Catalyst Metals (ASX:CYL) announces that it has successfully delivered a 10% increase to the total resource for its Henty Gold Mine in Tasmania.
The increase in resource accounts for depletion from FY22 production, bringing the resource to a total of 2.6Mt @ 4.3g/t Au for 368,000 ounces of gold, while also increasing the mining inventory in areas that have a comparatively low cost of conversion.
Commenting on the resource increase, Catalyst Technical Director, Bruce Kay, said: “This is a solid result which supports Catalyst’s strategy to increase the inventory and production rate at Henty.
“This is a solid result which supports Catalyst’s strategy to increase the inventory and production rate at henty”
As we enter FY23 with a significant exploration program and budget, we are particularly encouraged by recent exploration success at Darwin South and the Cradle Zone, which represent an opportunity to further add to Henty’s Resource.”
The company also notes that recent strong drilling results from the project’s Cradle Zone are not included in this resource, however, these results will form part of a subsequent resource update scheduled for the March quarter of 2023.
This scheduled resource update for March 2023 will also be aided by a ‘significant’ exploration programme planned at Henty for FY23 to identify future production zones and support Catalyst in its mission of achieving an annualised production rate of 35,000oz by the end of 2023.
In addition, it is reported that ore reserves are currently being prepared and are expected to be released by Catalyst in October of this year.
The Henty Gold Mine is located 23km from the township of Queenstown in northwest Tasmania, consisting of an underground mine and a nameplate capacity of 300,000tpa conventional CIL processing plant, with Catalyst owning 100% of all associated tenements. The tenement is prospective for ‘high-grade’ underground gold-silver mineralisation and boasts ‘significant’ exploration upside in the mineral rich Mt Read Volcanic Belt, which has historically produced over 8 million ounces of gold.
With the Henty Gold Mine Resource now increased, Catalyst announces that it expects to move forward with its planned exploration program for 2023.
Images: Catalyst Metals Ltd
