Catalyst Metals reports discovery of new parallel gold zone at Tandarra joint venture project

Diamond drilling at the Tomorrow Zone prospect within the highly-prospective Tandarra gold project in Victoria has confirmed an area of parallel gold mineralisation for joint owners Catalyst Metals (ASX: CYL) and Navarre Minerals (ASX: NML).

The area was confirmed at between 30m and 50m below the main Tomorrow Zone mineralisation over a strike length of 300m which remains open to the north and south.

Best intersections included 7m at 5.4 grams per tonne gold within a broader interval of 14.6m at 3g/t gold from 102.4m; and 0.4m at 243g/t from 180m.

Catalyst said the latter intercept occurred in a deeper prospective sandstone unit approximately 100m below previously-known mineralisation and “may indicate the making of an additional parallel lode repeat”.

Drilling was part of a follow-up program to a potential new mineralised position first inferred from previous exploratory reverse circulation and diamond activities.

It was designed to test depth repetitions of mineralisation at Tomorrow Zone which is a known characteristic of auriferous quartz reef systems at the project’s Bendigo location and the nearby Fosterville goldfields.

The new zone now includes previously reported intercepts of 24.4m at 4.2g/t gold including 6m at 14.3g/t gold; as well as 16m at 1.83g/t gold.

Drilling of more closely-spaced holes has been planned to define the extent and continuity of mineralisation.

It is expected to commence following completion of harvesting operations at year end.

Vertical “stacking”

The Tandarra gold project is situated along the Whitelaw Fault, about 40km north of Bendigo, and is considered to be a major structural control of gold mineralisation in the region.

The project’s most advanced prospect is the Tomorrow Zone which is concealed beneath a 40m-thick blanket of younger, unconsolidated sediments of the Murray Basin.

The vertical “stacking” or repetition of gold-mineralised horizons is a regional feature and a demonstration of repeated zones would potentially enhance the project’s economic potential.

Tandarra is a joint venture between Catalyst (51% equity and operator rights) and Navarre (49%).

Four Eagles joint venture

Catalyst today announced a new joint venture with Gold Exploration Victoria Pty Ltd (GEV) to carry out exploration on the Boort and Macorna Bore licence areas within a designated 850 square kilometre area of the high-grade Four Eagles gold project, also situated along the Whitelaw Fault.

GEV is a wholly-owned subsidiary of Hancock Prospecting Pty Ltd and a joint venture partner on Four Eagles.

Boort is an early-stage greenfields exploration target which has been subject to preliminary regional evaluations and targeting and is awaiting detailed gravity surveying to provide more clarification of the structures and basement depths.

The licence was granted on in March 2018 for a five-year period with annual work commitments ranging from $124,000 to $234,000.

Under the terms of the joint venture, GEV will refund 50% of Boort exploration expenditure incurred to date by Catalyst.

At the Macorna Bore tenements, GEV will pay Catalyst $250,000 in cash (inclusive of reimbursement for previous expenditure) and spend a further $250,000 on exploration during a two-year period to earn its 50% interest.

The parties anticipate any future exploration programs at Four Eagles will focus on an exploration campaign across a range of targets and resource modelling of the Boyd’s Dam zone, where drilling last month intersected more high-grade gold.

The new joint venture with GEV will enable Catalyst to focus its resources on the development potential of more advanced gold projects at Four Eagles and Tandarra.

The company will initially manage the joint venture through its subsidiaries Silkfield Holdings Pty Ltd and Kite Operations Pty Ltd.