11/03/2009 - 12:26

Catalpa hires GR for Edna May rebuild

11/03/2009 - 12:26

Bookmark

Save articles for future reference.

Aspiring gold miner Catalpa Resources has reserved Perth-based GR Engineering Services for the refurbishment and construction of a processing facility at its $92 million Edna May gold project near Westonia.

Catalpa hires GR for Edna May rebuild

Aspiring gold miner Catalpa Resources has reserved Perth-based GR Engineering Services for the refurbishment and construction of a processing facility at its $92 million Edna May gold project near Westonia.

Catalpa Resources managing director Bruce McFadzean confirmed the letter of intent to GR is subject to a number of conditions precedent, including the successful completion of funding and board approval to commence the 12-month project construction phase.

"The refurbishment and recommissioning of the 2.8 - 3.2Mtpa Big Bell plant is the single largest capital component of the Edna May Gold Project budget.

"GR Engineering Services has had considerable input into the process modelling, design and costing of the plant construction, refurbishment and commissioning during our feasibility study process, and we are confident in their ability to meet our design specifications and our stringent safety requirements, on-time and within budget.

"'We are very pleased to have identified a Perth-based firm as our potential site engineering services provider, as we are committed to utilising local services and labour, in support of the local economy.

"Notably, the cost estimates for the Edna May Gold Project Feasibility Study were carried out at the peak of the resources boom last year when there was unprecedented demand for goods and professional services. That environment has changed somewhat today, and we are revisiting all of the project costs to realise savings wherever possible.

"Early indications are positive with regard to reductions to the Bankable Feasibility Study capital budget.

The company is targeting first gold pour mid next year.

Earlier this month, Catalpa executed a $67.5 million project financing deal with Macquarie Bank and planned to launch a $30 million capital raising.

Shares in Catalpa have soared this year from around four cents to an all-time high of 9.1c reached earlier this month after the company announced the Macquarie deal.

At 14:40 AEDT, shares in the company were trading at 8.5c, down 0.1c

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options