Catalyst Metals (ASX: CYL) has completed a share placement, raising $439,650 to fund the next stage of drilling at the Four Eagles Gold Project in Victoria.
Catalyst will commence the next phase of its exploration programme before October 20, 2011. This will involve 6,000 metres of aircore drilling to test the strike extent of the high-grade gold zones discovered this year.
The share placement to fund this latest round of drilling offered 1,256,143 ordinary fully paid shares at a subscription price of 35 cents per share to raise $439,650 before costs.
Since January 2011, Catalyst’s aircore and diamond drilling has discovered three new zones with high grade gold mineralisation and confirmed the prospectivity of the regional Whitelaw and Tandarra Faults north of Bendigo.
The exploration program will test the Harrier prospect, where grades included 3 metres at 5.5 grams per tonne (g/t) gold and 3 metres at 15.3g/t gold, and the Osprey prospect, where 3 metres at 14.7g/t gold was returned.
Subject to availability of a suitable reverse circulation drill rig, angled drill testing of the western Goshawk Zone, which returned 6 metres at 82.7g/t gold, may also be undertaken.
The objective of the programme is to delineate continuity of high grade gold mineralisation that could lead to resource drilling.
Reconnaissance aircore drilling will also be undertaken on the northern strike extent of the mineralisation on EL 5295, where a prospective strike length of about 15 kilometres has had virtually no previous drilling.
The Four Eagles Gold Project is located generally along strike of the Bendigo Goldfield in central Victoria, extending from 20 to 70 kilometres north of Bendigo.
Under a joint venture with Providence Gold and Minerals, Catalyst has the right to earn an interest in the project through exploration expenditure on the tenements and cash and share payments.
Catalyst achieved the Phase 1 expenditure commitment of $450,000 before January 20, 2012, but this drilling program will provide the company with further confidence to proceed to earn a 50% equity interest in the Project by spending a further $1.65 million in the subsequent 2 years and making payments of $100,000 and issuing a further 750,000 Catalyst shares.