Classic Minerals Ltd [ASX:CLZ] is on the news today after announcing the discovery of ‘very high-grade’ gold.
Classic Minerals is an Australian exploration and development company with projects in Western Australia.
What did Classic Minerals announce today?
The company intersected very high-grade gold on the north along strike at Kat Gap. Kat Gap is located about 70 km south-south east of the company’s Forrestania Gold Project.
The company posted the following drilling results: 3 meters grading 62.10 grams per tonne gold from 36 meters including 1 metre grading 181grams per tonne gold from 37 meters.
Source: Classic Minerals
The company drilled a total of 23 holes for 1,449m at Kap Gap, a decrease from the originally 48 holes for 3,200m planned before the COVID-19 strike.
According to the company, ‘gold mineralization now extends 600 m in strike with significant gold intersected on both sides of the Proterozoic dyke’.
Classic Minerals CEO Dean Goodwin had this to say:
‘This latest round of drilling has shown that significant high-grade gold can still be intersected at shallow depths well north of the Proterozoicdyke. I’m very pleased with these results as it demonstrates the strength in the system to the north. […]
‘We also drilled a single line of RC holes on the southern side of the Proterozoic dyke 60m south of previous RC holes conducted by Classic over a year ago. We hit a broad 10m thick zone of supergene gold mineralisation well out into the granite which we weren’t expecting. That’s telling us that there’s probably something substantial lurking out in the granite itself well away from the granite-greenstone contact. It’s very exciting.’
The next rounds of drilling will concentrate on testing the main granite — greenstone contact located further north and south along the strike from the existing drilling area.
Classic Minerals discovered gold but…
…shares haven’t moved today. After the announcement, Classic Minerals shares remained the same, at $0.001.
The company isn’t profitable yet and shares have dropped 66% since the beginning of February, even as gold prices have continued to increase.
While gold prices are trending higher in Australian dollar terms, it’s not easy to know which explorers will be the winners and which ones will lose. It’s why The Rum Rebellion’s editor Greg Canavan has prepared a ‘How to Pick Winning Gold Stocks’ guide for you.