ASX ANNOUNCEMENT 22 JUNE 2015
DRILLING DELIVERS BEST GOLD INTERSECTIONS TO DATE AT FOUR EAGLES GOLD PROJECT
• Broad gold intersections with high grade intervals recorded in drilling at Four Eagles Gold Project
• Air core drilling intersects 21 metres @ 3.42 g/t Au and 15 metres @ 3.36 g/t Au at Hayanmi
Prospect on Four Eagles Gold Project
• Internal high grade gold intervals of 3 metres @ 18.7 g/t Au and 3 metres @ 12.3 g/t Au
• Best intersections yet recorded at the Four Eagles Gold Project
• Confirmation bulk leach assays in progress on one-metre re-splits
• Reverse Circulation drilling still in progress
Catalyst Metals Limited (Catalyst or the Company) (ASX: CYL) has recorded its best gold intersections to date at the Four Eagles Gold Project where angled air core drilling has intersected two broad zones of gold mineralisation with internal high grades up to 18g/t Au at the Hayanmi Prospect. The two holes are 1.6 kilometres apart and have extended the previously reported mineralised zone. The Hayanmi Prospect is situated on the Four Eagles Gold Project in which Catalyst retains a 50% interest and Gold Exploration Victoria Pty Ltd (GEV) is earning up to a 50% interest from Providence Gold and Minerals Pty Ltd by spending $4.2 million on exploration. The Four Eagles Gold Project is part of the Whitelaw Gold Belt where Catalyst controls tenements over a 75 kilometre strike length north of Bendigo in Victoria (Figure 1).
FOUR EAGLES GOLD PROJECT AIRCORE DRILLING PROGRAMME
The Hayanmi Prospect is one of three defined lines of gold mineralisation at the Four Eagles Gold Project (Figures 2a and 2b) and lies within the Eagle 3 Structure as shown on Figure 3. The angled air core programme was designed to infill the 2.6 kilometre long mineralised zone to a spacing of about
200 metres although the proposed northern traverses were inaccessible because of flood irrigation. Twenty seven holes (27) were completed for a total of 3,944 drilled metres on seven east west traverses across the interpreted mineralised structure (Figure 3).
Most traverses contained at least one significant gold intersection with the best gold values shown below:
• 42.0m @ 2.12g/t Au including 21.0 m @ 3.42g/t Au or 6.0m @ 9.6/t Au (FE696)
• 24.0m @ 2.31g/t Au including 15.0m @ 3.36g/t Au or 3.0m @ 12.4g/t Au (FE700)
• 3.0m @ 2.86g/t Au (FE679)
• 6.0m @ 0.91g/t Au (FE681)
• 3.0m @ 2.57g/t Au (FE684)
• 3.0m @ 1.23g/t Au (FE686)
Level 3, 50 Colin Street West Perth WA 6005 PO Box 778, Claremont WA 6910
Telephone: (61-8) 9383 2825 Facsimile: (61-8) 9284 5426 www.catalystmetals.com.au ABN 54 118 912 495
The intersection in FE696 is very significant as it lies in an area where the basement depth is about 40 metres and becoming increasingly shallow to the north where a 600 metre long zone remains untested. It is also important to note that most of the holes with gold intersections were at the western end of the traverses and the trend therefore remains open to the west and will require further drilling.
Most of these assays are from 25-gram samples using aqua regia digest and ICP-MS. Larger two kilogram samples at a one-metre sampled interval will now be re-assayed using a total cyanide leach method to provide an understanding of the variability of the gold distribution. These results should all be available in approximately three weeks' time.
Previous drilling at Hayanmi has shown that there are several high grade gold intersections within the structural corridor particularly in the central zone where the following have been recorded:
• 3.0m @ 14.7g/t Au (FE591)
• 3.0m @ 5.96g/t Au (FE471)
• 9.0m @ 7.9g/t Au including 3.0m @ 20.5g/t Au (FE592)
• 3.0m @ 9.1g/t Au (FE608)
• 1.5m @ 12.9g/t Au (FE626)
This area is currently being tested by angled reverse circulation drilling.
Full location data on the 27 air core holes drilled in 2015 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 2 and 3 have been reported under the 2004 JORC Code. All of the intersections above are considered to lie within the same Eagle 3 structural corridor and the mineralisation is believed to have a steep westerly dip although attitude may vary within the oxidised saprolite zone. Although there are quartz veinlets in association with the gold mineralisation, there is very little massive quartz veining at Hayanmi as compared to the Discovery and Boyd's Dam Prospects.
Mr Bruce Kay, Catalyst's Technical Director, stated, "These broad intersections are the best that we have ever seen at Four Eagles and the combination of low and high grades is encouraging. This is the first major deep angled drilling programme that has been carried out across the Hayanmi mineralised corridor and seems to confirm that the gold mineralisation is disseminated within a steeply dipping shear zone".
