Thanks for the responses guys.
I have done a shit load of research now and have a good understanding on the concept. My strength gains while cutting came strickly from fixing my nutrition. I'm getting good slow steady fat loss results without burning off my muscle now with good lifting and calorie counting. It's a shame I have been working out for years but never took it seriously until few months ago.
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You can tone up and not lose muscle mass, the trick is to eat well, count your calories and keep working out. The quality of food plays a major role. Bad food typically has "empty calories," which are calories without vitamins or nutrients. Good food has both calories and the things a body needs.