Catalyst Metals gold

Catalyst Metals reports strong production and exploration results at Henty gold mine

Catalyst Metals Limited (ASX: CYL) has announced progress on initiatives designed to increase grade and metallurgical recovery, and implement the ongoing exploration strategy at its recently acquired Henty Gold Mine in Tasmania.

The company said that an independent safety audit was completed and recommendations are being actioned.

CYL said that the gold production at the Henty Gold Mine for February 2021 was estimated at 2,447 ounces at a grade of 4.88g/t Au. The company also reported an increased metallurgical recovery of 94.4% compared to the pre-purchase financial year to date of 76.1%.

The company said that further high-grade gold intersections were reported from underground exploration program.

CYL said that the calendar year 2021 production schedule and exploration program has been finalized and the tailings dam lift is on schedule and on budget for April 2021 completion.

Henty gold mine progress

The company reported that since the acquisition of the Henty Gold Mine on 20 January 2021, it has made very good progress on initiatives to increase grade and metallurgical recovery and implement the ongoing exploration strategy.

Safety audit

CYL said that an independent review of the Work Health and Safety systems at the mine was completed and recommendations are being implemented.

Increased gold grades, recoveries

The company noted that the focus on mine planning and scheduling has already resulted in increased grade through the mill and increased gold production.

CYL said that the metallurgical focus on the gold plant circuit, in particular cyanide level management in the leach tank environment, drastically increased gold recoveries to over 94% compared to 2020 levels that averaged 76%. The company said that the grade of tailings reduced to 0.27g/t Au compared to pre-purchase levels of 0.7g/t Au.

Expansion on track

The company said that the tailings dam expansion is on schedule and budget for an anticipated completion in April 2021.

February production

The company reported that the mill production for February 2021 was 16,501 tonnes grading 4.88g/t Au for recovered gold of 2,447 ounces. Mill recovery was 94.4%.

High-grade intersections from exploration drilling

CYL said that high-grade gold intersections were obtained from Zone 96, Intermediate Zone, and Sill Zone up to 1 March 2021. Underground diamond drilling had continued with two rigs in operation.

Significant hits in Zone 96 included 5.0m @ 16.2g/t Au from 31.6 metres in Z21915; 0.9m @ 90.1g/t Au from 43.2 metres and 3.0m @ 10.5g/t Au from 46.6 metres in Z21936; 3.0m @ 34.5g/t Au from 38 metres and 5.2 metres @ 14.5g/t Au from 41.8 metres in Z21911; 3.2m @ 22.9g/t Au from 49 metres and 0.8m @ 365g/t Au from 52.7 metres Z21912; 2.85m @ 7.2g/t Au from 53.15 metres in Z21863; 3.5m @ 19.7g/t Au from 53.75 metres in Z21913; 4.4m @4.9g/t Au from 51.55 metres in Z21865; 2.0m @ 10.3g/t Au from 69.2 metres in Z21867; 6.0m @ 6.1g/t Au from 65.8 metres in Z21868; 1.6m @ 13.6g/t Au from 73.2 metres in Z21879; 1.85m @ 26.7g/t au from 34.4 metres in Z21910; 2.1m @ 15.9g/t Au from 49.6 metres in Z21950; 1.1m @ 59.6g/t Au from 51 metres in Z21949; 0.65m @ 85.0g/t Au from 44.9 metres in Z21932; 2.05m @ 13.0g/t Au from 90.65 metres in Z21893; 0.6m @ 97.4g/t Au from 92.5 metres in Z21892; 2.75m @ 15.1g/t Au from 114.7 metres in Z21898; and 1.4m @ 15.1g/t Au from 29.2 metres in Z21989.

Other important hits included 7.2m @ 12.6g/t Au from 95.8 metres in Z21921 (Sill Zone); 1.0m @ 24.8g/t Au from 300 metres in Z21777 (Intermediate Zone); and 2.75m @ 9.3g/t Au from 116.5 metres in Z21972A (Zone 15).

Updates and next steps

The company said that further drilling at Henty will continue to be focussed on the mine corridor adjacent or parallel to the known resource and will also test specific structural targets beyond the mine environs.

The company said that the review of all regional geological and geophysical data was completed and an exploration program is planned for the exploration licence (EL28/2001) along the Henty South Fault to the south of the Henty Mine.

CYL said that the underground diamond drilling will be increased to 3 rigs with 10,500 metres budgeted for pre-production areas and 28,000 metres on exploration in the mine corridor.

The company said that pre-production will focus on Zone 96, Sill Zone, Mt Julia, and Darwin North, South and Central Areas, and exploration will be mostly targeted on the zone between Darwin North and Intermediate Zone adjacent to the Moa Fault. CYL said that lesser programs will target the down dip extensions of Zone 96 and Zone 15 as well as a small program on the Read Zone.

Management comments

Catalyst’s Chief Executive Officer Bruce Robertson said: “Catalyst has been very pleased with the management and workforce at Henty who have implemented and enabled a smooth transition to Catalyst ownership.

Henty is a complex mine but the good mine and mill performance in February indicate that the mine can perform well with appropriate capitalisation, detailed planning, additional technical services support to assist operational personnel, and successful exploration.”

*Image source: Catalyst Metals Limited

Written By Jonathan Norris
Jonathan is a founder of and has been covering the resources industry since 2018. With over 17 years experience in print, broadcast and online media, Jonathan has seen first hand the transformative effect of online niche media.