Monsters of Rock: A gold grade you'd take any day of the week

Powered by China’s stimmy, it’s been a thoroughly decent day for the materials sector, sitting on a 0.28% gain heavily influenced by a 3.59% lift for Andrew Forrest’s Fortescue Metals Group (ASX:FMG).

Singapore iron ore futures continued to lift today, up 0.71% to US$113.25/t. Yep that’ll do it.

A millstone though. It’s the gold sector, as red-faced as a millennial forced by the login screen to admit their high school email was [email protected] in an auspicious start to an evening of Netflix and Chill.

Lithium stocks were also down. But the most discernible bearish signal came from the gold price, which can’t get out of the US$1950/oz level at the moment.

The reason was some tough talk from the mailbox of [email protected].

In summary, the Fed paused rate hikes … but more is definitely coming.

“Gold prices tumbled after the Fed paused rate hikes but strongly signal (sic) more tightening was coming,” market analyst Ed Moya from OANDA said.

“With inflation risks to the upside, rate cut bets will get pushed back further into next year.

“Gold is still holding onto the $1950 level as Powell’s constructive comments about inflation progress supports the markets’ case that the Fed may just have to deliver one more rate hike.”

Some winners

Still there were a couple of gold miners on the up and up today.

Breaking the trend was Catalyst Metals (ASX:CYL).

Under James Champion de Crespigny its been on a growth mission this year, taking control of Vango Mining and planning a merger with Plutonic gold mine owner Superior Gold to build a major gold hub in WA’s Mid West.

But it also owns the Henty mine in Tassie and has a JV with Gina Rinehart’s Hancock Prospecting at Four Eagles 70km north of Victoria’s Bendigo goldfield.

That’s where we head today, with CYL announcing a maiden mineral resource of 665,000t at 7.7g/t for 163,000oz of gold.

Contained within is the Iris Zone, 70,000oz clocking in at … wait for it … 26.2g/t.

That’s pretty remarkable by any measure. Few modern gold deposits have grades like those, the nearby Fosterville one of a handful.

The Iris Zone is located 100m below the 5g/t Boyd’s Dam deposit and 80m from a proposed exploration tunnel, which means it could help cover the costs of the development.

“This is a significant milestone for Catalyst Metals. The discovery of the Iris Zone demonstrates the true potential of the Bendigo Goldfields,” Champion de Crespigny said.

“Iris has been known for a long time. There are many similar nearby prospects already with high grade intercepts.

“These need to be tested. Further, the location of Iris – in close proximity to both Boyd’s Dam and the proposed exploration tunnel – is significant as it has the potential to underwrite the cost of the proposed exploration tunnel.

“I’m sure many of Catalyst’s long-standing shareholders would join me congratulating my fellow Director Bruce Kay and his team within Catalyst on this wonderful discovery.”

It’s not the only good news Rinehart and her crew have enjoyed today. Hancock announced a $26 million earn-in which could see Australia’s largest private enterprise become of all things a lithium supplier to India if it can make and prove up a discovery in WA’s emerging Mt Ida district.