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Classic Minerals (ASX:CLZ) applies for mining lease at Kat Gap

Mining
ASX:CLZ      MCAP $2.013M
06 May 2020 18:15 (AEST)
Classic Minerals (ASX:CLZ) - CEO, Dean Goodwin

Sourced: Classic Minerals

Classic Minerals (CLZ) has successfully lodged a mining lease application to the Department of Mines, Industry, Regulation and Safety.

The application is for MLA 74/249 at its wholly-owned Kat Gap Gold Deposit covering the current resource at its exploration licences E74/422 and E74/467.

This mining lease application marks a significant step for the company as it begins to advance the project towards a detailed feasibility study over the next few months.

Classic Minerals is now launching the necessary regulatory processes to have the mining lease granted. It will then update the market on the progress of these processes in upcoming announcements.

The Kat Gap Deposit is part of the greater Forrestania Gold Project which is located approximately 120 kilometres south of Southern Cross in Western Australia.

As announced in late April this year, Kat Gap has an inferred mineral resource estimate of 975,722 tonnes at 2.96g/t for 92,856 ounces of gold. This was primarily calculated to pave the way for Classic to apply for a mining lease over the deposit.

The gold explorer is currently undertaking scoping studies, metallurgical test work and optimisation work on possible open pit scenarios to develop a near-term mining operation.

Classic ended the day 33.3 per cent in the red with shares closing at just 0.1 cents each.

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