Classic Minerals Ltd. exercised its option to acquire the Kat Gap gold project in Western Australia from Sulphide Resources Pty Ltd.
Consideration comprises A$250,000, including goods and services tax, and a 2% net smelter royalty on gold production from exploration licenses E74/422 and E74/467.
The acquisition allowed the company to control over 480 square kilometers of the highly prospective Forrestania region. Kat Gap, which covers 37.5 square kilometers, is located 70 kilometers south-south east of Classic's Forrestania gold project, where it intersected high-grade gold in October 2018.
Classic has drilled a total of 57 holes for 3,891 kilometers at Kat Gap from May 2018 to November 2018. Highlights of its latest drilling program in November 2018 included 3 meters grading 38.33 g/t of gold from a depth of 21 meters, including 1 meter grading 111.00 g/t of gold.
The company said Jan. 9 that it plans to commence a reverse circulation drilling program that will extend the known mineralized zone north and south from the current 200 meters long drilling area.