Classic Minerals pours first gold bar from Kat Gap project

Classic Minerals (ASX: CLZ) has achieved a major milestone with the pouring of the first gold bar from the Kat Gap gold project in Western Australia.

Classic chief executive officer, Dean Goodwin, said this is a significant moment for the company and the Kat Gap project.

“For Classic Minerals, this isn’t merely an achievement but a ground-breaking hallmark. The transformation of our Kat Gap gold project, from exploration to mining and now to a gold producing asset, symbolises the realisation of our aspirations and our team’s formidable spirit,” he said.

“Producing the first gold bar exemplifies the robustness of Classic’s operations. Through our innovative approach to mining and processing techniques, we have ensured a proficient gold extraction process from the Kat Gap ores. Our current achievement not only fortifies our belief in the Kat Gap deposit’s high-grade nature but also promises significant returns for our shareholders.”

Recent developments

The golden moment came less than a month after the recent commissioning of the Kat Gap plant, located 50km south of Classic’s Forrestania gold project.

Mr Goodwin highlighted the key role the Gekko Systems advanced gravity separation circuit at Kat Gap played in the production of the inaugural gold bar.

Classic’s early gold bar celebrations can be related to the company’s foresight in acquiring the gravity processing plant in July 2020 after identifying it as being ideally suited to processing the unique high gravity gold concentration ore at the project.

The gravity circuit is a precursor to the planned integration of the Carbon-in-Leach (CIL) process, which is currently under construction and installation.

Upon its completion, the CIL process is projected to further enhance our gold recovery rates to an impressive 98%, reflecting the synergy between the Gekko plant’s technology and our operational proficiency.

“Classic is geared up to intensify production efforts, fine-tune its processing strategies, and identify methods to maximise yield from Kat Gap,” Mr Goodwin said.

“This milestone represents a collective victory, and Classic remains unwavering in its commitment to enhance the value of Kat Gap for all stakeholders.”

String of project successes

The achievement of the first gold pour follows a number of key project developments in recent months.

The company recently successfully installed a power plant during the quarter with a capacity of 2 megawatts (MW).

The company’s own dedicated power source will not only service the current infrastructure and additional processing equipment at the Kat Gap gold processing facility but it has also been designed to allow for future expansion whilst accommodating a scaling up of processing throughput.

The power plant is powered by large Cummins generators which ensure a reliable and consistent supply of electricity, mitigating any potential disruptions and increasing production capabilities.

Classic was also recently granted a second water bore licence to support the processing and operational needs of the Kat Gap gold project.

The total abstraction limit of 100,000Kl per annum will now be covered by 2 bores providing redundancy and security of supply.

The water will be used for processing, dust suppression, and development activities within the project.

Significant upside potential

Classic owns 100% interest in the gold rights on the Kat Gap tenements and also non-gold rights including but not limited to nickel and lithium.

The company has identified inferred and indicated mineral resources of 8.41 million tonnes at 1.45 grams per tonne for 391,417 ounces of gold.

The company’s Stage 1 plant consists of a standalone crushing facility, fed into a 1.5 micron trommel for screening before being recirculated through a ball milling operation to achieve optimum screening size.

The gravity extraction and separation process will utilise the hydro-cyclone Gekko equipment to produce concentrate ready for gold recovery.

Concentrate cleaning will be undertaken using a single Butchart table separator with a capacity of 1.20 tonnes per day with concentrate dewatering to produce a concentrate product that will be smelted onsite to produce gold Doré.

The Stage 1 processing facility has a throughput of up to 100,000 tonnes per annum.

Industrial Power Solutions has been contracted to oversee the plant’s wet commissioning process.

Classic is utilising the wet commissioning activity to log recovery data which will be used to further progress the design work for the Stage 2 expansion of the process plant.

During Stage 2 the company will look to introduce a CIL circuit and upscale the milling to achieve a throughput of up to 200,000 tonnes per annum.