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- Drilling at Old Highway confirms potential for growth
- Resource upside identified in areas adjacent to existing mine plan
- Drilling focused on growing the mine life beyond its current four years
- Latest program targeted down-dip and up-dip extensions
Catalyst Metals (ASX:CYL) has obtained promising drilling results from a program testing extensions of the Old Highway gold deposit in Western Australia.
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Located 40km south of the Plutonic Belt, Old Highway is an undeveloped gold project with a resource of 206,000 ounces at 3.0 grams per tonne (g/t) and a reserve of 140,000 ounces at 3.2 g/t, which sits within 1.5km of a broader four km mineralised trend.
It will be the fifth deposit to be developed by Catalyst in its plan to grow gold
production from more than 100,000 ounces per annum (pa) to over 200,000 pa.
The latest drilling focused on growing the mine life beyond its current four years targeted down-dip and up-dip extensions outside of the resource envelope.
Highlights returned included 6.0m at 4.1 g/t, 5.0m at 4.7 g/t, 2.0m at 17.4 g/t, 12m at 3.7 g/t and 5.0m at 3.7 g/t.
MD and CEO, James Champion de Crespigny, said the results demonstrate Old Highway is heading in the direction the company has been seeking.
“Further drilling is underway and if successful, is very exciting for the company,” he said.
“With exploration success at Trident in 2025, and now Cinnamon and Old Highway in 2026, the exploration team is beginning to gather considerable momentum on what we think remains a wonderfully attractive gold belt that has demonstrated an ability in the past to continue delivering good gold deposits.”
The focus of Catalyst’s recent drilling continued to be at the Zone 400 deposit. Zone 400 forms the basis of the company’s immediate development plans at Old Highway with a deposit of 140,000 ounces reserve and an initial four year mine life at 35,000 ounces pa.
The mine life is based on shallow, historic drilling by prior owners and Zone 400 is a small area within the broader four-kilometre strike length of Old Highway.
A second open pit called Zone 250 sits one km south-west. Zone 250 has a 53,000 ounces indicated resource at 1.6 g/t. This is not included in Catalyst’s development plans.
Recent drilling by Catalyst has been to test depth extensions with a view to growing the underground resource and mine life.
CYL is up 2.05% to $5.98. Mkt cap $1.529B.
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