Mining minerals

Classic Minerals Limited Quarterly Business Report (ASX:CLZ)

Quarterly activity report

Perth, August 1, 2022 AEST (ABN Newswire) – Classic Minerals Limited (ASX:CLZ) made good progress at Kat Gap during the quarter as it progresses to a gold producer.

Highlights of the quarter include:

– Classic mined 1,011 ounces of gold from its bulk sample mining operation.

– 6,504 tons of ore extracted at an average grade of 4.82 g/t.

– 48,970 tonnes of waste and ores extracted in total.

– Advanced metallurgical testing of oxide ore in progress.

– Ongoing geological and engineering studies to facilitate final pit design work.

– Classic discovered substantial amounts of water in its first test well at Kat Gap

– Water borehole located just off the haul road just 1,100m from the gold processing facility.

– Water quality analysis in progress.
– IGO performed only minor office work on the Fraser Range Nickel project.

Bulk Sample Extraction

Classic completed its bulk sample mining in early May at its 100% owned Kat Gap gold project.

The bulk sample returned 6,504 tonnes of gold ore at an average grade of 4.82 g/t for a total of 1,011 ounces of contained gold. The pit was expected to produce between 5,000 and 7,000 tonnes of ore at a grade of approximately 5 g/t. Total waste and ore production combined is 48,970 tonnes.

Waste and ore were stored separately. All topsoil has been stockpiled for future rehabilitation. The bulk of the overburden removed to date has been placed on the designated waste landfill as required.

The ore zone, located less than 6 m from the surface, was mined to a vertical depth of 15 m. The average width of the ore was about 5 m and was mined over a length of 50 m. The oxide ore consisted mainly of quartz veins and biotite alteration hosted entirely within the granite. The ore was easily distinguishable from the waste during extraction, mainly due to weathering. The bottom wall and top wall contacts were very clear, which facilitates extraction with minimal dilution. It was also moderately thicker on the pit floor than predicted by the resource block model.

The ore was mined in seams or flitches 2 m thick. Each flitch had a grade and tonnage assigned from the resource block model provided by independent resource consultants Cadre Geology and Mining Pty Ltd. The overall grade of ore mined was calculated using the weighted average grade for each flitch.

Basic specific gravity measurements were taken on the ore and waste to aid in tonnage calculations.

Final metallurgical testing of the bulk sample oxide samples is underway, as well as geological and engineering studies based on observations taken in the pit. These observations will help in the final pit design work.

Water well drilling program

During the quarter, Classic hit significant amounts of water in its first test well at Kat Gap.

The discovery of significant amounts of water is another milestone for the Company and a vital ingredient for the gold processing plant. Strategically, the water borehole is located next to the main haul road 1,100m from the processing plant. This will make pumping water to the treatment plant relatively simple with limited infrastructure required.

The water drilling targeted a major fault zone identified from detailed aeromagnetic data.

The fault zone is a regional structure and is expected to contain large amounts of groundwater.

Further drilling along this structure will soon be completed to locate additional water supplies once official approvals are received. Water quality analyzes are currently underway.

Gekko gold processing plant

The crushing and gravity components of Gekko’s gold processing plant were commissioned in May 2021 at the company’s test site in Gnangara WA prior to dismantling and transport to Kat Gap.

The Company expects to begin reassembly of the Gekko gold recovery plant onsite during the September 2022 quarter once final metallurgical testing is complete. This work will make it possible to configure the crushing circuit by maximizing the flow rate. In addition, the tailings dam design work has not yet been completed. This work is the only hurdle remaining for the company before receiving its final approvals from DMIRS to reassemble the plant. Bulk sample ore will be processed through the crushing and gravity circuits to refine the plant prior to large-scale surface production.

Development of the Forrestania Gold Project will continue to progress in the third quarter of fiscal 2022 focusing on:

– Final preparations leading to large-scale mining operations,

– Complete final metallurgical testing on bulk sample ore,

– Complete final open pit design work and financial modelling,

– Begin reassembly of Gekko’s gold processing plant in Kat Gap,

– Acquisition of the necessary mining equipment for Kat Gap, and

– Continue to raise capital and repay debt and liabilities to improve the Company’s financial condition.

FRASER RANGE

The Company refers to the ASX announcements of June 17, 2019 and July 05, 2019 in which Classic entered into the Participation and Joint Venture Agreement with IGO Newsearch Pty Ltd, a wholly owned subsidiary of IGO Limited (ASX: IGO) (“I’M GOING”).

Under this agreement:

– If IGO chooses to acquire a 70% interest in the project, Classic will be raised free of charge upon completion of a pre-feasibility study: or

– If IGO elects to acquire Classic, then Classic will receive an aggregate value of AUD$4,550,000, in cash and capital expenditure, and will retain a 1% net smelter return royalty from this transaction.

More details on the transaction can be found in the two detailed announcements above.

We have received the following update on the progress of the exploration carried out during the March 2022 quarter by IGO on the tenements:

Summary

Between March 15, 2022 and June 15, 2022, no field exploration activities were carried out by IGO in the IGO – Classic Minerals Joint Venture concessions, namely E28/1904, E28/2703, E28/2704 and E28/2705. Field mapping scheduled for the third quarter of 2022 has been delayed due to COVID impacts on field geology personnel.

*To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/NZHG4Z04

About Classic Minerals Limited

Classic Minerals Ltd ASX CLZClassic Minerals Limited (ASX:CLZ) is an exploration and development company focused on gold deposits in the famous Goldfields region of Western Australia. In March 2017, Classic acquired the Forrestania Gold project, with seven buildings spanning 450 km2. Strategically located in a highly prospective region, the FGP is an under-explored package surrounded by multi-million ounce deposits such as Bounty (2Moz) and Yilgarn Star (1.5Moz).

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