EXPLORATION & DEVELOPMENT

Catalyst offsets Henty depletion

GOLD miner Catalyst Metals has managed to add to gold resources at its Henty operation in Tasmania, even after pulling record amounts of gold from the underground mine last year under its last few owners.

Henty is performing well under its new owner

Henty is performing well under its new owner

Resources have grown 10% to 368,000 ounces grading 4.3 grams per tonne, after accounting for 2021-22 depletion of 25,199oz.
 
Catalyst technical director Bruce Kay said the new resources were added from areas already in production, including Zone 96, Intermediate and Darwin South, and are now being converted to mineable reserves.
 
The new estimate excludes its recent drilling from the Cradle Zone, where drilling recently intersected high-grade gold in a largely undrilled area.
 
The 1km-long and 400m-deep zone sits above the existing workings, but has been largely ignored by the miner's owners, despite its relative shallowness, due to poor access.
 
A further resource update is due in the March quarter of 2023 that should include maiden numbers for the Cradle Zone.
 
Kay said the company is confident of adding to its inventory and hitting its target of 35,000ozpa, fully utilising the 300,000tpa mill next year.
 
Buoyed by its recent exploration success at Darwin South and the Cradle Zone it has planned a significant boost to exploration over FY23, with $7 million earmarked for spending.
 
Catalyst purchased Henty in early 2021.
 
Production for the June quarter was 6397oz at all-in sustaining costs of $2100/oz. 
 
Catalyst shares have traded between A$1.11 and $2.22 over the past year.
 
The stock was steady today at $1.20, valuing it at $118 million.

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