CATALYST METALS LIMITED ASX: CYL
Quarterly Activities ReportQuarter ended 30 September 2017
SUMMARYBulk cyanide leach assays from the Hayanmi Zone confirm very high-grade gold intersections at Four Eagles Gold Project including:
20m @ 21.4g/t Au
22m @ 36.5g/t Au
6m @ 21.5g/t Au
Visible gold logged in RC drilling chips at Four Eagles Gold Project
Bulk leach assays from Tomorrow Zone at Tandarra Gold Project also show good correlation with 25 gram samples:
10m @ 14.0g/t Au from 47 metres
17m @ 7.1g/t Au from 30 metres
21m @ 6.5g/t Au from 27 metres
Low nugget effect at Four Eagles and Tandarra confirmed by consistent assay correlation between small (25 gram) and large (2 kilogram) samples
Gold potential of Catalyst tenements enhanced by high grade Fosterville discoveries
Air core and diamond drilling to commence at Sebastian, Macorna Bore and Tandarra in October/November 2017
The receipt of final bulk leach assays from the Four Eagles and Tandarra Gold Projects has confirmed the spectacular gold intersections recorded in the June 2017 Quarter.
In drillhole FERC185, one intersection increased to 22.0 metres @ 36.5g/t Au while the other reduced in grade to 20.0 metres @ 21.4g/t Au. FERC185 finished in high grade gold mineralisation of 24.4g/t Au at 138 metres depth. It was very encouraging that even high-grade assays (>100g/t Au) were confirmed by the bulk leach assays with visible gold observed in at least two samples.
Catalyst's regional strategy over the last five years has been vindicated by the spectacular exploration success of TSX and NYSE listed Kirkland Lake Gold Limited (KLG) at the Fosterville Gold Mine which lies on a large fault system similar to the Whitelaw Gold Belt to the east. In July 2017, KLG announced a new reserve for the Swan Discovery of 532,000 ounces at a grade of 58.8g/t Au (refer TSX announcement by KLG dated 27 July 2017). In the June 2017 quarter, the Fosterville mine produced 77,069 ounces of gold at a grade of 17.2g/t Au at an AISC of approximately $380 per ounce (refer TSC announcement by KLG dated 9 July 2017). This discovery and the transformation of the Fosterville gold mine has resulted in renewed investor interest in the gold exploration potential in Victoria.
Investors are now realising that the new greenfield discoveries in the Whitelaw Gold Belt are different to the expensive deep underground forays beneath the old gold mines at Bendigo and Ballarat. The new discoveries have the potential for both open pit and underground operations in areas that have never seen previous prospecting.
Interpretation of the Four Eagles drill data from the 2017 drill campaign has shown structural similarities to the Fosterville system and has also confirmed that the Four Eagles Gold Project is a significant greenfield gold discovery under cover in Victoria.
WHITELAW GOLD BELTThe Four Eagles Gold Project and the Tandarra Gold Project are situated about 15 kilometres apart 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 Belt 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 an exploration licence application (Drummartin EL006507) over two potential regional faults to the east of Four Eagles, and north of the Fosterville Gold Mine. Recent spectacular gold discoveries at Fosterville by KLG have provided added confidence to Catalyst in its exploration on the Whitelaw, Drummartin and Redesdale Fault Corridors.
Activity during the September 2017 Quarter was focussed on data compilation and interpretation from the 2017 drilling programme, annual technical reporting and modelling of mineralisation shapes at Boyd's Dam and Hayanmi Prospects for inclusion in the amended Mineralisation Report (MR). The MR will be submitted to the Victorian Department of Development, Jobs, Transport and Resources (DEDJTR) before 30 November 2017 as part of the application for a Retention Licence to replace EL4525.
Catalyst's objective is to use modern geophysical and drilling techniques to discover high grade gold deposits that can be mined by open cut or underground methods. The discoveries at Four Eagles and Tandarra have confirmed the high prospectivity of the Whitelaw Fault Corridor.
FOUR EAGLES JOINT VENTURE (EL4525, EL5295, EL5508)Catalyst retains a 50% interest in the Four Eagles Gold Project whilst Gold Exploration Victoria Pty Ltd (GEV) (a wholly owned subsidiary of Hancock Prospecting Pty Ltd) is earning up to a 50% interest from Providence Gold and Minerals Pty Ltd by spending $4.2 million on exploration. To date, GEV has earned a 25% interest in the Four Eagles Gold Project by spending $2.1 million and is expected to complete the remaining expenditure during 2017 to earn its additional 25%.
The Four Eagles Joint Venture covers an envelope of gold mineralisation about 6 kilometres long and
kilometres wide with gold occurring in at least three structural zones trending roughly north south (Eagle 2, Eagle 3 and Eagle 4 on Figures 2a and 2b). Three prospects have produced high grade gold intersections (Discovery, Hayanmi and Boyd's Dam). Only a small portion of the total area has been tested by drilling and the 2017 programme also drill tested some of the targets interpreted from the 2016 gravity survey with good success.
RC BLADE/HAMMER DRILLINGThis programme involved the drilling of angled large diameter air core holes (RC Blade/Hammer) on the Hayanmi and Boyd's Dam gold structures to provide an improved understanding of the shapes of the gold mineralisation (Figure 2a and 2b).
