Catalyst Metals Delivers 370% Resource Surge and Maiden Underground Reserve
Key Takeaways
- Catalyst Metals has delivered a 370% increase to the Cinnamon Mineral Resource, growing from 3.0Mt for 145koz to 6.9Mt at 2.5g/t for 541koz within 12 months of the underground discovery.
- The maiden underground Ore Reserve of 2.4Mt at 3.0g/t for 232koz (Probable) carries a pre-tax NPV7 of A$408 million at A$4,500/oz gold and A$726 million at A$6,000/oz, on just A$35 million upfront capital.
- Cinnamon's LOM AISC of A$2,357/oz at A$4,500/oz gold positions it as a lower-cost addition to Catalyst's existing ~100koz per annum portfolio, with average steady-state free cash flow of A$117–188 million per annum.
- Four areas of repeat conglomerate mineralisation outside the current resource have already returned intercepts including 8m at 4.7g/t Au and 0.5m at 21g/t Au, with follow-up drilling planned in coming months.
- Catalyst holds A$331 million in cash and bullion with nil debt, and total Plutonic Belt Ore Reserves now exceed 1.5Moz at 2.6g/t Au following the Cinnamon, Keillor, and Trident upgrades.
Cinnamon delivers a 370% resource surge and a maiden underground reserve
Catalyst Metals (ASX: CYL) has announced a 370% increase to the Cinnamon Mineral Resource and a maiden underground Ore Reserve, delivered within 12 months of initial discovery. The total Resource now stands at 6.9Mt at 2.5g/t for 541koz, up from 3.0Mt for 145koz, with a maiden underground Ore Reserve of 2.4Mt at 3.0g/t for 232koz (Probable).
Cinnamon is positioned as the sixth ore source in Catalyst’s plan to grow Plutonic Gold Belt production to approximately ±200koz per annum, adding substantial scale to a portfolio already generating around ~100koz annually from three operating mines.
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Q1 FY27 milestone: from discovery to reserve in 12 months
Drilling beneath the existing Cinnamon open pit commenced in mid-2025, with the underground discovery announced in October 2025. Within 12 months of that discovery, Catalyst has delivered a maiden underground Ore Reserve — a pace made possible by the existing Plutonic infrastructure: haul road, 2Mtpa CIL plant, and camp.
The Mineral Resource Estimate (MRE) underpinning this result draws on 88,639m of drilling from 181 diamond and 147 RC holes completed by Catalyst since the previous MRE.
Managing Director & CEO, James Champion de Crespigny
“To have moved from discovery to Reserve within 12 months is a credit to our team. The existing infrastructure and sunk capital across the belt makes this possible, however the team has turned it into a reality. Cinnamon will be a sixth ore source for the Plutonic mill. The width, and continuous nature of the orebody will lend itself to efficient mining of bulk stopes…”
The numbers behind the Cinnamon underground
The life of mine (LOM) plan carries compelling economics at both modelled gold prices. The table below summarises key metrics from Table 3 of the announcement.
| Metric | Unit | At A$4,500/oz | At A$6,000/oz |
|---|---|---|---|
| Pre-production capital | A$m | 35 | 35 |
| Ounces produced | koz | 284 | 284 |
| LOM AISC | A$/oz | 2,357 | 2,395 |
| Avg steady-state production | koz pa | 48 | 48 |
| Avg annual free cash flow (steady state) | A$m | 117 | 188 |
| NPV7 (pre-tax) | A$m | 408 | 726 |
| IRR (pre-tax) | % | 78% | 126% |
Key operational parameters supporting these metrics include:
- Reserve stope widths average 25m, with wider areas up to 65m, enabling large bulk stopes and efficient mining
- Longhole stoping with paste fill selected as the preferred mining method
- Gold recovery of 90% for underground ore and 92% for open pit ore
- Upfront capital of A$35m is low, reflecting shared Plutonic infrastructure
- Mine life of 7.5 years
Cautionary note: The Cinnamon LOM Production Target contains approximately 74% Ore Reserves and 26% Inferred Mineral Resource. Inferred Resources carry a lower level of geological confidence, and there is no certainty that further exploration work will result in the conversion to Indicated Mineral Resource, or that the Production Target itself will be realised.
What is a Mineral Resource and Ore Reserve — and why does this upgrade matter?
