Company Announcements Office Australian Stock Exchange Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir or Madam, SUCCESSFUL DRILL RESULTS CONFIRM RESOURCE POTENTIAL OF MOLYBDENUM DISCOVERY • Balance of drilling program results received • Program confirms mineralisation over 400m strike to 120m depth • Scoping study to commence Catalyst Metals Ltd is pleased to advise it has received the balance of assay results from the initial drilling program of its Minnie Springs molybdenum discovery in Western Australia. These new results confirm the presence of a higher grade core within a system that contains widespread porphyry-style Mo mineralisation that has now been intersected over a 400m strike length by 14 RC drillholes on 9 lines at depths from surface to 120m downhole. The recently completed drilling program targeted a 500m portion of a 3250m long molybdenum geochemical anomaly hosted by a substantial hydrothermal system of pyrite, molybdenite and minor chalcopyrite in a silicic-potassic altered granitoid. The style of mineralisation and zoned alteration is similar to low-fluorine type molybdenum porphyry deposits as being mined in British Columbia and North America. ASX Code: CYL Capital Structure CYL Ordinary Shares 23,000,000 Incentive Shares 8,000,000 Options 11,500,000 (20 cent) expiring Dec 2008 Cash Balance Dec 06 $2,900,000 Contact Details T +61 8 9415 1714 F +61 8 9481 2200 Level 1, 89 St.George’s Tce PERTH WA 6000 GPO Box 2508 PERTH WA 6000 Further Information [email protected] www.catalystmetals.com Catalyst Metals Ltd ASX Release Date 30/1/07 No. of pages lodged: 5 Significant new assay results include drillhole MRC 20 which intercepted 22m at 0.07% Mo from 42m including 4m at 0.13% Mo from 52m and drillhole MRC14 which although drilled opposite azimuth to most holes due to topography, provided intersections including 70m at 0.04% Mo from 36m with 2m at 0.16% Mo from 76m and 2m at 0.13%Mo from 100m. Drillhole MRC25 intersected a high grade zone of 4m at 0.14%Mo from 62m. Other intersections include 10m at 0.03% Mo from 38m and 20m at 0.04% Mo from 54m in MRC27. Within this zone and adjacent to the historical diamond drillhole MSD 3 which intersected 4m at 0.17% Mo from 16m, new drillhole MRC26 intercepted 36m at 0.03% Mo including 4m at 0.09%Mo from 16m. Drill samples in this program were collected every metre and composited to two metres for molybdenum (Mo) analysis by the XRF pressed powder method. The original discovery hole at Minnie Springs was MRC 6 which recorded 61m at 0.10% Mo from 3m including 24m at 0.14% Mo from 11m. The recently completed drill program has determined that this intersection is part of a higher grade core to a wide zone of lower grade Mo mineralisation which remains open at depth. In the previously announced results of the current program drillhole MRC10 intercepted 52m at 0.07% Mo from 10m which included 20m at 0.12% Mo from 24m. High grades were also intercepted underneath zones of rich surface samples with MRC 7 returning 24m at 0.07% Mo including 8m at 0.17% Mo from 20m depth and MRC 8 returning 34m at 0.07% Mo from 32m including 16m at 0.10% Mo from 32m in the region where previous surface channel sampling returned 20m at 0.12% Mo. Significantly the depth of the zone is still open, with historic diamond drilling showing mineralisation to 198m downhole depth (MSD 2). Along strike there remains an untested zone of 300m southeast between MRC27 and several historic RC drillholes where intercepts included MRC1 with 22m at 0.04% Mo from surface including 1m at 0.24% Mo from 21m. The drilling results are currently being assessed and in-house scoping studies to determine the potential economics of the higher grade core will now be conducted. The location of the 2006 Catalyst reverse circulation drill holes along with historic drilling locations are shown on the attached Plan. Details of significant results from this last group of drillholes is shown on the attached Table. For further information on the company please visit http://www.catalystmetals.com ASX Code: CYL Capital Structure CYL Ordinary Shares 23,000,000 Incentive Shares 8,000,000 Options 11,500,000 (20 cent) expiring Dec 2008 Cash Balance Dec 06 $2,900,000 Contact Details T +61 8 9415 1714 F +61 8 9481 2200 Level 1, 89 St.George’s Tce PERTH WA 6000 GPO Box 2508 PERTH WA 6000 Further Information [email protected] www.catalystmetals.com ASX Release Date 25/1/07 page 2 of 5 Please direct enquiries to: Mark Thompson – Exploration Director Phone +61 8 9415 1714 Information in this report has been reviewed by a Competent