Gold exploration and development company Classic Minerals Limited (ASX. CLZ) believes new drilling results highlight the potential to expand on the Mineral Resource estimate at its Forrestania Gold Project (FGP) in Western Australia.
The company said its Phase 2 drilling at the Lady Ada prospect has returned high-grade gold mineralisation (38.10 g/t) at a relatively shallow depth (68m) in an area that is outside of the current optimised pit design.
Classic’s CEO, Dean Goodwin, said the results confirm the geological model that the primary Lady Ada ore zone extends to the south-east of the existing ore body.
“Lady Ada is a stacked, shallow dipping ore body which is open at depth and along strike. These latest assay results are very exciting as it confirms there is a very high grade zone that remains open along strike, reaffirming our view that the Forrestania Gold Project potentially hosts a much larger high grade gold system.
“We see this as a great opportunity to increase the resource at Lady Ada, but also, in the longer term, dramatically improve the project economics as pre-stripping for the planned cut-back may now be able to incorporate some of this high grade material into the mine design.
“This is a great result for our Phase 2 exploration campaign at the Forrestania Gold Project and we are looking forward to reporting the subsequent Lady Ada and Lady Magdalene assay results in the coming weeks. We have only received approx. 1/3rd of results so far.
“Following the receipt and interpretation of the assay data, we will get straight into some orientated diamond holes at Lady Magdalene with the goal of uncovering very high grade ore bodies analogous to Lady Ada between the wide spaced drill lines.
“Discovery of such zones will be an absolute game-changer for the FGP as it will dramatically increase the financial viability of the project via addition of high-grade ounces to the existing pit-shell designs as reported in the May 2 scoping study announcement.”
Subscribe to The Pick
Get your Free Copy of THE PICK - Australia's Premier Resources Sector Investment Magazine - direct to your inbox...
The extent of the mineralisation remains open and is yet to be closed off – Classic drilled a hole (MARC039) approx. 200m along strike from holes MARC019 and MARC024 that is yet to be assayed but included promising zones of arsenopyrite which appears to represent ore-bearing zones.
The current drill campaign was designed to target mineralisation outside of the current resource model as well as high-grade extensions below and adjacent to the current pit design, in line with Classic’s strategy to sufficiently grow its Mineral Resources to a size that supports establishment of an on-site processing facility at FGP as contemplated in FGP scoping study.
The Reverse Circulation (RC) drill program drilled to date comprised a total of 18 holes for 3,250m.
An additional POW (Program of Works) has been lodged with the WA DMP for an extensional drilling program and diamond drilling at Lady Magdalene.
Once approved, this will allow Classic to rapidly move to the next phase of exploration and development at the FGP.
