Classic Minerals (ASX:CLZ) has lodged a mining lease application over the Lady Ada and Lady Magdalene deposit areas in the Forrestania Gold Project in Western Australia.
The mining lease area covers more than 1,803 hectares and partially covers E77/2239 and E77/2220.
Pending approval, this licence will afford Classic, which has a market capitalisation of $12.35 million, the ability to mine, subject to all regulatory compliances, all the gold resources at Lady Ada and Lady Magdalene, which is currently a combined estimate of 311,050 ounces of gold.
The proposed open pit is expected to sit within the delineated mineralisation. However, the final configuration will be contingent on conclusive reserve estimates, alongside comprehensive Feasibility Studies.
Classic anticipates to start mining operations in the fiscal year 2024/2025. This will be contingent upon completing resource depletion and mine planning, as well as negotiating the mining agreement with native title claimants.
Further, the company has to identify and collaborate with suitable partners, which Classic is actively engaging to secure a suitable partner.
Classic also seeks to upgrade from a Scoping Study to a Prefeasibility Study (PFS), as well as obtain government approvals in regard to mining activities.
The Forrestania Gold Project has an inferred and indicated mineral resource of 8.41 million tonnes at 1.45 grams per tonne for 391,417 ounces of gold.
Classic Minerals is an explorer and developer focused on transforming itself into a gold producer through its gold assets in the Western Australian Goldfields region.
On 22 February 2024, Classic announced it had executed a binding terms sheet with AuResources, which will initially advance $15.3 million to the company, with $1 million to be put towards advancing the development of its Lady Ada and Lady Magdalene deposits.
The term sheet also provides for the advance of a further $76.5 million over 5 tranches of $15.3 million each, subject to previous advances having been repaid in accordance with the terms of the agreement.
Write to Aaliyah Rogan at Mining.com.au
Images: Classic Minerals
