Classic Minerals has continued its run of high-grade gold intercepts from infill drilling at its Kat Gap project near Southern Cross in WA after the company completed a further 11 holes for 680m at the site.
The company has now drilled 35 holes for a total of 2125m as part of the larger 109-hole infill campaign over 7110m with the latest results from around the bulk sample pit at its flagship project.
Earlier this month Classic was given the green light to begin production at Kat Gap after officially receiving WA Department of Mines, Industry Regulation and Safety approval.
The company is hopeful the infill program will add additional mineable ounces and a potentially larger final open pit design to the Kat Gap operation.
Latest assay highlights include a 10m intercept reading 16.19 grams per tonne gold from 37m including a 1m hit at an impressive 45 g/t gold from 46m whilst a further hole recorded another 10m section going 15.34 g/t from 29m including a 2m hit at 43 g/t gold from 31m.
Additional positive results were a 12m section recording 9.6 g/t from 28m including a 4m hit at 25.34 g/t gold from 36m. An additional hole comprised of a 6m intercept going 8.8 g/t from 59m including 1m at 30.20 g/t gold from 64m.
The Kat Gap deposit hosts almost 93,000 ounces of an inferred mineral resource at 2.96 grams per tonne gold and is the principal contributor to the company’s total gold inventory of more than 400,000 ounces.
Previous results from assays received in August from holes about 200m north along strike for 555m drilled include a 3m intercept going 13.23 grams per tonne gold from 32m including 1m reading a substantial 17 g/t gold from 34m.
Another hole recorded a 5m section at 7.36 g/t gold from 42m including 2m going 14.2 g/t from 42m.
The 109-hole infill program was designed after Classic’s recent bulk sample operation that mined 1011 ounces of gold.
Despite weather conditions suspending drilling at the site last week, the company expects the infill campaign will be completed withing four to six weeks.
The latest results continue a run of positive headlines for Classic following the announcement earlier this month of a cash injection worth up to $10 million in non-recourse funding for the extraction and processing of gold at Kat Gap as part of an agreement with Perth-based private mining operation Goldvalley Brown Stone.
The deal will see the company and its financial backer split the revenues minus the cost of gold production at Kat Gap 70/30 in favour of Classic.
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