Catalyst Metals : High grade gold mineralisation at Tandarra project (3.14 Mb)

• Further thick high-grade gold mineralisation intersected in infill drilling at Tomorrow Gold Zone, with individual gold grades up to 98.4g/t Au and including intersections of:
  • 11m @ 17.8g/t Au from 47 metres
  • 17m @ 6.6g/t Au from 30 metres
  • 21m @ 6.9g/t Au from 27 metres
• Tomorrow Gold Zone hits mineralisation at 19 metres vertical depth from surface
• Confirmatory bulk leach re-assays for gold zones awaited
• Modelling of shallow gold zone in progress

Catalyst Metals Limited (Catalyst or the Company) (ASX: CYL) is pleased to announce shallow high- grade gold intersections from the Tomorrow Zone at the Tandarra Gold Project from a shallow drilling programme to test the potential for open pit mineralisation. Several drill holes have confirmed gold mineralisation at depths of less than 20 metres from surface with individual gold grades up to 98.4 g/t Au and wider zones of gold mineralisation averaging greater than 5.0g/t Au.

Best intersections returned were

• 11.0 metres @ 17.8g/t Au from 47 metres down hole in FERC 172
• 17.0 metres @ 6.6g/t Au from 30 metres down hole in FERC 173 and
• 21.0 metres @ 6.9g/t Au from 27 metres down hole in FERC177.

Modelling of the gold zones will now be carried out and it is possible that these intersections will improve the overall average grade of the shallow gold mineralisation available within a potential open pit mining shape.

This announcement covers the assays received for sixty four (64) RC Blade holes for a total of 3,819 metres drilled on the Tomorrow gold zone over a strike length of about 450 metres. Holes were angled to the west at 60 degrees and drilled to a maximum depth of 80 metres (average vertical depth of 52 metres from surface). All assays quoted in this release are from 25 gram samples using an aqua regia digest and AAS finish. Follow-up bulk cyanide leach assays based on 2 kilogram subsamples are yet to be carried out on all anomalous samples to confirm the results. These two assay methods have tended to show good correlation in the past and indicate that the gold is finely divided and much less nuggety than at the nearby Bendigo gold deposit which historically produced 22 Mozs of gold.

Mr Bruce Kay, Catalyst's Technical Director, stated, "The RC drilling programme has confirmed the shallow gold mineralisation at the Tomorrow Zone with several outstanding high-grade intersections. In addition to providing shapes for a potential open pit deposit, the information will be valuable for future drill testing of the deeper sections of the deposit for high grade underground potential".

44 Kings Park Road West Perth WA 6005 PO Box 778, Claremont WA 6910 Telephone: (61-8) 6263 4423 Facsimile: (61-8) 9284 5426

www.catalystmetals.com.au ABN 54 118 912 495

The Tandarra Gold Project is situated approximately 15 kilometres south of the Four Eagles Gold Project along the Whitelaw Fault Corridor which is considered to be a major structural control of gold mineralisation north of Bendigo. Catalyst manages the entire Whitelaw Gold Fault Corridor and has interests in eight Exploration Licences which extend for 75 kilometres along the Whitelaw and Tandarra Faults north of Bendigo in Victoria (Figure 1). The Company has also lodged a large exploration licence application (Drummartin EL006507) over two potential regional faults to the east of Four Eagles, and north of the Fosterville Gold Mine.

The Tandarra Project is comprised of Exploration Licence 4897, which is owned by Navarre Minerals Limited (Navarre). Under a farm-in arrangement with Navarre, Catalyst is earning a 51% equity interest in Exploration Licence 4897 by spending $3 million on exploration over a four-year period. In September 2016, Catalyst satisfied an initial two-year expenditure commitment by spending a minimum of $800,000 on the Tandarra Gold Project (Figure 2).

In April 2017, a 3,819 metre RC Blade drilling program commenced at the Tomorrow Gold Prospect to provide detailed grade information on the shallow, high-grade gold occurring within the top 60 metres of depth over a strike length of about 450 metres (Figures 2, 3, 4, and 5).

The programme of 64 angled, large diameter RC Blade drill holes were designed to test the continuity of the gold mineralisation that could be amenable to open pit mining. The drill traverse spacing was approximately 25 metres north-south and will enable mineralised shapes to be estimated with confidence in an area where the un-mineralised cover is relatively shallow (18 to 30 metres).

Each drill hole was sampled on one-metre intervals with sample splitting prior to dispatch to the laboratory. Initial assays are reported in this announcement.

