After receiving regulatory approvals, ASX-listed gold-focused Classic Minerals has commenced construction activities for the development of the company’s 100 per cent owned and recently approved Kat Gap gold mine south of Southern Cross in WA. A series of earthwork activities including the stripping and stockpiling of vegetation and topsoil began earlier this month ahead of stage 1 mining.
The company has engaged heavy machinery in the building of internal roads, bulldozing to clear areas for waste rock dumps clearing and preparing ROM pads, office, administrative and workshop areas. Power to the site is also being upgraded to facilitate a camp upgrade for which additional camp buildings are expected to arrive on site shortly.
Whilst the company is still yet to obtain processing approval, it says overall progress remains on track with gold production planned towards the end of the first quarter of next year.
Once processing approval is received the company will commence the construction of a tailings storage facility and reassemble its modular and mobile ‘Gekko’ gold treatment plant.
The company is looking to have its flagship Kat Gap deposit ready for stage 1 open-pit mining before the end of the year. Classic also expects to start dry-crushing plant commissioning activities before December’s close. The deposit near Southern Cross in WA hosts almost 93,000 ounces of gold in an inferred mineral resource of 975,722 tonnes and is the highest-grade contributor to the company’s total gold inventory of 403,906 ounces.
Earlier this month the explorer kicked off a 3000m 20-hole RC drilling campaign at the deposit to test for down-plunge gold extensions of an undrilled area adjacent to recently reported near-surface hits. Assay results from the RC campaign are expected to start trickling in over the next few weeks.
The company believes if the in-progress deep campaign leads to a discovery, it could add significant ounces to its burgeoning roster and Classic says it could potentially funnel the data into the design of a larger open pit mine at the site. The potential for more of the precious yellow metal is hardly a problem to have, however Classic will be hoping the price of the commodity climbs a little higher.
Today, the spot price of gold was hovering around the US$1645 per ounce mark – not far from its two-yearly low of US$1621 that was reached just last month on September 26. When it comes to the future price of gold the renowned economic forecaster Fitch Solutions recently lowered its price expectations for the rest of 2022. The forecaster anticipates the full-year average to sit at US$1800 an ounce, representing a depreciating slide of $50 from its previous forecast of US$1850.
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