Australia's Catalyst Metals on Friday announce the successful achievement of first stoping ore at its Plutonic East mine, marking a milestone in the company’s ongoing expansion within the Plutonic Gold Belt in the Mid-West region of Western Australia.

The project, which is part of Catalyst's strategy to double its production over the next 12 to 18 months, has been developed on time and within budget, with funding provided through operating cash flows.

Plutonic East is the first of three mines Catalyst intends to develop within the Plutonic Gold Belt, as part of a planned A$31-million investment. The relatively low development costs and short lead time for Plutonic East can be attributed to the existing infrastructure and sunk capital in the region, facilitating a smoother and more cost-effective development process.

Plutonic East is a pre-existing underground mine, located 2 km east of the Plutonic mill. The mine was last mined by Barrick in 2012 at gold prices of A$1 500/oz. It has been on care and maintenance since.

In June last year, Catalyst announced its intention to restart production at Plutonic East.

“Catalyst’s focus has always been about the long-term value of the Plutonic Gold Belt, not just the Plutonic main underground mine,” said MD and CEO James Champion de Crespigny.

“Plutonic East coming online is the first step in realising the value of the belt. It gives more ore sources and more options to our team and lowers the operating risk profile of the business.”

Champion de Crespigny further explained that the Plutonic main underground was the main ore source. "At present it is mainly a remnant mine which is not always easy to operate. By reinvesting in the belt through exploration and opening up mines like Plutonic East, Catalyst continually lowers its future operating risk.”

Catalyst acquired the belt 20 months ago, during which time it has transformed the Plutonic mine from a loss-making operation to a profitable one. In addition, Catalyst has cleaned up its balance sheet, resolved numerous inherited legal disputes, and initiated an extensive 320 000-m exploration programme across the belt.

The next phases in Catalyst’s growth strategy involve the development of the K2 and Trident mines, both of which are expected to further bolster the company’s production and enhance its position in the gold sector.