Catalyst Metals Completes Acquisition, Plans 85koz Annual Gold Boost
Catalyst Metals has completed its acquisition of the Old Highway Gold Project, setting the stage for a significant expansion across multiple mining sites in Western Australia.
- Acquisition of Old Highway Gold Project finalized
- Plans to develop three new mining areas within 18 months
- Flagship Plutonic Gold Belt produces 85,000 ounces annually
- Strong balance sheet with A$98 million cash and no debt
- High-grade resources near historic Bendigo goldfield
Acquisition Completion Marks Strategic Growth
Catalyst Metals Limited (ASX, CYL) has officially completed the acquisition of the Old Highway Gold Project from Sandfire Resources Limited, maintaining the terms announced earlier in May 2025. This move adds a valuable asset to Catalyst’s portfolio, reinforcing its position in the Central Western Australian gold mining landscape.
Building on a Strong Production Base
The company’s flagship asset remains the 40-kilometre-long Plutonic Gold Belt, home to the Plutonic Gold Mine, which currently produces approximately 85,000 ounces of gold annually at an all-in sustaining cost of A$2,192 per ounce. Catalyst’s strategy leverages existing infrastructure, including a centrally located processing plant that is currently underutilized, allowing for low capital intensity development estimated at A$31 million across new projects.
Ambitious Expansion Plans
Over the next 12 to 18 months, Catalyst intends to bring three new mining areas into production. These developments are designed to feed the existing processing plant, supporting a five-year mine plan spanning four mines. This approach aims to maximize resource utilization while controlling capital expenditure, a prudent strategy in the current gold market environment.
Exploration Upside Near Bendigo
Beyond Western Australia, Catalyst also controls over 75 kilometres of strike length immediately north of the historic Bendigo goldfield, which boasts more than 22 million ounces historically mined. Here, the company has delineated a high-grade greenfield resource averaging 26 grams per tonne of gold, with further discoveries anticipated along strike, highlighting significant exploration potential.
Robust Financial Position
Catalyst’s capital structure remains solid, with 252 million shares outstanding, no debt, and a cash and bullion position of A$98 million. This financial strength provides the company with flexibility to advance its development plans and respond to market opportunities without immediate funding pressures.
Bottom Line?
Catalyst Metals’ acquisition and expansion plans position it for growth, but the market will watch closely for operational execution and resource conversion.
Questions in the middle?
- What are the expected production timelines and volumes from the new mining areas?
- How will the acquisition impact Catalyst’s overall cost structure and margins?
- What exploration results can be anticipated from the Bendigo strike length in the near term?
