Kat Gap resource confidence grows as Classic piles on high-grade hits

Classic has gained a greater degree of confidence in its Kat Gap resource in Western Australia after infill drilling returned more high-grade gold intercepts.

Notable intercepts from the 14 holes drilled immediately south along strike from the first 10 holes released earlier this month are 2m grading 21.07 grams per tonne (g/t) gold from a down-hole depth of 33m including 1m at 40.1g/t gold from 33m, and 2m at 17.2g/t gold from 53m including 1m at 19.9g/t gold from 53m.

The 109-hole infill drilling program is focused on an area 100m to 300m north along strike of the cross cutting Proterozoic dyke and is designed to upgrade current Kat Gap Inferred resources of 975,722t at 2.96g/t gold, or 92,856oz of contained gold, to the higher confidence Indicated category.

While drilling of the remaining 85 holes totalling 5,665m is on hold due to severe weather conditions, the results to date are certainly encouraging for Classic Minerals (ASX:CLZ) as it continues to progress the deposit towards production.

Drill results back mine planning

Infill holes FKGRC400–413 were drilled on 10m by 10m and 10m by 5m grid spacings to bring the near surface parts of the inferred resource to indicated status prior to final pit design work.

The need for closer spaced infill drilling has eventuated from the recent bulk sample mining operation where the exposed ore zone displayed evidence of light pinch and swell over relatively short wavelengths of around 10-15m.

This necessitates drilling on a minimum of 10m spaced sections and 10m spaced holes on the section to gain a higher level of confidence in the current resource block model.

It is also expected to dramatically reduce the number of grade control RC holes required in pit once operations are underway.

Drilling of the remaining holes is expected to resume in a few weeks.

While most of these holes consist of relatively shallow holes down to depths of 40m to 70m, several holes will be drilled down to depths of between 100m and 140m to extend the known gold mineralisation to greater depths down dip, which could add additional mineable ounces and a potentially larger final open pit design.

The company recently found evidence of ground water which could be used in gold processing operations and already has Western Australian state government approval of its Mining Proposal.

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.