Classic Minerals Ltd: Kat Gap Metallurgical Studies Show Outstanding Recoveries

Perth, Australia - WA-focused gold exploration and development company Classic Minerals Ltd. (ASX:CLZ) is pleased to announce that it has completed its preliminary metallurgical test work program on drill samples collected from drilling at Kat Gap.

The test work has been conducted by the metallurgical laboratory Nagrom, located in Kelmscott WA of oxide and fresh mineral samples from the Kat Gap program. The tests completed covered both conventional gravity and leach testing on the samples provided. The results have been particularly encouraging for Classic Minerals as the material tested indicated that the majority of the gold could be recovered by traditional gravity separation techniques and with the mineralisation located from near surface this has the potential to provide a low processing cost option for the material.

The conventional gravity separation process has delivered up to 75% gold recovery from the oxide samples with the conventional cyanide leach process provided 95% - 96% recovery from both fresh and oxide samples. These results are extremely positive, and the next stage of testing focussing on variability across the mineralisation and firming up the process options to deliver the indicated recoveries consistently.

The preliminary results indicate that Classic has the potential for early revenue generation through either toll treatment or self-processing of the material from Kat Gap. The toll treating provides rapid cash flow while the onsite processing provide greater profitability as Classic can control all mining and processing costs.

Classic CEO Dean Goodwin said:

We are fortunate to have, after conducting detailed research, found that the metallurgical results confirm that the ore, when processed using traditional gravity and leach processes provide an outstanding gold recovery.

The recent results (ASX announcement 09 July 2020) gives great hope that there is the possibility of gold deposits to augment and further enhance the gold resources already determined at Kat Gap.

We will be working on extending the resource with more infill drilling and then expanding the resource with extensional drilling along strike as well as in the granite.

ABOUT THE FORRESTANIA GOLD PROJECT (FGP)

The FGP Tenements (excluding Kat Gap) are registered in the name of Reed Exploration Pty Ltd, a wholly owned subsidiary of ASX listed Hannans Ltd (ASX:HNR). Classic has acquired 80% of the gold rights on the FGP Tenements from a third party, whilst Hannans has maintained its 20% interest in the gold rights.

For the avoidance of doubt Classic Ltd owns a 100% interest in the gold rights on the Kat Gap Tenements and also non-gold rights including but not limited to nickel, lithium and other metals.

Classic has a Global Mineral Resource of 8.24 Mt at 1.52 g/t for 403,906 ounces of gold, classified and reported in accordance with the JORC Code (2012), with a recent Scoping Study (see ASX Announcement released 2nd May 2017) suggesting both the technical and financial viability of the project. The current postmining Mineral Resource for Lady Ada, Lady Magdalene and Kat Gap is tabulated in the link below.

Additional technical detail on the Mineral Resource estimation is provided, further in the text below and in the JORC Table 1 as attached to ASX announcements dated 18th December 2019, 21st January 2020, and 20 April 2020.

To view tables and figures, please visit:
https://abnnewswire.net/lnk/AF5038AY

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