Mining junior Catalpa Resources Ltd
(ASX:CAH) has poured the first gold from its Edna May mine in Western Australia.
The $92 million project was built two months ahead of schedule and will produce about 100,000 ounces of gold a year for at least nine years.
Managing director Bruce McFadzean says ramp-up to full production capacity of 2.8 million tonnes per annum is underway and will see Catalpa producing gold at a rate of over 130,000 ounces a year by July this year.
Mr McFadzean says the company will be well funded during the production ramp up phase thanks to the successful $20 million equity raising announced on April 22.
The funds from the raising will also be used to expedite its ongoing exploration program at Edna May.
With a forward-sold gold price of $1557.50 for 352,316 ounces of Edna May’s production, Catalpa expects to realise strong cash operating margins to retire debt and fund the company’s future growth.
Catalpa Resources booked a loss of $6.81 million for the 2009 financial year.
