Aspiring producer Classic Minerals (ASX: CLZ) has received approval from Western Australia’s state government to drill a water bore for use at the Gekko processing facility within its Kat Gap gold project near Southern Cross.
The approved area is only about a kilometre away from the site of the processing facility and is expected to hold enough water for the company’s requirements.
The processing facility is approximately 7km away from the mining area and has been cleared for development with shed and process water tanks already built.
Development of the bore field will be done in stages with one bore to be completed, tested and water pumped before commencing on a second one if required.
This approach will allow Classic to manage and draw only the approved amount of water authorised by WA’s Department of Water and Environmental Regulation.
Classic chief executive officer Dean Goodwin said the water bore approval marked another key milestone in the development of the flagship project.
“It provides us with more confidence and certainty of achieving mining success in the near term,” he said.
“Seeing the shed and water tanks on site is pleasing too … this is really starting to look like a mining operation and once we drill and find water, we will be able to run a pipe from the well to the tanks and fill them.”
He said the company would be cognisant of the environment in all mining activities and be a responsible manager of all natural resources.
The Gekko modular processing plant arrived at the Kat Gap in May last year after being assembled and commissioned at Classic’s testing site in Perth.
Testing involved the generation of a process flow diagram, design, electric load study and mass/water balance for the plant to achieve maximum gold recoveries.
The plant has a capacity of 30 tonnes per hour and is scalable to a Gekko Python size facility which can process up to 250tph.
Kat Gap continues to be the focus of Classic’s exploration efforts.
With strong grades and near-surface mineralisation, as well as evidence of new zones outside the original drilling perimeters, the company has the option to fast-track the project to early production and is in discussions to generate an early revenue stream by initial toll treatment of ore.
Classic anticipates a three-stage mining plan with mineralisation beginning at 7m below surface and initial bulk sampling also generating early cash flow.