("Black Cat" or "the Company") is pleased to provide an update on the acquisition of Coyote and Paulsens ("Coyote", "Paulsens" or together "the Operations") from Northern Star ("Northern Star", ASX: NST), with the conversion of all outstanding JORC 2004 Mineral Resources to JORC 2012 Mineral Resources ("Resource" or "Resources" as applicable).

Highlights (on completion)

• Total high-grade JORC 2012 Resources at Coyote (488koz @ 5.1g/t Au) and Paulsens (217koz @ 2.5g/t Au) have been confirmed as expected.
• At Coyote, the Sandpiper, Kookaburra and Pebbles deposits met due diligence expectations with a number of potential upgrade and extension targets identified.
• Due diligence expectations were also met at Paulsens where the Mt Clements, Merlin and Electric Dingo deposits were converted to JORC 2012 Resources. These deposits all have the potential to provide open pit material into the Paulsens processing facility.
• Potential to grow all Resources is considered high.

			Measured Resource	Indicated Resource	Inferred Resource	Total Resource
Operation/ Project
Tonnes	Grade	Metal	Tonnes	Grade	Metal	Tonnes	Grade	Metal	Tonnes	Grade	Metal
			('000s)	(g/t Au)	('000oz)	('000s)	(g/t Au)	('000oz)	('000s)	(g/t Au)	('000oz)	('000s)	(g/t Au)	('000oz)
		Open Pit	-	-	-	560	2.8	51	689	2.7	59	1,250	3.0	120
Coyote	Underground	-	-	-	277	9.2	82	1,066	7.9	271	1,344	8.1	351
Stockpiles	-	-	-	375	1.4	17	-	-	-	375	1.4	17
		Sub total	-	-	-	1,212	3.8	150	1,755	5.8	330	2,969	5.1	488
		Open Pit	-	-	-	227	2.5	18	1,940	1.7	109	2,178	1.8	128
Paulsens	Underground	341	5.8	64	88	5.6	16	43	6.6	9	473	5.8	89
Stockpiles	11	1.6	1	-	-	-	-	-	-	11	1.6	1
		Sub total	352	5.7	65	315	3.4	34	1,983	1.9	118	2,651	2.5	217
		Open Pit	13	3.2	1	8,198	1.9	493	7,572	1.6	386	15,781	1.7	880
Kal East
Underground	-	-	-	1,408	4.5	204	1,647	4.0	211	3,055	4.2	414
		Sub total	13	3.2	1	9,605	2.3	696	9,219	2.0	597	18,836	2.1	1,294
Total Resources	365	5.6	66	11,132	2.5	880	12,957	2.5	1,045	24,456	2.5	2,000

Notes:

1. All tonnages reported are dry metric tonnes.
2. Data is rounded to thousands of tonnes and thousands of ounces gold. Discrepancies in totals may occur due to rounding.

Table 1: Black Cat Resources by operation and mining method

Cautionary Statement: Paulsens and Coyote are not yet owned by Black Cat. Certain conditions precedent are to be satisfied prior to completion (refer ASX announcement 19 April 2022 for further details).

Black Cat's Managing Director, Gareth Solly said:

"We are pleased that we have converted all JORC 2004 Resources at Coyote and Paulsens to JORC 2012 Resources with no material differences identified. This confirms the depth of our due diligence while identifying potential growth areas for the future. We also used the conversion process to identify potential upgrade and extension targets. Pleasingly, there were numerous opportunities at both Coyote and Paulsens that emerged which will form part of our future drilling programs."

BLACK CAT SYNDICATE LIMITED (ASX:BC8)	DIRECTORS		CORPORATE STRUCTURE
Level 3, 52 Kings Park Road, West Perth WA 6005	Paul Chapman	Non-Executive Chairman	Ordinary shares on issue: 176.9M
PO Box 184, West Perth WA 6872	Gareth Solly	Managing Director	Market capitalisation: A$76M
T: [phone] | E: [e-mail]	Les Davis	Non-Executive Director	(Share price A$0.43)
W: www.blackcatsyndicate.com.au	Philip Crutchfield	Non-Executive Director	Cash (post Tranche 1): ~A$20M
ABN 63 620 896 282	Tony Polglase	Non-Executive Director

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Coyote & Paulsens High-Grade JORC Resources Confirmed

COYOTE GOLD OPERATION (100% at completion)

At Coyote, the Sandpiper, Kookaburra and Pebbles deposits met due diligence expectations with a number of potential upgrade and extensional targets identified. All deposits provide opportunities to supply additional feed to the mill once in operation.

