AUS
NZ
UK
CA
USA
IND
_07_27_2026_01_21_40_931556.jpg)
Forrestania Gold Resources grew post new drilling by 71% and 38% in Lady Ada and Lady Magdalene gold metal contained in the deposit. The resources surged to 1.35 million tonnes at 1.38g/t gold grade, i.e. 59,700oz gold metal contained for Lady Ada and 5.92 million tonnes at 1.32g/t gold grade leading to 251,350oz gold metal contained for Lady Magdalene.
The improvement in resources post the technically, and financially viable scoping study is the testimony to the positivity of not only the Forrestania Gold Project (FGP) but also to its nearby Kat Gap deposit.
To know more about Kat Gap deposit, Please Read: Share Price 50% Up Post KAT GAP Drilling Update: High-Grade Gold Intercept Continues.
FGP is 80% owned by the Classic Minerals Ltd (ASX: CLZ) and the remaining 20% by Hannans Ltd (ASX:HNR), located ~120km south of Southern Cross, Western Australia. Apart from prospective FGP and Kat Gap project, CLZ also owns 100% of the Fraser Range Project. The whole 178 km2 tenements of the company comprising its projects are identified with high-grade Ni, Cu, Co and Au to mention few.
Good Read: Equity Charmer, Gold's 2020 Outlook
Let us now glance through the activities and outcome around FGP starting with scoping study.
The scoping study was done based on ore extraction by open-pit mining (OP) from Lady Magdalene and Lady Ada Resources. The throughput is assumed at 1mtpa with ore processing as 3 stage crushing and SAG mill grinding followed by gold recovery via gravity using Falcon Concentrator and CIL, CIP and AARL circuit to recover gold in the form of Dore. The LOM of ~2.5 years were estimated to produce ~111koz at a sustaining cost of A$1,080/oz – A$1,160/oz of gold.
The good margin of AISC over prevailing gold price poses an excellent opportunity to increase the focus on exploration and development of the project and enhance the profitability of the company. The initial low-cost investment to the project of around A$25 million and A$35 million put significant financial viability to the commercialisation of the projects.
The fueling optimistic around the project further boosted by the increase in resources at both deposits of FGP.
Earlier, the Resources identified around the deposits was: -
The company recently updated the total resources of the project with a lower cut-off grade of 0.5g/t in compliance with the JORC Code (2012) to ~7.27 million tonnes at 1.33% gold grade.
The resources are estimated based on a lower cut-off grade of 0.5g/t. However, CLZ is focusing on outlining the higher cut-off grade of ~1g/t gold. To outline these high-grade pockets at both the deposits will enable early cash-flow and will support the costs associated with mining, haulage and toll treatment.
Resources Volume – Grade curve:
Source: Company Announcement on Resources
From above grade tonnage curve with high-grade cut-off, the high mined grade can be expected. Also, it is worth mentioning that previously Lady Ada resource produced around a total of 95,865 tonnes at a high average grade of 8.81 g/t Au was mined for 27,146 oz gold.
The previously high-grade ore mined is the testament to the future opportunities. Map these deposits to get higher return via high recovery of cash flow at the start than for later years.
Presently Classic Minerals is looking forward to an engaging consultant to update the mineral resource and related technical data as part of new Scoping Study on the FGP. Also, CLZ believes in finalising the plans for JV mining and treatment contracts with professional miners and process ore by the first half of 2020.
Stock Price Information – CLZ was trading at A$0.002 on 5 February 2020. Its 52 weeks high and 52 weeks low stand at A$0.004 and A$0.001, respectively, with a market cap of A$21.05 million.
