THE BOURSE WHISPERER: Catalyst Metals has raised $439,650 to fund its next phase of drilling at the Four Eagles gold project near Bendigo in Victoria.
Catalyst has completed a share placement of 1.3 million ordinary fully paid shares at a subscription price of 35 cents per share to raise the funds.
An aircore and diamond drilling program that Catalyst has had going since January has discovered three new zones with high-grade gold mineralisation, which the company said has confirmed the prospectivity of the regional Whitelaw and Tandarra Faults north of Bendigo.
A large mineralised footprint with gold and arsenic values has now been delineated over an area five kilometres long by two kilometres wide.
The Four Eagles tenements cover about 25kms of this favourable trend. So far Catalyst has only partially tested about 5km of strike length.
The company is scheduled to commence the next phase of its exploration program before the end of October.
This will consist of 6,000 metres of aircore drilling to test the strike extent of high-grade gold zones the company discovered this year at Harrier, which included:
3 metres at 5.5 grams per tonne gold and 3 metres at15.3 grams per tonne gold.
Catalyst said the objective of the latest drilling program is to delineate continuity of high-grade gold mineralisation that it considers could lead to resource drilling.
Subject to availability of a suitable reverse circulation drill rig, angled drill testing of the western Goshawk Zone may also be undertaken.
Under the terms of a Heads of Agreement the company has with Providence Gold & Minerals, Catalyst can earn an interest in the Four Eagles project by exploration expenditure on the tenements and cash and share payments.
“Catalyst has already achieved the Phase 1 expenditure commitment of $450,000 before 20 January 2012, but this drilling program will provide further confidence to the company to proceed to earn a 50 per cent equity interest in the project by spending a further $1.65 million in the subsequent two years and making payments of $100,000 and issuing a further 750,000 Catalyst shares,’ the company said in its ASX announcement.