Catalyst Metals Limited (ASX: CYL) has achieved first stoping ore at Plutonic East in Western Australia. This marks the first of three mines set to boost production across the Plutonic Gold Belt.
Over the next 12 to 18 months, Catalyst plans to increase annual gold output to 200,000 ounces. The A$31 million expansion will utilise existing infrastructure to optimise efficiency.
Figure 1: Plutonic Gold Belt showing location of Plutonic East Mine
Catalyst Managing Director and Chief Executive Officer, James Champion de Crespigny, highlighted the significance of this milestone.
“Plutonic East coming online is the first step in realising the value of the belt,” he said. “It gives more ore sources and more options to our team and lowers the operating risk profile of the business.”
Strategic Development of Plutonic East
Plutonic East, an underground mine located 2 km from the Plutonic processing plant, was last mined by Barrick Gold in 2012 at a gold price of approximately A$1,500 per ounce. The mine remained on care and maintenance until Catalyst commenced redevelopment in April 2024.
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Key milestones in the redevelopment include:
- Dewatering and rehabilitation of underground workings.
- Deployment of drilling rigs for infill and grade control.
- Mobilisation of mining fleets and double-shift operations.
- Installation of surface infrastructure, including a 2.8MW diesel power plant.
Catalyst delineated a mineral resource of 2.2 million tonnes at 2.5 g/t gold for 182,000 ounces. The probable reserve stands at 500,000 tonnes at 2.5 g/t for 36,000 ounces, forming the basis of an initial three-year mine plan.
Figure 2: 2.8MW diesel power plant recently commissioned
Strengthening Operations and Reducing Risk
Plutonic East provides an additional ore source to complement the Plutonic main underground mine, which currently produces 85,000 ounces of gold annually at an all-in sustaining cost (AISC) of A$2,192 per ounce.
The mine’s reopening allows Catalyst to:
- Diversify ore sources and increase production stability.
- Lower operational risks associated with remnant mining at Plutonic main underground.
- Train personnel in a lower-risk environment before expanding into other new mining fronts.
“The Plutonic main underground mine is predominantly a remnant mine, which is not always easy to operate,” de Crespigny said. “By reinvesting in the belt through exploration and opening up mines like Plutonic East, Catalyst continually lowers its future operating risk.”
Expansion Plans and Production Targets
Catalyst acquired the Plutonic Gold Belt 20 months ago and has since transformed it from a loss-making asset into a profitable operation. The company is now progressing the development of two additional mines, K2 and Trident, to further boost production.
Figure 3: Drilling of the first production stope
Planned outcomes include:
- Scaling up group production to 200,000 ounces per year.
- Processing ore through the existing, underutilised Plutonic processing plant.
- Minimising capital intensity across new developments.
With strong financial positioning, including A$84 million in cash and bullion and no debt, Catalyst is set to continue its expansion strategy.
Market Outlook and Industry Trends
Gold prices remain a crucial factor in mining economics. With gold trading above A$3,000 per ounce in early 2025, Catalyst stands to benefit from favourable market conditions.
The Australian gold industry continues to be a major contributor to the global market, producing over 310 tonnes in 2024. With rising demand for gold and increasing exploration activity, companies like Catalyst are well-positioned to capitalise on growth opportunities.
Catalyst’s 320,000-metre exploration program across the Plutonic Gold Belt reflects its commitment to expanding resources and sustaining long-term production.
A Strong Foundation for Future Growth
The first stoping ore at Plutonic East marks a milestone in Catalyst’s growth strategy. By leveraging existing infrastructure, diversifying ore sources, and strategically investing in new developments, the company is on track to achieve its goal of doubling production. With further expansion on the horizon, Catalyst remains focused on maximising the potential of the Plutonic Gold Belt.
