Classic Minerals gears up to commence production at Kat Gap
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Western Australian focused gold exploration and development company Classic Minerals Limited (ASX:CLZ) has confirmed that its processing plant will be delivered to Perth during the first half of August 2020.
This is a Gekko gold gravity processing plant to be used for future on-site processing of gold ore at its flagship Kat Gap Gold Project which is the subject of an extensive exploration program.
Commissioning of this plant will allow the company to generate income from its near-surface high-grade ore, and management has commenced negotiations to toll treat any initial parcels of ore from Kat Gap, while the full-scale plant is configured to suit Kat Gap ore.
Kat Gap is approximately 120 kilometres from Southern Cross, Western Australia and it has an existing resource with strong exploration upside and scope for high-grade open pit mining.
An early-stage mineral resource estimate established an inferred resource of nearly 976,000 tonnes at approximately 3 g/t gold for 92,856 ounces gold.
This has an in-ground value of approximately $250 million based on the current Australian dollar gold price, fairly impressive for a company with a market capitalisation of around $20 million.
Highlighting Classic’s heavily discounted valuation, the group’s market capitalisation is equivalent to approximately 1000 ounces of gold (about 1% of the Kat Gap resource), yet when also taking into account the resources at its Lady Ada and Lady Magdalene projects the company has a global mineral resource of 404,000 ounces of gold.
While the bottom line depends on actual ore produced and the deduction of production costs, Classic should be left with plenty of cash to fund further exploration and grow the resource at Kat Gap.
Gekko provides mobility and flexibility to target various ore sources
Gekko is a world leader in the manufacture of gold processing plant and machinery with their plants boasting small footprints and low environmental impact.
An added attraction to Classic is that the Australian-made Gekko plant is modular and mounted on containerised elements providing for scalability and ease of modification.
The plant has a 30 tonne per hour (tph) capacity and is scalable to a Gekko Python plant with a processing capacity of 250 tph.
Classic’s purchase is for a two-stage gravity concentration plant from Gekko which will be provided fully refurbished to new condition.
The two-part plant will form the basis of the processing facility to be set up and operated by Classic at its Kat Gap gold deposit.
Classic is now on track to set-up, commission and test the Gekko plant and commence processing of the gold-rich ore at Kat Gap.
The Gekko plant is ideally suited to processing Kat Gap ore which has a unique high gravity gold concentration.
Classic will have the capability and capacity to commence production as soon as the mining approvals (MLA 74/249) have been granted.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.