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Catalyst Metals (ASX:CYL) releases maiden ore reserve for Henty, Tasmania

ASX News, Mining
ASX:CYL      MCAP $578.5M
08 November 2022 17:22 (AEDT)

An aerial view of the Henty gold mine. Source: Catalyst Metals

Catalyst Metals (CYL) has released the maiden ore reserve estimate for its Henty gold mine in Tasmania.

The total probable reserve sits at 983,000 tonnes at 3.6 grams per tonne gold for 115,000 ounces and is based on Henty’s recent mineral resource estimate (MRE) increase.

Notably, Catalyst was able to convert 55 per cent of the indicated resources to the ore reserve.

The ore reserve estimate was developed from the life of mine (LOM) plan and prepared by consultants CSA Global based on drill hole data up to June 30. The estimate also supports an LOM plan beyond five years.

Since acquiring the mine in 2021, Catalyst has been progressively building Henty’s foundations into that of a more stable operation and said reporting the ore reserve is a further step into that direction.

“This reserve is key strategic milestone for Henty because it underpins our growth plan and highlights the project’s increasingly strong future,” Managing Director and CEO James Champion de Crespigny said.

Individual stopes may contain up to 20 per cent inferred ore, however it makes up less than one per cent of the reserve estimate. Stopes designed within the LOM plan that contain insufficient indicated resource will be targeted for upgrade drilling.

Shares in Catalyst were down 0.79 per cent at market close, to end the day at $1.26 each.

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