Catalyst Metals’ (ASX:CYL) gold production is forecast to double across several of its operations in Western Australia, after achieving a 105% growth in reserves over the last 12 months.
The reserve growth — totalling 1 million ounces of gold — allows Catalyst Metals to provide three-year production guidance, increasing annual gold production from 100,000 ounces to 200,000 ounces.
Catalyst Metals, which has a market capitalisation of $496.72 million, says its existing infrastructure enables this production growth for $31 million, which will be spread across 18 months and three separate mines, namely Plutonic East, K2, and Trident in Western Australia.
In FY25, Catalyst Metals forecasts gold production to be between 105,000 to 120,000 ounces. The production will be sourced from Plutonic underground, Plutonic East, and Henty mines.
In FY26, gold production is anticipated to be between 145,000 ounces to 165,000 ounces. All production will be sourced from Plutonic East, Plutonic underground, K2, Trident open pit and Henty.
Meanwhile in FY27, gold production is expected to be between 180,000 ounces to 220,000 ounces. All production will be sourced from Plutonic East, Plutonic underground, K2, Trident open pit and Henty.
CEO James Champion de Crespigny says a year after consolidating the Plutonic gold belt, the company has a strong balance sheet, stable operating cashflows, and a pipeline of low-cost developments.
“What is all the more exciting is the opportunity to now turn our attention to growth through exploration,” Champion de Crespigny says.
“The Plutonic gold belt is an attractive exploration opportunity with the very real possibility of a significant discovery. The historically fractured and foreign ownership of Plutonic has led to a considerable lack of exploration along the belt.
“Furthermore, the fact it is a brownfields opportunity, without the need for Catalyst to go chasing potentially dilutive capital, is very exciting.”
Champion de Crespigny says the company is planning to drill out and expand the three new mines well beyond their current life, along with dedicating the required capital to make further discoveries along the belt.
A $25 million exploration campaign is planned for next financial year. This will include a resource drill out of Plutonic East, K2, and Trident, in an effort to extend their mine lives to five years and at an annual gold production greater than 20,000 ounces each.
Catalyst Metals adds it will also conduct drilling at each of the nine new mine areas at Plutonic, alongside a $7 million 20,000m reverse circulation drilling program. The program will be conducted along two distinct corridors along the Plutonic belt designed to generate future resource targets.
The Plutonic Gold Mine lies 300km northeast of Meekatharra in the mid-west region of Western Australia.
Catalyst Metals is an Australian gold producer with a dominant landholding in three prolific Australian gold belts — Western Australia, Tasmania, and Victoria.
Write to Aaliyah Rogan at Mining.com.au
Images: Catalyst Metals
