ASX ANNOUNCEMENT 24 JULY 2015
REVERSE CIRCULATION GOLD INTERSECTIONS AT BOYD'S DAM CONFIRM POTENTIAL AT FOUR EAGLES GOLD PROJECT
• Assays from four reverse circulation holes at Boyd's Dam show further gold mineralisation.
• Reverse circulation drill hole intersects 6 metres @ 3.77 g/t Au at 38 metres vertical depth
(maximum 7.82 g/t Au).
• Other holes contain intersections up to 3.58 g/t Au.
• Assays still awaited for three reverse circulation drill holes from Hayanmi.
Catalyst Metals Limited (Catalyst or the Company) (ASX: CYL) has received assays from a four hole reverse circulation (RC) drilling programme at the Boyd's Dam Prospect on the Four Eagles Gold Project.
All of the holes contained mineralised zones with three of the four holes containing intervals with gold grades in excess of 3.5 g/t Au. The Boyd's Dam 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 REVERSE CIRCULATION (RC) DRILLING PROGRAMME
The Boyd's Dam 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 4 Structure. Current and historic drilling results are shown in plan and longitudinal projection on Figures 3 and 4. The angled RC programme was designed to test the mineralised zone where previous air core drilling had located gold mineralisation over a 700 metre strike length. Five (5) RC holes have been completed for a total of 567 metres but assays are only available for four of these holes. Thirteen RC holes had been planned for Boyd's Dam but mechanical and operational delays meant that the full programme could not be completed before the onset of grain sowing and wet weather. The programme will be completed in late 2015 or early 2016.
Three of the four holes contained at least one significant gold intersection with the best gold values shown below:
• 6.0m @ 3.77 g/t Au including 1.0 m @ 7.82 g/t Au from 44 metres (FERC010)
• 6.0m @ 1.11 g/t Au from 79 metres (FERC010)
• 3.0m @ 1.02 g/t Au, 1.0 m @ 1.41g/t Au and 1.0 m @ 3.56 g/t Au from 87 metres (FERC009)
• 2.0m @ 1.07 g/t Au from 66 metres (FERC011B)
• 2.0m @ 3.58 g/t Au from 87 metres (FERC011B)
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 intersections suggest that there are two parallel zones of gold mineralisation at Boyd's Dam but more angled drilling is required. The location of the intersections are shown on the plan and long section views (Figure 3a and 3b) and extend the zone of mineralisation shown in drillholes in FE415 (3 metres @ 36.6 g/t au from 57 metres, FERC 002 (1 metre @ 18.3 g/t au from 127 metres and FERC
003 (2 metres @ 6.2 g/t Au from 49 metres).
All of these assays have been completed by both 25-gram samples using aqua regia digest and ICP-MS and larger two kilogram samples using a total cyanide leach method and good correlation between the assays shows that the gold is evenly distributed throughout the sample. This is very important for grade estimation in any future resource estimation and suggests that the nugget gold issues of Bendigo are minimal at Four Eagles.
Full location data on the five RC holes drilled at Boyd's Dam are shown on Table 1 and a Summary of Sampling Techniques and Reporting of Exploration Results according to the JORC Code 2012 Edition is tabulated in Appendix 1. Previous intersections shown on Figures 2, 3 and 4 have been reported under the 2004 JORC Code. All of the intersections above are considered to lie within the same Eagle 4 structural corridor and the mineralisation is believed to have a steep easterly dip although attitude may vary within the oxidised saprolite zone. Massive quartz is common at Boyd's Dam but RC drilling has been able to penetrate the veins.
Mr Bruce Kay, Catalyst's Technical Director, stated, "Although we have only received assay results from four RC holes at Boyd's Dam, they confirm the zone of gold mineralisation seen in vertical air core holes. The presence of further gold mineralisation at depths of less than 40 metres is also promising."
The reverse circulation (RC) drilling programme at Hayanmi was completed in late June 2015 and all assays should be available by late July 2015.
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.
Figure 1: Four Eagles Gold Project Location Map
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---------------------------------------------------------t-----
244,000mE
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• Drillholes
- AuZone
D AsZone
Drillhole grades
0.1 to 0.2 g/t Au
O 0.2 to 0.5 g/t Au
O 0.5 to 1.0 g/tAu e 1.0 to 5.0 g/tAu 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 Boyd's Dam Prospect showing recent and historic drill holes
Figure 4: Longitudinal Section of Boyd's Dam Prospect showing recent and historic drill holes
APPENDIX 1
Table 1 Drill hole collars
|
Hole
|
East
(MGA)
|
North
(MGA)
|
RL (AHD)
|
Depth
(m)
|
Grid
Azimuth
|
Declination
|
|
FERC008
|
245444.229
|
5989271.004
|
96.51
|
114
|
269.5
|
-60
|
|
FERC009
|
245469.151
|
5989270.332
|
96.52
|
114
|
272.0
|
-60
|
|
FERC010
|
245414.528
|
5989474.710
|
96.40
|
102
|
270.0
|
-60
|
|
FERC011B
|
245440.678
|
5989498.993
|
96.30
|
102
|
270.0
|
-60
|
Samples of nominally 2.5 kilograms (lab submission) and 30 kilograms (retained residual sample) were collected from the rig-mounted splitter at one-metre intervals and logged for lithology, alteration, mineralisation and sample quality. The rig cyclone was mounted with a stationary cone splitter, configured to deliver a 95:5 split. 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.