Figure 1: Map of the Resources at the Coyote Gold Operation

SANDPIPER RESOURCE - SUPPORTING INFORMATION

This JORC 2012 Resource represents the conversion of the JORC 2004 Resource published by Tanami Gold1. No new interpretations or estimations were completed in this process, with this announcement and the related Tables documenting the original estimation methodology. A review of the Resource was undertaken as part of the conversion processes and classification and depletion of the Resource were reviewed and changed to be in line with the Competent Person's assessment of Resource confidence within the various lodes. The JORC 2012 Resource comprises 26 distinct mineralised zones that have been estimated in the February 2012 Mineral Resource update.

1 See Tanami Gold NL ASX 23 October 2012

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Coyote & Paulsens High-Grade JORC Resources Confirmed

Geology and Geological Interpretation

The Sandpiper deposit is hosted within the Tanami Orogen which comprises a sequence of folded metasediments, mafic volcanics and intrusive rocks unconformably overlying Archaean basement. The known Archaean basement includes the informally named 'Billabong Complex' and the Browns Range Dome. The Tanami Orogen is a significant gold host with other major deposits located across the region including Callie 14Moz, The Granites 1.1Moz, and Groundrush 1.7Moz.

Lithology

The local geology of the Sandpiper deposit is hosted within the Proterozoic Bald Hill sequence. The Bald Hill sequence is comprised of basalt, dolerite, graded sandstones and thinly-bedded siltstone and mudstone units. The sequence ranges from 100 - 300 m in thickness. The dolerite and basalt units make up the majority (estimated 70%) of the sequence. The mafic units have been metamorphosed to greenschist and amphibolite facies.

The Sandpiper deposit occurs on an elevated zone with remnant outcrops of quartz visible at surface. The area is covered by up to 2m of transported sandy red soil underlain with colluvial gravels soils and ferricrete. Mottled kaolinitic clays form a 10 - 25m thick weathered layer above the oxidised upper saprolitic zone. The saprolite is heavily weathered with only minor mafic crystalline textures or sedimentary bedding structures remaining visible. The saprolite zone extends from 20 to 40m deep and up to 60m in heavily sheared zones where preferential weathering has occurred.

Structure

The Sandpiper deposit occurs on the southern limb of an overturned recumbent anticline which plunges 60° to the east. The northern limb is not known to host any significant mineralisation. A late-stage southern dipping fault offsets the sequence and mineralisation on a small sub-1m scale. The upper part of the sequence overturns to form a fold hinge at the eastern end of the deposit. At the southern extent of the deposit, the stratigraphy changes orientation to a more southerly orientation. This change in orientation is associated with a breakup of main lodes into a series of discontinuous stacked lodes.

Mineralisation

Mineralisation is concentrated within sheared sediments or on the contacts of the fine-grained sedimentary beds and the mafic units. This mineralisation occurs as concentrated gold bearing sulphides around quartz carbonate vein salvages. Later stage vein sets forming a stockwork cross cutting the main mineralised veins also occur. Most of the gold associated with sulphide content in the veins.

Figure 2: Cross section looking West at the interpreted geology and mineralisation of the Sandpiper deposit.

Historic Workings

Open pit mining commenced at Sandpiper in February 2008. Mining continued for 5 months before being halted. Following an internal operations review, mining restarted at Sandpiper in 2009 and continued until mid-2010.

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Coyote & Paulsens High-Grade JORC Resources Confirmed

Drilling Techniques

Air core, RAB and vacuum drilling were carried out jointly by Glengarry Resources and Tanami Gold NL. Barrick Gold drilled two deep diamond drillholes between 2000 - 2003. Extensive RC and diamond drilling were carried out by Tanami Gold NL following the acquisition and control of the entire project.

Only RC and diamond drilling has been used in the Resource.

Sampling and Sub Sampling Techniques

RC samples were split into 1m intervals, targeting a 3kg sample, via a rig mounted 12.5% to 87.5% three tier riffle splitter. Where rare wet samples occurred, these were grab sampled and not put through the splitter. These samples were collected directly into calico sample bags. The remaining 87.5% sample split was collected in plastic sample bags. The cyclone and splitter were cleaned at the start and end of each hole using a compressed air gun. For wet holes the cyclone and splitter were cleaned every 6m rod. Chips were logged for lithology, moisture content, recovery, mineralisation, and weathering. Chip trays were photographed and archived.

