Catalpa puts shine on gold

Perth-based Catalpa Resources Ltd is aiming to become Australia's next mid tier gold producer by developing its open pit assets, located on its extensive and wholly-owned mining tenements in Western Australia.

The company today said it was on the cusp of a new phase of development towards production at its Edna May Gold Project, 300 kilometres from Perth, near Westonia.

"Catalpa has an experienced and innovative board and management team that is committed to realising a timely production and cash flow profile from the development of the Edna May open pit resources," the company said in a statement.

Catalpa said it has a sound resource base at Edna May with significant upside to grow resources and reserves and move towards production.

"With a buoyant outlook on the gold price, the company's board believes that Catalpa Resources presents a sound investment opportunity with significant upside potential," the company said.

An update to the company's 2006 Edna May Gold Project Feasibility Study is due to be finalised in the September quarter.

Catalpa is pursuing parallel growth with a renewed exploration program underway of its under-explored Westonia Greenstone Belt and is reviewing other regional opportunities for acquisition or joint venture.

In particular, Catalpa is seeking to identify and develop new projects or acquisitions on its extensive land holding within the region, which is prospective for gold, nickel and base metals.