Announcement PDF C ATA L I N A R E S O U R C E S LT D (Formerly Shree Minerals Limited) ACN 130 618 683 2023 ANNUAL REPORT CATALINA RESOURCES LTD TABLE OF CONTENTS Corporate Directory Directors’ Report Auditor’s Independence Declaration Statement of Profit or Loss and Other Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Directors’ Declaration Independent Auditor’s Report Additional Information Corporate Governance Statement 1 2 30 31 32 33 34 35 60 61 65 67 CORPORATE DIRECTORY DIRECTORS Sanjay Loyalka Richard Beazley (appointed 2/8/2022) Michael Busbridge (appointed 19/1/2023) COMPANY SECRETARY Sanjay Loyalka REGISTERED OFFICE Unit 38 18 Stirling Highway Nedlands WA 6009 Ph: (08) 61181672 Email: info@catalinaresources.com.au Website: www.catalinaresources.com.au AUDITOR Stantons Level 2, 40 Kings Park Road West Perth WA 6005 Ph: (08) 94813188 Fax: (08) 93211204 SHARE REGISTRY Boardroom Pty Limited Level 8 210 George Street Sydney NSW 2000 Ph: (02) 92909600 Fax: (02) 92790664 . Page 1 DIRECTORS’ REPORT The Directors present this report together with the financial report of Catalina Resources (formerly Shree Minerals Limited), (“CTN”, “Catalina” and/or “the Company”) for the year ended 30th June 2023. DIRECTORS The names of the Directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Sanjay Loyalka Amu Shah (retired 28/11/2022) Davide Bosio (resigned 19/1/2023) Richard Beazley (appointed 2/8/2022) Michael Busbridge (appointed 19/1/2023) COMPANY SECRETARY Sanjay Loyalka PRINCIPAL ACTIVITIES The principal activities of the Company during the financial year consisted of mineral exploration, development, and mining. OPERATING RESULTS The net loss of the Company after providing for income tax amounted to $1,431,533 (2022: net profit $131,370). The loss of FY 2023 is mainly due to: – loss on fair valuation of financial asset of $427,500, being shares of MetalsGrove which were received as consideration for sale of interest in Arunta Joint Venture which resulted in gain in FY 2022 of $785,076; – Impairment of exploration assets of $ 115,590 due to relinquishment of tenements; and – Impairment of mine development asset of $231,070 due to ongoing delays in the permitting process of Nelson Bay River Iron project and consequent uncertainty about the timing of re-commencement of the project. DIVIDENDS PAID OR RECOMMENDED The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend to the date of this report. REVIEW OF OPERATIONS AND ACTIVITIES Highlights: Nelson Bay River Iron Ore Project • Progressing re-permitting of the direct shipping ore (“DSO”) project at Nelson Bay River Iron Project (“NBR”) • the Company continues to engage with relevant stakeholders to progress the NBR project. Catalina is encouraged by the visit to NBR mine by Hon. Felix Ellis, Minister for Resources, Tasmania in March 2023. • Referral Application under EPBC Act lodged in early June 2023 following completion of an additional targeted Autumn Fauna Survey in April 2023 and report received in May 2023. • Lodged in early August 2022, Development Proposal and Environmental Management Plan (“DPEMP”) Supplement No. 2 in response to "Request for Additional Information (“RFI”) – Waste Rock and Mine Closure" issued by EPA in late June 2022. Lachlan Fold Belt Project • Soil and rock chip assays outline a robust southwest orientated anomaly exceeding 600m in strike length at EL9346, Oak Hill o Assays up to 1.4 g/t Au, 28 g/t Ag, 0.44% Pb and 1.27% As have been received from rock chips. o Southwestern extension of a mineralised trend in a neighbouring tenement (EL 7544) that contains two gold resources with a combined JORC Mineral Resource of 154koz Au ( EL7544 is not owned by Catalina- refer Company’s ASX announcement of 8th February 2022). Page 2 DIRECTORS’ REPORT • Follow up studies including RC drill planning underway at EL9346, Oak Hill. • Landholder Access Agreement negotiated and executed at EL9346, Oak Hill, with one landowner for a part of the tenement. • During the year completed activities agreed to enable consideration of revoking of suspension at EL9155, Rock Lodge: • o Independent review of compliance