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Classic Minerals adds Lady Ada and Lady Magdalene mining lease to Forrestania gold project

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By Imelda Cotton - 
Classic Minerals ASX CLZ Lady Ada Magdalene leases granted
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Classic Minerals (ASX: CLZ) has added the Lady Ada and Lady Magdalene mining lease (M77/1310) to its Forrestania Gold Project in Western Australia.

The lease – which encompasses critical sections around Classic’s existing E77/2239 and E77/2220 tenements and includes the P77/4291 and P77/4290 areas – is for a period of 21 years and covers an area of 18 square kilometres.

It is strategically located within an area governed by an indigenous land use agreement with the local Ballardong people.

Acquisition process

The new lease is currently in the name of Reed Exploration—a wholly-owned subsidiary of Redivium (ASX: RIL), formerly known as Hannans).

Classic is in the process of acquiring the tenements for a consideration of $200,000 cash payable upon completion of the transaction and the issue of 10 million shares.

Classic will also reimburse Reed for amounts paid to keep the tenements in good standing.

The granting of the mining lease means Classic can now lodge mining proposals and mine closure plans for the Forrestania project in line with the mining regulator’s approval process.

The company said this step would be crucial to demonstrating its compliance with regulatory requirements and a commitment to responsible mining practices.

Growth strategy

Under its growth plans, Classic will potentially process ore from the Lady Ada and Magdalene deposits through a plant at the nearby Kat Gap project.

The schedule of mining activities would see operations commence upon the depletion of the Kat Gap resource or when mine planning determines the most efficient approach for strategic and streamlined operations.

The Lady Ada and Lady Magdalene leases have a combined mineral resource estimate of 7.27 million tonnes at 1.33 grams per tonne gold, totalling 311,050 ounces.

Forrestania start-up

Classic anticipates the start-up of mining at Forrestania before 2025, contingent upon milestones including the depletion of the Kat Gap resource and mine planning and the negotiation of a mining agreement with native title claimants.

The company is in discussions to secure a development partner to optimise mining efficiency and it is working on upgrading a 2017 scoping study to pre-feasibility status.