Update on Mining Lease Application
The objection was originally lodged due to potential issues regarding a fresh water supply pipeline which runs below the Classic Minerals tenements and directly supplying some of WSA's operations. A study has been completed and it was decided, on an amicable basis, that the Classic's operations would not affect the pipeline or supply to WSA's operations.
The positive conclusion of this matter brings the Company one step closer to cash flow as it marches towards production in 2021.
This now paves the way for the following major pre-production milestones to occur which is expected to revalue the Company's profile between now and early February 2021:
- Mining Access Application - now complete by the lifting of the Objection;
- Commencement of Native Title Negotiations (expected completion 26th Dec 2020);
- Consent of Native Title Approval;
- Mining Lease Approval MLA 74/249, and
- Mining Plan lodgement.
The Company is close to completion for all studies and documentation required for lodging the Mining Plan Application, which will be lodged immediately on Grant of Mining Lease Approval MLA 74/249. In conjunction with this the company has begun preparing a pre-feasibility study at Kat Gap expected to show that the project will be rapidly brought into production by utilising a low-cost recovery method that will enable the Company to generate early cash-flows.
Classic Minerals Chairman, John Lester, said:
"Classic is very pleased to be able to report this important milestone.... it paves the way for the grant of a Mining Lease over the planned production area and is a critical development step for Kat Gap to become the next production asset for the company".
About Classic Minerals Ltd
Classic Minerals Ltd (ASX:CLZ) is an exploration and development company focused on gold deposits in Western Australia's famous Goldfields region. In March 2017, Classic acquired the Forrestania Gold Project, with seven tenements stretching across 450km2. Strategically located in a very prospective region, the FGP is an underexplored package surrounded by multimillion ounce deposits such as Bounty (2Moz) and Yilgarn Star (1.5Moz).
Classic Minerals Ltd