Catalyst Metals has enjoyed 105 per cent reserve growth over the past year, with the company now holding one million ounces (Moz) of gold reserves.
This milestone has seen Catalyst set a new production target of 200,000 ounces (oz) for a capital cost of $31 million. This is up from the current production level of 100,000oz.
The production increase comes as Catalyst transitions the Plutonic gold mine from remnant mining to a new operation.
Over the next 18 months, the company will develop three key deposits: Plutonic East, K2, and Trident.
“Catalyst has today provided to the market its three-year growth plan which is underwritten by 1Moz of Reserves,” Catalyst’s managing director and chief executive officer James Champion de Crespigny said.
The $31 million of capital expenditure will be spread across the development of Plutonic East, K2, and Trident, all of which will feed into the existing, under-utilised processing plant at the Plutonic gold mine.
Catalyst also plans to invest $25 million in exploration during the 2024–25 financial year (FY25), focusing on the Plutonic East, K2, and Trident deposits, as well as exploring new areas within the Plutonic gold belt.
“The Plutonic gold belt is an attractive exploration opportunity with the very real possibility of a significant discovery,” de Crespigny said.
“The historically fractured and foreign ownership of Plutonic has led to a considerable lack of exploration along the belt.”
de Crespigny said the fact Plutonic is a brownfields opportunity, without the need for Catalyst to go chasing potentially dilutive capital, further bolsters the company’s strategy.
“We plan to aggressively drill out and expand these three new mines – Plutonic East, K2, and Trident– well beyond their current life, along with dedicating the required capital to make further discoveries along the belt,” he said.
Catalyst is in a strong financial position, with $44 million in cash and bullion and free cash flow of $54 million in FY24.