systems. o Biodiversity Assessment. o Report on the findings, recommendations and corrective actions arising from these reviews. o Aboriginal cultural heritage assessment. o Application lodged for Aboriginal Heritage Impact Permit. Resources Regulator, NSW has in July 2023 accepted the Mining Act Enforceable Undertaking (“EU”) by Catalina Resources Ltd, concerning EL9155, Rock Lodge. Laverton Project • Access Agreements negotiated and executed with following parties having existing tenements (miscellaneous licence) over parts of areas within our ELAs: o Focus Minerals (Laverton) Pty Ltd o Murrin Murrin Operations Pty Ltd o GSM Mining Company Pty Ltd • Heritage Agreement negotiated and executed with NTS Goldfields Limited as agent for the Nyalpa Pirniku, native title party. • Pursuing access agreements with another adjacent tenement owner having existing tenements (miscellaneous licence) over parts of the area within our ELAs. Dundas Project • Air core re-splits from the maiden air core drilling program in the southern part of E63/2046 at Dundas project reveal assays exceeding 1% TREO (total rare earth element oxides). • Hole 22DAC095 intersected 3m @ 0.92% TREO, including 1m @ 1.78% TREOs. Adjacent holes (100m apart) are also very anomalous. Hole 22DAC066 intersected 2m @ 1.02% TREOs. This hole also contained 2m @ 0.18% TREO in the bedrock at the EOH. • Very high Nd₂O₃ assays received with up 0.35% intersected in 22DAC095 and 0.23% in hole 22DAC066. • Latest assays confirm a valuable Heavy Rare Earth Elements ratio of 19% HREO/TREO and critical magnet metals NdPr + DyTb ratio of 24% of total REE’s. • Pursuing follow up exploration studies, drill planning including regulatory approvals for next stage of exploration including Conservation Management Plan (“CMP”) including: o Deeper follow up drilling near the air core drilling done in FY 2023. o Testing of lithium pegmatite potential identified in the northern part of E63/2046 at Dundas Project where previous drilling intersected pegmatites that have not been assayed for lithium. Dundas Project is interpreted to possibly be along strike from Liontown Resources’ Anna Lithium Resource Business Development • Catalina is continuing to identify and assess exploration and early development opportunities in lithium, rare earths, gold and base metals projects. Page 3 DIRECTORS’ REPORT Nelson Bay River Iron Project Catalina is pleased to advise that it lodged a Referral Application under the Environment Protection and Biodiversity Conservation Act, 1999 (EPBC Act), in early June 2023. This follows advice received from the Department of Climate Change, Energy, the Environment and Water (“DCCEEW” and or “The Department”) that they consider the development proposal would likely require “Referral” for a new assessment under the EPBC Act. Prior to lodgement of the referral application, an additional targeted autumn fauna survey was completed in April 2023 and consequential engineering designs for the mitigation strategies were completed in May 2023. The Department has advised that it has successfully received and completed validation of our Referral Application (EPBC 2023/09571) regarding the NBR DSO Project for consideration under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). Information about this proposed action has been published on the Department’s website for public consultation on 16th August 2023 for comments till 30th August 2023. At the end of the consultation period, the information included in the referral, along with any comments received, will be used to help decide whether this proposed action: • is a controlled action (one that is likely to have a significant impact on matters protected under the EPBC Act and therefore needs to be assessed and approved by the Minister for the Environment and Energy before it can proceed), or • is not a controlled action and may be undertaken but only as described in the referral, or • does not require approval under the EPBC Act. As per previous company announcements, the State Government’s process is advanced, and the process was put on hold until the resolution of the EPBC