Classic Minerals (ASX: CLZ) has reached a significant milestone with the successful pouring of its inaugural gold bar at the Kat Gap gold project in Western Australia. This achievement underscores the transition from exploration to production and cements Classic Minerals’ commitment to delivering value to its shareholders. The company’s forward-thinking approach to mining and processing techniques has enabled the efficient extraction of gold from the Kat Gap ore, marking a pivotal moment in its operational journey.
Pioneering Achievement: First Gold Bar Production
The completion of the first gold bar represents not only a landmark achievement for Classic Minerals but also a testament to the dedication and resilience of its team. Dean Goodwin, CEO of Classic Minerals, emphasizes the transformative nature of this event: “For Classic Minerals, this isn’t merely an achievement but a ground-breaking hallmark. Producing the first gold bar exemplifies the robustness of Classic’s operations.”
This achievement underscores the company’s innovative strategies, from exploration to mining and processing, as well as its resolute focus on operational efficiency and shareholder value.
Rapid Progression: Kat Gap Gold Project
The rapid pace of progress at the Kat Gap gold project is remarkable. The recent commissioning of the Kat Gap plant, located just south of Classic’s Forrestania gold project, laid the foundation for this achievement. The advanced gravity separation circuit developed by Gekko Systems played a pivotal role in the successful production of the first gold bar.
Classic Minerals’ foresight in acquiring the gravity processing plant in 2020, recognizing its suitability for processing high gravity gold concentration ore, has paid dividends. The integration of the Carbon-in-Leach (CIL) process, currently under construction, is poised to further enhance gold recovery rates, projected to reach an impressive 98%.
Operational Synergy: Gekko Plant and CIL Process
The synergy between the Gekko plant’s advanced gravity separation circuit and the forthcoming CIL process showcases Classic Minerals’ operational proficiency. The integration of these technologies is anticipated to significantly enhance gold recovery rates, fortifying the company’s position in the competitive gold mining landscape.
As Dean Goodwin explains, “Classic is geared up to intensify production efforts, fine-tune its processing strategies, and identify methods to maximize yield from Kat Gap.”
Project Advancements: Power Infrastructure and Water Supply
The recent installation of a 2-megawatt power plant at the Kat Gap gold processing facility is a testament to Classic Minerals’ strategic planning. This dedicated power source not only services the existing infrastructure but also accommodates future expansion and increased processing capabilities. The use of Cummins generators ensures a reliable and consistent electricity supply.
In addition, the acquisition of a second water bore license strengthens the project’s operational resilience. With a total abstraction limit of 100,000Kl per annum, the project now benefits from redundancy and security of water supply.
Promising Resource Base and Expansion Plans
Classic Minerals holds a 100% interest in the gold rights of the Kat Gap tenements, along with non-gold rights encompassing nickel and lithium. The company’s mineral resource estimate reveals a significant potential of 8.41 million tonnes at 1.45 grams per tonne, translating to 391,417 ounces of gold. The current Stage 1 plant features a processing facility with a throughput of up to 100,000 tonnes per annum, while the Stage 2 expansion is set to introduce a CIL circuit and upscale milling for a throughput of up to 200,000 tonnes per annum.
Commitment to Excellence and Progress
Classic Minerals’ achievement in producing the first gold bar at the Kat Gap project stands as a testament to the company’s dedication, vision, and operational expertise. As the company continues to fine-tune its processing strategies and expand its capabilities, the gold produced from Kat Gap is poised to contribute to both Classic Minerals’ growth trajectory and the broader gold production landscape.
