Cat gold, right now, is just a terrible curio you can get by chipping stone. Low LP gain and huge study time means you might as well just toss it out and keep chipping the more valuable stone instead.
My idea is that cat gold could be used as a very low grade ore to facilitate the start of mines.
Those tiny chunks aren't enough to make anything, so melting down 5 cat gold pieces into a cat gold nugget in a kiln (up to 5 chunks per load) would seem like a functional and low tech method to get it to a useable state.
I believe this would solve the catch-22 of needing to mine unsafely to mine safely.