Catalpa Resources Ltd. (CAH), an Australian gold producer, plans to buy a gold project in Asia after “bedding down” a merger with Conquest Mining Ltd. Catalpa is “very likely” to pursue a project with output capacity of 100,000 to 200,000 ounces a year, after integrating Conquest Mining and bringing two further gold Australian ventures into production, Chief Executive Officer Bruce McFadzean said in an interview in Kalgoorlie, Western Australia. The Perth-based company is among gold producers seeking to expand as prices for the precious metal soar. Catalpa agreed in June to buy Conquest for A$297 million ($328 million) in stock and purchase two gold projects from Newcrest Mining Ltd., giving it four producing mines in Australia. Catalpa plans to produce 400,000 to 450,000 ounces a year starting in 2013 as it adds output from the two new projects. The stock was unchanged at A$1.555 at the 4:10 p.m. close in Sydney, and has fallen 21 percent this year. Gold has jumped 37 percent in the past 12 months in London trading, reaching a record $1,632.80 an ounce July 29. Natixis Commodity Markets Ltd. raised its 2012 gold price estimate to $1,300 from $1,140 on July 28 as the debt crisis in Europe and the U.S. spurs demand for the metal as a protection of wealth. To contact the reporter on this story: Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net To contact the editor responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net

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