Catalina Resources Ltd (CTN.AX) Drilling Confirms Breakaway Dam as a Copper-Rich VMS System

Drilling Confirms Breakaway Dam as a Copper-Rich VMS System with Significant Scale Potential

Perth, Jan 20, 2026 AEST (ABN Newswire) - Catalina Resources Limited (ASX:CTN) announced that recent diamond drilling and downhole electromagnetic (DHEM) surveys undertaken by Forrestania Resources Limited (ASX:FRS) at the Breakaway Dam Copper Project have confirmed mineralisation consistent with a copper-rich Volcanogenic Massive Sulphide (VMS) system, located approximately 17 km east of Menzies in Western Australia (figure 1*).

HIGHLIGHTS

- Diamond drilling and downhole EM surveys confirm copper-rich mineralisation consistent with a Volcanogenic Massive Sulphide (VMS) system at Breakaway Dam

- All drill holes intersected sulphide-rich horizons with strong DHEM responses, supporting continuity and scale potential of the mineralised system

- Significant copper and zinc mineralisation identified over approximately 700 metres of strike within the central project area including:

o 9.2 m @ 0.48% Cu (estimated true width 8.7 m), including higher-grade intervals of 0.95 m @ 1.18% Cu and 1.7 m @ 1.05% Cu (BDCDD2501)

o 1.47 m @ 1.97% Cu and 0.24% Zn (estimated true width 1.4 m) (BDCDD2502)

o 4.2 m @ 0.32% Cu and 0.29% Zn (estimated true width 4.1 m) (BDCDD2504)

- Multiple high-conductance EM plates remain untested, presenting clear priority targets for follow-up drilling

- The broader prospective stratigraphic trend extends for approximately 16 kilometres, highlighting district-scale exploration potential

- Breakway Dam is also considered prospective for gold, with fire assay analysis of available drill pulps planned

The drilling campaign intersected thick sulphide-rich horizons supported by strong downhole EM responses, providing Catalina with a solid technical foundation to advance systematic exploration across the project, subject to completion of the proposed transaction.

Executive Director, Ross Cotton, commented:

"The recent drilling results at Breakaway Dam provide important technical validation for the project. The work undertaken by Forrestania Resources confirms a copper-rich VMS system with encouraging thickness and continuity, supported by strong geophysical responses.

Subject to completion of the proposed transaction, these results give Catalina a solid platform to advance systematic exploration, assess broader scale potential and test for potential gold mineralisation within the system."

SUMMARY OF RECENT DRILLING RESULTS

Recent drilling at Breakaway Dam builds on earlier exploration that identified high-quality geophysical targets supported by historical copper intercepts. Geophysical surveys in 2007 defined electromagnetic (EM) conductors beneath surface copper expressions, with subsequent RC and diamond drilling in 2008-2009 intersecting copper mineralisation, including 8 m @ 0.15% Cu (BD003), 6 m @ 1.19% Cu (BDRC10) and 7 m @ 0.15% Cu (BD001).

The recent drilling program undertaken by Forrestania Resources comprised four diamond drill holes for a total of ~1,106 metres (figure 2*) and was designed to systematically test these previously modelled EM conductors, confirm the geological context of mineralisation, and assess the scale and continuity of sulphide development.

Three of the initial drill holes were supported by downhole electromagnetic (DHEM) surveys, with a fourth hole added to the program to test a strong off-hole conductor identified during DHEM interpretation.

The drilling intersected significant sulphide mineralisation in all holes, occurring in a consistent stratigraphic position within fine-grained metasedimentary units overlying a porphyritic basalt sequence. This geological setting, together with the observed sulphide assemblage and associated geophysical responses, is characteristic of mineralisation consistent with a volcanogenic massive sulphide (VMS) system.

Significant copper and zinc mineralisation was intersected, with mineralised zones averaging approximately 10 metres true width at low cut-off grades and individual higher-grade copper intervals approaching 2% Cu. Mineralisation has been confirmed over approximately 700 metres of strike within the central portion of the project area.

GEOLOGICAL INTERPRETATION

Mineralisation is dominated by pyrrhotite, pyrite, chalcopyrite and sphalerite, occurring as semimassive to disseminated sulphide horizons with associated footwall stringer-style sulphides extending into the underlying basalt. The combination of metal zonation, footwall stringer mineralisation and laterally continuous sulphide horizons supports interpretation of the system as a copper-rich volcanogenic massive sulphide (VMS) system, albeit one that has been affected by subsequent deformation and metamorphism.

Structural analysis and electromagnetic (EM) modelling implies that sulphide mineralisation may be concentrated along plunge directions related to post mineralisation deformation, providing clear vectors for follow-up drilling and potential system expansion.

GEOPHYSICAL RESULTS

Downhole EM surveys identified multiple strong conductors in each drill hole. Interpretation indicates that some drill holes likely intersected the margins of the main sulphide accumulations, suggesting that more substantial sulphide development may occur nearby. Several high-conductance EM plates remain untested and represent priority targets for follow-up drilling.

SCALE POTENTIAL AND REGIONAL PROSPECTIVITY

Beyond the central 700-metre mineralised corridor, geological and geophysical interpretation has identified a broader prospective stratigraphic trend, extending for approximately 16 kilometres across the project area, subject to drilling. Large portions of this trend remain untested, highlighting the potential for additional VMS mineralisation at Breakaway Dam.

GOLD POTENTIAL

While the original assay program focused on base metals, the geological setting, proximal to a major shear zone, is also considered prospective for greenstone-hosted orogenic gold mineralisation.

Separate to that, some level of gold mineralisation may exist within the VMS sulphide system also.

Available drill pulps from the recent drilling campaign are proposed to be submitted for fire assay gold analysis to assess the presence and potential significance of gold within the system.

STRATEGIC CONTEXT AND NEXT STEPS

Receipt of the final technical report materially strengthens Catalina's understanding of the Breakaway Dam Project and supports the technical rationale for the proposed transaction previously announced to the market. Completion of the transaction remains subject to the conditions outlined in Catalina's prior ASX announcement.

Subject to completion, Catalina intends to:

- Complete and report gold assay results once analysis is finalised

- Drill test untested high-conductance EM plates identified by the recent DHEM surveys

- Undertake systematic RC drilling across the central mineralised corridor to assess continuity and scale beyond EM anomalies

- Progress first-pass drilling of regional targets along the broader prospective trend

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/GULI4B7G

About Catalina Resources Ltd

Catalina Resources Ltd (ASX:CTN) is a mineral exploration company focused on discovering and advancing gold and multi-commodity projects in tier-one jurisdictions. Backed by a technically experienced team with deep industry knowledge, Catalina is committed to creating value through focused exploration across highly prospective and underexplored regions in Western Australia.

The company's core assets are located in the Central Yilgarn and Laverton regions, two of the most historically productive and geologically endowed gold provinces in the country. Both projects have demonstrated the potential to host significant mineralisation, with early-stage drilling already delivering promising results.

  

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