Catalina’s Acquisition Spurs Exploration but Faces Heritage Agreement Hurdles

Strategic Acquisition Expands Catalina’s Gold Footprint

In a decisive move to bolster its exploration portfolio, Catalina Resources Ltd (ASX: CTN) has completed the acquisition of the Central Yilgarn Project, encompassing the Yerilgee and Evanston greenstone belts. These underexplored regions, located approximately 190 kilometres from Kalgoorlie within the world-renowned Yilgarn Craton, offer a compelling mineralisation potential across gold, silver, and base metals.

The acquisition from Dreadnought Resources’ wholly owned subsidiary marks a significant expansion for Catalina, positioning the company to leverage multiple camp-scale gold targets with promising early results. The Yerilgee Greenstone Belt alone hosts three primary gold camps, T6, T8, and T11, with high-grade intercepts such as 17 metres at 4.1 g/t gold and 28 g/t silver at T6, and rock chip samples up to 233 g/t gold at T11. Notably, these targets remain largely untested at depth, underscoring the exploration upside.

Encouraging Drilling Results in Lachlan Fold Belt

Complementing the Central Yilgarn acquisition, Catalina reported assay results from diamond drilling in its Lachlan Fold Belt Project. Two diamond holes totaling 351 metres intersected broad zones of sulphide veining and brecciation within siltstone, confirming gold mineralisation with notable assays including 11 metres at 0.88 g/t gold and discrete higher-grade intervals.

The geological interpretation suggests a mineralising event linked to late brittle deformation, with hydrothermal fluids potentially sourced from a deep intrusion. These findings provide a valuable vector for further exploration in a region historically known for structurally controlled gold deposits.

Robust Capital Raising to Accelerate Exploration

To underpin its ambitious exploration agenda, Catalina successfully raised $2.77 million through a combination of a share placement and a non-renounceable rights issue priced at $0.0025 per share. This capital injection, alongside existing cash reserves, equips the company with a strong balance sheet to advance drilling programs and heritage negotiations, particularly at the newly acquired Central Yilgarn assets.

Additionally, Catalina plans to seek shareholder approval for an option placement aimed at raising a further $11,500, with key directors indicating their intention to participate. The company’s prudent financial management is reflected in its current cash position of approximately $1.7 million, despite a $466,000 rehabilitation security deposit established in Tasmania.

Governance and Operational Updates

On the corporate front, Catalina appointed Ross Cotton as an Executive Director, bringing additional technical expertise to the board, while Johnathon Busing assumed the role of Company Secretary following Sanjay Loyalka’s step down from that position. These changes signal a strengthening of governance aligned with the company’s growth trajectory.

Exploration expenditure for the quarter was $102,000, with $222,000 allocated to tenement acquisition costs. The company also confirmed that all other tenements remain in good standing, maintaining compliance with statutory requirements.

Looking Ahead

Catalina Resources is now poised to advance its exploration programs with a focus on follow-up drilling at high-priority gold targets within the Central Yilgarn Project. The initiation of heritage agreement processes and ongoing assessment of additional acquisition opportunities underscore the company’s strategic intent to build a diversified and valuable mineral portfolio.