Catalyst Metals Limited (ASX: CYL) has obtained more significant results which further strengthen the case for establishing an exploration tunnel at its Four Eagles Gold Project in Victoria.
These latest results provide more strong evidence of the excellent potential at the Four Eagles Gold Project and therefore support our plan to establish an exploration tunnel,” Catalyst Technical Director, Bruce Kay, said.
“The tunnel would enable us to drill from underground, providing a far more efficient and effective means of exploring for the extension of the rich Bendigo Goldfield.
“We are continuing to drill with the aim of building a clear picture of this potential ahead of a final decision on the exploration tunnel in the middle of next year”.
The latest drilling focussed on targets close to the extensive Boyd’s Dam mineralisation and below the emerging Hayanmi prospect.
In a new area, Boyd East, which sits approximately 300m east of the existing Boyd’s Dam mineralisation, diamond drilling has intersected a large quartz fault. This structure is similar to that observed at Boyd’s Dam and indicates the potential for a parallel target zone in close proximity to Boyd’s Dam.
Drilling is currently underway to further test the structure at depth and along strike. Results from this drilling are expected in the coming months. Further drilling at Boyd North has verified mineralised structures which too, may become a key mining position.
Drilling at Hayanmi focussed on testing the existing mineralised structure at depth and encouragingly, the first diamond drill hole returned a significant gold intersection of 3.5m @ 8.9g/t Au from 232 metres and a more recent drillhole returned 0.9 metres @ 13.45g/t Au. Interpretation and planning for further drilling continues.
These drilling results indicate the potential for an increasing concentration of mineralisation within close proximity to Boyd’s Dam. This pattern of multiple areas of mineralisation in close proximity to one another has the potential to change the project’s economics. However, additional drilling is required to establish the continuity and tenor of mineralisation necessary to warrant proceeding with the tunnel.
There is currently one diamond rig deployed at Boyd East over the winter months, with a second anticipated to mobilise in November when weather permits. Resource development drilling at Hayanmi has been suspended due to winter rains.
Four Eagles Joint Venture Drilling Update
The Four Eagles Gold Project is situated along the Whitelaw Gold Corridor, which is considered to be a major structural control of gold mineralisation north of Bendigo. In Victoria, Catalyst manages the entire Whitelaw Gold Belt and has interests in thirteen Exploration Licences and two Retention Licences which extend for 75 kilometres along the Whitelaw and Tandarra Faults north of Bendigo and in other areas north of the Fosterville and Inglewood gold fields.