Commercial certified reference materials (CRMs) were taken at regular intervals and sent for analysis. 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.
For each RC hole the prepared sample pulps corresponding with anomalous zones were re-assayed by a bulk leach (2kg bottle roll) method to investigate repeatability of a larger aliquot. This data was compared with similar data from recent air core drilling - reinforcing the observation that gold grades from small aliquot analysis are generally reliable and not subject to bias and imprecision expected in the presence of coarse gold.
Due to the greater depth of investigation afforded by RC drilling, there was an observed apparent connectivity of mineralisation between FERC010 and FERC011B which was consistent with the anticipated east-dip of mineralisation at Boyd's Dam.
Table 2 Drill assay results
|
Hole ID
|
From
(m)
|
To
(m)
|
Intersection
(m)
|
Au
(ppm)
|
|
FERC009
|
87
|
90
|
3
|
1.02
|
|
and
|
92
|
93
|
1
|
1.41
|
|
and
|
96
|
97
|
1
|
3.56
|
|
FERC010
|
44
|
50
|
6
|
3.77
|
|
including
|
44
|
45
|
1
|
7.82
|
|
and
|
79
|
85
|
6
|
1.11
|
|
FERC011B
|
66
|
68
|
2
|
1.07
|
|
and
|
87
|
89
|
2
|
3.58
|
JORC 2012 Edition, Table 1 Checklist
|
Sampling Techniques and
Data
Criteria
|
Explanation
|
|
Sampling techniques
|
• Samples collected at cyclone-splitter 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 directly 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
|
• five-inch diameter RC hammer and 5.25-inch drill bit; six-metre reverse circulation drill rods; truck-mounted drill rig; 400psi 900cfm compressor and booster; plus auxiliary compressor where dictated by water in-flows.
• All RC holes drilled as tails on PVC-cased precollars established in the cover sequence.
• Penetration into basement to design depth or to point where groundwater inflows compromised sample quality.
|
|
Drill sample recovery
|
• Where sample volumes at cyclone were unduly affected by groundwater, holes terminated (by inspection) where sample compromised
• Sample water content assessed by rig geologist as being dry/wet
• Calico bag masses recorded by laboratory contractor
• Geological control maintained at the drill site at all times, to ensure drilling and sampling to standard.
|
|
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
|
• Lab submission samples collected as described - any mass reduction required for assay purposes performed by laboratory contractor; consisting of drying and riffle-splitting.
• 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)
|
|
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.
• Laboratory and client certified reference materials (3 x standards plus blanks) generally demonstrate on-par or biased-low assays.
|
|
Sampling Techniques and
Data
Criteria
|
Explanation
|
|
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
|
• All drillhole location coordinates were measured using differential GPS to MGA94 and AHD estimated from terrain model created from publicly- available land survey data
• Collar locations to within an estimated precision of 1m.
• All drillholes were downhole surveyed. Drilling orientation established prior to collaring with clinometer and compass.
|
|
Data spacing and distribution
|
• RC holes drilled on two sections located between existing air core traverses providing 100-metre spacing along the strike of mineralisation.
• The two sections consist of holes spaced at a nominal 25m
• This spacing is designed to be of a sufficient density to ultimately be included in the estimation of a mineral resource.
• 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 sections were aligned approximately normal to the strike of mineralisation. All holes inclined 60 degrees to the west 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.
|
|
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 reserves 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 Pty Ltd
• 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 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 west to provide effective geometry in the context of the eastern limb of an anticline.
• As there is only one cross-sectional pair of holes where mineralisation dip may inferred, the dip of mineralisation has not been proven, and the true width of mineralisation has not been resolved. As such, significant mineralised intersections have been reported as downhole intervals.
|
|
Diagrams
|
• Figure 3 shows the plan of recent drillhole collars including previous drillholes.
|
|
Balanced reporting
|
• Figure 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. The assay results for three RC drillholes in the adjacent Hayanmi prospect are pending.
|
|
Further work
|
• Planning for further drilling is in progress, anticipated to start in December quarter subject to grain cropping.
|