issues. The DPEMP version of August 2021 was accepted by EPA Tasmania to have been compliant with the guidelines and the public consultation process was completed in February 2022, with subsequent RFIs responded by way of supplementary DPEMPs. On that basis, the Company hopes to be in a position to consider the decision for recommencement of the mine once the permitting process is completed. The Company remains committed to driving value for Shareholders and look forward to updating the market as it continues to progress this advanced junior iron ore project towards recommencement in a very strong macro environment for producers. Meanwhile, the Company continues to engage with relevant stakeholders to progress the NBR project. Catalina is encouraged by the visit to NBR mine by Hon. Felix Ellis, Minister for Resources, Tasmania in March 2023. Photos: Hon. Felix Ellis, Minister for Resources, Tasmania at NBR project, March 2023. The NBR Project (Mining Lease 3M/2011) is located in the far north-west of Tasmania and is approximately 150km from the Burnie Port. The Project is within an established mineral province in the region. Operating mines include Grange Resources Ltd’s (ASX: GRR) Savage River Iron Ore. Page 4 DIRECTORS’ REPORT The Direct Shipping Ore (DSO) project at NBR is an all-contract mining, processing and haulage operation using local contractors in the region. It requires no major processing beyond crushing and screening after which the ore is then trucked to the port and shipped. It was developed in 2013 with the first shipment of ore leaving the Port of Burnie in January 2014. The NBR project was placed on care and maintenance in June 2014 following sharp iron ore price falls. Figure 1. Existing development NBR DSO project. (Source: Google Earth) Historical production from the previous mining campaign totalled 181,000 tonnes shipped with average grades of Fe 57.5%, SiO2 7.7%, Al2O3 1.3%, P 0.07% and S 0.04%. The historic price received for NBR ore was enhanced with premiums (in line with market benchmarks) for low Alumina and Lump (About 40% of the DSO Iron ore at NBR is Lumps with Iron ore Fines being approximately 60%). Historic costs during FY2014 when the mine was last in production was approximately AUD $72 per tonne FOB Burnie Port (as derived from 2014 Annual Report to Shareholders). With the improvement in the iron ore price in recent years, the Company has been actively working to re-permit the NBR project. The strategy has been to recommence the production of the DSO resources from the existing open pit at NBR project. Lachlan Fold Belt Project Catalina’s Oak Hill Project (EL9346) is located 25 kms northwest of Albury in NSW (Figure 2). It abuts EL7544 on its eastern side (Figure 2). Within EL7544 the Stoney Park and Elm Park gold prospects, discovered in 2015 by Minerals Aust Pty Ltd, have a combined JORC 2012 Mineral Resource of 154koz Au. In April 2023, Catalina collected 15 rock chip samples and 65 soil samples during a regional mapping exercise of the tenement, EL9346. Best rock chip assays are provided in Table 1 and their locations are illustrated in Figure 3. The rocks are anomalous in a range of elements including Au, As, Ag, Bi, Cu, Pb, Sb and Mo. Page 5 DIRECTORS’ REPORT Figure 2. Aerial image of Oak Hill. Historical geochemical gold in soil contours overlie a prominent structure that contains the Elm and Stoney Park gold deposits. Also shown is the location of Figure 3. Sample_ID MGA_E MGA_N Au ppb Ag ppm As ppm Bi ppm Cu ppm Pb ppm Sb ppm Mo ppm 198430 481341 6025488 386 5 933 96 232 4560 222 0 198431 198435 198436 198437 198438 198439 481353 481778 481928 481942 481850 481850 6025473 6024503 6024970 6024980 6024812 6024830 779 513 1390 488 381 146 28 0 0 0 0 0 577 32 5210 3410 796 223 48 73 3 1 2 1 297 53 70 98 98 13 4280 39 108 9 39 23 187 1 64 33 5 9 1 26 2 1 18 1 198440 198441 198442 481918 6024980 1400 2 8920 0 213 481938 6024990 1020 2 12700 0 187 481938 6024980 360 1 3020 0 55 Table 1. Anomalous rock chip assays from EL9346. 