Catalyst Metals rises on strong gold assay results

Thu 23 Jun 22, 1:26pm (AEDT)
A golden statuette of a bull overshadows a golden statuette of a bear on top of a financial newspaper layout
Source: iStock

Key Points

  • Catalyst Metals’ share price up 8% in the last leg of lunchtime trades
  • Company is now to develop JORC Resource for the project
  • Company has wrapped up its FY22 drilling season in Victoria at Four Eagles

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.

Map locating Catalyst's Four Eagles and Tandarra Projects
Map locating Catalyst's Four Eagles and Tandarra Projects

Latest Boyd’s Dam run reveals further targets 

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.

Is Catalyst overlooked? 

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.

Catalyst's three month charts compared to the materials index
Catalyst's three month charts compared to the materials index


What has Catalyst found at Boyd's dam?

Today, Catalyst Metals reports a number of assay results from a recent RC drill run at the Boyd's Dam prospect, part of the company's Four Eagles project in Victoria.

Undervalued Equity notes high grade gold is that above 5 grams of gold per tonne (g/t), where as mid-range gold sits around 1.5/gt - 4.9g/t.

Catalyst is reporting the following:

  • 9m @ 29.09 g/t gold

  • 8m @ 6.72 g/t gold

  • 7m @ 2.15 g/t gold

  • 16m @ 1.37 g/t gold

  • 14m @ 1.16 g/t gold


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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