Mining lease granted at Kat Gap for Classic Minerals
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Key milestone reached at Kat Gap Gold Project with Mining Lease 74/249 granted by Department of Mines, Industry Regulation and Safety.
Championed as a ‘major company defining moment’ by chairman John Lester, the granting of the mining lease is set to elevate the company from exploration to miner. The lease is for an initial term of 21 years until April 2042.
Classic Minerals Limited (ASX: CLZ) can now fast-track Kat Gap to early production with the belief there is potential for a substantial gold deposit discovery in the project area.
“We are now able to formally transform Classic from an explorer to a miner in a move we believe will provide value accretion for our shareholders,” Lester said.
“The challenges will be to produce gold from the Kat Gap and cement our place in the ranks of gold producers in WA. The directors and I have the confidence that, as we have achieved this milestone, Classic will continue to progress and become a producer of note shortly.”
Located 170km south of Southern Cross, the 100% owned project has an initial JORC resource of 92,869 ounces (oz) at 2.96 grams per tonne (g/t) gold with a gravity and conventional cyanide leach process achieving 95-96% recovery from both fresh and oxide samples.
The open-ended deposit lies within a 5km long geochemical gold anomaly that has seen very little drill testing. However, early results from recent reverse circulation (RC) drilling released in prior announcements suggest exceptional near surface high grade gold mineralisation including:
Kat Gap’s extensive surficial quartz float along the host granite-greenstone contact highlights regional strike potential of more than 2.5km.
Classic has also purchased an on-site processing plant (Gekko) with the gravity circuit now 100% complete. The Gekko plant has a 30 tonne per hour capacity and is scalable to a Gekko Python size plant with a processing capacity of up to 250 tonnes per hour.
The modular construction of the plant enables placement of the plant to be close to the ore body, minimising cartage and processing costs.
This article was developed in collaboration with Classic Minerals Limited, 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.