Classic Minerals’ new mining lease is the key to developing 311,050oz gold bounty

Classic secures mining leases over Forrestania tenements it is acquiring from Reed Exploration
Grant of M77/1310 increases its operational scope and strategic position in the region
Company to lodge necessary mining proposal and mine closure plans

Special Report: Classic Minerals has been granted a 21-year mining lease for its Lady Ada and Lady Magdalene gold projects at Forrestania, WA, taking it another step closer towards development.

Mining lease M77/1310 covers the Forrestania tenements (FGP tenements) that the company is acquiring from Reed Exploration.

Classic Minerals’ (ASX:CLZ) 500km2 FGP tenements cover about 50km strike of the Forrestania greenstone belt about 120km south of Southern Cross.

Previous mining had produced 27,146oz of gold from the processing of 95,865t of ore grading 8.81 grams per tonne (g/t) gold, highlighting the potential from high-grade open pit mining.

The known Lady Ada and Lady Magdalene deposits have a combined resource of 7.27Mt grading 1.33g/t for 311,050oz of contained gold with testing proving that the non-refractory ore is highly amendable to gravity recovery with free milling gold.

In October 2023, the company reached a binding agreement with Reed to purchase the FGP tenements – excluding the Kat Gap discovery tenements that it already owns – that it doesn’t already own.

This will give it 100% of all mineral rights – including lithium and nickel – for the FGP tenements.

Mining lease granted

The grant of M77/1310 increases the company’s operational scope and adds to its strategic position in the region, which in turn paves the way for a larger mining project from its FGP tenements – including Lady Ada and Lady Magdalene.

CLZ notes that the 1803.81 hectare lease sits within the Indigenous Land Use Agreement area of the Ballardong People, whom the company has strong ties with.

It will now proceed to lodge the necessary mining proposal and mine closure plans, which ensures that the company is adhering to all regulatory requirements and demonstrates its commitment to responsible mining practices.

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.