Catalyst Metals Ltd (ASX: CYL) shares are moving higher on Wednesday after the gold miner reported more high-grade drilling results from its Plutonic Gold Belt.
At the time of writing, the Catalyst Metals share price is up 3.24% to $5.73.
That gives shareholders another positive session after a stronger week. Catalyst shares are now up almost 14% over the past 5 trading days.
But despite the recent bounce, Catalyst shares are still down about 22% since the start of 2026.
Let's take a closer look at the release.
Image source: Getty Images
Cinnamon drilling delivers again
In its ASX announcement, Catalyst said drilling at the Cinnamon underground deposit had returned more high-grade gold results.
The key result is that the underground strike length at Cinnamon has grown to 700 metres.
That is up 75% from the 400-metre strike length previously reported.
Catalyst said drilling has continued to confirm consistent, wide, high-grade underground zones. It also said those zones show strong potential to form a sixth underground ore source.
The location is also worth pointing out. Cinnamon sits around 25 kilometres from the underused Plutonic processing plant.
And because it sits close to the Plutonic plant, the latest drilling results could have a clearer path into future production growth.
What did the drilling show?
The latest drilling returned several strong intersections beneath the existing open pit.
Results included 38 metres at 10.5 grams per tonne gold from 45 metres, including 17 metres at 21.5 grams per tonne.
Other results included 37 metres at 3.7 grams per tonne, 7 metres at 14.6 grams per tonne, and 4 metres at 22 grams per tonne.
Catalyst said these results add to earlier high-grade intersections reported at Cinnamon.
Managing Director and CEO James Champion de Crespigny said the drilling had built the company's confidence in the deposit.
He said Cinnamon has the potential to become a fifth underground ore source feeding the centralised Plutonic processing plant.
Foolish bottom line
The bigger focus is Catalyst's growth plan for the wider Plutonic Gold Belt.
Catalyst said it is aiming to lift production from 410,000 ounces over 3 years to 200,000 ounces a year for more than 10 years.
But Cinnamon could become one of the extra ore sources needed to support that target.
The company said Plutonic currently has 1.5 million ounces of reserves across 5 mines. These include Plutonic Main and East, K2, Trident, and Old Highway.
About two-thirds of the 10-year production target is already underwritten by reserves, with another 15% sitting in inferred resources and 21% in exploration targets.
