JOHANNESBURG (miningweekly.com) – Australian gold junior Catalpa Resources on Tuesday reported that construction at its A$92-million Edna May gold project, in Western Australia, remained on schedule to start commissioning in May.

Catalpa MD Bruce McFadzean noted that the perceived construction deadlines and capital cost risks, which have plagued several other projects over the past few years, had been significantly reduced at its flagship Edna May project.

“We do not have any long-lead items outstanding, refurbishment is essentially complete, we have ore on the run-of-mine (ROM) pad, our people and systems are in place, we have power and water, a supportive community and the project is well advanced and on schedule. We are presently less than four months from commencing ore commissioning.”

The ASX-listed Catalpa, which also owns 30% stake in a Newcrest gold mine in Queensland, said that the Edna May project would produce around 100 000 oz/y of gold once in full production, over a nine-year mine life.

The mine’s first gold production was expected to take place in June.

McFadzean noted that since the first blast during December, to remove a remnant overhang from the north face of the open-pit, mining had continued on schedule, and stockpiling of high- and low-grade ore had started on the ROM pad.

The crusher dump pocket retaining wall was also finalised in December with the primary crusher now installed. The crusher apron feeder structural steel installation continues on schedule.

Concrete contractors have finished and departed site while fabrication and refurbishment at the Edna May gold processing plant was about 95% complete, and structural works were about 85% complete while mechanical, piping and electrical installations were under way.

Further, the negotiations with power suppliers have been finalised. “We are on schedule to have power into the plant site in February 2010,” said McFadzean.

“More importantly, we have achieved this progress without any lost-time injuries since project construction commenced. This is a significant achievement on a compact site operating at peak construction phase when we have up to 180 employees and contractors working on-site,” he added.

At an average gold price of A$1 400/oz Catalpa would realise an average cash operating margin of A$72-million a year from the Edna May gold operations.