- Catalyst Metals (CYL) strikes new zones of high-grade gold through drilling at its Henty Gold Mine in Tasmania, with a mineral resource update slated for early next year
- The company says “strong” recent drilling results at the Darwin deposit extend the known mineralisation in the area, which has historically produced around 650,000 ounces of gold
- The new results will feed into an updated mineral resource estimate for the deposit, which Catalyst plans to complete in January 2023
- It comes as part of Catalyst’s plan to grow the mine life and production rate of the Henty project
- Shares in Catalyst Resources last traded for $1.89 on April 20
Catalyst Metals (CYL) has struck new zones of high-grade gold through drilling at its Henty Gold Mine in Tasmania, with a mineral resource update slated for early next year.
The gold producer this morning announced more “strong” drilling results at the Darwin deposit in the project area extended the known mineralisation of the deposit, which had historically produced around 650,000 ounces of gold.
Some of the best new drilling results include a 12.5-metre hit at 15.5 grams of gold per tonne (g/t gold) and an 8.9-metre hit at 24.9 g/t gold from the Darwin South area. From Darwin North, the company struck a 13.7-metre intersection at 5.3 g/t gold and a 9.8-metre hit at 11.1 g/t gold, among others.
“These intercepts indicate Darwin has the potential to continue at depth and therefore support our strategy to grow the mine life and production rate,” Catalyst Technical Director Bruce Kay said.
The Darwin deposit currently has a resource estimate of 357,000 ounces at 4.5 g/t gold, and Catalyst said the new drilling results would help feed into a new resource estimate to be delivered in January 2023.
This means the company will be able to include a greater proportion of the mineral resource in its mining schedule as part of a plan to increase the inventory and production rate of the Henty project.
Catalyst said the increased mineral resource would also enable the company to further leverage the existing production infrastructure at Henty, including a 300,000-tonne-per-year plant.
All up, Catalyst drilled 90 holes as part of the recent drilling program, with 32 of these returning intervals greater than 20 g/t metres. Of these, 17 holes returned grades higher than 50 g/t metres.
Catalyst said it still had five rigs drilling at Henty as part of its $7 million 2022 financial year exploration program.
Shares in Catalyst Resources last traded for $1.89 on Wednesday, April 20. The company has a $186 million market cap.