Catalyst Metals Limited (ASX: CYL) has obtained further strong drilling results which support its strategy to increase the inventory and production rate at its Henty Gold Mine in Tasmania.
The company’s management said the results are important because they extend the known mineralisation at Henty’s Darwin deposit, which has historically produced c. 650,000oz.
These results will form part of a Resource update expected to be completed in the January quarter of 2023.
Catalyst is currently completing an updated mine plan based on the existing resource of 357,000oz at 4.5gpt. This is expected to include a greater proportion of the Resource in the mine schedule, which would have the benefit of allowing an increase in the production rate and in turn reduce mining unit costs.
It would also enable Catalyst to further leverage the existing production infrastructure at Henty, which includes a 300,000tpa plant, and amortise the high percentage of fixed costs across an increased production base.
Catalyst has four underground rigs and one surface rig now drilling at Henty, Technical Director, Bruce Kay, said.
We continue to generate high-grade results which identify new mineralisation to the south of Darwin. These intercepts indicate Darwin has the potential to continue at depth and therefore support our strategy to grow the mine life and production rate.”
Drilling was carried out at Darwin and in the newly named Cradle Zone (representing an area about one kilometre long and 400 metres vertically lying south of Intermediate Zone and up dip of Zone 15, Newton and Tyndall.
Programmes at Sill Zone and zone 96 were also completed during the period. Cradle zone results will be reported separately.
Results include: 1.5m @ 79.3g/t Au; 8.9m @ 24.9g/t Au; and o 12.5m @ 15.5g/t Au.