Classic cashes up the kitty as Kat Gap nears maiden gold production
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With approval to start mining at its Kat Gap project already in the kitty, Classic has now raised $1.5m to continue bulk sampling and take it closer towards becoming a gold producer.
The bulk sampling program seeks to extract between 5,000t to 7,000t of ore grading between 4 grams per tonne (g/t) and 6g/t gold to produce anywhere from 645 to 1,100 ounces of gold.
Whilst gold prices have inched down from their peaks earlier this month, each ounce of the precious metal still commands a healthy US$1943 ($2,634), meaning the sampling program alone could bring in revenues just shy of $3m.
And Classic Minerals (ASX:CLZ) is only just getting started with mining the 93,000oz Kat Gap project that has considerable potential for depth extensions.
Bulk sampling has also revealed a previously unnoticed zone of ancient river gravels with visible gold that could add further ounces to the bulk sampling and future mining efforts.
Western Australia’s Department of Mines, Industry Regulation and Safety had earlier this week approved the company’s Mining Proposal.
The funds were raised through a fully-subscribed placement of shares priced at 0.085c to institutional and sophisticated investors located in Australia and overseas.
This includes one free attaching listed option for every four shares subscribed for.
Each option is exercisable at 0.3c on or before 3 February 2024 while settlement and issue of the shares is expected to be completed on 21 March 2022.
This article was developed in collaboration with Classic Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.