Forrestania Gold Project - Major Tenure Increase
- Classic Minerals secures strategic land holding in proven gold and lithium region
- New tenements add ~50 km2 to existing ~450 km2 holding bringing total area to ~500 km2
- New tenements host to gold exploration targets identified by Classic Minerals
- Classic Minerals to test for lithium on new tenements
- Regional exploration drilling to commence 16th April 2018
Upon grant of E77/2470 and E77/2471, which is expected in the coming weeks, Classic's tenure will exceed 500 km2, making it a major land/rights holder in the highly prospective Forrestania Region.
Classic CEO Dean Goodwin said:
We are very happy to be securing additional tenure in the highly prospective Forrestania region. We see the belt as being underexplored in terms of gold and lithium and the new tenements host attractive greenfields targets which will be followed up in due course.
We see the potential for multiple examples of gold mineralisation in the region - fortuitously, the eastern applications host existing exploration targets identified as part of the large-scale review carried out in the early 2000's (see announcement dated 16 November 2017). These tenements are also along strike from Kidman/SQR's major Earl Grey lithium discovery, which explains why there was competition for the ground resulting in a ballot being drawn in the Wardens Court to determine priority.
2. CLZ - A MAJOR PLAYER IN FORRESTANIA
The following map shows the new tenements alongside CLZ's existing FGP:
3. DRILLING & EXPLORATION ACTIVITIES
In addition to the new tenements, Classic is also pleased to announce that it has completed necessary site works to facilitate commencement of drilling to start on the 16th April 2018.
The Company has planned its maiden drill programs at Lady Lila, Kat Gap and a new target Van Uden West. Lady Lila is a BIF hosted gold deposit that is very similar in geological characteristics to Bounty and Blue Vein (held by KDR) which are prolific, high grade gold deposits in the region. Kat Gap contains a shallow unmined gold deposit discovered in the 1990s, which was the subject of resource estimations and scoping study by Sons of Gwalia in 2003. High grade RC drill intercepts include 15 m @ 15.1 g/t Au from 39 m depth and 6 m @ 19.1 g/t from 17 m depth. The open-ended deposit lies within a 5 km long geochemical gold anomaly that has seen very little drill testing, and there is potential for the discovery of a substantial gold deposit within the project area.
We expect that the drilling sequence will be as follows: Van Uden West, Lady Lila, Kat Gap, and then Lady Magdalene. Drilling at Lady Magdalene is scheduled after the regional targets due to the need to undertake environmental surveys (botanists onsite at present). Drilling will start on the 16th of April and the Company will keep the market informed of results and developments.
4. ABOUT THE FORRESTANIA GOLD PROJECT
The FGP Tenements are registered in the name of Reed Exploration Pty Ltd, a wholly owned subsidiary of ASX listed Hannans Ltd (ASX:HNR). Classic has acquired 80% of the gold rights on the FGP Tenements from a third party, whilst Hannans has maintained its 20% interest in the gold rights. Hannans' 20% interest is free-carried, meaning Hannans is not required to fund any activities on the FGP until a decision to mine has been made. For the avoidance of doubt Hannans Ltd owns a 100% interest in non-gold rights on the FGP Tenements including but not limited to nickel, lithium and other metals.
The FGP contains an existing Mineral Resource of 5.3 Mt at 1.39 g/t for 240,000 ounces of gold, classified and reported in accordance with the JORC Code (2012), with a recent Scoping Study (see ASX Announcement released 2nd May 2017) suggesting both the technical and financial viability of the project. The current post-mining Mineral Resource for Lady Ada, Lady Magdalene and Lady Lila is tabulated below (see link below).
Additional technical detail on the Mineral Resource estimation is provided, further in the text below and in the JORC Table 1 as attached to ASX announcements dated 14th March 2017 and 21st March 2017.
To view tables and figures, please visit:
About Classic Minerals Ltd
Classic Minerals Ltd (ASX:CLZ) is an exploration and development company focused on gold deposits in Western Australia's famous Goldfields region. In March 2017, Classic acquired the Forrestania Gold Project, with seven tenements stretching across 450km2. Strategically located in a very prospective region, the FGP is an underexplored package surrounded by multimillion ounce deposits such as Bounty (2Moz) and Yilgarn Star (1.5Moz).
Classic Minerals Ltd