• Increase font size
  • Default font size
  • Decrease font size

Tagged with: Catalpa

Feb 2010 - Catalpa Resources

Catalpa Resources Limited (CAH) –Cracow could achieve >100,000ozpa for ~10yrs as a Significant Asset for Catalpa

  • Catalpa’s merger with Lion has resulted in a far simpler share structure and a 30% holding in the Cracow gold mine in QLD. Cracow appears to have a market perception of only being a 3 to 5 year life mine at ~100,000ozpa. However, that vastly underestimates its potential with exploration alone having added at least the 100,000ozpa mined for the past 5 years, maintaining resources ~1moz at ~8g/t.
  • The Cracow plant has already gradually crept up to 42,000tpm (500,000tpa) following the replacement of the secondary crusher and some cyclones. With possible further modifications, production ~550,000tpa may be achievable.
  • The original NCM target at Cracow was a deep porphyry copper (and it is still a target), but the mine switched its focus to the historic higher grade veins following the successes at the nearby Pajingo mine, and since then has made a number of discoveries, including the recent apparently higher grade Phoenix ore shoot.
  • The size of the ore shoots at Cracow has been significant, typically ~300m to 400m long by 150m to 250m high as in Crown at 680,000oz, with Sovereign and Kilkenny both initially at 200,000oz. The intersection of Phoenix in the decline infers that it also could be ~300m to 350m long. Royal was high at ~350m for its ~500,000oz.
  • Construction of the plant at Edna May, appeared to be well ahead of schedule, and looks impressive considering it is the second hand Big Bell plant. Its only sign of age being some of the belt idlers. The pit was also taking shape, looking neat.
  • CAH has already had two unexpected “wins” at Edna May, being the ~30,000t soft backfill in the previous open-cut available to dry commission the plant at 0.8g/t to 1.0g/t, and the original hard rock bund wall (around the edge of the open-cut) available to wet commission the plant at >1g/t. The plan was to use lower grade (ideally <0.8g/t) to wet commission, but this ore is readily available at little cost.

Sep 2009 - Catalpa Resources

Catalpa Resources Limited (CAH) –Bringing Edna May into Production at ~100,000ozpa from June 2010

  • Catalpa Resources (CAH) has started construction of their refurbished ~3mtpa ex-Big Bell plant that is expected to start production from June 2010 and ramp up to ~100,000ozpa production at cash costs of ~A$640/oz. The expected production is based on an initial throughput rate of 2.8mtpa that increases after ~2 years to 3.2mtpa, processing ore at a grade of ~1.2g/t with a ~92% recovery.
  • The host rock is the Edna May Gneiss which contains broad low grade gold mineralisation reminiscent of Kidston, Mt Leyshon or Mt Rawdon, except that it is enhanced by higher grades within the gneiss itself and by arcuate, high grade, generally laminated quartz veins, often containing visible gold and ranging at average values of up to ~1oz/t (30g/t) or so.
  • The production forecast does appear to be conservative as historical grade reconciliations were up to ~20% or so higher (due to the extensive often higher grade mineralisation) and historical recoveries appear to have been mostly in the 93% to 95% region in the harder sulphide rock. Catalpa are using a gravity circuit which increased recoveries in the 1980s, but was not used in the 1910’s or 1940’s.
  • Most of the previous production periods stopped producing at about the 1090m RL or 245m Level below surface due to a combination of water inflow and an extensive pegmatite unit, despite drilling showing that the mineralisation does continue with grade below this zone. Catalpa’s open-cut shell goes down to the ~1150m RL, with underground stoping a possibility at depth (not yet modelled).
  • CAH is in the process of undergoing a merger with its major shareholder Lion Selection Ltd (LST, 47% of CAH) that is expected to be completed in Nov/Dec 2009 and results in Catalpa owning 30% of the Cracow gold mine in QLD, and no major shareholder. The other Lion assets go into a separate Lion vehicle, with CAH receiving gold (less costs and capex) from Cracow from August 2009.