52 15 11 85 45 25 1 1 1 Figure 3 is a summary of Catalina’s soil and rock chip sampling geochemistry overlain on the RTP aeromagnetic image. Outcropping rocks in the area are rare and the undulating terrain is covered by extensive grasslands suitable for cattle grazing. Page 6 DIRECTORS’ REPORT Au and As soil contours together with rock chip assay data suggest anomalous geochemistry is present over 600m within EL9346 as illustrated in Figure 3 (green dotted line). Hosting the anomalous geochemistry is a distinctive and separate NE-SW orientated elliptical aeromagnetic feature. It lends support for an underlying structure coincident with the soil and rock chip geochemical anomaly. This feature is in an offset position to the trend of the Stoney Park historical drilling and its magnetic susceptibility is suggestive of a different protolith to that seen in the historical resources. Possible protolith alternatives include a highly altered granitic intrusive or porphyry style source rocks. Additionally, an old gold working (for its location, see callout ‘Rock chip assays from old gold working’ in Figure 3) revealed rocks with a strongly recrystallized and silicified igneous texture, a rock type unlike that described for the Elm and Stoney Park deposits. Petrography suggests these rocks are indicative of an igneous petrogenesis with late stage silicification of feldspars by hydrothermal activity, as evidenced by banding in an alteration overprint and common clay altered fine veins and groundmass containing sericite and muscovite. Common strain is recognised through quartz populations and suggests a high strain regime / shear zone. A feature of these altered rocks is the presence of abundant euhedral arsenopyrite and trace scorodite. Other sulphides include pyrite and galena. These arsenopyrite rich rocks, also containing anomalous gold, may be the source of the anomalous soil geochemistry seen in Figure 3 and testing by RC drilling for economic gold mineralization is a high priority. The company is working on follow up exploration studies including RC drill planning at Oak Hill. RC drilling at the Rock Lodge prospect (EL 9155) in the Lachlan Fold Belt Project, NSW has intersected significant mineralisation. The Rock Lodge Project covers an area of 163 km² and is located 35 km south of Cooma. It is prospective for orogenic, Intrusion Related Gold Systems (IRGS) and skarn related gold mineralisation. RC drilling completed in April 2022 tested prioritised drill targets consisting of extensive and continuous IP anomalies that are coincident with very anomalous soil and rock chip geochemistry. Figure 3. Summary diagram of the rock and soil Au and As geochemistry within EL9346. The trend of anomalous geochemistry is shown by the green dotted line. Background image is the Reduced to Pole (RTP) aero magnetics. Page 7 DIRECTORS’ REPORT Catalina’s drilling has intersected a wide zone of stacked vertical lenses of polymetallic mineralisation at Rock Lodge. For example, RC hole SRLRC005 intersected four (4) significant mineralised zones over a width of 24m, from 75m to 99m (including 2m @2.13 g/t Au and another 2m @2.12 g/t Au), illustrated in Table 2. At the end of hole, 102m, rocks were still pervasively hydrothermally altered (pyrite, silica, sericite) suggesting that additional downhole zones may have been intersected if excessive water flows had not stopped drilling. West of SRLRC05, Catalina’s drilling has intersected mineralisation in SRLRC002 (8m @ 1.08 g/t Au including 3m @2.12 g/t Au). As suggested by the range in elements present, the mineralisation signature suggest a high temperature fluid may have been responsible. Apart from Au and Ag, the mineralisation includes varying amounts of Bi, As, Cu, Sb, Pb, Cd and Zn. Table 2 tabulates the significant intersections received from Catalina’s RC drilling. Table 2. Significant RC drilling Intersections. Total From To Interval Hole No Intersection Depth (m) (m) (m) (m) SRLRC001 35 11 12 1 1m @ 3.7 g/t Au, 1.7 g/t Ag, 94 g/t Bi, 21 22 1 SRLRC001 1m @ 0.76 g/t Au, 2.1 g/t Ag SRLRC002 35 0 8 8 8m @ 1.08 g/t Au, 4.2 g/t Ag, 0.28% As, 61 g/t Bi 0 3 3 SRLRC002 incl. 3m @ 2.12 g/t Au, 6.67 g/t Ag, 0.6% As SRLRC005 102 75 77 2 2m @ 2.13 g/t Au, 2.4 g/t