Hayanmi RC Blade/Hammer Drilling
Thirteen RC holes were drilled over a 400-metre strike length of the Hayanmi Trend to test the gold mineralisation down to a vertical depth of about 100 metres. The objective of the programme was to test the Hayanmi structure at a traverse spacing of about 50 metres in order to interpret the shape of the gold mineralisation. Preliminary 25-gram aqua regia AAS assays had been reported previously and bulk leach assays were reported in an ASX announcement dated 23 August 2017.
The bulk leach data confirms the strong intersections reported in the previous announcement with a maximum value of 313g/t Au over a one metre interval. Significant intersections are listed below and are shown in plan view on Figure 5 and in longitudinal projection on Figure 6:
20.0m @ 21.4g/t Au including 5.0m @ 82g/t Au from 76 metres (FERC185)
22.0m @ 36.5g/t Au from 116 metres including 8.0m @ 90.2g/t Au from 130 metres (FERC185)
6.0m @ 21.5g/t Au from 77 metres including 4.0m @ 31.5g/t Au from 79 metres (FERC183)
Mr Bruce Kay, Catalyst's Technical Director, stated, "These assay results using the more reliable bulk cyanide leach method confirm the best results yet received at the Four Eagles Gold project. Panning of several of the high-grade samples has shown considerable fine-grained gold as well as the coarser gold samples shown below in Plate 1. We believe that the distribution of the gold will not be nuggetty like Bendigo and should produce consistent assay values."
Full assay data using bulk leach analysis on the RC Blade/Hammer holes were shown on Table 1 of Appendix 1 of the announcement dated 23 August 2017.
Drillhole FERC185 contains two strong zones of high grade gold mineralisation which may represent stacking of the gold zones and the enhanced ounces of gold per vertical metre is important for both open pit or underground mining.
Plate 1 below shows the nature of some of the coarse and fine gold in FERC185.
Plate 1: Visible disseminated gold in quartz in FERC185 (77-78 metres). Grain is approximately 7mm by 3mm in size. One metre sample assayed 274g/t Au.
Boyd's Dam - Boyd North Prospects
Interpretation of the RC and air core drilling results continued during the September 2017 Quarter following the receipt of all bulk cyanide leach assays. These results show strong gold mineralisation in the core section of Boyd's Dam and also confirm the high gold grades recorded at Boyd North with air core drilling during 2016. The total length of the Boyd's Dam-Boyd North structure is now about 1.8 kilometres long with sporadic high gold grades scattered over the entire length. Boyd North is still only tested at 150 metre intervals and will require RC hammer drilling to penetrate the common quartz veins that occur along the structure.
The bulk leach assays are considered more reliable and have generally increased the tenor of the intersections. Significant intersections are shown in plan view on Figure 3 and diagrammatically on the longitudinal projection as Figure 4 and are listed below:
6.0 m @ 31.6g/t Au including 1.0 m @ 247g/t Au from 114 metres (FERC152)
19.0m @ 10.5g/t Au including 1.0m @ 100.0g/t Au from 59 metres (FERC158)
4.0m @ 20.0g/t Au including 1.0m @ 70.6g/t Au from 110 metres (FE776)
9.0m @ 10.2g/t Au from 42 metres (FERC147)
1.0m @ 28.8g/t Au from 83 metres (FERC153)
5.0m @ 7.97g/t Au from 50 metres (FE782)
9.0m @ 8.2g/t Au from 37 metres (FERC164)
12.0m @ 2.7g/t Au from 107 metres and 1.0m @ 20.9g/t Au from 86 metres (FERC154)
13.0m @ 3.6g/t Au from 81 metres (FERC155)
1.0m @ 25.5g/t Au from 91 metres and 1.0m @ 32.3g/t Au from 112 metres (FERC149)
2.0m @ 7.9g/t Au from 95 metres (FERC146)
1.0m @23.6g/t Au from 115 metres (FERC145)
6.0m @ 3.7g/t Au from 98 metres (FE766)
4.0m @ 7.1g/t Au from 95 metres and 2.0m @ 17.6g/t Au from 157 metres (FERC161)
15.0m @ 2.2g/t Au from 94 metres (FERC172)
5.0m @ 3.4g/t Au from 82 metres (FERC166)
Air core drilling was completed in May 2017 with 8,899 metres of drilling completed at Boyd North, Hayanmi North, and Discovery Zones as well as reconnaissance drilling on five of the eight gravity geophysical targets.
Gravity Targets
A geophysical gravity survey in 2016 highlighted eight gravity targets for drill testing in 2017. Based on accessibility, five of these targets were tested with air core drilling during the March to May 2017 period and two of the targets have shown gold mineralisation (Figures 2a & 7)
Bulk leach assays for the anomalous zones on Gravity Targets 3 and 4 has confirmed the values albeit at narrower intervals. In Gravity Target 3, a significant gold intersection of 1.0m @ 3.1g/t Au was obtained from 124 metres depth in drillhole FE847. This zone is in a totally new area with no previous drilling but may lie on the interpreted Eagle 1 Trend which had weak gold intersections approximately 2.5 kilometres to the north. On gravity Target 4, six (6) kilometres to the north, low grade gold mineralisation was also intersected in drillhole FE845 which contained 1.0m @ 0.67g/t Au from 96 metres.
The discovery of significant gold mineralisation on gravity targets on the Eagle 1 structure has opened up a large new area of exploration which will require further air core drilling. It has also confirmed the value of gravity surveys as a cheap exploration method to generate targets in areas where there is little information.
Catalyst Metals Limited published this content on 31 October 2017 and is solely responsible for the information contained herein.
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