The drilling programme has confirmed high grade mineralisation over thick widths down to a vertical depth of about 60 metres and should enhance the grade in a portion of the shallow gold mineralisation. After modelling, it should be possible to determine the plunge of the shallow mineralisation thus providing drill targets at deeper levels. Best intersections (Assay in g/t Au X metre length > 15 gram metres) from the 2017 drill programme are shown as follows and diagrammatically on the longitudinal projection and cross section on Figures 4 and 5:

Tomorrow Prospect 2017 Intersections:

• 6.0m @ 5.5g/t Au from 34 metres (RCT155)
• 8.0m @ 5.2g/t Au from 42 metres (RCT156)
• 12.0m @ 1.3g/t Au from 67 metres (RCT169)
• 3.0m @ 5.0g/t Au from 31 metres (RCT170)
• 11.0m @17.8g/t Au from 47 metres (RCT172)
• 17.0m @ 6.6g/t Au from 30 metres (RCT173)
• 7.0m @ 8.9g/t Au from 67 metres (RCT174)
• 21.0m @ 6.9g/t Au including 1.0m @ 98.4g/t Au from 27 metres (RCT177)
• 9.0m @ 2.1g/t Au from 44 metres (RCT178)
• 7.0m @ 7.0g/t Au from 22 metres (RCT184)
• 6.0m @ 2.6g/t Au from 40 metres (RCT187)
• 6.0m @ 2.5g/t Au from 37 metres (RCT194)
• 3.0m @ 8.4g/t Au from 57 metres (RCT197)

  These results will be reviewed in conjunction with previous intersections recorded in the Tomorrow Zone from past drilling with the objective of delineating shapes for future resource estimation. Some of the previous results are listed below:

  Pre-2017 Intersections:

• 10.0m @ 17.8g/t Au from 37 metres (ACT015)
• 1.3m @ 18.2g/t Au from 20 metres and 1.7m @ 5.7g/t Au from 36 metres (DDT001)
• 3.0m @ 8.8g/t Au from 46 metres (ACT172)
• 7.0m @ 5.5g/t Au from 50 metres (RCT006)
• 2.0m @ 18.4g/t Au from 44 metres (RCT050)
• 15.0m @ 1.44g/t Au from 22 metres (RCT051)
• 5.0m @ 3.7g/t Au from 41 metres (RCT062)
• 4.0m @ 9.2g/t Au from 18 metres (RCT063)
• 23.0m @ 1.0g/t Au from 58 metres (RCT096)
• 5.0m @ 15.6g/t Au from 106 metres including 1.0m @ 69.7g/t Au (RCT107)
• 10.0m @ 6.1g/t Au from 74 metres and 23m @ 2.3g/t Au from 90 metres (RCT111)
• 2.0m @ 14.3g/t Au from 54 metres (RCT132)
• 4.0m @ 11.3g/t Au from 54 metres (RCT104)
• 2.0m @ 14.3g/t Au from 79 metres (RCT115)
• 7.0m @ 2.8g/t Au from 73 metres (RCT119)
• 14.0m @ 1.5g/t Au from 29 metres and 6.0m @ 5.2g/t Au from 51 metres (RCT136)
• 1.0m @ 13.0g/t Au from 62 metres (RCT124)
• 1.0m @ 30.2g/t Au from 82 metres (RCT126)
• 3.0m @ 5.8g/t Au from 64 metres (RCT131)

A complete interpretation of this segment of the Tomorrow Zone will be possible when all bulk leach assays have been received. The mineralised zone appears to be an envelope containing intense quartz veinlets and alteration rather than a planar structure. These envelopes appear to have a gentle plunge to the south east.

Full location data on the RC Blade/Hammer holes is shown on Table 1 and a Summary of Sampling Techniques and Reporting of Exploration Results according to the JORC Code 2012 Edition are tabulated in Appendix 1. Previous intersections shown on Figures 3a and 3b have been reported under the 2004 JORC Code. Maximum gold values in each hole are tabulated in Appendix 1.

Steve Boston Bruce Kay

Chairman Technical Director

Telephone: +61 409 574 515 +61 400 613 180

JORC Reporting of Historic Navarre Exploration Results

Although Catalyst was not involved in previous exploration at the Tandarra Gold Project, it has elected to update the information to comply with the JORC 2012 Code. The results had been publicly reported by Leviathan Resources Pty Ltd (ASX code LVR) (December 2004 to January 2007), Perseverance Corporation Limited (ASX code PSV) (January 2008 to March 2011) and Navarre Minerals Limited (ASX code NML) (March 2011 to September 2015) in numerous announcements during the stated periods under the JORC 2004 Code. Catalyst has limited knowledge on how the data was collected but has had to make assumptions based on the available historic data generated by these companies.

Full location data on the Tandarra drill holes and a Summary of Sampling Techniques and Reporting of Exploration Results according to the JORC Code 2012 Edition were included in the Company's ASX announcement dated 1 September 2014.

Competent person's statement

The information in this report that relates to exploration results is based on information compiled by Mr Bruce Kay, a Competent Person, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Kay is a non-executive director of the Company and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Kay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Information relating to the Tandarra project was first disclosed by previous tenement holders under the JORC Code 2004. This information has been subsequently reported by the Company in accordance with the JORC Code 2012, refer to announcement dated 1 September 2014 and the quarterly activities report dated 31 July 2014.