The revised estimate marks the culmination of a reverse circulation drilling campaign conducted over the last three months at the Golden Point prospect, which is adjacent to the Edna May pit.

Total resources after mining depletion were estimated at 52.1 million tonnes grading 0.99 grams per tonne for a contained 1.66Moz of gold to 300m below surface, based on a cut-off grade of 0.4gpt.

Total reserves after mining depletion were calculated at 29.6Mt at 1.06gpt for a contained 1.01Moz, incorporating 37,000oz from Golden Point.

This was driven by the conversion of inferred resources within the Golden Point Gneiss through to a proven and probable reserve.

A further 28,000oz were added to the numbers as a result of additional drilling of existing mineralised stockpiles.

Significantly, about 60% of the reserve is in the proven category.

Catalpa managing director Bruce McFadzean said the resource excluded mineralisation defined from previous deep (300m plus) diamond drilling.

"The focus for 2010 is to target the underground mineralisation and move it towards a JORC-compliant resource toward the end of the year, while continuing to test our regional targets and evaluate other opportunities," he said.

First gold at the project was poured in April and production is still being ramped up towards the nameplate capacity of 2.8 million tonnes per annum.

Production is expected to average 100,000ozpa over a nine-year mine life.

The company also owns a 30% stake in the Cracow gold mine in Queensland which is operated by Newcrest Mining (70%).

This mine has produced more than 100,000ozpa for the past four years.

Shares in Catalpa were down slightly, by 0.68%, in morning trade to $1.47.