PERTH (miningweekly.com) – The Department of Mines, Industry, Regulation and Safety (DMIRS) has approved ASX-listed Classic Minerals’ project management plan for the Kat Gap gold mine, in Western Australia.
Classic said on Monday that the approval paves the way for mining operations to start.
The company is now working with the DMIRS and other agencies to secure the necessary remaining approvals to start on-site processing operations.
Classic last week signed a binding term sheet with Goldvalley Brown Stone which would provide up to A$10-million in non-recourse funding for the extraction and processing of Kat Gap ore.
Classic will supply ore containing the current near 90 000 oz mineral resource, and the parties will share the net profits from the gold production on a 70:30 basis, in Classic’s favour.
The term sheet is conditional upon the completion of satisfactory due diligence, and Goldvalley entering into binding agreements with the owner of a registered gold mill to toll treat the Kat Gap ore, as well as Classic obtaining any statutory approvals.