Minnie Creek Project

The Minnie Creek Project hosts a relatively new (1995) and significant discovery of molybdenum located in the Gascoyne province of Western Australia. The economic widths and grades of molybdenum that have been intersected by the limited drilling completed to date indicate the Minnie Creek project has the potential to host a resource of world class size. In addition, the project area contains a range of newly discovered outcrops with significant values of molybdenum, copper, gold, tungsten and uranium. Catalyst Metals Ltd owns a 90% interest in the Minnie Creek project and has entered a joint venture with the ability to acquire a 100% interest in the project.

The Minnie Creek project area is located 242 km north-east of Carnarvon in western Australia. Most of the area is underlain by the Proterozoic age Minnie Creek Batholith, a member of the Moorarie Supersuite granite terrain. The total project area is 872 square kilometres.

Within the project area the most advanced prospect is at Minnie Springs, discovered in 1995 by Landsat, stream sediment and rock chip sampling. This defined several anomalies indicative of a porphyry-type system related with intense silicic and potassic alteration.

The central part of the molybdenum mineralised zone was tested by drilling with three diamond and five RC holes , with a further single RC hole in the adjacent copper mineralised zone. Widespread sulphide (mainly pyrite) mineralization was encountered in all holes but diamond holes MSD-1, 2 and RC holes MRC-1, 2 and 6 also intersected significant molybdenum and trace chalcopyrite mineralization. A selection of the historic drill intersections includes the discovery hole of MRC-6 (61 metres @ 0.09% molybdenum from 3 metres depth) as well as wide widths recorded in holes such as MSD 2 (174 metres @ 0.03% molybdenum from 8 metres depth)

Economically significant molybdenum values (applying a cut-off of greater than 0.05% Mo over 1 metre) occur in both MSD-1 and MSD-2 with a highest value of 0.34%Mo at only 17m depth. The most significant results to date however were recorded in hole MRC-6 which had a highest 1 metre value of 0.60% Mo within an intercept of 24 metres grading 0.14% Mo from 11 metres. One hole (MRC-5) which tested the peak of the extensive copper anomaly on the eastern section of the alteration system returned two separate one metre intersections of
0.4% Cu within granitoid host rocks.

Drillcore showing disseminated Molybdenite
Grading 0.34% mo from 17m depth at Minnie Springs

Recent re-assay of drillhole cuttings indicate potentially signifcant values of tungsten and uranium are also present in different parts of this large
(5km x 2km) alteration system.

In addition to the Minnie Springs molybdenum prospect, the project area includes a large number of prospects worthy of more detailed evaluation including Neptune, Harpo, Groucho and Indiana. Recent (2004) exploration discovered a new molybdenum zone some 18 kms to the north west of Minnie Springs at Osbourne Well, which in addition to untested molybdenum outcrops at the Bach and Dean prospects offers large scale potential for clusters of deposits. The outcropping nature of the mineralisation also offers significant benefits for potential development.

Uranium will be a targeted commodity as a result of a number of
radiometric “hot spots” worthy of early investigation, and resources/discoveries made along strike of major structures extending into the project area. Primary mineralisation has already been located in gossanous subcrops at Osbourne Well and there are considerable areas of calcrete development draining zones of enhanced radiometrics. This provides potential targets for secondary near surface uranium mineralisation, hosted by calcrete within shallow drainage systems.

Osborne Well	Grades up to 0.20% Mo with significant U and W values
Bach	Veins and gossans to 0.05% Mo with CuOx, Au and W
Dean	Subcrops of sulphidic granite schist grades 0.06% Mo
Indiana	Copper horizon outcropping over 1km strike up to 1%
Neptune	Sulphidic vein stockwork in granite up to 6.9g/t Au
Harpo	Au in soil anomaly over 1500m length peak 54ppb Au

Geology and Exploration Targets		Plan showing uranium prospects over airborne radiometric anomalies
click map to enlarge		click map to enlarge