During the December 2019 quarter, Classic Minerals Limited (ASX: CLZ) completed a successful drill campaign at the Forrestania Gold Project (FGP) returning regularly high-grade results. This high-grade assay outcome opens the scope to expand the currently estimated mineral resources at FGP. In line with the same, company updated the resources estimate of Lady Magdalene deposit, leading to 38% increment in resources to 5.92 million tonnes at 1.32g/t of grade, i.e. 251,350 ounces of gold.
Whereas, Kat Gap project validates most holes are delivering gold mineralisation striking in a northwest-southeast direction. Proving the same, the total 21 RC holes drilling for 1,580m and three diamond holes drilling for 527.55m took place.
CLZ is an Australian listed gold exploration and development company based out in Western Australia (WA). The company holds three projects, i.e. Forrestania Gold Project (~80%), Fraser Range Project (100%) and Kat Gap Project (100%) with total tenements acreage of ~178 km2 across Eastern Goldfields, Murchison and Fraser Range Provinces of WA.
Kat Gap project:
Kat Gap project is aptly located near the ~70km south-southeast of the company's FGP, which has already depicted positive viability in its scoping study. And now let us lens through the Kat Gap RC and diamond drilling update.
RC drilling is done to assess additional 100m of main granite-greenstone contact gold zone north of CLZ previous drilling of 50m vertical depth below the surface. Further, to seek more high-grade shoots north of the Proterozoic dyke, infill drilling around the 40m x 20m spaced holes is performed. Interestingly, the gold mineralisation was confronted at the northernmost drill lines in 19 RC holes FKGRC107 to FKGRC125, totaling 1,380m, where no previous drilling has been conducted.
While diamond drilling in 3 holes FKGDD0011 to FKGDD003 is conducted to test the mineralisation below the shallow dipping shoot structure and to understand the plunge direction to the high-grade mineralisation at the granite-greenstone contact lode near the cross-cutting Proterozoic dyke.
The result returned from these holes are: -
To know more about Kat Gap project drilling, please read: Share Price 50% Up Post KAT GAP Drilling Update: High-Grade Gold Intercept Continues
Good Read: Equity Charmer, Gold's 2020 Outlook
Forrestania Gold Project:
Classic Minerals owns 80% of FGP and has shown positive scoping study several years ago, demonstrating both the technical and economic viability of the projects. The company has two deposit, namely Lady Ada and Lady Magdalena deposit. CLZ recently updated Lady Magdalena mineral resources estimate and witnessed the surge in 38% of the contained gold in the deposit to 251,350 ounces, i.e. 5.92 million tonnes grading 1.32 g/t gold.
The project contains total mineral resources of ~6.46 Mt at 1.37 g/t grade, i.e. 286,300 ounces of gold of which Lady Ada contributes 34,950 ounces of gold, i.e. total resources of 543.5 kt at 1.99 g/t.
Interesting Read: Equity Gains Cap Gold Shine; Market Apprehensive Over Risky Assets
Future Plan of Classic Minerals:
- Continue RC drilling at Kat Gap along strike to the north and south from existing drilling along with the granite-greenstone contact.
- Deeper RC drilling to understand the plunge component of shallower high-grade gold mineralisation.
- To complete an updated resource estimate for Lady Ada.
- To initiate exploration on priority targets within the FGP.
During the December quarter 2019, CLZ sustained to raise funds through private placement for working capital and presently is in negotiation with multiple creditors to convert the debt to the equity to give a boost to its project. The company to create shareholder values is focusing on reducing its debt & liabilities through equity conversion or via payment to improve the financial position of the Company.
Stock Price Information – CLZ was trading at A$0.003 on 31 January 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$14.03 million.
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