5 September 2008
"VISIBLE
GOLD" IN CATALPA'S FIRST DRILL HOLE
Catalpa Resources Limited (ASX:CAH) today confirmed that its previously announced underground target
drilling programme at its Edna May (gold) Project in WA, is underway as
planned, with the first of 11 holes completed and samples at the lab for assay,
whilst the second drill hole is in process.
Notably, two occurrences of visible gold in the core sample from the
first hole have prompted cautious optimism amongst Catalpa's new management
team who are working towards development of the Edna May Resources.
Bruce McFadzean, Catalpa Resources Managing Director confirmed that
drill hole WDD 144A, is one of 11 planned drill holes in the Company's reported
exploration strategy, aimed at defining high grade underground targets below
the proposed Edna May pit.
"While visible gold is hardly an unexpected find at Edna May, we
are confident that this early indicator supports the accuracy of the
assumptions and interpretation central to our revised underground exploration
strategy and that we are on the right track with the targets that the team have
identified," Mr McFadzean said.
The target host lithology, the Edna May Gneiss, was intersected from
440m to 556m. The two (2) visible gold occurrences are at 513.2m and at 538.0m
in drill hole WD 144A over 450m below surface.
Catalpa Resources has initiated an update to the 2006 Edna May Gold
Project Feasibility Study which is scheduled for completion in the September
quarter 2008.
The Company has a renewed exploration focus on underground and near mine
surface targets as well as regional targets to increase Catalpa's Resources and
Reserves
Catalpa is also reviewing growth potential from regional opportunities
for acquisition and/or joint venture that are prospective for gold, nickel and
base metals...
ENDS
Competent Person Statement
The exploration data have been supplied 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.
ABOUT CATALPA RESOURCES
Perth-based 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
Australia.
Catalpa 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 3 hours or 300km by road from Perth;
half way between Perth and Kalgoorlie
and ideally situated to be serviced by both centres.
Notably, 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.
This 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 finalised in
the September 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.
Catalpa is pursuing parallel growth with a renewed exploration programme
underway of its 800km? 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.
Catalpa 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.
Catalpa Resources has adopted best practice standards across all its
operating activities, including its social, health and safety, environmental
management and corporate governance functions.
For further enquiries contact:
Bruce
McFadzean
Warrick Hazeldine / Annette Ellis
Managing
Director
Media and Investor Relations
Catalpa Resources
Limited
Purple Communications
Tel (08) 9321
3088
Tel: (08) 9485 1254
***
Issued by
Purple Communications
Level 3,
28 Kings Park Road, WEST
PERTH WA 6005
Ph: 08
9485 1254 Fax: 08 6263 0455
purple@purplecom.com.au