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- Classic Minerals (CLZ) shares take a dive as the company begins bulk sample mining at its Kat Gap Gold Project in Western Australia
- The bulk sample will be processed to assist in calibrating mining and metallurgy parameters ahead of full-scale production activities
- The targeted material represents a portion of the current 93-million-ounce mineral resource, with approvals granted to excavate up to 49,000 tonnes
- Earthmoving equipment has been mobilised to site, with the greater mining operation on track to start in the first quarter of 2022
- Shares have dropped 25 per cent to 0.2 cents each at 1:36 pm AEST
Classic Minerals (CLZ) shares have taken a dive as the company begins bulk sample mining at its Kat Gap Gold Project near Southern Cross in Western Australia.
The ore sample will be processed to assist in calibrating mining and metallurgy parameters ahead of full-scale production activities.
This, in turn, will afford CLZ the opportunity to test and refine the Gekko plant.
The company is looking to process 3000 to 5000 tonnes of ore at between four and six grams of gold per tonne for between 350 and 1000 contained ounces of gold — representing a portion of the current 93,000-ounce mineral resource.
Accordingly, CLZ has obtained approvals to excavate up to 49,000 tonnes from Kat Gap under terms of the underlying exploration tenure.
Classic Minerals Chairman John Lester said the team was delighted to have witnessed the first turning of the soil.
“[This] will serve to further de-risk the project and give the company and its investors increased confidence in executing the greater mining operation, which is on track for commencement in the first quarter of 2022,” he said.
Despite the announcement, Classic Minerals shares had dropped 25 per cent to 0.2 cents each at 1:36 pm AEST.