Ag, 0.6% As, 54 g/t Bi, 0.07% Cu SRLRC005 78 84 6 6m @ 0.75 g/t Au, 0.8% As, 22 g/t Bi, 0.05% Cu SRLRC005 82 84 2 incl. 2m @ 2.12 g/t Au, 2.4 g/t Ag, > 1% As, 0.07% Cu, 0.06% Zn SRLRC005 89 96 7 7m @ 0.33 g/t Au, 1.13 g/t Ag, 0.51% As, 51 g/t Bi, 0.06% Cu, SRLRC005 89 91 2 incl. 2m @ 0.49 g/t Au, 1.7 g/t Ag, 0.37% As, 60 g/t Bi, 0.13% Cu 97 99 2 SRLRC005 2m @ 0.78 g/t Au,1.9 g/t Ag, 65 g/t Bi, 0.2% Cu SRLRC006 50 27 29 2 2m @ 6.1 g/t Ag, 0.26% Pb, 0.5% Zn, 28 g/t Cd 27 28 1 SRLRC006 incl. 1m @ 10.6 g/t Ag, 0.44% Pb, 0.88% Zn, 51 g/t Cd The intersections from Catalina’s drill holes SRLRC002 to SRLRC005 and also the historical drilling, including MYRC01, constitute a very wide (60m) mineralised envelope of stacked vertical lenses of significant polymetallic sulphide at Rock Lodge. Two hundred meters to the north, IP anomalies and similar anomalous rock chip geochemical signatures (Figure 4), suggest the mineralisation envelope may be continuous at least to this area. As the envelope is open in all directions further drilling focusing on the continuity, depth and lateral extent of the stacked veins is now a very high priority and represents an exciting drill target for Catalina Resources. Page 8 DIRECTORS’ REPORT Figure 4. Summary plan showing significant drilling intersections and RC pre-collars, IP anomalies, rock chip Au geochemistry and location of drilling cross-section C-C’. The Company continues progressing activities advised by the Resources Regulator to enable consideration for revoking the suspension at Rock Lodge EL9155. During the year following activities were completed: • • • • • Independent review of compliance systems. Biodiversity Assessment. Report on the findings, recommendations and corrective actions arising from these reviews. Aboriginal cultural heritage assessment. Application lodged for Aboriginal Heritage Impact Permit. Resources Regulator, NSW has, in July 2023, accepted the Mining Act Enforceable Undertaking (“EU”) by Catalina Resources Ltd, concerning alleged contraventions at EL9155, including a minimum expenditure of $141,964 in carrying out terms of the EU. After the lifting of the suspension, the Company plans to drill two or three deeper angled diamond drill holes beneath previously drilled RC holes. Down Hole Electro Magnetic Surveys (DHEM) will also be employed, searching for off-hole conductors, which may represent wider massive sulphide mineralisation than what has already been found in the RC drilling. Additionally, diamond drilling will enable the collection of orientated structural data, including dips and strikes of mineralised veins, necessary for future drill hole planning and calculations of the true widths of mineralisation. Planning for one of these diamond holes is illustrated in Figure 5. Additionally, diamond drilling will enable the collection of orientated structural data, including dips and strikes of mineralised veins, necessary for future drill hole planning and calculations of the true widths of mineralisation. Page 9 DIRECTORS’ REPORT Figure 5. Cross section C-C’ at Rock Lodge, containing SRLRC005, SRLRC002 and the proposed diamond hole. It illustrates the wide zone (approx. 60m) of polymetallic mineralisation intersected in all drilling, from SRLRC02 to MYRC001. Laverton Project During the year, the Company advanced negotiations for various access agreements with neighbouring companies and native title parties. Access agreements negotiated and executed with following neighbouring tenement owners having existing tenements (miscellaneous licence) over parts of areas within our ELAs. • Focus Minerals (Laverton) Pty Ltd • Murrin Murrin Operations Pty Ltd • GSM Mining Company Pty Ltd Heritage agreement negotiated and executed with NTS Goldfields Limited as agent for the Nyalpa Pirniku, native title party. These access agreements will pave the way for the granting of the Exploration Licences. Page 10 DIRECTORS’ REPORT The Laverton Project consists of seven tenements, illustrated in Figure 6, located within the world class Laverton Province. This province is known to contain some 30 million ounces of gold, making it the second