Catalyst Metals (ASX:CYL) Managing Director James de Crespigny told delegates at an RIU conference that the company is positioning itself to fund an aggressive exploration and development pipeline, supported by a larger balance sheet and an increasingly institutional share register.
In opening remarks, de Crespigny described Catalyst as “about a AUD 2 billion-dollar company” and said the institutionalization of the register “happened really over the course of last year.” He said the company has assembled a treasury it believes can fund “all of the exploration and development that we’ve got in the pipeline,” as Catalyst looks to expand further and continue consolidating the Plutonic region in Western Australia.
Production base and resource position
He said production comes from the Plutonic Belt in Western Australia, which he described as the flagship asset, while also referencing Catalyst’s earlier asset position in Bendigo, Victoria. In Bendigo, he noted Catalyst has formed a joint venture with Hancock Prospecting.
Rebuilding the Plutonic Belt into a multi-mine operation
De Crespigny said that when Catalyst acquired the Plutonic Belt around 2.5 years ago, the operation was producing from a single mine feeding a central processing plant. He said the company believed operating a “one mine and one mill” configuration presented challenges, and that it needed to bring satellite deposits online to create a more resilient production base.
Over the past 2.5 years, he said Catalyst has “turned the operations around” and brought three new mines online, pointing to Plutonic East as well as Trident and K2 as examples of ore sources feeding the processing facility. He also flagged Cinnamon as a potential additional ore source and highlighted exploration progress at the Old Highway project.
According to de Crespigny, Catalyst plans to spend “some AUD 90-odd million this year on exploration,” as it seeks to “reinvigorate” the belt and restore it to what he characterized as its former high-grade standing.
Exploration results and growth targets across key deposits
De Crespigny framed Trident as a case study for the company’s exploration approach. He said the deposit was relatively small when Catalyst took control—he referenced “200 ounces, 250 ounces of indicated material”—and that over the course of last year Catalyst was able to double its size. He added that the company believes Trident is “really pushing up to 1 million ounces” at “roughly…about 5 grams” grade.
He then highlighted several other projects where the company is drilling and/or moving toward development:
- Old Highway: De Crespigny said Catalyst has held the project for about a year and described drilling conditions as difficult due to “water and sand and conditions.” He said the company released results that day including “26-odd meters at nearly 6 grams” and cited additional intercepts such as “21 meters at 3 grams” and “8 meters at 10.” He noted the stronger intercept was around “300-odd meters away” from a small underground development being moved into permitting.
- Cinnamon: Located about halfway up the belt and around 25 kilometers from the processing plant, de Crespigny described Cinnamon as having an older resource of “some 150,000 ounces.” He said the team has identified a new zone beneath the pit that sits outside the existing resource envelope, with multiple drill hits suggesting potential growth. He said the company hopes Cinnamon could become “another Trident-type system,” while noting it differs geologically as a conglomerate-hosted setting.
- K2: De Crespigny said Catalyst is moving into mining at K2 and “hopefully…producing first ore from it shortly.” He said the company has recently begun drilling again, with the deposit having been shut in 1999 amid “a mixture of circumstances,” including a low gold price. He referenced drilling results including “5 meters at 60 grams” outside the current resource envelope, which he said needs to be incorporated into the company’s figures.
- Tomahawk: De Crespigny said the company has not returned to this target recently but called it one of several projects with potential, citing historical drilling including “19 meters at 3 grams” at relatively shallow depth and stating it has “just never been followed up.”
Land expansion into the Bryah Basin
De Crespigny also announced an acquisition of additional land in the Bryah Basin, describing it as a region with “about 4.5 million ounces historically” of mineral endowment. He said Catalyst is assembling about “1,000 sq km” adjacent to its existing holdings near the Old Highway and Hermes deposits, and argued the area is a “nice, neat fit” given its proximity to Plutonic and access to the operating base, processing plant, and exploration support.
He said the transaction involved Star Minerals and Albright, describing it as enabling both companies to “relaunch themselves” while providing Catalyst with a larger land package in Bryah. He also said Star Minerals would receive a toll treatment arrangement at Plutonic as part of the broader deal.
Long-life vision for a central processing hub
In closing, de Crespigny said Catalyst views the Plutonic Belt as a district-scale opportunity capable of providing feed to the central processing facility for “20+ years to come.” He said the company’s strategy is to apply capital and drilling intensity to an area he believes has been under-invested for years, with the goal of re-establishing Plutonic as a “very special gold belt” in Western Australia.
About Catalyst Metals (ASX:CYL)
Catalyst Metals Limited explores for and evaluates mineral properties in Australia. The company also produces gold and silver. It holds interests in the Four Eagles, Tandarra, Drummartin, Golden Camel, Macorna, plutonic gold mine and Boort, and, Marymia projects located in Whitelaw Gold Belt, Victoria, as well as the Henty gold mine located in Tasmaina. Catalyst Metals Limited was incorporated in 2006 and is based in West Perth, Australia.
