Catalina Resources (ASX:CTN) targets high-grade rare rarths and gold near Mt Weld as drilling advances at Laverton

Following the commencement of drilling at the Laverton REE and Gold Project and recent corporate developments, Catalina Resources Limited (ASX:CTN) is entering a decisive phase in its exploration strategy.

The company is focused on advancing its Western Australian portfolio through a technically disciplined approach that prioritises geological potential, capital efficiency, and shareholder value.

The Laverton Project, located less than 2 kilometres from the world class Mt Weld rare earth deposit, is currently the centre of activity, with RC drilling underway to test high-grade rare earth and gold targets identified during previous aircore campaigns.

In parallel, preparations are progressing at the Central Yilgarn Project, where heritage clearance has now been secured, paving the way for further drilling in a highly prospective zone for gold and REEs.

Catalina has also taken strategic steps on the corporate front, including the sale of a non-core shareholding in MetalsGrove Mining, in order to strengthen its cash position and support ongoing exploration activities.

These developments reflect the company’s broader goal of maintaining operational momentum while ensuring strong fiscal discipline.

Executive Director Ross Cotton addresses five key investor questions about the company’s recent progress, upcoming plans, and how Catalina is positioning itself to unlock value across its projects.

What is the significance of the current drilling program at the Laverton Project, especially given its proximity to Mt Weld?

The current reverse circulation (RC) drilling program at Laverton is a critical step for Catalina, as it follows up on a standout rare earth intersection discovered in aircore hole LVAC037.

That hole returned 9 metres at 7,565 parts per million total rare earth oxides (TREO) from 47 metres depth, including 4 metres at 13,406ppm TREO, or 1.34 percent, from 49 metres.

Importantly, this intercept includes up to 0.3 percent neodymium and praseodymium (NdPr), which are two of the most in demand rare earth elements used in magnet manufacturing for electric vehicles, wind turbines and defence applications.

“The geological setting, mineralisation style, and proximity to Mt Weld suggest a potential structural link between the two systems, which is what this drilling campaign is designed to investigate.”

The program is targeting both lateral and vertical extensions to the LVAC037 mineralisation, with the aim of confirming continuity and scale of REE enrichment in this promising corridor.

What kind of results have you seen so far at Laverton in terms of gold exploration?

At Laverton, gold exploration has also returned promising results that are helping guide our current drilling strategy.

In particular, aircore hole LVAC049 delivered a strong intercept of 28 metres at 1.09 grams per tonne gold from 57 metres, which includes a high-grade interval of 1 metre at 9.69 grams per tonne gold.

This result indicates the presence of a meaningful gold system, which we believe is associated with the Barnicoat Shear Zone, a regionally significant mineralised structure that hosts numerous deposits across the Eastern Goldfields.

“Our current program is targeting higher grade zones in fresh rock at depth, beneath the previously intersected supergene mineralisation in the oxide profile.”

These deeper targets are expected to provide a more robust understanding of grade continuity and structural controls, allowing us to refine our exploration model and assess the potential for future resource definition.

When can we expect assay results from the current Laverton drilling?

The Laverton drilling campaign remains on schedule and is expected to be completed by Friday afternoon.

Following the completion of drilling, all samples will be submitted to the laboratory for assay analysis, with results expected on a standard turnaround and to be reported progressively as they are received.

In the meantime, we will be providing a market update next week based on preliminary geological observations made on site.

These early insights will help build context for the eventual assay results, and we are committed to delivering timely and transparent updates to the market as more information becomes available.

What is happening at the Central Yilgarn Project and what is the next exploration step there?

At our Central Yilgarn Project, we have finalised a Heritage Agreement that covers key tenements within the area, representing a major step forward in the project’s exploration timeline.

The next immediate activity is the commencement of a heritage survey, which will clear the way for our upcoming RC drilling program.

This program will target high-priority gold and rare earth element anomalies that were identified during our 2023 aircore campaign.

The anomalies were identified based on geochemical data and are considered robust enough to justify deeper testing.

Once the heritage survey is complete, drilling will commence, allowing us to further investigate these targets and expand our geological understanding of the project’s mineral potential.

What was the reason for the sale of shares in MetalsGrove Mining and how will those funds be used?

The recent sale of our shareholding in MetalsGrove Mining Ltd generated gross proceeds of 237 thousand dollars before brokerage and was a strategic decision aimed at strengthening Catalina’s balance sheet.

The timing of the sale aligns with our increased exploration activity and ensures that we are well funded to advance key programs without immediate reliance on external capital raising.

“This transaction is consistent with our approach to disciplined capital management, which prioritises deploying capital into core exploration projects rather than holding passive investments.”

These funds are being directed into active exploration, including the Laverton drilling program and preparations at Central Yilgarn.

Advancing value through targeted exploration

Catalina Resources forward plan is clear: complete the current drilling at Laverton, advance the Central Yilgarn Project through to drilling stage, and manage capital in a way that ensures maximum impact from every dollar spent.

With assay results expected soon and heritage clearance paving the way for more exploration, the company is entering a news rich period that will provide important data to guide future work.

“Our focus is on delivering real exploration results. The work underway at Laverton and the upcoming program at Central Yilgarn are central to that goal. We are taking a disciplined, technically driven approach to build long-term value.”

Catalina remains committed to transparent communication and is confident that its WA focused portfolio provides a strong platform for discovery and growth

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