Catalyst Metals boosts Plutonic reserves, looks to double production by 2027

A 105% increase in reserve numbers at the Plutonic project is set to stimulate three years of production growth for Western Australian gold miner Catalyst Metals (ASX: CYL).

Strong drilling success has supported reserve growth to 1 million ounces at Plutonic and led Catalyst to forecast a doubling of production over the next three years from 100,000oz to 200,000oz.

Managing director James Champion de Crespigny said the production growth will come at a total pre-production capital cost of $31 million spread across 18 months and three separate mine developments – Plutonic East, K2 and Trident – that will occur consecutively.

Three-year plan

Mr de Crespigny said the proposal transitions the Plutonic gold mine from a remnant mine to a new one.

“Catalyst has today provided to the market its three-year growth plan which is underwritten by 1Moz of reserves.”

“A year after consolidating the Plutonic gold belt, Catalyst has a strong balance sheet, stable operating cash flows and a pipeline of low-cost developments.”

Catalyst Metals produces 110,000oz of gold annually from two operations – Plutonic and Henty – with its flagship asset being the 40km-long Plutonic gold belt in Central WA.

This belt hosts the Plutonic gold mine, which currently produces 85,000ozpa at a cost of $2,291/oz.

Exploration campaign

As well as expanding its production, Catalyst is planning to undertake a $25m exploration campaign in FY2025.

This includes a resource drill-out at Plutonic East, K2 and Trident in an effort to extend their mine lives to five years, with annual gold production of greater than 20,000oz each.

Catalyst also plans to drill out each of nine new in-mine areas at Plutonic and conduct a $7m, 20,000m reverse circulation exploration program along two distinct corridors on the Plutonic belt – the Overthrust and Cinnamon corridors – designed to generate future resource targets.

‘Attractive opportunity’

“The Plutonic gold belt is an attractive exploration opportunity with the very real possibility of a significant discovery,” Mr de Crespigny said.

“The historically fractured and foreign ownership of Plutonic has led to a considerable lack of exploration along the belt.”

“We plan to aggressively drill out and expand these three new mines well beyond their current life, along with dedicating the required capital to make further discoveries along the belt.”