Up 94% in a year, ASX 300 gold stock reports new 'outstanding high-grade results'

The ASX 300 gold miner is ramping up production at its Western Australian mines.

S&P/ASX 300 Index (ASX: XKO) gold stock Black Cat Syndicate Ltd (ASX: BC8) is actively drilling for gold across several core Western Australian-based projects.

Amid a series of successful exploration results, investors have sent Black Cat shares soaring 94.4% over the past year, smashing the 6.3% 12-month returns delivered by the benchmark index.

Of course, Black Cat has also enjoyed heady tailwinds from the surging gold price. The yellow metal hit record highs notched in late January and is currently fetching US$5,097 per ounce. This puts the gold price up more than 52% over 12 months.

Here's what's happening today.

Woman holding gold bar and cheering.

Image source: Getty Images

ASX 300 gold stock hits new high-grade zones

The Black Cat share price is down 1.4% in late morning trade today, at $1.40 a share, despite the miner announcing new high-grade assay results from its 100% owned Paulsens Gold Operation.

The ASX 300 gold stock is continuing to target both Resource growth and optimisation of production areas at Paulsens, with underground diamond drilling ongoing.

This morning, the miner reported that extensional drilling in the upper Main Zone at Paulsens has returned "significant results" outside the current Resource.

Among the top results, Black Cat reported intercepting 5.06 metres at 14.33 grams of gold per tonne from 15.1 metres from one hole. While another hole returned 5.36 metres at 7.25g/t Au from 10.33 metres and 2.37 metres at 15.66g/t Au from 35.38 metres.

Drilling at Paulsens is ongoing, with Black Cat planning to add a second rig at the site to accelerate the extensional drilling program.

What did management say?

Commenting on the latest results that have yet to lift the ASX 300 gold stock today, Black Cat managing director James Bruce said, "Paulsens continues to deliver outstanding high-grade results across multiple lodes, outside the current Resource, clearly demonstrating the potential for ongoing growth as drilling continues."

Bruce added:

Importantly, high-grade results like these are driving strong operational performance as production ramps up and development accesses new areas. With a second rig planned and mine development progressing well, we are exceptionally well positioned to continue unlocking value from Paulsens.

These results reaffirm our confidence in both the near-mine opportunity and the long-term potential of this high-grade, historically prolific gold system.

Is it too late to buy this surging ASX 300 gold stock?

With the Black Cat share price up more than 94% in 12 months, has the ship already sailed on this surging ASX 300 gold stock?

Not according to the analysts at Moelis Australia.

Moelis recently reaffirmed its speculative buy rating on Black Cat shares with a $1.80 price target. That represents a potential upside of almost 29% from current levels.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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