CYL 6.25% $2.72 catalyst metals limited

Company Announcements OfficeAustralian Stock Exchange Limited4th...

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    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
 
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