New gold reserve and resource figures "Great news" for Catalpa
Catalpa's Edna May gold mine in Western Australia is on track with construction and new ore reserve and mineral resource calculations are very positive
Posted: Thursday , 03 Dec 2009
Catalpa Resources (ASX:CAH), which is redeveloping the Edna May gold property in Western Australia, has announced an updated mineral resource and ore reserve delivering a further 16% boost to gold Reserves, and a 13% increase in the Mineral Resource. Significantly, the reserve figure is now a fraction below the magic million ounces, while the total resource is put at over 1.66 million ounces, and with further drilling under way - in particular targeting the deeper mineralisation at the project - the likelihood is there will be further increases in resource - and also in the higher reserve category.
The latest revised mineral resource and ore reserve estimate is the result of several significant RC and diamond drilling programs conducted over the last 6 months.
Speaking to Mineweb at the Mines & Money conference in London, Managing Director Bruce McFadzean, a mining engineer with strong operational experience with major mining companies, was very enthusiastic about the progress so far on the property. The company is already going ahead with plant construction which, McFadzean said, is now about 70% complete.
The actual figures announced by Catalpa are as follows: Total Mineral Resources after mining depletion are estimated at 1.66 million ounces of gold which represents an increase of 170,000 ounces of gold (13%) over the previous estimate. The increase was driven by additions to Edna May Deposit including an initial estimate of mineralisation within the Golden Point Gneiss and a reduction in applied cut-off grade to 0.4 g/t Au to reflect the economic cut-off grade at A$1,250 per ounce (US$1164/ounce).
The Mineral Resource has only been estimated to a maximum depth of 300 metres below surface which is an equivalent basis to previous Mineral Resource estimates.
McFadzean said the Mineral Resource excludes mineralisation defined from previous deep (+300 metre) diamond drilling programs.
"A focus for Catalpa in 2010 is to target the deeper mineralisation in an effort to move it towards a JORC compliant Mineral Resource in addition to advancing Golden Point and drill testing regional targets," McFadzean said in a press release.
Total Ore Reserves after mining depletion are estimated at 954,000 ounces of gold which represents an increase to the previous estimate of 134,000 ounces of gold (+16%), driven by conversion of inferred resource within the Edna May Deposit and revised gold pricing assumptions.
"This is great news for Catalpa, and adds more than another year to the Edna May Gold Projects life-of-mine." "Significantly, some 62% of the Ore Reserve is in the highest confidence (JORC) Proved category."
"The gold price of A$1,250 used in the Ore Reserve estimate reflects a moderate approach to the current Australian dollar spot price and excludes the further price benefit Catalpa receives from the forward sold position of 352,316 ounces at A$1,557 per ounce," McFadzean said.
The Edna May Gold Project remains within budget and schedule to produce first gold in June 2010.