Catalyst Metals : Drilling in progress at Four Eagles project (3.26 Mb)

ASX ANNOUNCEMENT 27 JANUARY 2017 DRILLING IN PROGRESS AT FOUR EAGLES GOLD PROJECT

• RC Blade/Hammer and Air Core drilling in progress at Four Eagles Gold Project
• Proposed drilling programme of 20,000 metres
• Initial focus of Air Core on Boyd North Prospect to test high grade zone (3 metres @ 154g/t Au)
• Detailed RC Blade/Hammer drilling on Boyd's Dam to test shallow gold zone

  Catalyst Metals Limited (Catalyst or the Company) (ASX: CYL) is pleased to advise that the 2017 drilling campaign has commenced at the Four Eagles Gold Project and is expected to continue until April-May 2017. The initial focus will be on the Boyd's Dam to Boyd North trend where previous exploration has shown potential gold mineralisation over a 1.6 kilometre strike length.

  Catalyst retains a 50% interest in the Four Eagles Gold Project whilst 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. To date, GEV has already earned a 25% interest in the Four Eagles Gold Project by spending $2.1 million and should complete the remaining expenditure during 2017.

  Catalyst now manages the entire Whitelaw Gold Belt and has interests in nine Exploration Licences which extend for 75 kilometres along the Whitelaw and Tandarra Faults north of Bendigo in Victoria (Figure 1).

  RC BLADE/HAMMER DRILLING

  This programme will involve the drilling of angled large diameter air core holes (RC Blade/Hammer) on the Hayanmi and Boyd's Dam gold structures to give a better understanding of the shapes of the gold mineralisation. Approximately 10,000 metres of drilling will test strike lengths of 1.2 kilometres on Hayanmi and about 900 metres on Boyd's Dam (Figures 2a and 2b). Drill holes will be sampled at one- metre intervals from surface with sample splitting prior to dispatch to the laboratory. Assays should be available progressively between February 2017 and June 2017.

  Drilling has commenced at Boyd's Dam and will test a strike length of about 800 metres on traverse spacings of about 50 metres. The objective is to better define the mineralised shapes to enable modelling of the gold zones.

  Boyd's Dam Prospect

  Limited drilling was possible at the Boyd's Dam prospect during 2016 due to early sowing of grain crops and the onset of wet weather. The RC Blade/Hammer programme of about 3,500 metres has resumed and will test a vertical panel down to 120 metres depth over a strike length of approximately 900 metres. Deeper structurally targeted holes are also planned. The objective is to confirm the mineralised shapes from previous drilling which produced the following intersections:

  44 Kings Park Road, West Perth WA 6005 PO Box 778, Claremont WA 6910 Telephone: [phone] Facsimile: (61-8) 9284 5426

  www.catalystmetals.com.au ABN 54 118 912 495

  RC Blade/Hammer Drilling at Boyd's Dam - January 2017
  • 6.0m @ 3.77g/t Au including 1.0m @ 7.82g/t Au from 44 metres (FERC010)
  • 3.0m @ 36.6g/t Au from 57 metres (FE415)
  • 9.0m @ 2.33g/t Au from 48 metres (FE579)
  • 2.0m @ 6.2g/t Au from 49 metres (FERC003)
  • 1.0m @ 18.3g/t Au from 127 metres (FERC002)
  • 2.0m @ 7.6g/t Au from 55 metres (FERC039)
  • 8.0m @ 3.7g/t Au including 1.0m @ 12.35g/t Au and 1.0m @ 10.05g/t au from 66 metres (FERC039)
  • 1.0m @ 11.0g/t Au from 66 metres (FERC037)
  • 16.0m @ 2.0g/t Au from 80 metres (FERC038) AIR CORE DRILLING

    This 10,000 metre programme will involve the drilling of conventional 90mm diameter air core holes in several areas of the Four Eagles Gold Project over the next four months. The programme has commenced at the Boyd North Prospect where intersections in excess of 100g/t Au were recorded in 2016.

    Boyd North Prospect

    This prospect lies to the north of Boyd's Dam (Figure 3) and was discovered in early 2016 when two air- core holes 600 metres apart intersected high grade gold in an area where the basement depth is only 20 to 40 metres. Angled air core drilling will test the entire strike length between the following two holes with the objective of defining a new high grade gold prospect.

  • 1.0m @ 6.4g/t Au from 85 metres (FE728)
  • 3.0m @ 154.0g/t Au from 96 metres (FE732)

Initial assay results of these programmes are likely to be available in March 2017.

Air Core Drilling at Boyd North - January 2017

Mr Bruce Kay, Catalyst's Technical Director, stated, "It is pleasing that the planned drilling programme has commenced on time at the Four Eagles Gold Project and is a credit to our excellent Bendigo-based geological team. We look forward to updating shareholders on progress over the next four months".

For further information contact:

Steve Boston Bruce Kay

Chairman Technical Director

Telephone: [phone] [phone]

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