Black Cat Syndicate Limited provided an update on underground diamond drilling along the Gabbro Veins at the Paulsens Gold Operation. The footwall Gabbro Veins are unmined and located adjacent to, and up to 200m from, the existing decline which was installed to access the Main Lode. The Gabbro Veins occur in the footwall over a 1km plunge length and can form as swarms over areas up to 4m wide.

They represent a potential new, high-priority, start-up mining area. Assays from an additional 10 diamond holes continue to confirm the Gabbro Veins as containing high-grade, vein swarms that are a readily accessible, near-term mining opportunity. Significant results include: 3.42m @ 16.21g/t Au from 69.70m; including 0.22m @ 80.60g/t Au from 72.90m (22PGRD001).

0.55m @ 67.20g/t from 47.63m; and 0.33m @ 21.70g/t Au from 54.42m: and 0.51m @ 29.86g/t Au from 69.15m; and 0.39m @ 10.20g/t Au from 103.73m (22PGRD002). 0.59m @ 30.80g/t Au from 5.14m; and 1.88m @ 21.77g/t Au from 95.87m (22PGRD003). 0.88m @ 37.28g/t Au from 52.00m (22PGRD021).

Drilling of near mine targets is ongoing, targeting both the Gabbro Veins and sediment hosted veins in the upper areas of the mine. A second underground diamond rig will commence in February 2023 to expedite both near mine Resource growth and discovery drilling. An upgrade to the high-grade underground Resource is underway and will be completed in February 2023.

Engineering and mining studies are underway to support a potential operational restart decision in mid-2023. Drilling at Paulsens commenced on 2 November 20221 targeting readily accessible, near-mine growth opportunities including the Gabbro Veins. The Gabbro Veins are mineralised over a plunge length of +1km and are located adjacent to, and up to 200m from, the existing decline.

The Gabbro Veins can form as swarms over areas up to 4m wide. Most historic mining (907koz @ 7.3g/t Au) occurred within the Main Lode; nominally <3m wide mineralised lodes hosted in a thick Quartz Zone that occurs at the intersection of the Hardey Fault zone and Paulsens Mine Gabbro. The footwall Gabbro Veins present a significant new mining opportunity at Paulsens.

To date, drilling has only targeted Gabbro Veins in the lower part of the mine adjacent to the decline. The underground drilling rig has now moved to the upper part of the decline and is targeting Gabbro Veins and other near-mine targets. All results to date are based on fire assays and a photon assay trial is underway.

A similar trial at Coyote illustrated that fire assay results may be under-reporting gold grades for coarse-gold, diamond core samples. An upgrade to the high-grade underground Resource will be completed in February 2023. This upgrade will include a significant reinterpretation of the current Resource based on the new geology model.

Additional Resource upgrades will be ongoing through 2023. Engineering and mining studies are underway to support a potential restart decision in mid-2023. The 450ktpa Paulsens processing plant is currently on care and maintenance and remains in good condition.