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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.
  • Written by: Keith Goode
  • Monday, 01 February 2010

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