Victoria and Tasmanian-focused gold producer Catalyst Metals is mulling a takeover of Vango Mining, which would see it take possession of the Marymia gold project in WA.
The company confirmed it was in takeover talks with Vango to the ASX but affirmed that no transaction had been agreed to and a transaction was no certainty.
Marymia has a mineral resource of 10.38 million tonnes at three grams per tonne (g/t) for 1.02 million ounces of gold, with recent drilling further solidifying the project’s potential.
In late November, Vango announced it had intersected high-grade gold at Marymia’s Triple-P and B Zone open-pit prospects as part of a 19-hole reverse circulation drill program across 3504m.
Notable intersections included 1m at 3.91g/t gold from 44m, 1m at 7.98g/t gold from 73m and 3m at 6.36g/t gold from 86m from drill hole VPPPRC0024.
“Results from the shallow parts of VPPPRC0024 are highly encouraging, in that the system appears to continue and may have potential to host further open pit resources,” Vango said in an ASX release.
Catalyst is advancing gold projects in Victoria, as it also expands its Henty gold mine in Tasmania.
While Henty is an operating gold mine – producing 25,199 ounces in the 2021–22 financial year (FY22) – Catalyst is looking to elevate its production even further, with an annual production target of 35,000 ounces of gold by the end of FY23.
Catalyst announced a maiden Henty ore reserve estimate of 983,000 tonnes at 3.6g/t gold for 115,000 ounces of gold in November, which managing director and chief executive officer James Champion de Crespigny said was a “key strategic milestone” for the mine.
“This (Henty’s bright future) is shown by the fact that we have been able to convert 55 per cent of the indicated resource to ore reserve,” he said.
“Importantly, the anticipated Henty mine life now extends beyond five years using a mine plan which incorporates the increased production rates being targeted in coming years.”