Confidence boost for Classic Minerals as assays confirm high-grade gold at Lady Magdalene deposit

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Published 22-MAR-2018 11:00 A.M.

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3 minute read

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WA-focused gold exploration and development company Classic Minerals Limited (ASX:CLZ) has this morning informed the market of the assay results from its latest round of diamond drilling at the Forrestania Gold Project.

The results, taken from Phase III diamond drilling at Lady Magdalene, confirm the geological model of high-grade cross-cutting mineralization put forward by CLZ CEO Dean Goodwin, who has a long history of experience exploring in the region.

Most importantly, the assays confirm high-grade gold in the zones identified as being similar in orientation to Lady Ada, another deposit under CLZ’s tenements.

The best assay results for the drilling programme include:

  • 6.5 metres at 3.30 g/t gold from 56.5m – including 1 metres at 9.52 g/t Au from 60 metres
  • 10.6 metres at 1.96 g/t gold from 182.4m – including 1 metres at 16.4 g/t Au from 192 metres
  • 6 metres at 1.72 g/t gold from 32 metres

During the campaign, CLZ identified several mineralisation controls that upgrade the depth and strike potential of the 2-kilometre-long Lady Magdalene/Lady Ada gold camp. With such positive results, CLZ are planning follow up RC drilling for next quarter.

Of course, as with all minerals exploration, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.

More support for Goodwin’s theory

Today’s results are from the first drilling programme designed by Goodwin since assuming the role of CEO at CLZ. Due to the fact that the holes intercepted gold mineralization in the zones of interest, the company believes the findings validate Goodwin’s theory regarding the likelihood of additional Lady Ada analogues at the Lady Magdalene deposit.

The results also comprehensively support CLZ’s structural observations of the deposit to date and allow the company to accurately determine the orientation of any high-grade zones not discovered by previous explorers in the region.

This represents a significant development for the small-cap, considering the large and modestly-graded Lady Magdalene deposit now appears to host high-grade cross-cutting zones of alteration which are analogous to Lady Ada — which Goodwin discovered in 1999.

The RC drill programme to follow will aim to delineate the dip, plunge and general direction of the high-grade structures at the deposit — and confirm the orientation and analogous nature of the deposit suggested by the Phase III results.

The below table provides the diamond drill results for Lady Magdalene received to date:

In commenting on today’s news, Goodwin said: “This is the first time that Lady Ada high grade orientations have been identified at Lady Magdalene. Our first two holes testing the “Lady Ada Orientation” theory have been successful in finding both analogous structural data and high grade gold – this is extremely encouraging and bodes well for the upcoming RC program given the success of the first two diamond holes.

“This exciting new data confirms that the high-grade Lady Ada is not an isolated occurrence and that other high grade cross cutting gold lodes exist within the Lady Magdalene system. We now can see that this style of mineralization is more prevalent than previously thought. The discovery of the cross-cutting lodes has the potential to significantly upgrade the Lady Magdalene resource.

“The 2km-long Lady Magdalene/Lady Ada gold camp is likely to grow (via addition of higher grade gold oz) as a result. With the scoping study confirming the likely profitability of the deposits, additional higher-grade ounces added from recent and further drill campaigns will markedly improve the economics of the FGP.”

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