23/11/2020 - 09:13

Classic bolsters cash with $1.2 million placement

23/11/2020 - 09:13

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Classic Minerals has topped up the tank, banking $1.2 million on the back of a successful placement to professional and sophisticated investors, with the funds earmarked for its ongoing exploration and development across the Forrestania greenstone belt in WA. The company received an overwhelming response to the share issue that was three times oversubscribed, with Classic offering a wealth of developing gold projects and a potential near-term move to production.

An aerial view of the drill pattern at Classic’s Kat Gap discovery. Credit: File, Bulls N’ Bears

Classic Minerals has topped up the tank, banking $1.2 million on the back of a successful placement to professional and sophisticated investors, with the funds earmarked for its ongoing exploration and development across the Forrestania greenstone belt in WA. The company received an overwhelming response to the share issue hat was three times oversubscribed, with Classic offering a wealth of developing gold projects and a potential near-term move to production.

The company has said that it will utilise the funds to accelerate its projects at Forrestania driving them towards production with work at the company’s high-profile Kat Gap discovery shaping up as Classic’s number one priority. The ongoing exploration program at Kat Gap continues to return a bevy of high-grade intercepts including 2m at 116 grams per tonne gold and 4m at 76 g/t gold including 1m at an incredible 304 g/t gold.

Classic Mineral’s Kat Gap project is located 370km east of Perth in Western Australia and 70km south of the company’s combined 311,000-ounce Lady Ada and Lady Magdalene deposits on the Southern Cross greenstone belt

The new gold discovery at Kat Gap lies adjacent to the main granite-greenstone contact in the south of the Forrestania belt where high-grade gold mineralisation is hosted within shear and breccia zones, shot with auriferous quartz veining.

The aspiring gold producer’s development program continues to show outstanding results, including metallurgical testing delivering a stellar gold recoveries of up to 96 per cent, indicating a substantial free-gold component to the Kat Gap ores. The company’s recent purchase of a portable ‘Gekko’ gravity gold processing unit underlines Classic’s commitment to the development of project as it eyes a move to production in 2021.

The open pitable Kat Gap deposit outcrops at surface with exploration having already outlined a resource of 975,722 tonnes at 2.96 g/t gold. Drilling continues over the high-grade discovery with ongoing exploration set to grow this figure in the coming months.

Classic Minerals continues to drill out a bounty of gold mineralisation and with the company beginning to take delivery of various components of its gold processing infrastructure, it looks poised to make the jump from explorer to producer in the not too distant future.

 

Is your ASX listed company doing something interesting? Contact: matt.birney@businessnews.com.au

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