Join our daily newsletter At The Bell to receive exclusive market insights
- Catalyst Metals (CYL) has made an excellent start to gold production at its Henty Gold Mine in Tasmania
- The company only purchased the project in January and has already improved the production levels seen by the previous owner
- Henty is expected to produce 25,000 ounces of gold for the year
- Gold production for February and March totalled 4839 ounces at a grade of 5.7g/t of gold and with metallurgical recoveries reaching 95 per cent
- On the market this morning, Catalyst is up 4.65 per cent and is trading at $2.25 per share
Catalyst Metals (CYL) has made an excellent start to gold production at the Henty Gold Mine in Tasmania.
The company purchased the mine earlier this year, and it has already boosted production above expected levels.
Detailed mining planning has indicated that this performance can be continued throughout the calendar year 2021 and achieved estimated production of 25,000 ounces of gold.
Gold production for February and March 2021 totalled 4839 ounces at a grade of 5.7g/t of gold while achieving metallurgical recoveries of 95 per cent, significantly higher than the pre-acquisition projections.
Notably, March’s performance achieved 2769 ounces of gold at a grade of 6.4g/t of gold and a metallurgical recovery of 94.8 per cent.
This is a major improvement on the production achieved by the previous owner, which reached grades of 3.23g/t gold and average metallurgical recoveries of 76.1 per cent for the financial year to January 19, 2021.
Catalyst achieved the increased gold recoveries by reviewing the management of the leach tank environment in the gold plant.
Over the two months and 12 days of production under Catalyst ownership, revenue from gold sales has totalled $11.5 million.
“Catalyst has made an excellent start as a mine operator at Henty drawing upon the operational and technical experience of all involved during the transition,” CEO Bruce Robertson said.
“The business is performing well with a positive operating cash flow achieved since the acquisition,” he added.
On the market this morning, Catalyst is up 4.65 per cent and is trading at $2.25 per share at 12:21 pm AEST.