The reverse circulation (RC) drilling programme is continuing at the Four Eagles Gold Project but results will not be available until July 2015.
Figure 1: Four Eagles Gold Project Location Map
.....: •••
5,992,000m
- - -- -- o
OJ
CD
:::1
.
o
Ll
'.....
ti)
3
o:
ti)
Q_
EAGLE 1
TARGET \
NORTH \ '.
o 1 • \ . e:
'.
EAGLE 5
TARGET
242,000m
kilometre \
--------------------------------------------------------t-----
244,000mE
--------- .
.
246,000mE
• Drillholes
- AuZone
D AsZone
Drillhole grades
0.1 to 0.2 g/t Au
O 0.2 to 0.5 g/t Au
O 0.5to 1.0g/t Au e 1.0 to 5.0 g/t Au e > 5.0 g/tAu
Figure 2a: Four Eagles Gold Project showing gold zones
Figure 2b: Four Eagles Gold Project showing intersections for Figure 2a
Figure 3: Plan of Hayanmi Prospect showing recent and historic drill holes
For further information contact:
Steve Boston Bruce Kay Chairman Technical Director Telephone: +61 8 9383 2825 +61 400 613 180
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.
Much of the historical information relating to the Four Eagles project was prepared and first disclosed under the JORC Code 2004. This information has not been updated since to comply with the JORC Code
2012 on the basis that the information has not materially changed since it was reported.
APPENDIX 1
Table 1 Drillhole Collars
|
Hole
|
East
(MGA)
|
North
(MGA)
|
RL (AHD)
|
Depth
(m)
|
Grid
Azimuth
|
Declination
|
|
FE678
|
244785
|
5990338
|
97.0
|
120.0
|
87
|
-60
|
|
FE679
|
244745
|
5990335
|
97.0
|
165.0
|
87
|
-60
|
|
FE680
|
244828
|
5990338
|
97.0
|
150.0
|
87
|
-60
|
|
FE681
|
244804
|
5990429
|
97.0
|
147.2
|
87
|
-60
|
|
FE682
|
244762
|
5990427
|
97.0
|
150.0
|
85
|
-60
|
|
FE683
|
244724
|
5990430
|
97.0
|
150.0
|
85
|
-60
|
|
FE684
|
244684
|
5990427
|
97.0
|
160.0
|
87
|
-60
|
|
FE685
|
244764
|
5990629
|
97.0
|
138.0
|
90
|
-60
|
|
FE686
|
244642
|
5990620
|
97.0
|
159.0
|
87
|
-60
|
|
FE687
|
244684
|
5990626
|
97.0
|
153.0
|
87
|
-60
|
|
FE688
|
244723
|
5990629
|
97.0
|
153.0
|
87
|
-60
|
|
FE689
|
244714
|
5991024
|
97.0
|
151.0
|
87
|
-60
|
|
FE690
|
244673
|
5991024
|
97.0
|
146.0
|
87
|
-60
|
|
FE691
|
244634
|
5991021
|
97.0
|
150.0
|
87
|
-60
|
|
FE692
|
244594
|
5991021
|
97.0
|
121.0
|
90.5
|
-60
|
|
FE693
|
244712
|
5991223
|
97.0
|
141.0
|
87
|
-60
|
|
FE694
|
244674
|
5991225
|
97.0
|
140.0
|
86
|
-60
|
|
FE695
|
244633
|
5991225
|
97.0
|
150.0
|
87
|
-60
|
|
FE696
|
244593
|
5991223
|
97.0
|
138.0
|
87
|
-60
|
|
FE697
|
244844
|
5989595
|
97.0
|
165.0
|
87
|
-60
|
|
FE698
|
244804
|
5989596
|
97.0
|
150.0
|
87
|
-60
|
|
FE699
|
244765
|
5989593
|
97.0
|
156.0
|
90.5
|
-60
|
|
FE700
|
244715
|
5989593
|
97.0
|
163.0
|
90.5
|
-60
|
|
FE701
|
244660
|
5989142
|
97.0
|
171.0
|
90.5
|
-60
|
|
FE702
|
244621
|
5989138
|
97.0
|
168.0
|
90.5
|
-60
|
|
FE703
|
244581
|
5989137
|
97.0
|
162.0
|
90.5
|
-60
|
|
FE704
|
244701
|
5989140
|
97.0
|
153.0
|
90.5
|
-60
|
Samples of approximately 20 kilograms were collected from the rig cyclone at one-metre intervals and logged. Assay samples were composited according to a hand-grab procedure from the bulk bags. All samples were sent to ALS-Minerals Adelaide for sample preparation and pulverisation and then a 25 gram sub-sample analysed by ALS-Minerals Perth by ICP-MS via aqua regia digestion.
