Unearths Brand New High-Grade Gold Discovery at Forrestania
Unearths Brand New High-Grade Gold Discovery at Forrestania
Perth, May 15, 2018 AEST (ABN Newswire) - WA-focused gold exploration and development company Classic Minerals Limited (ASX:CLZ) ("Classic", or "the Company") is pleased to announce that it has received assays results from its recent RC drilling program at its Forrestania Gold Project (FGP) in Western Australia.

Highlights:

- Compelling new gold discovery at Van Uden West: Results include 12m at 5.75 g/t Au from 59m including 1m at 25.60 g/t Au from 59m in VUWRC002

- New discovery covered by thin veneer of transported sands and clays effectively masking the gold mineralisation from surface detection

- Kat Gap delivers significant high-grade results and remains open along strike: Results include 5m at 14.10 g/t Au from 17m including 1m at 48.40 g/t Au from 20m

- Lady Lila drilling returned excellent results and mineralisation remains open along strike: Better results include 14m at 3.70 g/t Au from 71m including 1m at 13.20 g/t Au from 79m in FLLRC002 and 8m at 3.21 g/t Au from 70m including 1m at 11.40 g/t Au from 72m in FLLRC004

- Cost-effective maiden drilling program (<$50,000 AUD inc assays and tech work) consisting of 11 RC holes for 750 metres delivers outstanding results

1. INTRODUCTION

The Company drilled a total of 11 holes for 750m - 2 holes for 174m at new prospect Van Uden West, 5 holes for 366m at Lady Lila, and 4 holes for 210m at Kat Gap; with the aim of uncovering a new gold system (at Van Uden West) and improving/increasing known mineralisation at Lady Lila and Kat Gap.

Drilling results from Van Uden West confirms the discovery of a significant new zone of gold mineralisation. Preliminary interpretation suggests that the prospect is similar in geological characteristics to Kat Gap with gold mineralisation sitting adjacent to the granite/greenstone contact.

Lady Lila is a BIF hosted gold deposit that is similar in geological characteristics to Bounty and Blue Vein (held by KDR) which are prolific, high grade gold deposits in the region. Drilling at Lady Lila confirmed the existence of a thick, steep east dipping ore zone warranting additional follow up.

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 after this drill program, Classic sees great potential for the discovery of a substantial shallow high-grade gold deposit within the Kat Gap project area.

Drill/assay highlights shown in table below (see link below).

Classic CEO Dean Goodwin said:

First pass regional drilling campaigns don't get any better than this. We encountered thick, high grade zones of mineralisation at each of the drill targets which all remain open along strike with high priority zones requiring urgent follow up. This is a great position for the company to be in: we don't know how big these targets are and can't wait to get stuck back into drilling. The campaign absolutely reinforces how good a project the FGP truly is - our first venture beyond the "flagship" deposits of Lady Magdalene and Lady Ada has been incredibly successful, and we look forward to heading into the next phase of the company's growth and success.

We should also point out that this drilling program, along with all associated assays and additional technical work cost less than $50,000 AUD. This is a great testament to CLZ's "new" approach to exploration planning and spending at FGP - we carefully plan all exploration activities and keep a tight control on costs to ensure shareholder funds are wisely spent with the goal of delivering value to all shareholders.

2. VAN UDEN WEST - A BRAND NEW GOLD DISCOVERY

After extensive field work and reviewing of historic exploration records, the Company deemed its new target, Van Uden West as being a priority. It is surrounded by historic gold mines Van Uden and Teddy Bear and is situated 11km NW along strike from Lady Magdalene and Lady Ada.

The geological setting of Van Uden West is similar to Kat Gap but it has transported cover masking the top 10-20 metres of the potential gold mineralisation. Classics decision to test the Van Uden West target is based upon an anomalous air core drill result from the late 1990's. The target has an excellent structural location on the contact between granite and greenstone and it is the belief of the company that the previous shallow, wide spaced air core holes inadequately tested the target.

Classic is excited to confirm that both holes drilled at Van Uden West intersected significant gold mineralisation potentially striking in a north-west/south-east direction with a shallow easterly dip - mineralisation remains open. Drill highlights include: 12m at 5.75 g/t Au from 59m including 1m at 25.60 g/t Au from 59m.

Classic postulated that the anomalous mineralisation identified in historic air-core drill hole FTBAC037 represented an undiscovered gold zone shallowly dipping to the east. This has been confirmed by the mineralised zone in VUWRC001 which is then shown to continue down-dip into VUWRC002. With the previous aircore drill spacing at least 250m apart, Classic sees excellent potential to build on this zone with follow up drilling planned around the end of June 2018.

The newly discovered gold mineralisation at Van Uden West is completely blind, covered by a thin veneer of transported sands and clays.

3. KAT GAP DRILLING - SHALLOW, HIGH GRADE AND UNDER-EXPLORED

Classic drilled 4 holes for 210m at Kat Gap and is pleased to confirm that two holes (FKGRC001 and FKGRC002) returned gold mineralisation striking in a north-south direction - mineralisation remains open. Drill highlights include: 5m at 14.10 g/t Au from 17m including 1m at 48.40 g/t Au from 20m.

