Catalyst Metals emerged as the top performer on the ASX 200 Monday following the announcement of a significant high-grade gold discovery beneath its Cinnamon Resource, situated on the Plutonic Gold Belt in Western Australia. Shares in Catalyst Metals surged, climbing 4.4 per cent during morning trading and reaching a record high of $9.51.
Catalyst Metals is an Australian gold producer focused on exploration and development. The company aims to create shareholder value through discovery, development, and operation of gold projects. According to the miner, the newly discovered zone spans 400 metres and remains open, hinting at the possibility of a sixth underground ore source. The Cinnamon Resource, located 25 kilometres from Catalyst’s Plutonic processing plant, currently holds an undeveloped open-pit resource of 145,000 ounces. Drilling conducted in the past year has confirmed multiple high-grade intercepts, including notable results of 33 metres at 7.4 grams per tonne and 22 metres at 14.3 grams per tonne, with subsequent drilling further bolstering these high-grade intersections.
Catalyst Metals anticipates that this discovery will bolster its 10-year production plan, with aims to escalate production from approximately 100,000 ounces per year to 200,000 ounces per year across five underground mines. Other mining companies also saw positive movement on the ASX, with Perseus gaining 3.3 per cent, Capricorn Metals increasing by 3.5 per cent, and Bellevue Gold rising by 3.7 per cent. Large-cap Newmont also experienced a boost, adding 1.5 per cent, as spot gold prices reached $US4675.40 an ounce.
