Classic Minerals completes bulk earthworks for Kat Gap tailings storage facility
Commissioning of Classic’s Kat Gap tailings storage facility is anticipated next month.
Exploration junior Classic Minerals (ASX: CLZ) is moving forward with development activities for a processing operation at its flagship Kat Gap gold project in Western Australia.
The company has completed the bulk earthworks required for the construction of the tailings storage facility (TSF) and is now focusing on other aspects of the site, including the reassembly and commissioning of the former processing plant, the completion of a maintenance workshop and the positioning of office and administrative buildings.
The TSF has been designed and approved to house cyanide reagents which will be used at the processing plant in conjunction with the gravity circuit to enable recoveries up to 98% gold from Kat Gap ore.
The first stage will accommodate up to 70,000 tonnes of tailings with expansion options to 130,000t.
Classic said commissioning of the TSF will be completed next month alongside the drilling of monitoring bores.
Commercial production is expected to begin later this year.
Kat Gap approvals
Kat Gap is located 170 kilometres south of Southern Cross and 50km from Classic’s Forrestania project.
The asset has a resource of 975,722t grading 2.96 grams per tonne gold for 92,856 ounces.
Classic has secured the key approvals necessary to construct the mine and requisite infrastructure to begin full-scale operations.
Drilling has continued at Kat Gap to build resources and confidence for mining, including gathering data to facilitate the final pit design and update project modelling.
Funding agreement
Development at Kat Gap is being bank rolled under a two-part $20.1 million funding agreement secured in December.
LDA Capital has provided the first part, which comprises $15 million in equity funding.
Under the deal, Classic can draw up to $15 million by exercising put options to LDA over the duration of the three-year agreement.
The second part of the package is a mandate with Still Capital to raise up to $5.5 million via the issue of convertible notes.
The deal is considered significant as it allows Classic to ramp-up the Kat Gap deposit to production status, while accelerating reverse circulation and diamond drilling across the greater Forrestania area in order to increase its gold resource base.