Classic Minerals (ASX:CLZ) has signed a non-binding memorandum of understanding with Bain Global Resources to supply gold ore sourced from its Rama Gold Project in the Forrestania region of Western Australia.
The company is looking to supply up to 50,000 tonnes of gold ore per month to the Goldbridge Processing Facility over a three year term.
A strategy and growth model will allow the involved parties to choose either a 250,000 tonnes, 500,000 tonnes, or 1 million tonnes processing capacity each year for the plant.
The cornerstone feed base will be sourced from the Lady Ada and Lady Magdalene’s core in-house ore.
Managing Director John Lester says Classic Minerals is “firmly” positioned to deliver long-term value for shareholders with the signing of this memorandum of understanding.
“This non-binding memorandum of understanding reinforces regional demand for the Goldbridge facility and underscores our production-based growth strategy,” Lester says.
“We are currently testing a range of scenarios as part of the feasibility stage before making a final decision on nameplate capacity.”
Classic Minerals is an explorer and developer focused on transforming into a gold producer with its Western Australian deposits.
Write to Maddison Elliott at Mining.com.au
Images: Classic Minerals
