7 July 2009
CATALPA COMMENCES CONSTRUCTION
AT EDNA MAY
HIGHLIGHTS
DEC Works Approval for Edna
May Operations
Plant construction contractor GRES formally appointed and
site works and refurbishment is underway
Accommodation village 75% complete
Recruitment of key personnel
continues
Catalpa Resources
(ASX:CAH), Australia’s emerging mid-tier gold producer, today announced that it has secured Works Approval from the Department
of Environment and Conservation (DEC) to commence construction at its
fully-funded Edna May Gold Operations near Westonia in Western Australia.
Managing Director, Bruce McFadzean said this is another set of very significant
milestones for Catalpa in realising our vision to pour gold in the June quarter
of 2010.
We
formalised the appointment of our major site-works contractor, Perth-based GR
Engineering Services last week, so we are in a position to immediately commence
the site construction works upon receiving the Works Approval notice.
GRES
has set up offices, communications and other infrastructure on site over the
past week, and work commenced yesterday on the preliminary plant earthworks and
refurbishment of the 2.8Mtpa Edna May processing plant stored on-site.
We remain
very focussed on advancing Edna May to production by mid 2010.
Construction of Edna May’s 88-man accommodation village in Westonia is
75% complete, and we are making excellent progress with the appointment of key
personnel.
The
Works Approval comes just days after Catalpa announced plans to merge with its
largest shareholder, Lion Selection’s gold assets. The merger will
bring together Catalpa’s 100% owned and fully-funded Edna May Operations
and Lion’s 30% interest in the Newcrest managed 100 000 ozpa Cracow
Gold Operations in Queensland, under Catalpa’s existing experienced
management team.
The
merger will boost Catalpa’s annual production to 130 000+ ozpa once Edna
May is in full production and is scheduled to be finalised in October 2009.
ENDS
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 $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$1,557 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 Lion Selection’s 47%
shareholding in 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 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 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.
Contacts:
Bruce
McFadzean
Managing
Director
Catalpa Resources Limited
Tel (08) 9321
3088
Warrick Hazeldine / Annette Ellis
Media and Investor Relations
Purple Communications
Tel:
(08) 6314 6300
***