Gold production? Classic is counting down the days
Gold production from Classic’s Kat Gap project is just around the corner following approval from the WA state government for installation and use of the Gekko plant.
The approval by the Department Industry, Mines, Regulation, and Safety – combined with other recent approvals – allows the company to start full-scale mining and processing at Kat Gap, which has current Inferred resources of 975,722t grading 2.96g/t gold, or 92,856oz of contained gold.
It also allows Classic Minerals (ASX:CLZ) to install and operate a gold circuit, gold room, product sampling, dewatering, crushing circuit, Gekko gravity circuit, tailings storage facility, fuel systems, processing control systems and high voltage power among others.
The company may also install a carbon in leach circuit.
“The Ministerial approval was the final remaining hurdle required and the company was now poised to begin full scale mining and processing gold ore using its own on-site facilities,” Classic chairman John Lester said.
He added that the company is pleased to be progressing the project to establish a processing facility in Forrestania – making it the only other gold processing plant in the region apart from Marvel Loch.
Lester also noted that the mining and processing provides a low capex pathway forward whilst retaining a solid proportion of the profits and avoiding dilution.
First production is expected to start within 12 weeks.
Classic already has a bulk sample of about 6,500t of ore grading 6 grams per tonne (g/t) gold ready to be processed once the Gekko plant has been reassembled.
Operating costs are expected to be low due to the low base metal content of the ore, which results in a very low reagent consumption.
The company also has the ability to beneficiate low grade ores to reject uneconomic waste materials and minimise cost per tonne processed.
Additionally, the high gold recovery at a relatively coarse grind size also reduces energy requirements which minimises greenhouse gases and operating costs.
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.