Classic Minerals upgrades 20,488 ounces of Kat Gap gold resources to Indicated

Classic Minerals has upgraded 20,488oz of the previous inferred gold resource at its Kat Gap project in WA to Indicated.

That’s an addition of 20k ounces of Indicated resource to the current 80k-ounce gold resource at the project, marking a pivotal milestone in the project’s advancement towards stage 1 extraction, processing and monetisation.

The upgrade to this higher confidence level also opens the door for mine planning work that will gauge the economics of Kat Gap and contribute to better understanding of the greater Forrestania project.

Eventual economic extraction on the cards

The enhanced resource confidence level, resulted from re-estimation following the integration of two years’ worth of additional drill data which has seen approximately 360 more holes drilled across the deposit by Classic Minerals (ASX:CLZ) since the 2020 estimate.

This re-estimation work was carried out by Cadre Geology and Mining Pty Ltd, who stated that the modelling process ensures a reasonable prospect of eventual economic extraction.

The gold grade and near-surface nature of Kat Gap additionally supports this.

“This is a game-changer for Classic Minerals,” CEO Dean Goodwin said.

“Upgrading the resource to the Indicated category is a significant step towards realising the full potential of the Kat Gap Project.

“We are now better positioned than ever to fund our own way forward, increasing the ounces within our global resource and setting the stage for continued success.”

Stage one trial mine extraction planned

Classic now plans to undertake detailed staged mine planning activities, paying particular attention to this new Indicated resource for initial stage one trial mine extraction, which will provide a strong foundation for future mining operations at the deposit.

The company says its state-of-the-art processing facility is a crucial component of the mine planning detail, facilitating in-house control over ore processing and gold production.

The robust infrastructure provides a competitive advantage, enhancing its ability to capitalise on the upgraded resource and further expand its gold production capabilities.

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.