PERTH (miningweekly.com) – Junior gold miner Catalyst Metals has exceeded its full year production guidance of 25 000 oz at its Henty gold mine, in Tasmania, during the year ending June, and has now set higher production targets.
The ASX-listed company told shareholders that it had produced 25 199 oz in the full year, and 6 397 oz in the fourth quarter ending June.
“These results show that our growth strategy at Henty is working. We are increasing mining inventory through an aggressive drilling campaign and there is a solid trend of production growth. Importantly, this is capital-efficient growth because it is being achieved for a relatively small cost,” said Catalyst Metals CEO John McKinstry.
The 2023 production rate is anticipated to progressively increase from the current rate of 25 000 oz/y to an annualised rate of 35 000 oz/y, and this increase will be achieved by adding a new mining crew to the upper areas of the mine, McKinstry said.
He noted that the planned production increase involved only minor capital investment as the new mining crew would use equipment already at site, while the processing plant would not need any new investment to handle the additional ore tonnes mined.
“The key to increased production is developing access to new stoping areas in a timely manner. The addition of the new mining crew is critical to the mining plan. The new crew will commence in August 2022,” the company said.