Classic Minerals has moved to step up development activities at the Forrestania gold project in Western Australia.
Boosted by a recent funding agreement for up to $91.8 million, Classic has lodged a mining lease application (MLA) over the Lady Ada and Lady Magdalene project areas in the Forrestania tenements.
It has also unveiled a development plan and timetable for future mining activities at Forrestania and commenced discussions with potential development partners.
Classic has now applied to add an interest in mining licence M77/1310, which will be acquired as part of the Forrestania tenement package, to its portfolio of tenements.
The approximately 1800-hectare MLA will provide Classic with the ability to mine all the gold resources at Lady Ada and Lady Magdalene.
Classic said that the moves provide for adequate expansion to cater for its growing operations and anticipated growth of its resources as a result of additional exploration efforts.
Under its growth plans, Classic will potentially process ore from the Lady Ada and Magdalene gold deposits – which currently have a combined indicated and inferred estimate of 311,050 ounces of gold – through the company’s Kat Gap processing plant.
Mining timeline
Classic has also announced plans that would see it commence mining operations at Lady Ada and Magdalene in FY2024/2025.
The schedule of mining activities would see operations commence either upon depletion of the Kat Gap resource or when mine planning determines the most efficient approach for strategic and streamlined mining operations.
Furthermore, Classic revealed it has been in discussions with potential partners to participate in the new operation.
Feasibility study plans
At the same time, the company is planning to upgrade the current scoping study for the project to a comprehensive feasibility study while providing a detailed blueprint for the mining operations and associated infrastructure.
Historical metallurgical testing at the Lady Ada mine (Blue Haze) revealed impressive gold recoveries of 99.3%.
A 2017 scoping study outlined a 2.5-year open-pit mining plan with initial capital expenditure projections of $25m to $35m.
At a 2017 gold price of $1,700, that study estimated a net present value ranging from $52m to $58m and an all-in sustaining cost of between $1,080 and $1,160 per ounce.
The company has already commenced the process of obtaining all necessary government approvals for the project.