Duplicate samples were taken at regular intervals and sent for analysis, as were commercial certified reference materials (CRMs). The duplicate sample pairs demonstrated an observable correlation for gold, providing confidence in the on-site sample collection-compositing method. The laboratory returned gold assays for CRMs slightly above, slightly below, and on-spec. However, most of this data suggests that the laboratory was on-spec or biased low, implying that generally the reported assays have potential to be slightly conservative.
In the case of FE696, the prepared sample pulps corresponding with the anomalous zone were re-assayed by bulk leach (2kg bottle roll) method to investigate repeatability of a larger aliquot. As a comparison, the zone provided a length-weighted ICPMS gold grade of 2.45g/t and a length-weighted bulk leach grade of 2.12g/t; with individual assays being quite similar in general. The significant mineralisation of FE696 is reported against the follow-up bulk leach assay data.
Due to the limited depth of investigation, the air core drilling program does not definitively verify the dip of the mineralisation in a cross-sectional sense; and thus true thicknesses is not determined; and downhole intersections only are reported.
Table 2 Drill Assay Results
|
Hole ID
|
From
(m)
|
To
(m)
|
Intersection
(m)
|
Au
(ppm)
|
|
FE678
|
81
|
84
|
3
|
0.67
|
|
FE679
|
75
|
78
|
3
|
2.86
|
|
FE681
|
72
|
78
|
6
|
0.91
|
|
FE683
|
84
|
90
|
6
|
0.70
|
|
FE684
|
84
|
87
|
3
|
2.57
|
|
FE686
|
114
|
117
|
3
|
0.79
|
|
120
|
123
|
3
|
1.23
|
|
FE695
|
90
|
93
|
3
|
0.75
|
|
FE696
|
75
|
117
|
42
|
2.12
|
|
(including)
|
75
|
96
|
21
|
3.42
|
|
(or)
|
75
|
81
|
6
|
9.6
|
|
FE700
|
126
|
150
|
24
|
2.31
|
|
(including)
|
135
|
150
|
15
|
3.36
|
|
(or)
|
147
|
150
|
3
|
12.4
|
JORC 2012 Edition, Table 1 Checklist
|
Sampling Techniques and
Data
Criteria
|
Explanation
|
|
Sampling techniques
|
• Samples collected at cyclone at one-metre intervals
• Cover sequence samples collected in buckets and arranged as piles on the ground; basement material samples collected in individual numbered plastic bags; chip trays collected by hand from piles and bags (uncomposited)
• Assay laboratory samples collected by hand from bags (no routine cover sequence sampling) into calico sample bags to a mass of
• Cover sequence is understood to be unmineralised and thus not sampled for assay laboratory submission.
|
|
Drilling techniques
|
• Three-inch diameter air core blade drill bit; three-metre reverse circulation drill rods; truck-mounted drill rig; 350psi 850cfm compressor.
• All holes uncased
• Penetration into basement to depth of groundwater contamination or bit refusal against quartz.
|
|
Drill sample recovery
|
• Where sample volumes at cyclone are unduly affected by groundwater, holes terminated (by inspection) where sample compromised
• Sample water content assessed by rig geologist as being dry/moist/wet
• Calico bag masses recorded by laboratory contractor
• Geological control maintained at the drill site at all times, to ensure drilling and sampling standards maintained.
|
|
Logging
|
• Chip samples geologically logged at 1m intervals for lithology, alteration, quartz veining and to a standard acceptable for subsequent interpretation for use in estimation.
• Logging aspects are qualitative with exception of quartz vein content which is estimated semi-quantitatively
• All logged intervals represent entire one-metre sample segregation intervals
|
|
Sub-sampling techniques and
sample preparation
|
• Samples selected (composited) by hand-grab at drill site when materials were dry, moist, or wet; duplicate samples taken approximately every 30 samples (one per drillhole).
• Samples dispatched to ALS Pty Ltd (Adelaide); samples dried and pulverised in entirety, with 25g aliquot split for analysis (laboratory repeat splits historically demonstrate acceptable reproducibility and hence accuracy for this mineralisation)
• Analysis of duplicate samples collected at the drill site provided acceptable confidence that sampling was appropriate for the level for the intended (non-resource estimation) use of the assay data.
|
|
Sampling Techniques and
Data
Criteria
|
Explanation
|
|
Quality of assay data and
laboratory tests
|
• Gold assay determined by ICPMS via aqua regia digestion.
Experience has shown this method to be applicable for fine grained gold population of the mineralisation due to the completion of digestion. There is a technical constraint in that coarse-grained gold
may not completely enter solution resulting in conservative assay.
• The anomalous gold values for FE696 were obtained from this method on 29/5/15, and 2kg sub-samples of the pulverised samples were re-assayed using the bulk leach method of ALS (Leachwell).
