Classic Minerals celebrates initial golden success at Kat Gap

Classic Minerals (ASX: CLZ) has graduated to the ranks of Australian gold producers with the successful gathering of an initial package of gold concentrate at its Kat Gap project in Western Australia.

This significant company milestone was achieved just weeks after the recent commissioning of the Kat Gap plant, located 50km south of Classic’s Forrestania gold project.

Following that successful commissioning operation, the company commenced processing a bulk sample ore consisting of 6,504 tonnes of ore with an average head grade of 6.06 grams per tonne.

The stockpile from the bulk sample ore was initially handled using the project’s fixed crushing and screening plant before it then entered the milling circuit containing a ball mill, hydro-cyclones, and gravity separating and concentrating equipment.

The maiden collection of gold concentrate was then gathered after ore was processed through the trommell, spinners, jigs and then the Butchart table within the specially designed Kat Gap plant.

Positive plant acquisition decision

Classic’s early gold production success is a reward for the company’s foresight in acquiring the Gekko designed Kat Gap gold gravity processing plant in July 2020 after identifying it as being an ideally suited facility to process the unique high gravity gold concentration ore at the project.

The Kat Gap plant is designed to have an initial processing capacity of up to 100,000 tonnes per annum, while offering expansion upside for the 93,000 JORC ounce project.

Classic elected to install the modular design processing plant, which has provided a smaller and highly efficient design which it says not only supports the company’s operational goals but also aligns with its commitment to environmental, social, and governance (ESG) targets.

Key turning point

Chief executive officer, Dean Goodwin, said this significant achievement was backed by the collaboration of Classic Minerals IPS design and manufacturer Gekko Solutions.

He said the maiden gold concentrate production is a key turning point in the company’s journey.

Not only will the smelting of the gold concentrate into gold bars generate revenue, it will also play a role in helping to finance Stage 1 mining at the Kat Gap pit operation.

The successful commissioning of the plant will also provide Classic with a key piece of infrastructure which will add value to its large exploration holdings with the potential to unlock additional ounces at Kat Gap.

Plant success opens up significant upside

Classic believes its positive trajectory extends beyond the Kat Gap mine as it now has the operational capacity to seize the numerous opportunities from identified deposits in the nearby area.

The company says it will now use this momentum to progress other gold opportunities, particularly the highly prospective Lady Ada and Magdalene gold projects, which hold a combined resource of over 311 thousand ounces of gold.

The company is looking at the potential to mine ore at those two projects which can then be trucked to the Kat Gap processing facility.