Catalyst Metals strikes big with 1380g/t gold assay at Four Eagles project

Perth-based explorer Catalyst Metals (ASX: CYL) has recorded a “bonanza grade” assay of 1,380 grams per tonne gold over a 1 metre interval during drilling at the Boyd’s Dam zone within the Four Eagles gold joint venture in regional Victoria.

It is the highest-ever assay result recorded by Catalyst and has been reported to contain abundant visible gold within a broader zone of 8m at 174.5g/t gold.

Panning of the interval showed coarse and fine gold in association with quartz and arsenopyrite and several other drill holes confirmed the same high-grade mineralisation.

Other results at the Boyd’s Dam site were 10m at 5.1g/t gold from 75m; 10m at 3.0g/t gold from 55m; and 19m at 5.0g/t gold from 73m.

Six holes contained strong gold intersections and confirmed a zone of mineralisation in the top 100m with a strike length of at least 500m.

The zone is still open to the north where widely-spaced drilling at the Boyd North target has shown high-grade gold mineralisation at depths of up to 40m, possibly plunging south below the limit of previous drilling.

“These spectacular gold intersections have improved [our] understanding of the top 120m of the Boyd’s Dam gold zone, which is still untested along strike to the north and south and has potential for stacked gold shoots at depth,” said Catalyst technical director Bruce Kay.

Assay methods

Most of the assays received to date have been from 25 gram sub-samples using aqua regia digest and atomic absorption spectroscopy (AAS).

Mr Kay said bulk cyanide leach assays on 2kg samples are in progress on all anomalous samples to further confirm the results.

He said the two assay methods have shown good correlation in the past and indicate that the gold is finely disseminated and “much less nuggetty” than present at Bendigo.

Whitelaw belt

The Four Eagles joint venture project (Catalyst 50%; Gold Exploration Victoria Pty Ltd 50%) is situated along the Whitelaw fault corridor which is considered a major structural control of gold mineralisation north of Bendigo.

Catalyst manages the entire Whitelaw gold belt and has interests in 11 exploration licences and two retention licences which extend for 75km along the Whitelaw and Tandarra faults, and in other areas north of Victoria’s Fosterville and Inglewood goldfields.

Four Eagles covers an envelope of gold mineralisation approximately 6km long and 2.5km wide, comprising four targets – the high-grade Hayanmi, Boyd’s Dam and Pickles (formerly Discovery) prospects, and the low-grade Cunneens prospect which is at an early stage of exploration.

Project funding

In January, Catalyst announced it had secured a $13.02 million placement with GEV to enable it to move forward with Four Eagles and pursue aggressive exploration programs along the Whitelaw belt.

The placement comprises 8,680,000 ordinary fully-paid Catalyst shares at a subscription price of $1.50 per share and on completion, will see GEV hold an equity interest of approximately 11% in Catalyst.

At mid-afternoon, shares in Catalyst Metals were up 9.05% to $2.29.