27 October 2009
CATALPA STEAMS AHEAD AT EDNA MAY
Perth-based gold developer, Catalpa Resources (ASX:CAH) today released its Activities Statement for the September 2009 quarter, highlighting rapid construction progress at its Edna May Gold Project which remains within budget and on schedule to produce first gold in June 2010.
Catalpa?s Managing Director, Bruce McFadzean confirmed the Edna May mining fleet has been mobilised to Edna May to carry out preparatory earthwork ahead of 24 hour mining operations that are scheduled to commence in November 2009.
?During the past three months the Edna May Gold Project has undergone a rapid transformation from a plant lay-down yard to an advanced construction site? Mr McFadzean said.
?We?ve also had consistently encouraging results from the ongoing exploration program at Edna May, which underpins our confidence in the Project?s upside potential.?
?Exploration work in the past quarter has identified the Golden Point deposit as a new near-mine priority target, with encouraging visible gold mineralisation just 30m from the Edna May footwall.?
?We also completed Sixteen RC and diamond drill holes for 4,066 metres as part of a Resource Definition drilling program to increase confidence in the Mineral Resource at depth with a view to upgrading Inferred Resources within the open pit design to Indicated.?
?The results are very positive, indicating that gold mineralisation remains open at depth.?
Mr McFadzean said a revised Ore Reserve, including the recent resource definition drill results and updated gold price assumptions, will be finalised and reported before the end of the year.
Another highlight in the past quarter was positive progress in the planned merger with Catalpa?s largest shareholder Lion Selection Limited (ASX: LST). Both parties have convened shareholder meetings on 17 November 2009 to seek approval for the merger which will amalgamate their respective gold assets under the Catalpa banner.
Click here for a full copy of Catalpa Resources? Quarterly Activities Statement ? Q3 2009
For further enquiries contact:
Catalpa Resources Limited
Tel (08) 9321 3088
Warrick Hazeldine/Annette Ellis
Media and Investor Relations
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 A$106M in debt and equity to advance its A$92M 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$1,557 per ounce..
Catalpa plans to utilise Edna May?s solid annual cash operating margins to fund its growth and become Australia?s next mid tier gold producer.
In keeping with this strategy, Catalpa and its largest shareholder, Lion Selection Limited (ASX:LST), signed a Merger Implementation Agreement in June 2009 to bring together Lion Selection?s 47% shareholding in Catalpa?s 100% owned and operated 100 000 ounces pa Edna May Gold Project in Western Australia and Lion Selection?s 30% stake in the Newcrest managed, 100 000 ounces pa Cracow Gold Project in Queensland, under Catalpa?s experienced management team. As part of the merger, Catalpa will also acquire a pre-emptive right over Newcrest?s 70% stake in Cracow.
Following implementation of the merger, expected in the December quarter 2009, Catalpa will be a cashflow positive gold producer from its 30% stake in Cracow. From mid 2010 when production commences at the Edna May Gold Project Catalpa will produce more than 130 000 ounces pa.
Catalpa has an experienced Board and management team that is committed to realising a timely production and cash flow profile at the Edna May Gold Project. 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.
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