Join our daily newsletter At The Bell to receive exclusive market insights
- Classic Minerals (CLZ) gets green light to start production at its Kat Gap project in Western Australia
- The company received ministerial approval to reassemble its Gekko processing plant which once in operation, would allow production to begin
- A construction team is being mobilised to site this week where a bulk sample ore stockpile is ready and waiting to be processed
- Classic’s forward plan is to produce a gold dore bar and have it refined at the Perth Mint to generate early cash flow within 12 weeks
- Shares in Classic Minerals are up 8.33 per cent trading at 1.3 cents at 2:34 pm AEDT
Classic Minerals (CLZ) has been given the green light to start production at its Kat Gap project in Western Australia.
The company received ministerial approval to reassemble its Gekko processing plant which once in operation, would allow production to begin.
The approval enables the installation and operation of a gold circuit, gold room, product sampling, dewatering and crushing, gravity and carbon-in-leach circuits, as well as a tailings storage facility, fuel systems, processing control systems and high voltage power.
A construction team is being mobilised to site this week where a bulk sample ore stockpile is ready and waiting to be processed.
This ore is expected to have an average head grade up to six grams of gold per tonne.
Classic’s forward plan is to produce a gold dore bar and have it refined at the Perth Mint to generate early cash flow within 12 weeks.
The ministerial approval marks the final hurdle in the company’s journey to production and follows approval of a processing proposal by the Department of Mines, Industry Regulation and Safety.
Company Chair, John Lester, said Classic Minerals was very pleased to be progressing the project to establish a processing facility in Forrestania.
“The new plant will process gold ore from the company’s Kat Gap mine, generating approximately 10 construction and 50 ongoing jobs in the region.
“Classic expects to be the only other gold processing plant in the region apart from Marvel Loch gold mine,” he said.
Shares in Classic Minerals were up 8.33 per cent trading at 1.3 cents at 2:34 pm AEDT.
