Catalyst Metals (ASX:CYL) is set to resume aircore drilling next week at its Four Eagles gold project in Victoria.
The drilling will focus on a 3 kilometre long section of Eagle 3 trend where basement depth is 20 to 50 metres.
Previous shallow intersections in the 1-3 grams per tonne gold range highlight the potential for open pit mineralisation.
High grade gold mineralisation was discovered with shallow drilling in the last two years with grades including 0.4 metres at 152g/t; 6 metres at 82.7g/t and 3 metres at 20.5g/t, among others.
The company's position in the project is strengthened with it on the cusp on earning 50% equity via a joint venture agreement with Providence Gold and Minerals by spending $2.1 million on exploration.
As at end of March, expenditure had totaled $2.058 million.
Post the formation of a formal JV, Catalyst will have the right to earn towards 75% equity by spending a further $2.1 million on exploration, subject to a right by Providence to contribute at the 60:40 equity level.
The Four Eagles gold project made significant strides last year and is now confirmed as a virgin gold discovery in an area never previously mined.
The company has a longer term objective of discovering over 1 million ounce resource, and this is supported by the large area at Four Eagles containing high grade gold values and close proximity to the regional Whitelaw Fault that appears to control gold minerlisation at Bendigo, where 22 million ounces of gold has been produced.
The infill drilling at Hayanmi and Boyd's Dam prospects has also produced enhanced gold grades at lengths of at least 600 metres also underscores the project's potential.
The initial aircore drilling program will be undertaken on the northern end of the Eagle 3 trend and will be conducted on a 200 metre line spacing with angled holes drilled on each line about 40 metres apart.
Drilling will be carried out over a strike length of almost 3 kilometres with basement depths estimated to be in the 20-50-metre range.
It had a cash balance of $1.3 million at the end of the December quarter, and raised a further $191,000 via the exercise of 381,735 listed options at $0.50 each.
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