highest endowed gold district in Western Australia behind Kalgoorlie. The Laverton gold district is also the highest growth gold district in Australia over the last 25 years. The region hosts several important gold and nickel deposits including Sunrise Dam (>10Moz), Wallaby (> 8Moz), Granny Smith (>2Moz, closed) and Lancefield (>2Moz, closed), Windara Nickel (combined 85K tonnes nickel sulphide). Lynas Rare Earth also operates the Mt Weld Rare Earth Element (REE) operation only 2 km to the south of Catalina’s application. Figure 6. Regional location of the Laverton project. The company has identified a series of very prospective under-cover gold and nickel mineralised drill targets within the tenements. The targets have been generated through an integrated approach using detailed interpretation of aeromagnetic and gravity images, historical exploration drilling programs and the mineralisation models developed from the neighbouring world class gold deposits. Exploration plans will be finalised once all the ELAs are granted as ELs. Meanwhile desktop studies are continuing over the tenements. Dundas Project A 105-hole air core drill program was completed at the Dundas Project in December 2022 for a total of 2,909m with an average depth of 27.7m (Figure 7). Air core drilling was completed to blade refusal (rock too hard to penetrate). Page 11 DIRECTORS’ REPORT Figure 7. Summary of the highlights of resplit assays from air core drilling. Also illustrated are locations of drill traverse (A-A’) and soil sampling traverse (B-B’) discussed in text. Underlying image is the regional aeromagnetic image. A 6-20m blanket of transported colluvium and lake clays overlies and masks the bedrock geology. To look below this blanket air core drilling successfully intersected geochemical and lithological information of the bedrock to plan follow up RC drilling. Essentially the air core work has identified the geochemical halo to a potentially larger target at depth. Significant REE intersections include: • 6m @ 0.6% TREO from 16 – 22m in hole 22DAC066, including: • 2m @ 1.02% TREO from 16-18m, includes 0.23% Nd₂O₃, 0.42% Ce₂O₃, 223 ppm Dy₂O₃, 0.12% and La₂O₃. • 3m @ 0.92% TREO from 22 – 25m in hole 22DAC095, including: • 1m @ 1.8% TREO, includes 0.35% Nd₂O₃, 0.75% Ce₂O₃, 284 ppm Dy₂O₃, and 0.31% La₂O₃. The assays display an ‘exceptional’ critical magnet metal (NdPr+DyTb) ratio of 24% to total TREOs. These four HREEs are the core ingredients for the manufacturing of permanent magnets which are used in electric motors and generators. The growth in permanent magnets is attributed to increased use in the automotive industry and electric vehicle drivetrains. The Lynas owned rare earth mine at Mt Weld in the Eastern Goldfields of WA is the sole producer of REEs in Australia. Page 12 DIRECTORS’ REPORT Significant REE enrichment in the regolith at Dundas is the result of weathering induced clay formation and REEs can be either enriched or depleted in different depth horizons of the regolith. Critically, the presence of anomalous REE mineralisation in bedrock in hole 22DAC066 below the regolith horizons suggests potential exists at Dundas for higher grade, higher commercial value, hard fresh rock REE mineralisation. The last 2m re-split samples assayed 2m @ 0.18% TREO at the end of the hole. The Conservation Management Plan (CMP) which was lodged with the Department of Biodiversity, Conservations and Attractions (“DBCA”) in February 2023 after feedback received on the November 2022 draft version. The CMP contains details for the next phase of exploration including deeper drilling on the two existing granted ELs (“exploration licences”) in the Dundas project and exploration plans for the two ELAs (“exploration licence applications”). Catalina understands that the DBCA has recently completed the review of the draft CMP and are finalising their comments to be sent to us, while they are seeking clarifications from Department of Mines, Industry Regulation and Safety (“DMIRS”) regarding access tracks that need to be cleared (to reach one of the ELAs) that traverse tenements which Catalina do not hold and