Classic Minerals receives licence to drill second bore at Kat Gap gold project
Gold development company Classic Minerals (ASX: CLZ) has received a licence to drill a second groundwater bore at its flagship Kat Gap project in Western Australia.
The Department of Water and Environmental Regulation (DWER) granted the Licence to Take Water Instrument number: GWL207298(2), which permits Classic to extract an annual amount of 100,000 kilolitres of water from the Southern Cross asset.
The licence will provide security of supply to support Kat Gap’s processing and operational needs and is in addition to an existing bore.
The water will be used for processing, dust suppression and development activities.
Sustainable practices
Managing director Dean Goodwin said the company was committed to responsible and sustainable mining practices, and the licence would ensure the project’s water requirements were met in an environmentally-conscious manner.
“Water is a significant challenge for any mining and processing operation we now can rely on a secure water source for Kat Gap,” he said.
Project milestone
Classic has achieved another project milestone by submitting a critical containment infrastructure report for the Kat Gap Tailings Storage Facility (TSF) to the DWER.
The submission is considered a “crucial step” in obtaining the required licensing for the TSF.
The company can commence using the facility while the plant processes bulk samples of ore.
The uninterrupted operation is expected to allow for a smooth transition during the commissioning phase.
Classic said a certified TSF would enable efficient and environmentally-safe management of the tailings.
Game changer
Earlier this week, Classic labelled a major lift in indicated resource numbers as a “game changer” for the Kat Gap project.
Studies have upgraded 20,488 ounces of the previously-inferred gold resource to the indicated level.
Mr Goodwin confirmed the company would look to accelerate developments at the project as its progresses with stage 1 extraction, processing and monetisation activities.
The company says its confidence in the commercial future of the project has increased significantly with studies upgrading 20,488 ounces of the previously inferred gold resource at Kat Gap to the indicated level.