Gold miner and developer Catalyst Metals (ASX:CYL) has demonstrated the potential of its Trident underground deposit within the newly consolidated Plutonic Gold Belt in Western Australia following a Scoping Study.
The company, which has a $164.29 million market capitalisation, says the Scoping Study demonstrates a low upfront capital development of $36 million with ‘strong’ pre-tax cash flows of $294 million over an initial mine life of 4.3 years.
These results come ahead of Catalyst Metals Technical Director Bruce Kay’s presentation at the Noosa Mining Investor Conference, which is taking place from today (19 July 2023) to Friday (21 July 2023). Kay is scheduled to conduct his presentation on day 2 of the conference.
The study also highlighted an estimated internal rate of return (IRR) of 132% and pre-tax net present value (NPV) of $246 million at a $2,700 gold price, increasing to $276 million (145% IRR) at spot gold prices.
Catalyst reports the study highlights the benefits of leveraging the existing Plutonic infrastructure. The study also demonstrates a ‘considerable’ exploration upside, with Trident remaining open along strike and at depth.
Current development at Trident remains ‘highly leveraged’ to future resource conversion. This is due to the $18-per-ounce conversion cost having the potential to generate $160 per ounce in free cashflow.
In order to achieve these outcomes, Catalyst notes funding in the order of $50 million is required, which will include all pre-production costs, of which the pre-production capital is $36 million.
As a result, Catalyst Metals has moved forward with Definitive Feasibility Studies (DFS) to support a Final Investment Decision (FID), targeting first ore in Q4 CY2024.
Commenting on the Scoping Study, Catalyst Managing Director and Chief Executive Officer (CEO) James Champion de Crespigny says: “The potential of Trident has long been understood. Trident is a high-grade resource but has historically lacked access to processing infrastructure. The consolidation of the Plutonic Gold Belt by Catalyst has allowed for the potential of Trident to be realised.
“What’s most exciting about Trident is the significant value that can be created from incremental gains to the mining inventory”
What’s most exciting about Trident is the significant value that can be created from incremental gains to the mining inventory. Trident Resource is 400koz. Yet, the scoping study only contains mining inventory of 230koz. With the deposit remaining open in all directions, and all processing and haulage infrastructure in place, there is an opportunity to significantly increase the value of the project for a very low cost.”
Catalyst Metals is an Australian gold miner and developer that holds ‘significant’ landholdings in 3 mineral belts with ‘large’ gold endowment.
The company’s 40km long Plutonic-Marymia Gold Belt is located in Western Australia and hosts the Plutonic gold mine as well as neighbouring underexplored ‘high-grade’ resources.
Write to Adam Drought at Mining.com.au
Images: Catalyst Metals Ltd