where consent to undertake exploration activities has not been granted. Background of CMP: As the project is in the Dundas National Park, additional tenement conditions over and above that for normal exploration licences are in force. These tenement conditions include, prior to any environmental disturbance, the licensee preparing a detailed CMP for each phase of proposed exploration for approval. The Minister for Environment and the Conservation and Parks Commission has formal requirements under Section 24 of the Mining Act 1978 (Mining Act) to provide formal recommendations on proposed activities in Dundas Nature Reserve prior to the Minister for Mines and Petroleum providing his consent. DBCA reviews and presents the information prepared by and on behalf of the applicant (including copies of the proposal document(s) to the Minister for Environment and the Conservation and Parks Commission in the form of a CMP. The Dundas Project area is situated within the inferred southeast extensions of the mineralised Norseman – Wiluna Belt of the Archaean Yilgarn Craton and comprises a tectonostratigraphic assemblage of mafic, ultramafic and sedimentary dominated units. A major northwest trending fault system transects the tenements and may represent the prospective Boulder-Lefroy Fault Zone (BLFZ) and the Zuleika Shear Systems (ZS), illustrated in Figure 8. These shears and faults are highly prospective for gold (Swager et al., 1995). The tenements are also prospective for lithium mineralisation, being only 25 kms to the southwest of Liontown’s Buldania Lithium Project, also along the Zuleika Shear Zone. Page 13 DIRECTORS’ REPORT Figure 8. Regional location of Catalina’s tenements in the Albany Fraser Belt. Also illustrated are the projects and highlights of respected neighbouring companies including Metal Hawk and Dundas Minerals. Page 14 DIRECTORS’ REPORT Business Development Catalina is continuing to identify and assess exploration and early development opportunities in lithium, rare earths, gold and base metals projects. The Company has successfully built up an exciting portfolio of exploration projects in world class mineral provinces. These exploration tenements/projects acquired are at an early stage and the Company is systematically completing the initial steps of access agreements, heritage agreements, surveys and desktop studies to enable the advancement of exploration activities. As the Company continues its efforts to seek new projects and advance its exploration projects, it has also implemented a process of continuous evaluation and prioritisation of its project portfolio. Accordingly, rationalisation of its portfolio was also done including relinquishing of the lower priority tenements. Resource and Reserves Mineral Resources and Reserves Estimates, summarised by JORC classification are as follows: The in-situ DSO Mineral Resource Estimates, September 2015 Category Tonnes Fe % Al2O3 % P ppm S ppm SiO2 % LOI % Measured 300,000 57.6 1.3 947 362 9.2 6.4 Indicated 190,000 57.5 1.4 919 377 9.3 6.3 Inferred 150,000 57.3 1.2 945 421 10.0 6.2 Total 640,000 57.5 1.3 938 380 (Nominal 54% Fe cut off; average density 3t/m3; minor rounding errors) BFO Resource Estimates 2012 9.4 6.4 Category Tonnes Fe % Al2O3 % P ppm S ppm SiO2 % LOI % Inferred 730,000 46.8 2.7 180 680 23.7 4.7 Total 730,000 46.8 2.7 180 680 23.7 4.7 (30% Fe cut off; average density 3t/m3; minor rounding errors) “This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.” Skarn Dyke Global Iron Resource Estimates (Includes Magnetite Resource) Category M Tonnes Iron % Indicated 1.8 38.6 Inferred 9.5 35.9 Total 11.3 36.3 (30% Fe cut off; fresh rock material; minor rounding errors) “This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.” Skarn Dyke Recoverable Magnetite Resource Estimates Category M Tonnes DTR Mag % Magnetite Kt Indicated 1.7 38.5 667 Inferred 6.1 38.2 2,324 Total 7.8 38.3 2,991 (20% DTR cut off; average density 3.71t/m3; fresh rock material; minor rounding errors) “This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.” Page 15 DIRECTORS’ REPORT Magnetite Resource Estimate Concentrate Grad