Highlights

  • CYL shares gained 7.44% to AUD 9.670 during Monday morning trading.
  • Drilling has confirmed a 400m-long high-grade zone beneath the Cinnamon open pit Resource.
  • Results support the potential for Cinnamon to emerge as a sixth underground ore source at Plutonic.

Catalyst Metals Limited (ASX:CYL) shares moved higher during Monday morning trade on 19 January, following the release of updated drilling results from the Cinnamon trend within the Plutonic Gold Belt in Western Australia. The company confirmed the discovery of a high-grade mineralised zone beneath an existing open pit Resource, extending the exploration footprint at the Cinnamon project.

New High-Grade Zone Defined at Cinnamon

Catalyst reported further drill results from the Cinnamon trend, located approximately 25km from the Plutonic processing plant. Cinnamon is an undeveloped gold Resource with an existing open pit Resource of 145koz. Recent drilling has confirmed mineralisation beneath the open pit, identifying a continuous high-grade zone extending over a 400m strike length.

The discovery follows initial drilling completed in mid-2025, which intersected wide, high-grade gold intervals below the known Resource. Subsequent drilling has now confirmed mineralisation on 50m drill spacing along the defined zone, with the area remaining open both along strike and at depth.

Drilling Results Support Underground Potential

Drilling beneath the Cinnamon Resource returned multiple significant intercepts, including previously reported results such as 33m at 7.4g/t Au, 22m at 14.3g/t Au, and 37m at 4.2g/t Au. More recent drilling delivered additional intersections including 18m at 9.7g/t Au, 19m at 4.1g/t Au, 20m at 2.9g/t Au, and 30m at 2.9g/t Au.

These results confirm the presence of consistent mineralisation across the target area. Further drilling programs are planned to test the limits of the zone both laterally and at depth, while infill drilling continues across the identified 400m trend.

Expanding the Plutonic Belt Opportunity

The Cinnamon trend forms part of the broader Plutonic Gold Belt, a mineralised corridor extending approximately 40km in Western Australia. The trend itself spans around 3km and has seen limited historical drilling at depth or beyond the existing Resource footprint.

Exploration activity along the Plutonic Belt has primarily focused on Plutonic Main, Plutonic East, and Trident, which currently provide feedstock for production. The confirmation of a new high-grade zone at Cinnamon introduces an additional exploration and development opportunity within the belt.

Alignment With Production and Growth Plans

Catalyst’s current 10-year production plan targets an increase in annual gold production from approximately 100koz to 200koz, sourced from five underground mines. Cinnamon is not included in the current production schedule; however, the newly identified mineralisation highlights its potential to become a sixth underground ore source, creating additional development options.

The company continues to advance drilling programs at Cinnamon, alongside ongoing exploration at K2 and Old Highway, further expanding its exploration pipeline. Catalyst has also commissioned a study to assess the potential restart of a second processing plant at Plutonic, placed in care and maintenance in 2010, to evaluate future expansion capacity.

Share Price Reaction

Following the announcement, Catalyst Metals shares rose 7.44% to AUD 9.670 during morning trading on 19 January, as the market responded to the updated exploration results. Including today’s gain, CYL’s share price has gained 28.70% in a month and yearly gain stands at over 188%.