Catalyst Metals (ASX:CYL) is enjoying a jump to its share price in lunch trades as the market absorbs the company’s news of strong gold assay results.
The data relates to the company’s now-complete FY22 drilling program at the company’s Four Eagles project in Victoria.
New assay results revealed today are from the Boyd’s Dam target specifically.
A high range of gold grades were encountered on-site, ranging from extremely high to relatively thick mid-range intersections.
The company is now to move ahead to formulate a JORC resource.
Resource estimates will encapsulate results from the Boyd’s Dam prospect, and the Hayanmi prospect, both within Four Eagles.
Catalyst notes further zones of gold mineralisation have been encountered at Boyd’s in the latest RC drilling campaign.
Several high-grade intersections have been confirmed in areas to the west and east of the Boyd’s Dam-Hayanmi prospects area.
Mineralisation is also believed to be present at the southern and northern extremities of the project area, providing initial evidence of an extended mineral system.
The company has pivoted its mine plan towards the construction of an underground tunnel to allow better drilling access.
The company was a stand-out player in the first year of covid, given that it recovered losses in the space of a month.
Since early 2020, however, the company’s share price has continued to slowly decline.
One year performance currently sits at -33.17%.
However, the company has hit gold at abnormally high grades more than once at Boyd’s dam, suggesting the viability of interpretations suggesting an extensive gold system present on-site.
As at March 31 2022, the company had $23.4m cash in hand with opex under $1m.
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