Secures 100% Ownership of the Kat Gap Gold Project
Perth, Jan 9, 2019 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 exercised the Option and acquired a 100% interest in the Kat Gap Gold Project covering exploration licences E74/422 and E74/467; subsequent to meeting all the conditions precedent.
Highlights:
- Option to acquire a 100% interest in two highly strategic exploration licences, E74/422 and E74/467 (Kat Gap Gold Project) has been successfully exercised. Classic now owns 100% of the project.
- Kat Gap is an advanced gold exploration project covering 37.5 km2, over a 10km section of the western granite/greenstone contact at the southern end of the Forrestania Greenstone Belt.
- Recent RC drilling by Classic at Kat Gap has returned outstanding high-grade gold intercepts from shallow depths including:
5m @ 14.10g/t Au from 17m in FKGRC001
12m @ 7.52g/t Au from 39m in FKGRC006
8m @ 19.05g/t Au from 32m in FKGRC008
8m @ 7.14g/t Au from 82m in FKGRC010
12m @ 5.39g/t Au from 30m in FKGRC012
4m @ 9.53g/t Au from 70m in FKGRC014
10m @ 30.78g/t Au from 28m in FKGRC018
10m @ 4.18g/t Au from 26m in FKGRC022
9m @ 8.08g/t Au from 95m in FKGRC025
3m @ 8.33g/t Au from 22m in FKGRC039
3m @ 14.10g/t Au from 10m in FKGRC042
3m @ 9.64g/t Au from 20m in FKGRC043
- Kat Gap has a historical resource estimate (2003) of 283,000t @ 3.9g/t for 36,000 ounces of gold, not classified or reported in compliance with JORC (2012) *.
*In accordance with clause 5.12 of the ASX Listing Rules, CLZ notes that the historic resource estimations were not reported in compliance with the JORC Code (2012), or any earlier adaptations of the JORC Code. A Competent Person has not done sufficient work to classify the historical estimates as mineral resources in accordance with the JORC Code (2012). It is uncertain that following evaluation and/or further exploration work that the historical estimates will be able to be reported as mineral resources in accordance with the JORC Code (2012).
1. INTRODUCTION
The Kat Gap Project is strategically located approximately 70km south-south east of the Company's Forrestania Gold project containing the Lady Magdalene and Lady Ada gold resources. Kat Gap adjoins the Forrestania Nickel project currently operated by Western Areas Ltd.
Classic has purchased the Kat Gap project from private company Sulphide Resources Pty Ltd for a total consideration of A$250,000 plus GST, and a 2% NSR royalty on production from E74/422 and E74/467 (or any replacement tenements).
Classic CEO Dean Goodwin said:
"We are very pleased to have finalised this transaction as the Kat Gap tenements will significantly strengthen the Forrestania Gold Project as a whole. We now control over 480km2 of the highly prospective Forrestania region, in an area we firmly believe has the potential to host a world-class gold deposit.
Drilling campaigns by Classic over the last 6 months have shown the high-grade potential of this project. We have intersected some outstanding shallow zones of gold mineralisation over a 200m strike length with gold open at depth and along strike in both directions. I think we are onto something quite special but only time will tell.
The next stage is to commence an RC drilling program extending the known mineralised zone north and south from our current 200m long drilling area. We plan to focus our attention on an 800m long section of the main granite-greenstone contact where existing historical drilling is on 100m spaced lines. Our current 200m long drilling area sits right in the middle of this 800m long section. We firmly believe that significant gold mineralisation is hiding between these old drill lines. This work will give us a pretty good idea of how good this system really is. If we start getting similar results to what we have seen already in these new drill holes then we'll know we have a tiger by the tail".
2. KAT GAP PROJECT
Historically the project 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. Resources were estimated at 283,000t @ 3.9g/t for 36,000 ounces at a 1.5g/t cut-off grade. This resource estimate was not reported in compliance with the JORC Code (2012). Previous 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 there is potential for the discovery of a substantial gold deposit within the project area. Previous exploration work includes airborne geophysical surveys; aircore, RAB, RC and diamond drilling; and soil geochemical surveys.
