Catalpa Resources Limited (ASX: CAH) has finalised a bankable feasibility study and project debt to advance its A$92million Edna May gold Project towards production and is currently finalising project equity. The Edna May Gold Project is conveniently positioned a few kilometres from the infrastructure of Westonia, an established town with a long mining history. The Project is just three hours or 300km by road from Perth; half way between Perth and Kalgoorlie and ideally situated to be serviced by both centres.

Catalpas mine and processing schedule demonstrate average gold production in excess of 100,000 ounces recovered per annum for a life of mine of more than six years.

In preparation for planned production at Edna May, the Company relocated its 2.8 to 3.2 Mtpa Big Bell mill to site in 2007. The process plant has a twelve month construction period scheduled to commence at the completion of project funding.

With its early cash flow profile, Catalpa aims to grow and develop the Company into Australias next mid tier gold producer.

Notably, the already robust economics of the feasibility exclude further extensions to the project life following the planned release of additional Ore Reserves from Greenfinch. Greenfinch is the western continuation of the Edna May Gneiss which is undergoing further infill drilling, the early results of which indicate new gold mineralisation zones in close proximity to the Edna May pit. A Greenfinch Resource update and new Reserve is scheduled to be finalised in April 2009.

With 64% of the Edna May Reserve already in the highest confidence, Proven JORC category, Catalpa has a sound Resource base with significant growth potential. This Reserve confidence, in conjunction with a metallurgically uncomplicated and consistent orebody with a recovery rate greater than 91%, makes the Edna May Gold Project an attractive long term opportunity to grow a mid tier gold producer.

Catalpa has amassed a management team with considerable technical, project and operational expertise and has the support of an experienced and innovative Board that is committed to using the continuing strength of the gold price to realise value for Catalpas shareholders.

To view an animation of the project, please click here.