Person as defined in the JORC Code, being Mr Howard Dawson B.App.Sc SFFINSIA AIG, who has sufficient experience in mineral resource estimation relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking, and consents to the inclusion in the public release of the matters based on their information in the form and context in which it appears. Gold equivalents are calculated using current published prices of Technical Moly Oxide (MoO3) at US $24.50/lb and Gold US $607/oz. Technical Moly Oxide is approximately 57% Mo. About Catalyst Metals Ltd Catalyst is an ASX listed mineral explorer focussed on the highly prospective Minnie Creek project in Western Australia, where significant new mineralised zones of molybdenum, gold, copper, tungsten and uranium have been recently discovered within a 900km2 area. Catalyst has cash on hand to aggressively test these discoveries and a capital structure designed to offer investors high leverage to further exploration success. About Molybdenum Molybdenum (chemical symbol Mo - commonly called “Moly”) is a silvery-white metal used primarily to increase the strength and durability of steel, producing steel alloys such as stainless steel and corrosive resistant pipelines for the gas and oil industries. It is finding growing ‘clean technology’ use as an important catalyst to ‘crack’ hydrocarbons and clean up low-quality fossil fuels. In the energy market molybdenum is in demand where its strength and high melting point suit use in linings and pipes for both nuclear fission reactors and experimental nuclear fusion reactors. Molybdenum is obtained principally from porphyry-type deposits and occurs in very low grade percentages. Primary molybdenum operations such as Endako in B.C mine grades of 0.06% Mo to depths of 300m open pit. The price of molybdenum has increased over 500% since 2000 on increasing consumption and dwindling supply. Main producers include Rio Tinto, Teck-Cominco, Phelps Dodge, Codelco and Jinduicheng. In 2006 the production of 3 primary mines and 6 byproduct mines in North America alone was 60,500 tonnes worth US$3.2 billion. Molybdenum is not traded on the LME but is exchanged by private contract. Price information can be obtained at www.platts.com ASX Code: CYL Capital Structure CYL Ordinary Shares 23,000,000 Incentive Shares 8,000,000 Options 11,500,000 (20 cent) expiring Dec 2008 Cash Balance Dec 06 $2,900,000 Contact Details T +61 8 9415 1714 F +61 8 9481 2200 Level 1, 89 St.George’s Tce PERTH WA 6000 GPO Box 2508 PERTH WA 6000 Further Information [email protected] www.catalystmetals.com Contact Details T +61 8 9415 1714 F +61 8 9481 2200 Level 1, 89 St.George’s Tce PERTH WA 6000 GPO Box 2508 PERTH WA 6000 Further Information [email protected] www.catalystmetals.com ASX Release Date 25/1/07 page 3 of 5 Table 1. Significant assay results from balance of RC drilling at Minnie Springs Hole ID Location (AGD84) Depth Azimuth Dip Intersections Length % Mo Equiv. North East From To Au g/t MRC 14 7319128 393620 120 45 -60 36 106 70 0.04 1.9 including 76 78 2 0.16 7.8 including 100 102 2 0.13 6.3 MRC 19 7319277 393632 75 225 -60 46 58 12 0.05 2.4 including 54 58 4 0.10 4.9 MRC 20 7319251 393597 75 225 -60 26 74 48 0.05 2.4 including 42 64 22 0.07 3.4 which included 52 56 4 0.13 6.3 MRC 25 7319329 393400 75 45 -60 including 62 66 4 0.14 6.8 MRC 26 7319124 393761 75 225 -60 8 44 36 0.03 1.5 including 16 20 4 0.09 4.4 MRC 27 7319089 393797 75 225 -60 38 48 10 0.03 1.5 54 74 20 0.04 1.9 ASX Code: CYL Capital Structure CYL Ordinary Shares 23,000,000 Incentive Shares 8,000,000 Options 11,500,000 (20 cent) expiring Dec 2008 Cash Balance Dec 06 $2,900,000 Contact Details T +61 8 9415 1714 F +61 8 9481 2200 Level 1, 89 St.George’s Tce PERTH WA 6000 GPO Box 2508 PERTH WA 6000 Further Information [email protected] www.catalystmetals.com ASX Release Date 25/1/07 page 4 of 5 Plan 1. Drillhole locations at molybdenum zone, Minnie Springs. 394000 mE 393500 mE MRC 1 MRC 2 MRC3 MRC4 MRC 7 MRC 9 MRC 12 MRC 13 MRC 14 MRC 15 MRC 19 MRC 20 MRC 21 MRC 22 MRC 23 MRC 24 MRC25 MRC 26 MRC 27 metres 0 50 100 200 ASX Code: CYL Capital Structure CYL Ordinary Shares 23,000,000 Incentive Shares 8,000,000 Options 11,500,000 (20 cent) expiring Dec 2008 Cash Balance Dec 06 $2,900,000 Contact Details T +61 8 9415 1714 F +61 8 9481 2200 Level 1, 89 St.George’s Tce PERTH WA 6000 GPO Box 2508 PERTH WA 6000 Further Information [email protected] www.catalystmetals.com ASX Release Date 25/1/07 page 5 of 5
CYL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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