RC Drilling Update at Forrestania Gold Project
RC Drilling Update at Forrestania Gold Project
Perth, Aug 29, 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 completed its latest drilling campaign at its Kat Gap project which is part of the Forrestania Gold Project (FGP) in Western Australia.

Highlights:

- Kat Gap drill campaign successfully completed

- Drilling campaign at Kat Gap was expanded by 50% from 12 holes to 18 holes

- Multiple mineralised zones intersected with visible gold in panning dish

- Strong mineralisation observed in deeper down dip extension holes

- Step out RC holes to further test the newly-discovered granite-hosted gold mineralisation

- Rig now onsite at Lady Lila and then Lady Magdalene

- First assay results expected in 3 weeks

1. INTRODUCTION

In this round of drilling at Kat Gap, the Company increased its planned drill holes from 12 to 18 based upon multiple instances of promising mineralised zones and visible gold in a number of drill samples.

Previous drilling results from Kat Gap confirms the discovery of a significant new zone of gold mineralisation within the granite which was previously thought to be barren. Drilling at Kat Gap also showed that high-grade gold mineralisation has effectively dammed up against a cross-cutting Proterozoic dyke (see ASX announcement dated 24 July 2018).

Drilling is now underway at Lady Lila (5 holes testing mineralisation down dip and along strike) and Lady Magdalene (12 holes tracking high-grade quartz hosted gold confirmed in the last drill campaign).

Classic CEO Dean Goodwin said:

The Forrestania Gold Project continues to deliver fantastic results for Classic and its shareholders. We encountered 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. Kat Gap is shaping up to become a prolific shallow high-grade gold deposit with so much remaining upside potential. We have only tested >200m of 3.5km of potential strike along this granite-greenstone contact and received excellent gold grades from 11 of the 12 holes previously drilled.

During this programme, after recognising encouraging mineralisation in the drill samples, I decided to increase the number of drill holes from 12 to 18 with the goal of extending the mineralised zone at the granite/greenstone contact.

We also decided that further drill testing into the granite, which in our previous campaign, yielded surprising high-grade gold intervals, to gain further understanding of the mineralisation in this zone. Hole FKGRC034 was located 150m "in" the granite, away from the main mineralised contact zone.

These new results bode well for the whole Forrestania project given that the main granite-greenstone contact, of which we have 40 km of strike, has been largely overlooked. I'm quite confident that new, high-priority gold targets will come to light elsewhere within the project area.

2. KAT GAP DRILLING - MULTIPLE HIGH-GRADE GOLD LODES

Classic drilled 18 holes for ~1,600m at Kat Gap and is pleased to confirm that holes returned promising mineralisation striking in a north-south direction. The drilling was extending the 140m strike zone and testing the extent of the granite mineralisation.

The majority of the drilling was focused on testing the main granite-greenstone contact which has been the sole focus of drilling since the prospect was discovered by previous holders. A few holes were also drilled up against the cross-cutting Proterozoic dyke where high-grade gold mineralisation is believed to have concentrated. This targeting was largely based on the success of the previous drill campaign where CLZ saw highlights such as the following: 8m @ 19.05 g/t Au from 32m including 4m @ 28.80 g/t Au from 32m in FKGRC008; 12m @ 7.52 g/t Au from 39m including 2m @ 20.20 g/t Au from 48m in FKGRC006; 12m @ 5.39 g/t Au from 30m including 1m @ 20.80 g/t Au from 30m in FKGRC012 and 4m @ 9.53 g/t Au from 70m including 1m @ 26.60 g/t Au from 72m in FKGRC014.

It should be noted that a number of holes in the current campaign were drilled relatively close to the Proterozoic dyke to confirm and extend CEO Dean Goodwin's theory that gold is concentrated up against the dyke. With the promising mineralisation returned from these holes, Classic will continue to track mineralisation against the dyke and follow it down plunge. It is currently believed that two high grade gold shoots exist either side of the Proterozoic dyke contact. The strike and down-plunge extent of these shoots is currently but will be better understood after assays are returned.

In addition, further step out drilling into the granite has been undertaken as part of this campaign to help determine the extent, style, grade of mineralisation hosted in the granite. One hole stepped out 150m from the contact zone into the granite. Assay results are pending.

The decision to continue to investigate the granite mineralisation was based upon the previous drilling results (as reported in ASX announcement dated 24 July 2018) Holes FKGRC010 - FKGRC012 (inclusive) all drilled into a newly discovered footwall lode located approximately 30m west of the main granite-greenstone contact lode hosted within the granite. Better results from these holes included: 8m @ 7.14 g/t Au from 82m including 1m @ 21.10 g/t Au from 82m in FKGRC010; 4m @ 7.44 g/t Au from 92m in FKGRC011 and 3m @ 10.70 g/t Au from 69m including 1m @ 23.10 g/t Au from 69m in FKGRC012. This new position is totally open along strike and down dip. Previous explorers in the area have assumed that the granite surrounding deposits/prospects is barren. The discovery of granite-hosted gold at Kat Gap is significant as the same geological setting may be repeated elsewhere throughout Classic's significant >500km2 landholding. Classic will continue to track this unexpected high-grade granite-hosted gold mineralisation in its upcoming drill program at Kat Gap and elsewhere throughout the project area.

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.

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.

Classic has already planned follow up drill holes at Kat Gap to be commenced in September and has mobilised the drill rig to Lady Lila and Lady Magdalene for the remainder of this current campaign so there should be steady news flow for the coming weeks/months.

3. 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. For the avoidance of doubt Classic Ltd owns a 100% interest in non-gold rights on the Kat Gap and Lady Lila 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/P5JF5J4Y


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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