Catalina Resources (ASX:CTN) has entered into a binding drill-for-equity agreement with Western Australian drilling contractor Topdrill Pty Ltd valued at up to A$2 million, to support resource expansion at the Badja Gold Project in Western Australia's Mid-West, while also appointing Mr Jade Smith as Managing Director.

Key Points

  • Binding A$2 million drill-for-equity agreement with Topdrill supports up to 40,000–50,000 metres of RC drilling at the Badja Gold Project
  • Topdrill will accept fully paid ordinary shares in Catalina as settlement for 50% of eligible GST-exclusive drilling metre and active-rate charges, up to an aggregate equity consideration of A$2 million
  • Badja hosts a JORC 2012 combined Indicated and Inferred Mineral Resource of 1.11Mt at 2.52 g/t Au for 90,358oz of contained gold across four deposits
  • Drilling is scheduled to commence January 2027, with Gnows Nest prioritised as the initial focus for resource expansion
  • Mr Jade Smith has been appointed as Managing Director

Drill-for-Equity Agreement Terms with Topdrill

Under the binding agreement, Topdrill will accept fully paid ordinary shares in Catalina as settlement for 50% of eligible GST-exclusive drilling metre and active-rate charges, up to an aggregate equity consideration of A$2 million. The arrangement is intended to support planned drilling programs at the Badja Gold Project, with drilling scheduled to commence in January 2027. The agreement provides support for up to 40,000–50,000 metres of RC drilling. Executive Director Ross Cotton stated the arrangement provides additional flexibility to accelerate programs while preserving cash for other exploration and development activities.

Badja Gold Project Mineral Resource and Exploration Target

The Badja Gold Project is located within the Yalgoo Mineral Field of Western Australia, approximately 110km south-west of Mount Magnet and within 100km of multiple gold processing plants. The tenement package covers approximately 39km² and comprises two granted Mining Leases, one pending Mining Lease and three Exploration Licences. The project hosts a combined Indicated and Inferred JORC 2012 Mineral Resource of 1.11Mt at 2.52 g/t Au for 90,358oz across four deposits: Gnows Nest, Monte Cristo, Flying Emu and Water Tank. The Gnows Nest and Monte Cristo deposits also carry a conceptual Exploration Target of approximately 0.780–1.662Mt at 4.4–5.7 g/t Au for 109,000–303,000oz, separate from and additional to the existing Mineral Resources.

Gnows Nest and Monte Cristo Drilling Priorities

Gnows Nest will be the initial focus of the planned drilling program, targeting extensions to the existing high-grade Mineral Resource along strike and at depth, including areas beneath historical underground workings. The deposit has a history of high-grade gold production, with approximately 27,925oz produced at an average recovered grade of 21.85 g/t Au. Historical drilling has returned intersections including 13m at 13.73 g/t Au from 39m and 3m at 42.18 g/t Au from 77m. Monte Cristo, hosting an existing Indicated Mineral Resource of 22,657oz, represents a second priority exploration area, with mineralisation remaining open along strike and at depth. Additional drilling is also planned at Flying Emu and across the broader Badja Project.