Environmental Mining Approval Notification for Edna May Operations

Tuesday, 26 May 2009


Catalpa Resources (ASX: CAH), the Perth-based emerging gold producer today announced Environmental Mining Approval had been recommended subject to the lodgement of bonds for its fully-funded Edna May Gold Operations in Westonia, Western Australia.

Catalpa Resources’ Managing Director, Bruce McFadzean confirmed the Company received the Approval notification on 25 May 2009 and commented: “The Mining Approval was one of the final outstanding conditions precedent for Board approval to advance the Edna May Gold Project to production.

“We have already commenced detailed engineering and placed orders for the village and other equipment, however with the Approval now in place, we will now formally ‘kick-start’ Edna May’s 12-month construction and commissioning phase without further delay, to meet our target of first gold production by mid 2010.

“We have made considerable progress on the project design and planning in recent months, including provisional appointment of our major contractors. We are now in a position to finalise these appointments and expedite the construction and commissioning of the accommodation village ahead of the imminent on-site construction activities.”

Regional Job Creation
Mr McFadzean confirmed Catalpa’s Edna May Operations will create more than 180 direct site jobs at peak construction and more than 110 full-time jobs during normal production.

“We’ve been conducting a series of public meetings in the communities surrounding Westonia, so initially we hope to attract more than 30% of our workforce locally, with a target to increase the local workforce component to at least 50% by mid 2010 when we settle down into normal production.

“We are delighted to be in a position to move the Edna May Gold Project forward. Our confidence in this project was well-placed, and we remain confident that the project’s sound economics will provide a strong platform to fund Catalpa’s growth and achieve our vision of becoming Australia’s next mid-tier gold company.”

Ends

Please visit the Catalpa Resources website for further information:

www.catalparesources.com.au

Contacts:
Bruce McFadzean
Managing Director
Catalpa Resources Limited
Tel (08) 9321 3088

Warrick Hazeldine / Annette Ellis
Media and Investor Relations
Purple Communications
Tel: (08) 6314 6300

ABOUT CATALPA RESOURCES
Perth-based Catalpa Resources Limited (ASX: CAH) is on the cusp of a new phase of development, following the successful raising of more than $106 million in debt and equity to advance it’s A$92 million Edna May (open-pit gold) Operations to production by July 2010.

As part of the Edna May finance facility, Catalpa has sold forward 352,316 ounces of gold at an exceptional price of A$1,544 per ounce. Catalpa plans to utilise Edna May’s solid annual cash operating margins of A$75 million (based on an average gold price of A$1,400 per ounce) to fund its growth and become Australia’s next mid tier gold producer.

Catalpa has a sound Mineral Resource and Ore Reserve base at Edna May. Since October 2008 Catalpa has increased its Edna May Reserve by more than 50% from 544,000 to 817,000 ounces, extending the life of the Edna May Operations to more than seven years with planned production of more than 100,000 ounces per annum.

Catalpa has an experienced and focussed Board and management team that are committed to realising timely production and cash flow at the Edna May Operations. With a buoyant outlook on the gold price, the Board believes that Catalpa Resources presents a sound investment opportunity with significant upside potential.

Catalpa Resources has adopted best practice standards across all its activities, including its social, health and safety, environmental management and corporate governance functions.

 

©2009 Catalpa Resources, All Rights Reserved.

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