Catalyst secures Victorian Government TARGET co-funding
Perth, May 19, 2017 AEST (ABN Newswire) - Catalyst Metals Limited (Catalyst or the Company) (
ASX:CYL) has been advised by the Resources Division of Minerals Development Victoria (EcoDev) that it has been successful in three applications for co-funding under the TARGET initiative to promote mineral exploration in Victoria. During the period to 30 June 2018, the Company will receive matching funding of $910,850 on exploration expenditure for three projects in the Whitelaw Gold Belt in Victoria.
- Catalyst secures Victorian Government TARGET co-funding on three projects for $911,000
- New Exploration Licence Application on Drummartin and Redesdale Faults gold potential
- RC Blade drilling completed at Tomorrow Zone at Tandarra Gold Project
- Hayanmi RC Drilling and Gravity Reconnaissance Air Core drilling almost completed
Catalyst has recently lodged an Exploration Licence application over a large area of approximately 660 square kilometres to cover parts of two regional fault structures east of and parallel to the Whitelaw Gold Belt where Catalyst manages gold discoveries at the Four Eagles Gold Project and Tandarra Gold Project. The location of this ELA006507 is shown on Figure 1 (see the link below) and covers the projected position of two major regional fault structures interpreted from gravity geophysical data (Drummartin and Redesdale Faults). The Company believes that these fault systems may have similar gold potential to the Whitelaw Gold Belt and have received little previous exploration. Subject to EL grant, the exploration on this licence will aim to test about 60 kilometres of strike length along these structures.
Catalyst has completed an RC Blade drilling programme at the Tandarra Gold Project with a total of 3,816 metres being drilled in 64 holes. The programme was designed to test the top 60 metres of the Tomorrow Gold Zone at a north south traverse spacing of about 25 metres (see Figures 2 and 3 in the link below). Most samples have been submitted for assay with results expected by mid-June 2017. Meanwhile, RC and Air Core drilling programmes are continuing at the Four Eagles Gold Project which are likely to be completed before the end of May 2017. The RC programme is testing a section of the Hayanmi structure at traverse spacings of approximately 50 metres and the Air Core programme has focussed on regional gravity targets and the Discovery Zone (see Figures 4 and 5 in the link below).
This announcement covers only results that have been received and previously reported for most of the RC Blade/Hammer programme at Boyd's Dam and also the Air Core programme at Boyd North and a northern section at Hayanmi. Assay results are still outstanding for RC Blade follow up drilling at Boyd North and for the major drilling programme at Hayanmi. Further announcements will be made by the Company in the coming month as soon as sufficient assays are received from a project area to provide a meaningful interpretation.
Catalyst retains a 50% interest in the Four Eagles Gold Project whilst Gold Exploration Victoria Pty Ltd (GEV) (a 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 already earned a 25% interest in the Four Eagles Gold Project by spending $2.1 million and should complete the remaining expenditure during 2017.
The 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 (see Figure 1 in the link below).
TARGET FUNDING
In January 2017, Catalyst submitted four applications to the Victorian Department of Economic Development Jobs, Transport and Resources (EcoDev) for joint exploration funding of the Company's projects in the Whitelaw Gold Belt. These applications were lodged under Stage 2 of the Victorian Government's TARGET initiative which is designed to promote exploration in Victoria. Catalyst has received acceptance (subject to execution of grant agreements) for three of these applications and will receive matching funding of up to $910,850 during the 2017/18 year.
Exploration is proposed on the following three projects:
Macorna Bore EL5521 (TARGET funding of $312,200)
This project will undertake a gravity survey followed up by Air Core drilling on EL5521 and adjacent areas on EL5508. As shown on Figure 6 (see the link below), this area lies on the interpreted northern extension of the Whitelaw Tandarra Fault corridor which may also be prospective for gold mineralisation. Drilling in 2016 showed shallow basement with anomalous arsenic values in air core drilling and this is often an indicator of proximity to gold mineralisation.
Hayanmi and Boyd's Dam (EL4525) deeper diamond drilling (TARGET funding $373,950)
The objective of this programme will be to test the Hayanmi and Boyd's Dam structures at a vertical depth of 200 to 300 metres. Based on comparative studies at Bendigo and Fosterville, rich gold lodes are often present in gently plunging shoots or separate parallel shoots beneath the shallow gold mineralisation intersected near surface. This diamond drilling programme will be planned after a complete interpretation of all results from the current RC and Air Core programmes. A diagrammatic expression of the panel to be tested at Hayanmi is shown on Figure 7 (see the link below).
Tandarra (EL4897) Dingee Zone Programme (TARGET funding $224,700)
This programme will aim to trial Deep Ground Penetrating Radar (DGPR), a geophysical method that may be useful in identifying anticlinal structures and mineralised zones in the basement rocks. It may also be useful in mapping the basement topography beneath the Murray Basin sediments. Subject to the results of the DGPR survey, air core drilling will be used to test any targets (see Figure 2 in the link below).
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About Catalyst Metals Ltd
Catalyst Metals Limited (ASX:CYL) is an Australian public company which is listed on the Australian Securities Exchange (Trading code CYL).
Catalyst has established a dominant position in one of the best gold provinces in Australia and controls a strike length of almost 80 kilometres along the Whitelaw Gold Belt north of Bendigo in Victoria. The Whitelaw Fault is believed to be an important factor in the formation of the Bendigo goldfield which was the second largest gold producer in Australia with production of 22 million ounces of gold at a grade of 15 g/t Au. Catalyst controls two virgin gold discoveries at Four Eagles and Tandarra where high gold grades up to 100 g/t Au have been discovered at shallow depths of less than 50 metres. A transaction with Gold Exploration Victoria Pty Ltd (a subsidiary of Hancock Prospecting Pty Ltd) will see up to $4.2 million spent on Four Eagles in coming years as well as co-operation with Catalyst on other gold projects in a large designated area.
Catalyst has a tight capital structure, a strong Board and management and is well placed to increase shareholder value by developing and mining shallow gold deposits using the favourable infrastructure of the area. Six existing gold processing plants lie within 100 kilometres of the tenement areas.
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