Catalyst Metals Ltd (ASX: CYL) shares are having a strong session on Tuesday.
In morning trade, the ASX 200 gold stock is up 7% to $8.18.
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Why is this ASX 200 gold stock jumping?
There have been a couple of catalysts for the gold miner's solid gains today.
The first is a strong rise in the spot gold price overnight, taking the precious metal to a new record high and beyond US$4,100 per ounce.
This is helping lift most ASX 200 gold stocks on Tuesday. So much so, the S&P/ASX All Ords Gold index is up 3.1% at the time of writing.
What else?
Another reason this ASX 200 gold stock is rising today is the release of an update on its exploration of the Four Eagles gold project in Victoria.
It is situated 70 kilometres north of the historic 20Moz Bendigo Goldfield. Management also notes that 100km to the south-east is the gold-antimony mine of Costerfield, which is now owned by Alkane Resources Ltd (ASX: ALK).
According to the release, the company has been granted approval of its Works Plan for the exploration tunnel at the joint venture with Hancock Prospecting.
It notes that over the past few years it has been putting together the key elements needed to demonstrate a realistic and commercially viable gold project at Four Eagles. And while the project's location had raised questions about its long-term potential, management believes those concerns have now been largely addressed.
Catalyst will now work closely with the Victorian government department of Resources Victoria, and other relevant government agencies, on water management and other secondary approvals. It also plans to work on securing other licenses that are required before it can commence the development of the exploration tunnel.
At the same time, the ASX 200 gold stock plans to pursue aircore and diamond drilling programs at Four Eagles. This is with the aim of growing the high-grade gold resource.
Commenting on the news, Catalyst Metals' managing director and CEO, James Champion de Crespigny, commented:
This initial approval is a notable milestone towards the future construction of the exploration tunnel. The processing solution is now in place for the project. As we are undertaking further drilling to grow the high-grade gold resource, our focus will also be on obtaining the secondary approvals required before we commence the construction of the exploration tunnel.
