The Black Cat Syndicate has commenced underground mining at the Majestic site, part of the Kal East Gold operation, located 45km southeast of Kalgoorlie, Western Australia.
Australian mining services company Macmahon has been awarded the contract for mine development and production services at the site.
Under the contract, worth A$55m ($35.6m), Macmahon will lead underground mining efforts at Majestic, spanning 12 months starting from now.
Macmahon is responsible for comprehensive mine development and production services at the Majestic site, which is also located close to the Lakewood processing facility.
Macmahon managing director and CEO Michael Finnegan said: “We are delighted to be selected as the preferred mining contractor at the Majestic Mining Centre and look forward to supporting Black Cat Syndicate in their growth plans for the Kal East Gold Operation.
“This contract award reflects Macmahon’s strategic focus of increasing scale in our underground business and I would like to thank our team for their continued dedication and support in building new, trusted client relationships.”
The Majestic mine targets an initial production of 776,000 tonnes at 3.2g/tonne, aiming for 80,000oz of gold. Around 63% of the target is already in the Ore Reserve.
According to Black Cat Syndicate, further drilling will be conducted to expand resource estimates, focusing on areas currently constrained but open at depth and along strike.
Preparations are underway for other service components, including long-term dewatering infrastructure and portal support installation.
Equipment mobilisation is progressing at the Fingals open pit, as site establishment activities continue, presaging the commencement of mining operations.
The projects are expected to ensure a consistent feed to the Lakewood facility for the foreseeable future, said Black Cat Syndicate.
Black Cat managing director Gareth Solly said: “Dewatering is complete, portal ground support is installed and development of our first underground mine at Kal East is underway.
“Majestic remains open at depth and along strike and underground drilling is planned to commence as soon as possible for both Resource extension and grade control.
“Developing Majestic underground marks another milestone as we deliver on our strategy of More Gold, Sooner.”
