growing postive OUTLOOK FOR CATALPA'S EDNA
MAY GOLD PROJECT
Catalpa Resources (ASX:CAH), Perth-based emerging gold producer, today
outlined a growing list of positive fundamentals underpinning the Company's
Edna May Gold Project.
Managing Director, Bruce McFadzean said his vision is to commence production at Edna
May while the gold price remains strong.
"We are targeting attractive
margins greater than AU$400 per ounce (pre-capital); and an annual operating
margin of greater than AU$40 million to position Edna May as a sound cash
operation for future growth," Mr McFadzean said.
said a number of factors effectively reduce the risk of the Edna May Gold
"64% of Edna May's Reserves are
in the Proven category; this is not typical of many gold mines today."
"Three previous successful
mining events both above and below Edna May further lower the risk of the
project," Mr McFadzean said.
said an optimised pit design has given rise to a significant increase in
Reserves in the past four weeks, for a minimum 6-year life-of-mine at an
Australian gold price of $1025 per ounce, well below the AU$1100 - AU$1250
price range of recent months.
"The Reserves for the Edna May
open-pit operation alone have been increased by 36% or 194 000 ounces to 738
000 ounces in the last four weeks, from optimisation of the pit design and
schedules," Mr McFadzean said.
"Significantly, the updated
Reserves exclude the adjacent Greenfinch deposit which we target to release
said Edna May presents several opportunities for upside potential..
"Further upside potential could
be realised from additional near-mine ounces that may be identified in our
ongoing exploration programme.
"The current feasibility study
also excludes the potential higher-grade underground ounces that the results of
a current drill programme are supporting.
"Any additional underground
ounces are just icing on the cake," he said
"We also have the opportunity
to realise significant cost savings arising from the current market, including
reductions in fuel costs in recent months."
acknowledged the challenging funding and capital raising environment, but
reiterated the Board's confidence that in the context of the current buoyant
outlook for gold, the attractive margins and merits of the project could hold
Catalpa's Edna May Gold Project
Feasibility Study is on schedule to be considered by the Board next month.
/ Annette Ellis
Media and Investor Relations
Tel: (08) 9485 1254
The reported Ore
Reserves have been compiled by Mr Harry Warries. Mr Warries is a Member of the Australian Institute of Mining
and Metallurgy and an employee of Coffey Mining Pty Ltd. He has
sufficient experience, relevant to the style of mineralisation and type of
deposit under consideration and to the activity he is undertaking, to qualify
as a Competent Person as defined in the 'Australasian Code for Reporting of
Mineral Resources and Ore Reserves' of December 2004 ("JORC Code") as
prepared by the Joint Ore Reserves Committee of the Australasian Institute of
Mining and Metallurgy, the Australian Institute of Geoscientists and the
Minerals Council of Australia. Mr Warries
gives Catalpa Resources Limited consent to use this estimate in reports.
Catalpa Resources Limited (ASX: CAH) aims to become Australia's
next mid tier producer by developing its open pit assets, located on its
extensive and wholly-owned mining tenements in Western
is on the cusp of a new phase of development towards production at its Edna May
(gold) Project, conveniently positioned a few kilometres from the
infrastructure of Westonia, an established town with
a long mining history. The project is just three hours or 300km by road from Perth;
half way between Perth and Kalgoorlie and ideally situated to be
serviced by both centres.
there have been three previous successful mining programs which have occurred
both above and below the planned open pit at Edna May, which significantly
reduces the risk of Catalpa's current project.
Catalpa has an experienced and innovative Board and
management team that is committed to realising a timely production and
cash flow profile from the development of the Edna May open pit resources.
is the company's immediate strategy; and an update to the Company's 2006 Edna
May Gold Project Feasibility Study is on schedule to be tabled to the Board in
the December quarter 2008. In preparation for planned production at Edna
May, the Company relocated its 2.8mtpa Big Bell mill to site in 2007. The
mill is being maintained 'ready for construction' adjacent to the proposed
plant construction site.
is pursuing parallel growth with a renewed exploration programme underway of
its 880km? of under-explored Westonia
Greenstone Belt, and is reviewing other regional opportunities for acquisition
and/or joint venture. In particular, Catalpa seeks to identify and develop new
projects and/or acquisitions on its extensive land holding or within the
region, which is prospective for gold, nickel and base metals.
has a sound Resource base at Edna May with significant upside to grow resources
and reserves and move towards production. With a buoyant outlook on the gold
price, the Company's Board believes that Catalpa Resources presents a sound
investment opportunity with significant upside potential.
Resources has adopted best practice standards across all its operating
activities, including its social, health and safety, environmental management
and corporate governance functions.
Level 3, 28
Kings Park Road, WEST PERTH
Ph: 08 9485 1254 Fax: 08 6263 0455