A classic catch
Prior to the market opening today, we reported that Classic Minerals Ltd had released extremely impressive exploration results from its Kat Gap Project in Western Australia.
These included 9 metres at 21 g/t gold from 123 metres, including one metre grading 125 g/t gold.
One of the widest intersections to date — in what must be remembered is an early stage exploration program — was 13 metres grading 4.9 g/t gold from 33 metres including one metre grading 22 g/t gold, also close to surface.
The open-ended deposit lies within a five kilometre long geochemical gold anomaly that has seen very little drill testing, and management sees the potential for the discovery of a substantial gold deposit within the project area.
‘’While there are plenty of chapters still to be written in the Kat Gap Project, the continued strong results highlighted today suggest that Classic could be one of the best emerging sub-$10 million market cap plays based on the value of its assets, management’s astute exploration strategy and the quality of the ore in ground that has already been established.’’
Since February, Classic has traded in a tight range between $0.001 and $0.002.
On the open, all of the stock was cleaned out at $0.002.
The company consistently traded at $0.002 until about midday when buyers emerged at $0.0025.
At 1:17 PM the first line went through at $0.003 and there were further trades at this level during the afternoon, reflecting a gain of 50%.
By mid-afternoon, nearly 150 million shares had been traded, the second-largest daily volumes on record, only eclipsed by heavy buying of just over 150 million shares on July 30 when earlier results from Kat Gap were released - the company’s share price doubled on that day.
Being such a small company it has always flown under the radar, suggesting there is the potential for further support as investors digest the latest information.