Classic Minerals flags imminent return of assay results
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Western Australian-based mining group Classic Minerals Limited (ASX:CLZ) is in the process of completing a comprehensive drilling program across three of its highly prospective areas, namely Kat Gap, Lady Ada and Stormbreaker.
Kat Gap is the key focus area with 21 reverse circulation holes being drilled across a distance of about 1.6 kilometres.
This is an area where the company had considerable exploration success in 2019.
Notable drilling results included 9 metres at 21 g/t gold from 123 metres, 7 metres at 24 g/t gold from 24 metres and 10 metres at 30 g/t gold from 28 metres.
Bonanza grade gold grading up to 125 g/t gold was delineated in three holes.
In the current program, several deep orientated diamond drill holes will be drilled to collect valuable structural data, probing the system to 300 metres vertical below surface.
This will be the first time that mineralisation at significant depths has been tested, and as is often the case in that region, increasing grades could be encountered deeper into the orebody.
Lady Ada could be surprise packet
There is a good chance of achieving further exploration success at Lady Ada which was mined by Sons of Gwalia in 2003 at an average grade of 8.8 g/t gold for 27,000 ounces.
From a geological perspective, primary gold mineralisation is hosted by a shallow east dipping quartz dolerite unit.
Management views it as a high-grade ore body with the likelihood of identifying higher grade mineralisation at depth, an expectation that is supported by drilling conducted by Classic.
Impressive drill results included 9 metres at 6.2 g/t gold from 36 metres and 4 metres at 37.3 g/t gold from 116 metres, with the latter demonstrating the potential for high grade mineralisation at depth.
Management is of the view that following open pit mining, high grade zones could be amenable to underground extraction.
Classic is targeting organic growth targets at Kat Gap and Lady Ada in excess of 500,000 ounces of gold and 120,000 ounces of gold respectively.
The following is an indicative timetable as the company moves towards 2020 with key potential share price catalysts being the results from diamond drilling, the updated resource and reserve, the completion of a prefeasibility study, and then a bankable feasibility study towards year end.