UPDATED MINERAL RESOURCE AND
HIGHLIGHTS
· Mineral Resources increased to 1.66 Million ounces of gold (+13%)
·
· Gold Mineralisation remains open at depth
· Additions to the Edna May Resource include initial estimates of mineralisation within the Golden Point Gneiss
Catalpa Resources (ASX:CAH), the Perth-based advanced gold developer today announced an updated Mineral Resource and Ore Reserve delivering a further 16% boost to gold Reserves, and a 13% increase in the Mineral Resource at its wholly-owned Edna May Gold Project in Western Australia.
The revised Mineral Resource and Ore Reserve estimate is the result of several significant RC and diamond drilling programs conducted over the last 6 months.
Total Mineral Resources after mining depletion are estimated at 1.66 million ounces of gold which represents an increase of 170,000 ounces of gold (13%) to the previous estimate. The increase was driven by additions to Edna May Deposit including an initial estimate of mineralisation within the Golden Point Gneiss and a reduction in applied cut-off grade to 0.4 g/t Au to reflect the economic cut-off grade at A$1,250 per ounce.
The Mineral Resource has been estimated to a maximum depth of 300 metres below surface which is an equivalent basis to previous Mineral Resource estimates.
Managing Director, Mr Bruce McFadzean said the Mineral Resource excludes mineralisation defined from previous deep (+300 metre) diamond drilling programs.
“A focus for Catalpa in 2010 is to target the deeper mineralisation in an effort to move it towards a JORC compliant Mineral Resource in addition to advancing Golden Point and drill testing regional targets,” Mr McFadzean said.
Total Ore Reserves after mining depletion are estimated at 954,000 ounces of gold which represents an increase to the previous estimate of 134,000 ounces of gold (+16%), driven by conversion of Inferred Resource within the Edna May Depsoit and revised gold pricing assumptions.
“This is great news for Catalpa, and adds more than another year to the Edna May Gold Projects life-of-mine.”
“Significantly, some 62% of the Ore Reserve is in the highest confidence (JORC) Proved category.”
“The gold price of A$1,250 used in the Ore Reserve estimate reflects a moderate approach to the current Australian dollar spot price and excludes the further price benefit Catalpa receives from the forward sold position of 352,316 ounces at A$1,557 per ounce,” he said.
The Edna May Gold Project remains within budget and schedule to produce first gold in June 2010.
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