11 March 2009
CATALPA GETS SET TO REBUILD EDNA
MAY GOLD PLANT
Catalpa
Resources Limited (ASX: CAH) today announced that
it has given a letter of intent to Perth-based GR Engineering Services
(?GRES?) to enter into a supply agreement to refurbish and construct the Big
Bell processing facility on site at its Edna May Gold Project near Westonia in
WA.
Bruce McFadzean,
Catalpa Resources? Managing Director confirmed the letter of intent is subject
to a number of conditions precedent, including the successful completion of
funding for the $92M project and Board approval to commence the 12-month
project construction phase.
?The refurbishment
and recommissioning of the 2.8 ? 3.2Mtpa Big Bell plant is the single largest
capital component of the Edna May Gold Project budget.
?GR Engineering
Services has had considerable input into the process modelling, design and
costing of the plant construction, refurbishment and commissioning during our
feasibility study process, and we are confident in their ability to meet our
design specifications and our stringent safety requirements, on-time and within
budget.
??We are very pleased
to have identified a Perth-based firm as our potential site engineering
services provider, as we are committed to utilising local services and labour,
in support of the local economy.
?Notably, the cost
estimates for the Edna May Gold Project Feasibility Study were carried out at
the peak of the resources boom last year when there was unprecedented demand
for goods and professional services. That environment has changed
somewhat today, and we are revisiting all of the project costs to realise
savings wherever possible.
?Early indications
are positive with regard to reductions to the Bankable Feasibility Study
capital budget.
?The appointment of
GR Engineering Services is a clear indication of the advanced status of our
preparations for the Edna May Gold Project construction phase, and our confidence
in securing the balance of funding for the Project.
?We remain committed
to realising an early production and cash-flow profile at Edna May, with a
realistic target of mid 2010 for the mine?s first gold pour,? Mr McFadzean
said.
ENDS
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) 6314 6300
ABOUT CATALPA
Catalpa
Resources Limited (ASX: CAH) has finalised a
bankable feasibility study (FS) to advance its A$92 million Edna May gold
Project towards production and is currently finalising project funding.
The Edna May Project
is 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.
Catalpa?s mine and
processing schedule demonstrate average gold production in excess of 100,000 ounces recovered per annum for a life of mine of more than six
years.
In preparation for
planned production at Edna May, the Company relocated its 2.8 Mtpa Big Bell
mill to site in 2007. The process plant has
a twelve month construction period scheduled to commence at the completion of project funding.
With its early cash
flow profile, Catalpa aims to grow and develop the Company into Australia?s
next mid tier gold producer
Notably, the already
robust economics of the FS exclude further extensions to the Project life
following the planned release of additional Ore Reserves from western
continuation of the Edna May Gneiss, Greenfinch. Greenfinch is undergoing
further infill drilling, the early results of which indicate new gold
mineralisation zones in close proximity to the Edna May pit. A Greenfinch
Resource update and new Reserve is on schedule to be finalised in April 2009.
With 64% of the Edna
May Reserve already in the highest confidence, Proven JORC category, Catalpa
has a sound Resource base with significant growth potential. This Reserve
confidence, in conjunction with a Metallurgically uncomplicated and consistent
Orebody with recovery greater than 91%, makes this project an attractive long
term opportunity to grow a mid tier gold producer
Catalpa has amassed a
management team with considerable technical, project and operational expertise
and has the support of an experienced and
innovative Board that is committed to using the continuing strength of the gold
price, to realise value for Catalpa?s shareholders.
***
Purple Communications
Level 3, 28
Kings Park Road, WEST PERTH
WA 6005
Ph: 08 6314 6300 Fax: 08 6314 6355
purple@purplecom.com.au