Successful Completion of $1.8 Million Placement
Perth, Aug 3, 2018 AEST (ABN Newswire) - WA-focused gold exploration and development company Classic Minerals Limited (
ASX:CLZ) ("Classic", or "the Company") is pleased to announce that it has successfully completed a Placement ("Placement") to raise $1.8 million before costs. The raising received significant demand from new domestic and international shareholders and was managed by leading Perth and Sydney-based stock broking firms.
Highlights:
- $1.8 million raised via Placement to institutional and sophisticated investors located in Australia at $0.0045 per share
- Strong demand from new major domestic institutional and high net worth investors
- Funds will be used to progress upcoming drilling program at the Forrestania Gold Project
- Further review of Fraser Range Nickel-Copper-Cobalt project in light of the nearby discovery made by famed prospector, Mark Creasy
1. INTRODUCTION
The Placement leaves Classic well positioned to commence an aggressive exploration and resource delineation drill program at its Forrestania Gold Project ("FGP").
Classic CEO Dean Goodwin said:
Following the outstanding results of our last drilling program, including multiple high-grade gold hits at Kat Gap and Lady Magdalene, we are very excited to be heading back to the FGP to undertake an aggressive follow up drill program. As you will see, this drill program is focussed more so on our 100% Kat Gap project which delivered outstanding results during the previous 2 drill campaigns and is shaping up to become a prolific shallow high-grade gold deposit with so much remaining upside potential. We have only tested 140m of 3.5km of potential strike along this granite-greenstone contact and intersected a new zone of mineralisation in the granite.
We are also very happy to be continuing the extensional drilling at Lady Magdalene and Lady Lila which remain flagship assets in our FGP portfolio.
The sustained exploration work at FGP would not be possible without the support and belief of our new shareholders and existing shareholders. We are pleased to note the participation of three leading stockbroking firms from Perth and Sydney.
2. PLACEMENT
The Placement comprises the issue of 400 million fully paid ordinary shares ("Placement Shares") at an issue price of $0.0045 to institutional and sophisticated investors in Australia and internationally, raising $1.8 million (before costs).
The Placement will raise approximately A$1.8m via the issue of 400m New Shares pursuant to the Company's existing placement capacity under ASX Listing Rules 7.1 and Resolution 15 from the Company's General Meeting dated 27 June 2018 The issue price of $0.0045 represented a 10% discount to the last closing price of $0.005 on Monday 30 July 2018. Placement Shares will rank equally with existing fully paid ordinary shares. Settlement of the Placement is expected to be completed before Friday, 10 August 2018.
3. USE OF FUNDS - DRILLING PROGRAM
Funds raised from the Placement will be used to fund exploration activities at the FGP and for general working capital.
Following the encouraging results (see ASX announcement dated 24 July 2018) from its last program at Kat Gap and Lady Magdalene, the Company will be targeting these areas again with additional drilling. In addition, Classic will also be returning to Lady Lila to continue efforts to locate high grade mineralisation that has been missed by previous explorers.
The Company plans to undertake the following drilling activities during August 2018:
------------------------------------------------------------------- Table 1: Proposed Drilling ------------------------------------------------------------------- Prospect Drill Type No of Holes No of Metres ------------------------------------------------------------------- Kat Gap RC 12 1,200m Lady Lila RC 5 360m Lady Magdalene RC 5 500m ------------------------------------------------------------------- TOTAL 22 2,060m -------------------------------------------------------------------
Lady Lila is a BIF hosted gold deposit that is similar in geological characteristics to Bounty and Blue Vein (held by KDR) which are prolific, high grade gold deposits in the region. Previous drilling by Classic at Lady Lila confirmed the existence of a thick, steep east dipping ore zone warranting additional follow up. The upcoming drill program (5 RC holes for 360m total) will focus on extending the mineralisation along strike and at depth.
Kat Gap contains a shallow unmined gold deposit discovered in the 1990s, which was the subject of resource estimations and scoping study by Sons of Gwalia in 2003. High grade RC drill intercepts include 15 m @ 15.1 g/t Au from 39 m depth and 6 m @ 19.1 g/t from 17 m depth. The open-ended deposit lies within a 5 km long geochemical gold anomaly that has seen very little drill testing, and after the previous drill program just completed, Classic sees great potential for the discovery of a substantial shallow high-grade gold deposit within the Kat Gap project area and the upcoming program will be testing for extensions of the high grade system. Recent drill holes FKGRC006 - FKGRC010 (inclusive), FKGRC012, FKGRC013 and FKGRC015 all tested the main contact lode with hole FKGRC008 drilled close to the Proterozoic dyke. Better results from these holes included: 8m @ 19.05 g/t Au from 32m including 4m @ 28.80 g/t Au from 32m in FKGRC008; 12m @ 7.52 g/t Au from 39m including 2m @ 20.20 g/t Au from 48m in FKGRC006; 12m @ 5.39 g/t Au from 30m including 1m @ 20.80 g/t Au from 30m in FKGRC012 and 4m @ 9.53 g/t Au from 70m including 1m @ 26.60 g/t Au from 72m in FKGRC014.
As part of the August drilling campaign, Classic has 12 holes planned at Kat Gap for a total of 1,200m.
