Catalina Resources (ASX:CTN) signs Badja gold acquisition ahead of planned drilling
Catalina Resources has entered into a binding agreement to acquire the Badja Gold Project in Western Australia’s Mid West, where it plans a resource expansion campaign following completion.
The project hosts an existing JORC 2012 Mineral Resource of 1.11Mt at 2.52g/t Au for 90,358oz, encompassing the Gnows Nest, Monte Cristo, Flying Emu and Water Tank deposits.
Highlights
Badja’s approximately 39km² tenement package includes 2 granted Mining Leases, 1 pending Mining Lease and 3 Exploration Licences.
Upfront consideration comprises $3m cash and $3m in Catalina shares, with deferred consideration and existing EMU payment obligations also applying.
Firm placement commitments total approximately $3.51m, including director participation subject to shareholder approval.
Catalina plans up to 15,000m of drilling following acquisition completion, with commencement scheduled for January 2027.
Located approximately 110km southwest of Mount Magnet in the Yalgoo Mineral Field, Badja forms part of Catalina’s Mid West gold strategy.
Gnows Nest contains an Indicated Mineral Resource of 428,762t at 4.32g/t Au for 59,551oz, while Monte Cristo hosts 492,805t at 1.43g/t Au for 22,657oz, also classified as Indicated.
Flying Emu and Water Tank contain Inferred resources of approximately 6,500oz and 1,650oz respectively, with lower geological confidence and no detailed mining or metallurgical assumptions applied at this stage.
Initial drilling will prioritise Gnows Nest, targeting extensions beneath and adjacent to historical underground workings.
Gold occurs in quartz veins within a shear zone, with multiple plunging shoots, while historical mining produced approximately 27,925oz at an average recovered grade of 21.85g/t Au.
Historical drilling returned 13m at 13.73g/t Au from 39m in 18GNRC048, including 2m at 76.24g/t Au from 43m.
Beneath the old workings, 21GNRC232 intersected 2m at 11.43g/t Au from 208m.
Catalina Executive director Ross Cotton said:
“Very little modern work has been done, the mineralisation is open along strike and at depth, and high-grade gold has already been hit below the old workings.”
The broader campaign comprises reverse circulation, diamond and aircore drilling, incorporating targeted work at Monte Cristo, Flying Emu and Water Tank.
Diamond drilling will support structural interpretation, bulk density measurements and sampling for potential metallurgical testwork, with results intended to support updated Mineral Resource Estimates.
Under the acquisition terms, a further $3m becomes payable upon a qualifying Badja resource reaching at least 160,000oz at a cutoff grade of 1.0g/t Au or lower, or production reaching 50,000oz.
Existing obligations require payments to EMU of $1.2m upon production of 5,000oz and $1m upon production of an additional 5,000oz, with separate disposal provisions applying.
Settlement remains conditional on shareholder approval and required external approvals and consents, while director participation in the placement also requires shareholder approval.
Badja lies within 100km of multiple gold processing plants, although no external processing arrangement has been secured.
Potential pathways depend on technical suitability, available capacity, haulage economics and commercial terms.
Programmes of Work are approved, with earthworks expected during November and December.
Alongside drilling, Catalina intends to advance mining studies, metallurgical assessment, geotechnical work and approvals where appropriate, with further technical evaluation required before any development decision.
The reported estimates are Mineral Resources, rather than Ore Reserves.