The infill drilling is expected to kick off again next week. Pic: andipantz / E+ via Getty Images.
Classic Minerals flags more high-grade gold at Kat Gap
Mining
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Classic Minerals’ RC infill drilling at the Kat Gap project in WA is continuing to deliver solid gold hits.
Results from the next 11 holes of the 109-hole program, which are immediately east of the recently mined bulk sample pit, returned:
- 10m at 16.19g/t from 37m including 1m at 45g/t from 46m;
- 10m at 15.34g/t from 29m including 2m at 43g/t from 31m; and
- 12m at 9.60g/t from 28m including 4m at 25.34g/t from 36m.
Around 74 holes remain to be drilled and Classic Minerals (ASX:CLZ) expects the program will provide more accurate resource model data for final pit optimisation and design work for the project.
The RC drilling program was suspended again late last week due to severe weather conditions experienced on-site, but the company says drilling should be underway again in a week or so.
Inching closer to gold production
Earlier this month the Department of Mines, Industry, Regulation and Safety approved the Project Management Plan for the project, paving the way for on-site processing operations.
The remaining required approvals to deliver the processing facility and remaining infrastructure is expected in November 2022.
Plus, CLZ recently secured $10m in funding under a binding term sheet from multi-selector conglomerate Goldvalley Brown Stone which paves the way for the extraction and processing of Kat Gap ore in sequential parcels of 100,000t.
The orebody will be mined under this arrangement until a production cap of 500,000t with a minimum average grade of 2.85 grams per tonne (g/t) gold has been mined and processed.
In return, Classic Minerals will share 30% of the net profits from gold production with Goldvalley until the funding is repaid.
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.