Duplicate samples were selected at a rate of 1:30 samples by the rig geologists from the sample retention bags and re- split. Blank and standard material was inserted at a rate of 1:30.

Diamond core was drilled from surface using HQ3, NQ & NQ2, with triple tubing utilised where required to improve core recovery. Core recovery was poor in some highly weathered zones but good in most of the fresh rock areas. Most core was cut and ½ core sampled. A small number of holes were ¼ core sampled with the remaining half core used for metallurgical testing. Diamond core was logged for lithology, mineralisation, and weathering. Core was orientated on the bottom of the hole and structural measurements recorded where possible.

Diamond core was sampled in geologically selective intervals to better target mineralisation and geological boundaries. Samples taken were a minimum of 0.2m and a maximum of 1m. Diamond holes were samples in 1m increments approximately 30m either side of target zones. Commercially certified standards were inserted after 2004 at a rate of 1:30.

Drill samples used in the Resource were prepared at a commercial laboratory. Samples were crushed and dried before being pulverised to >85% passing 75 microns. A 50g charge was fired and residue dissolved in aqua regia digest. The assays were finished via atomic absorption spectroscopy to a precision of 0.01 ppm. RAB, Vac and soil samples utilised different multielement assay techniques however these were not used in the mineral resource.

Criteria Used for Resource Estimation

A review of the Resource was completed during the due diligence process to investigate the confidence in the reported Resource. No fatal flaws in the estimation of the Resources were identified. Classification of the Resource originally completed by Tanami Gold was reviewed based off all available information. Resource classifications assigned by Tanami Gold were found to be acceptable and have been rereported for this announcement.

Estimation Methodology

Mineralisation and weathering wireframes were constructed using Micromine software. Models of the geological units were used as guides for the mineralised vein interpretations. Both Ordinary Kriging and Inverse Distance Squared estimations methods were used.

Drill hole data was composited downhole to 1m for all mineralised domains and treated as hard boundaries for domains.

Estimation domains were grouped together for top cut analysis and extreme outliers were investigated. A global top cut of 35 g/t was used to control the impact of high-grade composites on the estimate. Only a very small number of composites (8 total) of samples were affected by top cutting.

Variograms were modelled within major mineralisation areas to determine primary directions and distances of continuity. These variograms were then used to create search ellipsoids which were applied to the individual domains. Adjustments to the search ellipsoids and orientations to suit individual domains was undertaken. Multiple orientation search ellipsoids were used for each domain and restricted by coordinate filters. Parent block sizes of 20m (X), 2.5m (Y) and 10m (Z) were used with sub-celling down to 2m (X), 0.5m (Y), 1m (Z) was used to honour mineralisation volumes.

Bulk density values were applied according to regolith type and are based off density measurements of diamond core.

The Resource was validated through comparison of input assay data against the modelled grades. This was completed by checking the global averages of each domain, visually checking the spatial distributions of grade, assessing swath plots.

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Coyote & Paulsens High-Grade JORC Resources Confirmed

Cut-Off Grades

All Resources have been reported at an open pit cut-off grade of 0.7 g/t Au or an underground cut-off grade of 2 g/t Au. Maximum open pit depth at the 270 RL was determined based off optimisation studies at Sandpiper and Kookaburra.

	Sandpiper	Cut - Off		Category	Tonnes		Grade	Contained Au
	Deposit Resource
				'000 tonne		g/t	'000 ounces
		0.7 g/t	Indicated	219		3.4	24
	Open Pit	2.0 g/t	Inferred	260		4.6	29
				Total	480		4.1	63
		0.7 g/t	Indicated	34		2.9	3
	Underground
	2.0 g/t	Inferred	513		5.0	82
				Total	547		4.9	84
	Total Resource				1,027		4.5	148
		Table 2: JORC 2012 Resource for the Sandpiper deposit * #
	* Small discrepancies may occur due to rounding.	# For more detail please refer to the Resource table at the end of the announcement

Figure 3: Long section looking North showing JORC 2012 Resource classification (blue=Indicated, red=Inferred) for Sandpiper.

Mining and Metallurgical Parameters

No minimum width was applied to the other zones. Minimum widths are assessed and applied during the Ore Reserve process. Planned dilution is also factored in at the Ore Reserve stage.

No metallurgical factors were applied to the Resource, as this is also to be considered during Ore Reserve calculation. While recovery is considered good within oxide and transition, it is variable within the fresh. Further work is needed to understand treatment options.

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