• Laboratory and client certified reference materials (3 x standards plus blanks) generally demonstrate on-par or biased-low assays.
|
|
Verification of sampling and assaying
|
• Data management procedures are under development. Data management has been performed by an experienced individual and not by several individuals.
• There has been no verification of significant intersections by independent nor alternative company personnel.
• There has been no drillhole twinning to verify results.
• Drillhole sampling and geological data logged onto paper in preparation for database data entry.
• There have been no adjustments to data as provided by the commercial assay laboratory.
|
|
Location of data points
|
• Where available, drillhole location coordinates were measured using differential GPS. At worst, drillhole collars surveyed by 12-channel GPS to MGA94 and AHD estimated from terrain model created from publicly-available land survey data
• Collar locations to within an estimated precision of 5m at worst.
• No drillholes were downhole surveyed. Drilling orientation established prior to collaring with clinometer and compass.
|
|
Data spacing and distribution
|
• Holes drilled on traverses located between existing traverses providing 100m to 200m spacing along the strike of mineralisation.
• Traverses consist of holes spaced at a nominal 40m
• This spacing is not of sufficient density to allow the estimation of a mineral resource.
• One-metre samples were composited to three-metre samples for the purpose of submission to the laboratory. For the purpose of reporting, assays have been aggregated to reflect continuously sampled zones of significant anomalism for gold.
|
|
Orientation of data in relation
to geological structure
|
• Drillhole traverses were aligned normal to the strike of mineralisation.
All holes inclined 60 degrees to the east to provide cross-strike investigation within holes and to establish continuity of sub-vertical mineralisation between holes.
|
|
Sample security
|
• All samples were controlled by the responsible geologist, and stored in secured facility prior to despatch to laboratory.
• Samples were transported directly to laboratory without layover or changes in delivery driver.
• Sample number receipt information from laboratory cross-referenced and rationalised against sample number dispatch information.
|
|
Sampling Techniques and
Data
Criteria
|
Explanation
|
|
Audits or reviews
|
• No processes or data used in developing the release of exploration results have been subject to audit or review by non-company personnel or contractors so as to reduce costs and timelines for reporting. Catalyst Metals Limited currently reserve this process for release of Mineral Resource and Ore Reserve estimates.
|
|
Reporting of Exploration
Results
Criteria
|
Explanation
|
|
Mineral tenement and land
tenure status
|
• The Four Eagles Project is within EL4525 in the vicinity of Mitiamo Victoria, 50% owned by Catalyst Metals Ltd., 50% owned by Providence Gold and Minerals
• EL4525 is valid and due for renewal/retention in January 2017
• Exploration activities were confined to free-hold farm land and road- side easements.
• As of 2015, activities are funded with Gold Exploration Victoria Ltd
(GEV) through a farm-in agreement.
|
|
Exploration done by other
parties
|
• None in the area drilled
|
|
Geology
|
• Gold-arsenic bearing narrow veins in Ordovician sandstone in the vicinity of a regional-scale anticline.
• Deposit assessed as being northern extension of Bendigo Goldfield, with potential for post-mineralisation influence/redistribution by proximal granitic intrusion.
• Potential for some supergene gold enrichment in paleo-weathering profile.
|
|
Drill hole Information
|
• All information material to the understanding of the exploration results of all last-phase drill holes are tabulated:
• Appendix 1, Table 1: Collar location coordinates, downhole depths, azimuths, declinations
• Appendix 1, Table 2: Downhole intervals of significance, gold grade of intervals
|
|
Data aggregation methods
|
• Data aggregation using downhole length-weighting
• No top-cutting applied to assay data
• Zones of significance identified as those with assays in excess of
0.5g/t and internal dilution of two consecutive assays (six metres) or less.
• Reported zones are continuous, with no sample or assay gaps.
|
|
Relationship between
mineralisation widths and intercept lengths
|
• The strike of mineralisation is demonstrated to be generally north- south and sub-parallel with grid.
• The dip of mineralisation is expected to be sub-vertical and sub- parallel with bedding as was the case in the Bendigo Goldfield.
• Drillholes were oriented with a dip to the east to provide effective geometry in the context of the western limb of an anticline.
• Due to the shallow depth of investigation, mineralisation dip assumptions have not been proven, and as such true witdths of mineralisation have not been resolved. As such, significant mineralised intersections have been reported as downhole intervals.
|
|
Reporting of Exploration
Results
Criteria
|
Explanation
|
|
Diagrams
|
• Figure 3 shows the plan of recent drillhole collars including previous drillholes.
|
|
Balanced reporting
|
• Figures 3 shows all new drilling inclusive of holes which did not encounter significant mineralisation
|
|
Other substantive exploration
data
|
• No other exploration results that have not previously been reported, are material to this report.
|
|
Further work
|
• Planning for further drilling is in progress, anticipated to start in
December quarter subject to grain cropping.
|