Catalpa posts A$1,9m maiden profit

Catalpa posts A$1,9m maiden profit 
PERTH (− Gold junior Catalpa Resources has declared a maiden A$1,9-million after-tax profit for the first full six months of production.

The company reported a loss of A$3,7-million in the corresponding six months of 2009.

Revenue for the period rose to A$69,5-million, compared with the A$3,6-million recorded in the half year to December 2009.

“Our maiden profit follows a period in which Catalpa has been transformed from an explorer and developer into one of Australia’s fastest-growing gold miners,” said MD and CEO Bruce McFadzean.

“Our long-life Edna May project and our Cracow joint venture with Newcrest have created a solid production base from which to grow.”

During the interim period, the group produced 46 082 oz of gold, compared with the 2 904 oz in the previous corresponding period, while sales reached 46 600 oz, at an average realised price of A$1 492 during the period.

McFadzean noted that Catalpa was looking to increase its resource base with accelerated drilling programmes, adding that the company has now started studies targeting the development of a high-grade underground operation at Edna May, to underpin the next phase of its expansion.

The Edna May project currently has a maiden high-grade underground inferred mineral resource estimate of 660 000 t, grading at 9,1 g/t gold, for 195 000 oz of contained gold.

The results from the resource definition drilling would now be included in an updated underground mineral resource planned in the March quarter of this year. This would be followed by a mining study targeting the development of the maiden underground ore reserve and a life-of-mine plan.

The underground development of the Edna May project was in line with Catalpa’s vision to enhance the project with the concurrent mining of high-grade underground ore as well as ore from the existing openpit operations, to increase the grade and the yearly gold production by 2012.