The notification of “Approval to Commence Mining Operations” for Kat Gap is a key regulatory approval required to kick off mining.
The Department of Mines, Industry, Regulation and Safety has approved the Project Management Plan for the project, paving the way for on-site processing operations at the Kat Gap Gold Project in Western Australia.
This comes as Classic Minerals (ASX:CLZ) continues to investigate the mining schedule to accommodate any potential resource increase and production increases.
Previous work has included a major infill drilling program to facilitate final pit design work, processing plant layout, TSF design and metallurgical gold recoveries to update project modelling.
Onsite development is well advanced with clearing completed for major infrastructure ahead of PMP approval including mine administration offices, workshop areas, laydown yards, main access roads, camp site, mine construction and all surface development.
Remaining approvals expected in November
Applications for related Works Approvals regarding the processing facility and TSF licencing have also been submitted to the Department of Water and Environmental Regulation (DWER) for approval.
Remaining required approvals to deliver the processing facility and remaining infrastructure are expected in November 2022.
Development mode activated with $10m funding secured
Last week, CLZ officially switched into development mode after securing $10m in funding under a binding term sheet from multi-selector conglomerate Goldvalley Brown Stone.
This funding 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.