ASX-listed Classic Minerals has narrowed its focus to the very prospective Forrestania gold project near Southern Cross in WA, which includes the emerging, high-grade Kat Gap project.
The company is in discussions with a leading natural resources financier regarding financing for an exploration program to better delineate and potentially increase the size of the Kat Gap project.
It has also flagged its intention to divest its non-core assets.
Kat Gap encompasses just over 37 square kilometres and covers a 10km strike of a poorly targeted hanging wall contact at the southern end of the Forrestania greenstone belt.
Recent RC drilling by Classic on the contact returned bumper results up to 5 metres grading 14.1g/t gold from 17m down-hole, 8m @ 19.05g/t gold from 32m and a 10m section going nearly an ounce to the tonne from 28m, in separate drill holes.
Classic purchased the Kat Gap prospect from private company Sulphide Resources Pty Ltd for $275,000 and a 2% net smelter royalty on any production from the area covering the two licences.
The project is located about 70km south southeast of Classic’s Lady Ada, Lady Magdalene and Lady Lila deposits, that collectively hold a JORC-compliant mineral resource estimate of 5.36 million tonnes grading 1.39g/t gold for nearly 241,000 ounces.
Classic Chief Executive Officer Dean Goodwin said: “Drilling campaigns by Classic over the last six months at Kat Gap have shown the high-grade potential of this project. We have intersected some outstanding shallow zones of gold mineralisation over a 200m strike length with gold open at depth and along strike in both directions.”
“The next stage is to commence on an RC drilling program extending the known mineralised zone north and south from our existing 200m long drilling area. We plan to focus our attention on an 800m long section of the main granite-greenstone contact where historical drilling is on 100m spaced lines.”
“Our current 200m long drilling area sits right in the middle of this 800m long section. We firmly believe that significant gold mineralisation is hiding between these old drill lines. This work will give us a pretty good idea of how good this system really is.”
The company also plans to track the gold-bearing quartz veins identified between existing drill lines at its Lady Magdalene deposit to determine if there are any additional lodes within that resource footprint.
