Classic Minerals advances towards feasibility study at Kat Gap
Western Australian gold exploration and development company Classic Minerals Limited (ASX:CLZ) has lodged a Mining Lease Application (MLA 74/249 ) at its 100% owned Kat Gap Gold Project covering the current resource at its exploration licences E74/422 and E74/467.
The company has completed the requirements relative to the application for the mining lease, and the application is supported by a mineralisation report and a supporting statement from an independent consultant which substantiate the reasons for mine development.
By way of background, Classic has a Mineral Resource of 8.2 million tonnes at 1.52 g/t for 403,906 ounces of gold with a Scoping Study suggesting both the technical and financial viability of the project.
In late April, the company established a maiden inferred mineral resource estimate of 1 million tonnes at 3 g/t gold for 93,000 ounces at Kat Gap.
Classic Minerals has completed the marking out of the mining lease boundary to provide accurate data to the Department of Mines, Industry, Regulation and Safety (DMIRS).
The supporting documents for the application have been lodged with the department.
The boundary of the mining lease application is shown below.
The application for the mining lease is a significant step forward for the company as it begins to advance the project towards a detailed feasibility study over the coming months.
Management is now launching the required regulatory processes to have the mining lease granted.