Catalyst Metals (ASX:CYL) has been advised by St Barbara (ASX:SBM) that it has withdrawn from the Drummartin joint venture (JV) to focus on its existing projects.
Catalyst entered into the JV agreement in November 2019, in a deal in which St Barbara could acquire a 50% participating interest in the Drummartin Project by funding exploration expenditure of $3.5 million within four years of the commencement date.
The company reports that at the time of withdrawal, St Barbara had spent about $2.2 million on gravity and geochemical surveys, soil sampling, and aircore drilling.
The Drummartin JV has identified 13 gravity targets from the detailed gravity survey completed last year. Catalyst will follow-up these ‘highly prospective’ targets, which have been generated at no cost to Catalyst, as part of its ongoing exploration program.
Commenting on the withdrawal from the JV, Catalyst Technical Director Bruce Kay said: “St Barbara has been an outstanding joint venture partner and supporter of Catalyst over several years.
They have generated many highly promising targets at Drummartin and we will pursue these as part of our ongoing exploration campaign.
“We appreciate St Barbara’s decision to direct its capital into its operating projects”
We appreciate St Barbara’s decision to direct its capital into its operating projects and we thank them for their support.”
The Drummartin Project is situated on the northern extension of the Drummartin, Fosterville and Redesdale Faults which host the Fosterville gold mine.
The Fosterville gold mine is owned by the one of the world’s largest gold producers, Agnico Eagle; produced 510,000oz in 2021 at US$282 total cash cost and has reserves of 2Moz at 9.4g/t.
The Drummartin Project lies immediately adjacent to Block 1 of the North Central Victoria Gold (NCVG) tender process. Block 1 contains the Lockington gold discovery which lies about 10km south of the Drummartin Gravity Target 9 where Catalyst reported the discovery of gold mineralisation (3m @ 6.2g/t Au) in September 2021.
