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Classic Minerals begins diamond drilling at Forrestania gold project in Western Australia

Published 12 February 2018

Gold exploration and development company Classic Minerals has commenced orientated diamond drilling at the Lady Magdalene deposit as part of the Phase 3 drilling program at its Forrestania Gold Project (FGP) in Western Australia.

The company believes that there is exciting potential for high grade Lady Ada-esque mineralisation to exist between current drill lines (spaced ~100m apart) at Lady Magdalene which is currently considered a large, modest-graded deposit.

The diamond drill holes will primarily be used for structural data – allowing Classic to accurately determine the orientation of any high-grade zones that have been missed by previous explorers. This methodology was employed by Classic’s CEO, Mr Dean Goodwin, when he discovered the high-grade zones at Lady Ada in 1999. Prior to Dean’s theory at Lady Ada being tested, it was considered a low-grade deposit like Lady Magdalene is today.

DRILLING AT LADY MAGDALENE – CHASING TRANSFORMATIVE HIGH-GRADE MINERALISATION

Classic is very excited about the commencement of diamond drilling at Lady Magdalene. The Company is focused on drilling the diamond holes at Lady Magdalene with a view of discovering high grade gold lodes similar to what was mined at Lady Ada. Approval has been received from DMIRS, and contractors are on site, to carry out orientated diamond drilling within the existing Lady Magdalene resource in an attempt to locate high grade cross-cutting gold lodes similar to the Lady Ada deposit which yielded 95,865 tonnes @ 8.81g/t for 27,146 oz Au. Currently existing drilling at Lady Magdalene is too broad spaced to accurately identify potential high-grade cross-cutting lodes.

CEO Dean Goodwin said:

“In parallel to our regional exploration program we will be looking for high-grade cross-cutting lodes within the Lady Magdalene resource envelope similar to Lady Ada. We found Lady Ada 17 years ago by looking closely at the drilling sections, you could see this high-grade gold lode cutting through from section to section on an angle. It wasn’t running parallel to the main lower grade material. Once we changed the drill orientation, the high-grade zone was instantly apparent and the rest was history. There is very strong evidence to suggest that similar things are happening at Lady Magdalene. There could be multiple Lady Adas hiding within the existing data. Before we looked closely at Lady Ada, both Lady Ada and Lady Magdalene were deemed large low-grade gold resources. It was only after we looked closely at Lady Ada that we saw the high-grade cross cutting lode – I hope to repeat this methodology and discovery at Lady Magdalene.”

ABOUT THE FORRESTANIA GOLD PROJECT
The FGP Tenements 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. Hannans' 20% interest is free-carried, meaning Hannans is not required to fund any activities on the FGP until a decision to mine has been made. For the avoidance of doubt Hannans Ltd owns a 100% interest in non-gold rights on the FGP Tenements including but not limited to nickel, lithium and other metals.

The FGP contains an existing Mineral Resource of 5.9 Mt at 1.25 g/t for 240,000 ounces of gold, classified and reported in accordance with the JORC Code (2012), with a recent Scoping Study suggesting both the technical and financial viability of the project



Source: Company Press Release