Mining

Classic Minerals gets green light for Kat Gap gold mine

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By Danica Cullinane - 
Classic Minerals CLZ ASX Kat Gap Bulk Sample Pit gold approval DMIRS Department of Mines Industry Regulation and Safety

Classic Minerals has satisfied a key regulatory approval that paves the way for gold mining operations to begin.

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Classic Minerals (ASX: CLZ) has announced the project management plan for its Kat Gap gold project in Western Australia has been approved by the state’s mines department, paving the way for mining operations to commence.

Notification of “Approval to Commence Mining Operations” by WA’s Department of Mines, Industry, Regulation and Safety (DMIRS) was a key regulatory approval needed to advance the project.

Classic said on Monday it is continuing to work with DMIRS and other agencies to secure the necessary remaining approvals required to start on-site processing operations.

The company also continues to investigate the mining schedule to accommodate any potential resource and production increases.

Today’s announcement follows last week’s news that Perth-based Goldvalley Brown Stone would provide up to $10 million in non-recourse funding in exchange for a 30% slice of net profits from Kat Gap gold sales.

DMIRS’ approval of the project management plan was also a major condition precedent for this financing, which has now been satisfied.

Pending approvals

The project management plan provides confirmation that the Kat Gap gold mine site occupational health and safety management systems satisfy the requirements under WA mine safety legislation.

Other applications pending approval include the processing facility and tailings storage facilities licensing, which have been submitted to the Department of Water and Environmental Regulation (DWER).

The processing submission includes installation and operations of a gold circuit, gold room, product sampling, dewatering, crushing circuit, Gekko gravity circuit, tailings storage facility, fuel systems, processing control systems and high voltage power, among others.

Classic is anticipating remaining required approvals to deliver the processing facility and remaining infrastructure this November.

Recent work at Kat Gap

Recent work at Kat Gap has included a major infill drilling program to facilitate final pit design work, processing plant layout, tailing storage facilities design and metallurgical gold recoveries to update project modelling.

In an update on Monday, Classic said on-site development is well advanced, with clearing completed for major infrastructure ahead of the project management plan approval including mine administration offices, workshop areas, laydown yards, main access roads, camp site, mine construction and all surface work.