Two holes (FKGRC003 and FKGRC004) were barren - hitting a cross-cutting proterozoic dyke. However, these provide useful information in terms of better understanding local geology and the controls on mineralisation. After this drilling program, Classic's CEO Dean Goodwin believes that the gold is concentrated against the dyke so follow up drill spacings will be relatively close with the aim of getting hard up against the dyke as possible to test that particular theory.

In addition, drill confirmation of the dyke supports geophysical datasets available to the company, meaning that future exploration programs can be planned - making more effective use of modern exploration targeting techniques.

Drilling has shown that primary gold mineralisation is associated with quartz veining developed in granitic rocks at or near to the western granite-greenstone contact of the Forrestania Greenstone Belt. Historical RC drilling is currently on 100m - 200m line spacings. There is strong potential for additional mineralisation to be identified up-dip, down-dip and along strike, both outside of and within the existing RC drill coverage. Only about half of the 5 km long >50 ppb Au gold-in-soil anomaly has been tested by RC drilling along the granite/greenstone contact.

Classic announced in March (see announcement dated 3 March 2018) that it had secured processing rights at Tianye/Minjar's Marvel Loch Processing Plant located ~100km north of the FGP. With this option to monetise its assets in the near term, the company's strategy is to prove near-surface/high-grade gold mineralisation that may present straightforward mining opportunities. The recent drilling at Kat Gap (4 RC holes for total of 210 metres) shows strong potential to prove up a significant high-grade gold zone less than 20m from surface.

There is a further 5 km of strike of prospective granite-greenstone contact along-strike from the Kat Gap zone within E74/467 that has seen little or no exploration.

4. LADY LILA DRILLING - ANOTHER BOUNTY GOLD MINE?

Lady Lila is situated 4km east of Lady Ada and is hosted by a chert/banded iron formation within the younger metasedimentary central zone. Previous drilling is shallow (approx. 50m depth testing) and generally intercepts the mineralised zone only two-three times per section. Additional drilling is strongly recommended and is required to test the orientation, and down dip extension of the mineralisation. The mineralisation at its strongest is 10m wide, over 400m long, and grades between 2.0-5.0g/t Au.

Drilling at Lady Lila was historically on 100m - 200m spaced drill lines. Classic's recent drilling at Lady Lila was focused on extending high grade air-core/RC hits on the 6429860N line. Drilling either side of this section, Classic confirmed mineralisation extending both North and South along strike. Importantly, mineralisation remains open at depth and additional follow up drilling will be undertaken immediately to continue to grow this deposit.

Five holes (FLLRC001 - FLLRC005 inclusive) for 366m were drilled at Lady Lila with all holes intersecting gold mineralisation. Drill highlights include: 14m at 3.70 g/t Au from 71m including 1m at 13.20 g/t Au from 79m.

A cross section of Lady Lila is displayed in Figure 3 (see link below). The present gold mineralisation models indicate a steep easterly dip; future drilling will be to test a possible vertical dip, as gold deposits in the area have been known to steepen at depth (e.g., Bounty and Blue Vein (>1M oz Au) held by Kidman Resources).

Lady Lila contains a significant strike extent, high and low-grade intercepts, is broadly drilled on 100m - 200m spaced lines and requires additional exploration. Classic aims to re-commence drilling at Lady Lila by the end of the June quarter.

5. DRILLING AT LADY MAGDALENE - CHASING TRANSFORMATIVE HIGH-GRADE MINERALISATION

Structural readings taken from recent orientated diamond holes MADD003 and MADD004 (see ASX announcement dated 22 March 2018) revealed several quartz veins and narrow shear zones exhibiting similar orientation characteristics to Lady Ada.

Once the logging and structural work was completed, the core was assayed and returned promising gold intercepts in those zones identified as having similar orientation to Lady Ada including 6.5m @ 3.30 g/t Au from 56.5m (including 1m @ 9.52 g/t Au from 60m). This is a very significant development for the company as the current large, modestly graded Lady Magdalene deposit appears to host high grade cross cutting zones of gold mineralisation which are analogous to the high grade Lady Ada mine.

Classic is now in the process of finalising approvals for a close-spaced RC drilling program to further delineate the dip, plunge and general direction of the high grade structures within Lady Magdalene. The follow up program is designed to confirm the existence of high-grade cross cutting lodes as suggested by relevant orientation data and start to delineate grade, size and extent of the Lady Ada analogue zones within Lady Magdalene. It is expected that the RC drilling will commence in the June quarter.

6. ABOUT THE FORRESTANIA GOLD PROJECT

The FGP Tenements (excluding Kat Gap and Lady Lila) 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 (see link 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:
http://abnnewswire.net/lnk/911MQBL4


About Classic Minerals Ltd

Classic Minerals Ltd ASX CLZClassic 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).

 


Contact

Classic Minerals Ltd
T: +61-8-6305-0221
E: contact@classicminerals.com.au
WWW: www.classicminerals.com.au



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