- Catalyst Metals (CYL) opens strong on the ASX following the latest results from its Henty Gold Mine in Tasmania
- Of the 89 diamond holes drilled in the area between the start of March and the start of June, 26 holes return grades higher than 20 grams of gold per tonne
- Catalyst Technical Director Bruce Kay says the drilling has identified structures that were not tested in the Henty Mine’s 2020 resource estimate
- The company now plans to use a $50,000 local government grant to help fund an upcoming drilling program slated for the September quarter
- Shares in Catalyst Metals are up 3.36 per cent and trading at $2 each at 10:15 am AEST
Catalyst Metals (CYL) opened strong on the ASX this morning after reporting some more high-grade gold results from its Henty Gold Mine in Tasmania.
The company bought the mine back in January and has spent the past six months drilling in the area. Today, the company announced the results of drilling completed from the start of March to the start of June, with three diamond rigs in operation during this time.
According to Catalyst, “most” of the 89 holes drilled in the area have contained gold mineralisation, with 26 of these showing intervals greater than 20 grams of gold per tonne (g/t).
The best of these hits include a 2.65-metre intersection grading 221g/t from around 99 metres deep. This intersection included a 0.95-metre zone at 603g/t.
Other strong hits include a four-metre intersection at 103g/t and a 7.1-metre intersection at 48g/t.
Catalyst Technical Director Bruce Kay said the underground drilling program at the Tasmanian mine intersected high-grade gold zones and identified structures that were not tested in the project’s 2020 resource estimate.
“We believe that these areas have the potential to be converted into production in the medium term,” Mr Kay said.
Along with the latest string of drilling results, Catalyst told investors this morning it has received a $50,000 grant from the Tasmanian government.
The grant, which comes under the Exploration Drilling Grant Initiative (EDGI), will go towards direct drilling costs for an upcoming designed to test prospective targets north of the Henty Mine.
“We are also honoured to receive the support and acknowledgement of our exploration strategy at the Henty Gold Project from the Tasmanian Government,” Mr Kay said.
Looking ahead, Catalyst said it is busy reviewing the exploration potential of the project and has highlighted some potential untested targets to the north and south of Henty.
The company said it would first focus on the northern extension of the Henry Fault. The $50,000 government grant will help the company complete some surface diamond drilling in the area, with the initial five-hole program slated to begin in the September quarter of 2021.
Shares in Catalyst Metals opened almost 7 per cent higher this morning but have since slightly pared back their win. At 10:15 am AEST, Catalyst shares were up 3.36 per cent and trading at $2 each.