Lady Magdalene is a large, modestly graded deposit which appears to host high-grade, cross-cutting gold lodes within existing drill lines that are 100-200m apart (see ASX announcement dated 22 March 2018). Previous diamond and RC drilling (see ASX announcement dated 24 July 2018) successfully confirmed the existence of such lodes and the planned drilling will further test the extent of strike, dip and grade of these high grade cross-cutting lodes. During the most recent drill campaign at Lady Magdalene, Classic drilled 10 RC holes for 938m on two north-south oriented traverses, as opposed to all historical drilling which is east-west, in an attempt to locate east-west striking Lady Ada style high-grade cross-cutting quartz veins. Of the 10 holes completed, 3 intersected quartz veining in a potential east-west orientation. These holes returned high-grade results including: 1m @ 13.40 g/t Au from 64m in MARC058; 1m @ 9.36 g/t Au from 44m in MARC059 and 4m @ 3.90 g/t Au from 46m in MARC056. The 3 new cross-cutting quartz veins initially appear narrow but have the potential to thicken rapidly over short strike lengths similar to Lady Ada.
As part of the August drilling campaign, Classic has 5 holes planned at Lady Magdalene for a total of 500m.
4. INDICATIVE TIMETABLE
Event: Announcement of the Results of the Placement and Voluntary Trading Halt lifted
Date / Time (AWST): Friday, 3 August 2018
Event: Settlement of new shares issued under the Placement
Date / Time (AWST): Friday, 10 August 2018
Event: Allotment and Trading of new shares issued under the Placement
Date / Time (AWST): Monday, 13 August 2018
1. The above timetable is indicative only and subject to change. Classic, in conjunction with the Lead Manager (Argonaut Securities Pty Ltd), reserves the right to amend any or all of these events, dates and times subject to the Corporations Act 2001 (Cth), the ASX Listing Rules and other applicable laws.
5. RENEWED INTEREST IN THE FRASER RANGE PROJECT
The company intends to do an extensive review of its dataset for its Fraser Range project in light of the recent Nickel-Copper-Cobalt discovery made by renowned explorer Mark Creasy. Industry speculation is that the discovery could be at least one-third the size of the 2012 Nova-Bollinger discovery, acquired by IGO in its $1.8 billion acquisition in 2015 of Mark Bennett's Sirius Resources. The map below shows the proximity of Classics tenement to Creasy's new Nickel-Copper-Cobalt discovery. As can be seen, Classics tenement is within 8km of the new Creasy group discovery: (see link below)
Classic's previous results at Fraser Range include.
- Securing 28km strike across 84km2 on the Fraser-Albany complex belt
- Located 40km North-East of Sirius' Nova -Bollinger Discovery
- Shallow Drilling at Mammoth prospect intersected thick zones of mixed sulphides, Including visible nickel and copper sulphides
- Disseminated, Blebby, Vein and Semi-Massive styles of sulphides.
- Thickness up to 24m down-hole
- Close to surface - from 25m to ~100m so far including
o FRRC040; 2m @1.025 Ni from 106m
o FRRC039; 1m @ 1.4% Cu from 42m; and
o FRRC036: 5m @ 0.1 co from 10m
- DHEM and ground loop work has helped determine strike, depth extension and potential feeder structures at Mammoth
- Conductor now drilled to over 240m in length and open
- Mineralisation is sub vertical and plunges to the north east
The Fraser Range tenement also includes the Alpha Copper Deposit Located 3km South West of Mammoth Ni discovery Including:
- 1m of 1.95% Cu from 104m (FRRC001) (Discovery Hole)
- 1m of 1.04% Cu from 27m (FRRC016) Within 5m at 0.47% Cu
- 5m thick zone of 0.57% Cu (FRRC013)
- 1m of 1.27% Cu from 36m (FRRC024) Within 2m at 0.795 Cu
- Thicker zones from 2m-8m of copper mineralisation from 0.2% Cu to 0.70%
- Copper occurs throughout the deposit and is open at North and South.
In addition, Classic recently identified 300m of continuous surface cobalt mineralisation at its Rubys Reward prospect, 160km east-southeast of Kambalda in the Fraser Range region of Western Australia (see ASX announcement dated 18 April 2018).
The assay results up to 0.14% cobalt were discovered following a review of the company's historical reports and data sets.
A closed spaced geochemical sampling program will be undertaken at Rubys Reward in the near term. Classic will also undertake geological mapping and reconnaissance. Classic is excited about the potential of the Fraser Range tenement and the renewed exploration interest in the region.
6. ABOUT THE FORRESTANIA GOLD PROJECT
The FGP Tenements (excluding Kat Gap and Lady Lila) are registered in the name of Reed Exploration Pty Ltd, a wholly owned subsidiary of ASX listed Hannans Ltd (ASX:HNR). Classic has acquired 80% of the gold rights on the FGP Tenements from a third party, whilst Hannans has maintained its 20% interest in the gold rights. For the avoidance of doubt Classic Ltd owns a 100% interest in non-gold rights on the Kat Gap and Lady Lila Tenements including but not limited to nickel, lithium and other metals.
The FGP contains an existing Mineral Resource of 5.3 Mt at 1.39 g/t for 240,000 ounces of gold, classified and reported in accordance with the JORC Code (2012), with a recent Scoping Study (see ASX Announcement released 2nd May 2017) suggesting both the technical and financial viability of the project. The current post-mining Mineral Resource for Lady Ada, Lady Magdalene and Lady Lila is tabulated in link below.
Additional technical detail on the Mineral Resource estimation is provided, further in the text below and in the JORC Table 1 as attached to ASX announcements dated 14th March 2017 and 21st March 2017.
To view tables and figures, please visit:
http://abnnewswire.net/lnk/1XMTNST0
About Classic Minerals Limited
Classic Minerals Limited (ASX:CLZ) is an exploration and development company focused on gold deposits in Western Australia's famous Goldfields region. In March 2017, Classic acquired the Forrestania Gold Project, with seven tenements stretching across 450km2. Strategically located in a very prospective region, the FGP is an underexplored package surrounded by multimillion ounce deposits such as Bounty (2Moz) and Yilgarn Star (1.5Moz).
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