Classic has drilled a total of 57 holes for 3891m at Kat Gap over the last 6 months from May to November 2018. The early drilling was focused on testing the up-dip and down dip projection of previous historical high-grade gold intersections along the main granite-greenstone contact adjacent to a cross-cutting Proterozoic dyke. Later drilling was then concentrated on an area north and south along strike from the cross-cutting Proterozoic dyke covering a strike length of some 200m on the granite-greenstone contact.
Classic has completed 4 drilling campaigns at Kat Gap all returning significant high-grade gold intercepts. The majority of the drilling is relatively shallow, down to approximately 60m vertical depth below surface. The main area of drilling has been focused primarily on and adjacent to the contacts of a cross-cutting Proterozoic dyke where it intersects the main granite-greenstone contact. At this location the gold mineralisation has been significantly enriched. Better results from the first three drilling programs include, 8m @ 19.05 g/t Au from 32m including 4m @ 28.80 g/t Au in FKGRC008; 12m @ 7.52 g/t Au from 39m including 2m @ 20.20 g/t Au in FKGRC006; 12m @ 5.39 g/t Au from 30m including 1m @ 20.80 g/t Au in FKGRC012; 10m @ 30.78 g/t Au from 28m including 2m @ 116.10 g/t Au in FKGRC018; 9m @ 8.08 g/t Au from 95m including 1m @ 62.30 g/t Au in FKGRC025 and 10m @ 4.18 g/t Au from 26m including 1m @ 15.10 g/t Au in FKGRC022.
Several deeper RC holes have also been drilled to approximately 120m to test the main contact zone at depth. These holes were primarily designed to test a potential plunge zone detected by the shallow RC holes. Better results from these holes include, 9m @ 8.08 g/t Au from 95m including 1m @ 62.30 g/t Au in FKGRC025 and 1m @ 18.80 g/t Au from 86m in FKGRC026. The plunge line is wide open along strike and down dip.
The last drilling program in November incorporated a series of holes testing the up-dip potential of previous high-grade gold intersects together with a few holes testing further along strike to the north following up on previous historical RAB and RC holes. Better results from the shallow up-dip drill holes included: 3m @ 38.33 g/t Au from 21m including 1m @ 111.00 g/t Au in FKGRC039; 5m @ 5.61 g/t Au from 6m including 1m @ 12.00 g/t Au in FKGRC040; 2m @ 7.86 g/t Au from 19m in FKGRC041; 3m @ 14.10 g/t Au from 10m including 1m @ 37.40 g/t Au in FKGRC042 and 3m @ 9.64 g/t Au from 20m including 1m @ 25.10 g/t Au in FKGRC043.
All RC Holes drilled along strike to the north testing the extent of the main granite-greenstone contact lode intersected gold mineralisation with the best result of 5m @ 4.07 g/t Au from 66m including 1m @ 11.50 g/t Au coming from FKGRC051. The next closest historical RC hole is some 100m further along strike to the north.
Future drilling programs at Kat Gap will focus mainly on testing an 800m long section of the main granite - greenstone contact where current drill line spacings are 100m apart. Current drilling is located right in the middle of this 800m long section. Interpretation suggests that significant gold mineralisation exists between these sections similar to what has been identified in the last 4 drilling programs. Several deep orientated diamond holes to probe the system to 300m vertical below surface have also been designed.
Historical RC drilling at Kat Gap is currently on 100m - 200m line spacings. There is strong potential for additional mineralisation to be identified up-dip, down-dip and along strike, both outside of and within the existing RC drill coverage. Only about half of the 5 km long >50 ppb Au gold-in-soil anomaly has been tested by RC drilling along the granite/greenstone contact.
Classic has planned follow up RC and diamond holes with drilling scheduled for late this month.
3. 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 below (see 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/1OR2QP94
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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