Fingals, Majestic ore flows as Black Cat approves A$20m Lakewood expansion
ASX-listed Black Cat Syndicate has processed first ore from its 100%-owned Fingals openpit and Majestic underground mines through the Lakewood mill, while also approving a A$20-million expansion of the plant to lift throughput to 1.5-million tonnes a year.
The first 10 000 t parcel of ore from Fingals and Majestic has been successfully treated at Lakewood, part of the Kal East gold operation in Western Australia, with the company reporting strong metallurgical and plant performance.
Black Cat said the Lakewood acquisition and all pre-production capital for the Fingals and Majestic mines had been fully funded from operational cash flow. The transition to 100% Black Cat ore feed over the coming months is expected to significantly improve operating margins and future cash flow.
Stockpiles at Fingals and Majestic currently total 114 000 t, as mining at both operations continues to ramp up. Over the remainder of 2026, Fingals and Majestic are expected to become the primary ore sources for Lakewood and remain so for the next four years, with only limited third-party ore processed under existing acquisition terms.
Managing director James Bruce said the first ore milestone marked a step change for the Kal East operation.
“Processing first Ore from the Fingals open pit and Majestic underground mines through Lakewood, delivered on time and within budget, represents a significant milestone for the company," commented MD James Bruce.
"This achievement reflects the hard work, discipline and commitment of the Black Cat team as we continue to build, own and operate high-quality, long-life mines in Western Australia. The expansion of the Lakewood Mill to 1.5-million-tonnes-a-year over the next 12 months will leverage our existing infrastructure, lower processing costs and is expected to generate strong returns on invested capital.
“Over the remainder of 2026, we expect Fingals and Majestic to be the primary ore sources for Lakewood. This marks a step change for Kal East, positioning the company for even stronger cashflow and profitability.”
The board has formally approved the expansion of Lakewood from 1.2-million tonnes a year to 1.5-million tonnes a year, representing a 25% increase in processing capacity. The capital-light upgrade, budgeted at A$20-million, will be funded from operating cash flow.
Regulatory approvals to start upgrade works are already in place and key long-lead items have been ordered. Licence amendments to operate at higher throughput will be sought ahead of project completion. The plant will continue to operate at its current 1.2-million-tonne-a-year rate during construction, with first ore through the expanded mill targeted for the March 2027 quarter.
The expansion will use existing infrastructure, including the commissioning of an existing Dunford mill, and is expected to reduce unit processing costs in line with the higher throughput, further strengthening the economics of the Kal East operation.
