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Recommencement of drilling by Classic Minerals triggers share price spike
2 minute read
News that Western Australian focused gold exploration and development company Classic Minerals Limited (ASX:CLZ) had recommenced reverse circulation (RC) drilling at its Forrestania Gold Project (FGP) triggered a 50% share price increase on Wednesday.
By way of background Classic acquired 80% of the gold rights on the FGP Tenements from a third party, whilst Hannans (ASX: HNR) has maintained its 20% interest in the gold rights.
For the avoidance of doubt, Classic owns a 100% interest in the gold rights at the highly promising Kat Gap Tenements and also non-gold rights including but not limited to nickel, lithium and other metals.
In April, Classic released its Inferred Mineral Resource Estimate of 93,000 ounces for Kat Gap, strengthening the case for near term commencement of mining operations at FGP.
Classic has completed a number of drilling programs at the Forrestania Gold Project, with this latest round targeting regional prospects.
Following up high-grade hits at Van Uden West
Discussing the upcoming drilling program, chief executive Dean Goodwin said, ‘’We are excited to be back in the Forrestania area to undertake more follow up drilling.
‘’Over the past 12 months we have been concentrating all our efforts at Kat Gap, which won’t be slowing down, but we also need to start looking at some of our high priority regional targets in the hunt for higher grade gold resources in the Forrestania area.
‘’All of the drill programs undertaken at FGP by Classic have yielded high grade gold hits.
‘’There is no doubt in my mind that this is a major gold camp containing significant undiscovered resources and we are on the right path to discover and delineate these ore bodies.’’
Previously, drilling was focused primarily on Lady Ada and Lady Magdalene.
These drilling programs which totalled 54 RC holes for 7500 metres paid handsome dividends with significant ounces being added to the resource inventory.
RC Drilling was also undertaken at Van Uden West several years ago.
Classic drilled two RC holes for 172 metres, following up anomalous gold results returned from historical wide-spaced reconnaissance aircore holes adjacent to the granite-greenstone contact.
Van Uden West was a high priority gold target generated over 20 years ago.
The drilling returned an outstanding intersection of 12 metres grading 5.75 g/t gold from 89 metres.
This will be the first follow up drilling undertaken by Classic since this result.