$92 million mine closer to reality

Friday, Jan 23, 2020

Positive feasibility study results from the Edna May Gold Project at Westonia have encouraged Catalpa Resources Limited to seek project funding.

The junior explorer, formerly known as Westonia Resources, estimates the cost to develop the project at $92 million and expects to begin the process plant construction in April or May at the completion of project funding.

Edna May is expected to produce more than 100,000 ounces of gold a year over a 6.3 year life span. The feasibility study did not include the Greenfinch resource, which is part of the Edna May project.

Catalpa Resources managing director Bruce McFadzean said the findings demonstrate the project has an excellent cash flow and mine life at today’s dollar gold price.

“The project has been extensively drilled, tested and reviewed metallurgically, geotechnically and geologically which provides for lower project risks than has been evident in the gold industry of late,” he said.

“The high ‘Proved Ore Reserve’ of 64 percent is further testament to the quantity and quality of the drilling undertaken on this project during the past 25 years.

“There are few projects in the Australian gold industry with this level of ore reserve confidence.”

In the mine’s first year of operation, it is expected to process 2.7 million tonnes of ore, increasing to 3.2 million tonnes in the third year.

Mr McFadzean said construction of the processing plant would take about 12 months to complete during which time construction of accommodation and other infrastructure would be carried out.

The process plant was purchased and transported from the Big Bell mine site in 2007. Key components have been stored under cover in Perth since then.

Mr McFadzean said Catalpa Resources expected to recruit the majority of staff from the Wheatbelt area, thereby limiting a fly-in fly-out workforce.