Perth-based emerging gold
producer, Catalpa Resources (ASX: CAH), today reported
encouraging results from its regional auger geochemical sampling program
carried out along strike of its fully-funded, $92 million Edna May
Operation in Western Australia’s Wheatbelt region.
Bruce McFadzean, Catalpa
Resources Managing Director said the current results define coherent
surface geochemical anomalies of up to two kilometres wide, and have also
produced several new anomalies in previously unexplored areas that
strengthen the promising exploration results identified in 2008.
The sampling consisted of
follow up infill sampling in previously defined anomalous areas and first-pass
sampling in the previously untested eastern areas of Catalpa’s 880km2
tenement holdings, Mr McFadzean said.
Two substantial anomalies in
the north-western area contain spot highs of up to 26.4ppb Au with several
samples containing in excess of 20ppb Au.
These results are very
encouraging and provide a good basis for follow up RAB drill testing.
In the east, a 1.6km long
north-north-west-aligned anomaly contains substantial spot highs of 258ppb Au
and 62.7ppb Au in an area of historical, wide-spaced, anomalous
Follow up infill
sampling and RAB testing of the target anomalies is being
planned, Mr McFadzean said.
follow the link below to view an image of 2009 Auger Geochemical Anomalies
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 its 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 has a sound
and Resource 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 eight years with planned
production of more than 100,000 ounces per annum.
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 Catalpa’s 100% owned and
operated 100 000+ oz pa Edna May Operations in Western Australia and Lion
Selection’s 30% stake in the Newcrest managed, 100 000 oz pa Cracow
Gold Operations 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
October 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 Operations Catalpa will
produce more than 130 000 oz pa.
Catalpa has an
experienced and innovative Board and management team that is committed to
realising a timely production and cash flow profile 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
has adopted best practice standards across all its operating activities,
including its social, health and safety, environmental management and corporate
Catalpa Resources Limited
Tel (08) 9321
Warrick Hazeldine / Annette
and Investor Relations
(08) 6314 6300
Competent Persons Statement
exploration and Resource data has been compiled according to the JORC Code for
the reporting of Mineral Resources and Ore
Reserves by Nick Winnall (Exploration Manager), a full-time employee of Catalpa
Resources Limited. Mr. Winnall is a Member of the Australasian Institute of
Mining and Metallurgy (AUSIMM) and has sufficient experience which is relevant
to the style of mineralisation and type of deposit under consideration and to
the activity which he is undertaking to qualify as a Competent Person as
defined in the December 2004 edition of the ?Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves? (JORC Code). Mr.
Winnall consents to the inclusion in the report of the matters based upon his
information in the form and context in which it appears.