Tuesday, October 27, 2009

27 October 2009

 

CATALPA STEAMS AHEAD AT EDNA MAY

 

Perth-based gold developer, Catalpa Resources (ASX:CAH) today released its Activities Statement for the September 2009 quarter, highlighting rapid construction progress at its Edna May Gold Project which remains within budget and on schedule to produce first gold in June 2010.

 

Catalpa’s Managing Director, Bruce McFadzean confirmed the Edna May mining fleet has been mobilised to Edna May to carry out preparatory earthwork ahead of 24 hour mining operations that are scheduled to commence in November 2009.

 

“During the past three months the Edna May Gold Project has undergone a rapid transformation from a plant lay-down yard to an advanced construction site” Mr McFadzean said. 

 

“We’ve also had consistently encouraging results from the ongoing exploration program at Edna May, which underpins our confidence in the Project’s upside potential.”

 

”Exploration work in the past quarter has identified the Golden Point deposit as a new near-mine priority target,  with encouraging visible gold mineralisation just 30m from the Edna May footwall.”

 

“We also completed Sixteen RC and diamond drill holes for 4,066 metres as part of a Resource Definition drilling program to increase confidence in the Mineral Resource at depth with a view to upgrading Inferred Resources within the open pit design to Indicated.”

 

“The results are very positive, indicating that gold mineralisation remains open at depth.”

 

Mr McFadzean said a revised Ore Reserve, including the recent resource definition drill results and updated gold price assumptions, will be finalised and reported before the end of the year.

 

Another highlight in the past quarter was positive progress in the planned merger with Catalpa’s largest shareholder Lion Selection Limited (ASX: LST). Both parties have convened shareholder meetings on 17 November 2009 to seek approval for the merger which will amalgamate their respective gold assets under the Catalpa banner.

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