Understanding the JORC resource and reserve hierarchy
The JORC Code is the Australian standard for reporting mineral estimates. Here is how the classification works:
- Inferred Resource — lowest confidence; geological continuity not fully confirmed
- Indicated Resource — moderate confidence; grade and geometry reasonably understood
- Measured Resource — highest confidence; detailed sampling on close drill spacing
- Ore Reserve — the economically mineable subset of Indicated and/or Measured Resources, with mining, processing, and cost factors applied
Moving from Resource to Reserve is a major milestone for investors. It means an independent Competent Person has verified, under JORC, that the ore can be mined profitably under stated assumptions — not just that the gold is in the ground.
Why Cinnamon’s 370% resource growth stands out
The previous Cinnamon Resource of 3.0Mt for 145koz was based on historical drilling available as of 6 May 2024. The upgrade to 6.9Mt at 2.5g/t for 541koz was driven by Catalyst’s own systematic drilling since acquisition.
The updated Resource breaks down into two components:
- Underground: 4.0Mt at 3.4g/t for 434koz (Indicated + Inferred)
- Open pit: 2.9Mt at 1.2g/t for 108koz
The underground grade of 3.4g/t is high quality for a bulk stoping operation, supporting the economics outlined above.
Cinnamon’s role in Catalyst’s ±200koz per annum growth plan
Catalyst’s plan is to source production across six mines on the Plutonic Gold Belt:
- Plutonic Main
- Plutonic East
- Keillor
- Trident
- Old Highway
- Cinnamon
Cinnamon has the potential to become a third base load ore source alongside Plutonic (Main and East) and Trident, supplemented by high-grade production from Keillor and Old Highway. Multiple ore sources allow stockpiles to be built ahead of the processing plant, creating greater flexibility and reducing the operating risk of the long-term plan.
It is important to note that the September 2025 ten-year guidance should be treated as a general directional guide only. Since that release, Catalyst has observed changes to permitting timelines, operational delays, processing capability, and Reserve and Resource updates — including Cinnamon, Keillor, and Trident. Reserves are now stated to be in excess of the previously reported 1.5Moz. Updated guidance will follow in due course.
Growth optionality — repeat conglomerate units
The Cinnamon high-grade shoot is hosted in one of several stacked, repeating conglomerate units. Recent drilling has already returned results outside the current orebody, including intercepts of 8m at 4.7g/t Au, 8m at 1.6g/t Au, and 0.5m at 21g/t Au.
Four areas have returned results supporting the hypothesis of repeat mineralisation — two above the current orebody and two below. None of these intercepts are included in the current Mineral Resource or Ore Reserve. Follow-up drilling is planned in coming months, and deeper drilling will test additional conglomerate units at depth.
The announcement notes that replicating a second high-grade shoot within these units would be a material change to the Cinnamon development plan.
The broader Cinnamon Trend
The Cinnamon Trend extends over +10km and sits approximately 25km north-east of the Plutonic processing plant. Historical exploration along the trend has been limited and focused on shallow drilling of only the Cinnamon and Cobalt deposits — leaving significant underexplored strike length remaining.
The geological diversity of the Plutonic Belt is notable: Plutonic Main is mafic-hosted, Trident is ultramafic-hosted, and Cinnamon is hosted in a sedimentary conglomerate sequence. This opens new exploration horizons for Catalyst to target beyond the traditional mafic model.
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Catalyst’s balance sheet backs the development path
Catalyst currently holds A$331m in cash and bullion with nil debt and 261m shares on issue. The total Mineral Resource Estimate across the Plutonic Belt stands at 4.5Moz at 3.3g/t Au, with the total Ore Reserve now stated to be in excess of 1.5Moz at 2.6g/t Au following the Cinnamon, Keillor, and Trident Reserve upgrades.
Current production of approximately ~100koz per annum is delivered at an AISC of approximately A$2,800/oz from Plutonic Main, Plutonic East, and Keillor. Cinnamon’s LOM AISC of A$2,357/oz at an A$4,500/oz gold price positions it as a low-cost addition to that portfolio.
Three new mines — Trident underground, Cinnamon, and Old Highway — are now in development, all expected to process ore through the existing underutilised 2Mtpa CIL plant at Plutonic. The ability to add production capacity without replicating processing infrastructure is a central element of the value proposition Catalyst is building across the Plutonic Gold Belt.
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