Catalyst Metals’ Plutonic East Redevelopment On Track but Mine Life Questions Remain
Catalyst Metals is on track to nearly double its annual gold production to 200koz by revitalising the Plutonic East mine, backed by strong grade control drilling results and a modest A$31 million capital plan.
- Current production at 110koz annually from Plutonic and Henty operations
- Plutonic East redevelopment underway with first ore expected this quarter
- Grade control drilling reveals high-grade gold intercepts up to 234g/t
- Group production forecast to reach 200koz within 12 to 18 months
- Capital expenditure of A$31 million to bring four new mining areas online
Catalyst Metals’ Growth Strategy
Catalyst Metals Ltd (ASX: CYL) is advancing a bold plan to nearly double its gold production from 110,000 ounces per annum to approximately 200,000 ounces within the next 12 to 18 months. Central to this growth is the redevelopment of the Plutonic East underground mine, located just 2km from the company’s flagship Plutonic Gold Mine processing plant in Western Australia.
The company’s existing operations, Plutonic and Henty, currently produce 110koz annually, with Plutonic alone contributing 85koz at an all-in sustaining cost (AISC) of A$2,192 per ounce. Catalyst’s strategy leverages the underutilised 1.8Mtpa processing plant at Plutonic, enabling new ore sources to be processed efficiently and cost-effectively.
Plutonic East: On Time, On Budget
Since acquiring Plutonic less than two years ago, Catalyst has rapidly rehabilitated and dewatered the Plutonic East underground workings, preparing the site for production restart. Development drives have commenced, and grade control diamond drilling, initiated in November 2024, has returned impressive high-grade intercepts including 9 meters at 234g/t gold and 6 meters at 37.6g/t gold.
These results underpin the confidence in the mine’s potential, with first ore expected to be processed this quarter. The redevelopment is progressing on schedule and within the allocated capital budget of A$31 million, which covers four new mining areas designed to feed the central processing plant.
Resource Base and Exploration Upside
Catalyst’s mineral resource estimate for the Plutonic Gold Belt stands at 3.6 million ounces at 2.8g/t gold, with ore reserves of 1 million ounces at 3.0g/t. Plutonic East itself holds a resource of 2.2 million tonnes at 2.5g/t for 182,000 ounces, including a probable reserve of 0.5 million tonnes at 2.5g/t for 36,000 ounces.
Ongoing infill drilling aims to convert inferred resources to indicated status, potentially extending mine life to five years and solidifying Plutonic East as the third mine on the belt with a multi-year horizon. Catalyst also controls significant strike length north of the historic Bendigo goldfield in Tasmania, where high-grade greenfield resources have been delineated.
Financial and Operational Strength
The company maintains a strong balance sheet with A$84 million in cash and bullion and no debt, providing ample runway to execute its growth plans. Managing Director James Champion de Crespigny highlighted the operational turnaround and expanded exploration program since acquisition, emphasizing the strategic advantage of multiple ore sources feeding a single processing plant to reduce operational risk.
With the Plutonic East redevelopment on track, Catalyst is poised to deliver significant production growth at a relatively low capital intensity, a compelling proposition in the current gold market environment.
Bottom Line?
Catalyst Metals’ disciplined execution at Plutonic East sets the stage for a transformative production leap, but ongoing drilling results will be critical to sustaining this momentum.
Questions in the middle?
- Will infill drilling at Plutonic East extend mine life beyond five years as planned?
- How will gold price fluctuations impact Catalyst’s cost structure and project economics?
- What are the timelines and prospects for bringing the other three new mining areas into production?