(Catalyst 50%: GEV earning 50%)
The Four Eagles Gold Project was a virgin gold discovery made by Providence Gold and Minerals Pty Ltd in 2010. In January, 2011, Catalyst and its wholly subsidiary, Kite Gold Pty Ltd, entered into a Heads of Agreement with Providence to farm into the Four Eagles Gold Project. The Farm-in agreement covers two exploration licences EL4525 and EL5295 and a further licence EL5508 was granted in June 2014 (See Figure 2).
In March 2015, Catalyst and Providence reached agreement with Gold Exploration Victoria Pty Ltd (GEV), a wholly owned subsidiary of Hancock Prospecting Pty Ltd, for GEV to sole fund up to $4.2 million on exploration at the Four Eagles Gold Project to earn up to 50% in the project. This will enable extensive drilling to resume on the mineralised zones already identified within the project area with the objective of defining continuous gold mineralisation that can be economically mined.
The parties have formed a non-incorporated joint venture, with Catalyst maintaining its 50% equity in the Four Eagles Gold Project and remaining as manager. GEV has taken over the earn-in rights that Catalyst had with Providence, allowing GEV the right to earn an initial 25% interest in the project from Providence subject to funding $2.1 million of expenditure.
Once this initial investment is completed, GEV has the right to earn a further 25% interest from Providence subject to further exploration funding of $2.1 million, after which Providence would revert to a 2.5% net smelter return royalty entitlement.
Catalyst has extended the size of the gold footprint which is now around 6 kms long by 2.5 kms wide but is still only delineated by very broad spaced drilling with very few holes testing below the oxide zone. The depth of the Murray Basin sediments varies from approximately 10 metres to 120 metres and shows an undulating Ordovician surface beneath. Within this footprint, at least three north south trending gold zones can be defined (Eagle 2, Eagle 3 and Eagle 4) each of which contains high grade gold intersections of >10g/t Au, with values up to 150 g/t Au (Figures 8a and 8b).
Within the gold trends, three prospects (Discovery, Hayanmi and Boyd’s Dam) have been identified for further work and other areas west of the Whitelaw Fault also require reconnaissance drilling. A large programme of angled aircore, RC and diamond drilling will be necessary in the next few years to determine if continuous high grade gold resources can be established in these zones. Areas where the basement is less than 50 metres deep provide the greatest potential for open-pittable reserves.
The Hayanmi Zone is now shown to be around 2.6 kilometres long but is sparsely drilled in the northern sections. As shown on the longitudinal projection (Figure 9), and the cross section (Figure 9b), the following high grade gold intersections were recorded at Hayanmi Prospect on the Eagle 3 Structure:
Boyd’s Dam Prospect on the Eagle 4 Structure has also recorded high grade gold intersections and can now be traced along strike for around 700 metres. The longitudinal projection (Figure 10a) and a cross section (Figure 10b) show the broad distribution of the gold mineralisation with the following high grade intersections recorded:
The Discovery Prospect on the Eagle 2 Structure is also a high priority target but the basement is deeper and would represent an underground target. Drilling in 2014 extended the strike length of the Discovery Zone to 2.5 kilometres (Figure 11) with the following high grade intersections recorded: