ASX-listed gold explorer Classic Minerals is continuing its march towards production as the remaining key components of a mobile processing plant are set to be delivered to its Kat Gap gold project about 120km south-east of Southern Cross in WA in just over a month.
The Perth-based company bought Gekko Python equipment for the processing of ore at Kat Gap and associated equipment for the proposed gravity processing circuit from Gold Processing Equipment for just under $4 million.
Classic has paid about $1.3 million for the various plant parts delivered so far and intends using capital raise funds for payment of the balance amount.
It has received an IPJ Jig Variable Speed Drive, a Vertical Shaft Impactor, a Spinner Concentrator and is awaiting confirmation on the supply of the crushing units, another IPJ Jig Variable Speed Drive, another Vertical Shaft Impactor, another Spinner Concentrator and all associated conveyors, belts, casings, bearings, valves, pumps, electrical controls and control systems.
Classic recently reported a bonanza RC drill intercept from Kat Gap of 4m grading 76.72 grams per tonne gold from 79m including 1m at an eye-watering 304 g/t or about 10 ounces of gold per tonne.
Other notable assays from the 21-hole drilling program totalling 1,304m were 9m going 8.69 g/t gold from 14m including 1m at 21.8 g/t from 18m, 3m at 10.97 g/t from 50m including 1m at 30.0 g/t from 51m, 3m at 7.48 g/t from 57m, 3m at 7.28 g/t from 49m and 1m at 11.2 g/t from 72m.
Kat Gap’s latest stated inferred resource stands at 975,722 tonnes going 2.96 g/t for 92,856 ounces of contained gold.
Classic has also just completed a 310-hole auger soil program at Kat Gap that revealed a high-grade gold anomaly spanning approximately 900m by 500m in the granite west of the main contact zone.
The Kat Gap gold discovery sits adjacent to the contact between granite and greenstone rocks in the south of the Southern Cross greenstone belt where high-grade gold mineralisation is hosted within shear and breccia zones, associated with auriferous quartz veining.
With Classic steadily crossing off its shopping list of requirements to gradually build a mobile processing plant at Kat Gap, its transition from explorer to producer appears to be looming on the horizon.
Is your ASX listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
