- Classic Minerals (CLZ) has been granted mining lease M74/249 by the Department of Mines, Industry Regulation and Safety
- The mining lease is for the Kat Gap Gold Project in Western Australia and is valid until April 22, 2042
- Classic Minerals considers this grant to be a major milestone in the company’s transition from exploration to mining
- The Kat Gap Project has already demonstrated impressive gold mineralisation but will undergo further drilling to upgrade its resource
- Classic Minerals is in the grey and trading at 0.1 cents per share
Classic Minerals (CLZ) has been granted mining lease M 74/249 by the Department of Mines, Industry Regulation and Safety.
The mining lease in question is for the Kat Gap Gold Project, located 170 kilometres south of Southern Cross in Western Australia. The project is a shallow deposit, consisting of an initial JORC inferred resource of 92,869 ounces at 2.96 grams per ton of gold.
The Kat Gap Project’s conventional cyanide leach process can achieve 95 to 96 recovery from both fresh and oxide samples.
Previous drilling at the project has returned impressive gold mineralisation, with exceptional near-surface high grades. One such intersection was four metres at 76 grams per ton of gold, which included one metre at 304 grams per ton of gold.
Classic Minerals wholly owns the gold rights on the Kat Gap tenements, as well as non-gold rights including nickel, lithium, and other metals within the project. The company intends to continue conducting RC drilling at Kap Gap, in order to upgrade the resource.
The company’s granted mining lease for Kat Gap is initially valid for 21 years, starting on April 22, 2021 and ending on April 22, 2042.
Classic Minerals considers the grant of the mining lease to be a major milestone in its transition from an exploration company to a mining company.
Classic Minerals’ Chairman, John Lester, called the grant of the mining lease a major, defining moment for the company.
“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,” he said.
“The challenges will be to produce gold from Kat Gap and cement our place in the ranks of gold producers in WA,” he added.
John went on to express his confidence that, having achieved this milestone, that Classic Minerals will continue to progress and become a producer of note soon.
Classic Minerals is in the grey, trading at 0.1 cents per share at 10:25 am AEST.