Classic Minerals Ltd: New High-Grade Lode found at Kat Gap Deposit

Perth, Australia - WA-focused gold exploration and development company Classic Minerals Ltd. (ASX:CLZ) is pleased to announce that it has received assays results from its most recent RC drilling program at its Forrestania Gold Project (FGP) in Western Australia. The Company completed a total of 21 holes for 1,304m at the Kat Gap project which is a continuation of the infill and extensional drilling program interrupted by the onset of COVID-19.

Highlights:

- Very high-grade gold intersected in a new granite hosted footwall position west of the main contact lodes at Kat Gap. FKGRC184 returns 4 metres grading 76.72 grams per tonne gold from 79 metres including 1 metre grading 304 grams per tonne gold from 82 metres. No historical or Classic RC drilling conducted around this drill hole.

- This new high-grade zone is located west out into the granite. Further deeper drilling will be conducted by Classic to determine extent and significance of this new potential footwall gold lode.

- Infill RC drilling conducted north of the Proterozoic dyke covering approximately 100m of strike in readiness for future open pit optimisation work.

RC drilling at Kat Gap continued to deliver significant zones of gold mineralisation located on the granite-greenstone contact. Recent drilling at Kat Gap also showed that very high-grade gold occurs west of the main granite - greenstone contact lodes well out into the granite. Kat Gap is strategically located approximately 70km south-south east of the Company's Forrestania Gold project containing the Lady Magdalene and Lady Ada gold resources.

Classic CEO Dean Goodwin said:

This new very high-grade intersection out into the granite is an exciting development for the Kat Gap Project. We decided to extend some of our planned drill holes west of our current drill pattern to see if further gold lodes were lurking out in the granite. We were right. Now we just have to work out what orientation this new lode is running at. We had a feeling something was out there as we had a handful of old historical drill holes along strike that had a few lower grade sniffs out in the granite. This new intersection really bodes well for our future drilling programs that will be conducted out in the granite following up the historical auger geochemical anomalies.

We also started a program of infill drilling north of the Proterozoic dyke in readiness for future open pit optimisation studies. Existing RC drilling is a little far apart to get meaningful data, so we need to infill drill for about 400m of strike. These new results are only the start of that extensive program with many more results to come over the next few months.

We will also be conducting extensional RC drilling to the north and south of our current drill pattern. This should hopefully see the deposit grow another 200m or so.

DRILLING COMPLETED AT KAT GAP

Classic drilled a total of 21 RC holes for 1,304m at Kat Gap and is pleased to confirm that most holes returned gold mineralisation striking in a northwest-southeast direction. The infill drilling has confirmed continuity of mineralised zones within the current inferred resource model north of the Proterozoic dyke. Mineralisation remains open in all directions.

This round of RC drilling is a continuation of the infill and extensional RC drilling program undertaken prior to the onset of COVID 19. Drilling was primarily focused on testing the main granite-greenstone contact up to 100m north of the Proterozoic dyke.

The drilling also encompassed extending several RC holes at depth to test an area west of our current drilling pattern for high grade gold out in the granite.

Drill hole FKGRC184 extended further out into the granite than the rest of the RC holes some 30-35m from the main contact lodes west of Classic's existing drilling. Very high-grade gold was intersected near the end of the hole comprising smokey grey quartz veining and biotite alteration. The interval contained abundant visible gold together with disseminated pyrite and molybdenite (see figure 2.0*). Further drilling is required at depth and along strike from this newly discovered zone. Best result from this hole was:

- 4m @ 76.72g/t Au from 79m including 1m @ 304g/t Au from 82m.

Twenty-one RC holes were drilled within an area north of the Proterozoic dyke infilling areas previously drilled on 10m and 20m spaced sections. These holes were completed to aid in future open pit optimisation studies.

Better results from these holes include:

- 3m @ 7.48g/t Au from 57m including 1m @ 10.70g/t Au from 59m in FKGRC176

- 7m @ 3.79g/t Au from 62m including 1m @ 14.70g/t Au from 68m in FKGRC180

- 1m @ 11.20g/t Au from 72m in FKGRC181

- 9m @ 8.69g/t Au from 14m including 1m @ 21.80g/t Au from 18m in FKGRC186

- 6m @ 2.50g/t Au from 12m in FKGRC188

- 8m @ 2.06g/t Ay from 23m in FKGRC189

- 3m @ 7.28g/t Au from 49m including 1m @ 14.90g/t Au from 49m in FKGRC191

- 5m @ 4.76g/t Au from 61m in FKGRC192

- 3m @ 10.97g/t Au from 50m including 1m @ 30.00g/t Au from 51m in FKGRC195

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/63PTT0DZ

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).

Source:

Classic Minerals Ltd.

Contact:

Classic Minerals Ltd. T: +61-8-6305-0221 E: contact@classicminerals.com.au WWW: www.classicminerals.com.au