Classic Minerals Limited (ASX: CLZ, 'the Company' or 'CLZ') is pleased to announce its intention to commence a trial mining exercise at its 100% owned Kat Gap Gold Project.

The mining and processing of this stage one trial pit will assist in providing the company with data it needs to derive an ore reserve. It will also aid in the calibration of mining and metallurgy parameters prior to full-scale mining and production from its Kat Gap gold project. Mining and processing of this trial mining ore is an important step ahead of full-scale production activities, as it affords the Company the opportunity to fully test and refine the Gekko plant along with its mining methods

The company recently announced an update to its gold resource base at Kat Gap. The enhanced resource confidence level, resulting from re-estimation following the integration of two years' worth of additional drill data, underscores Classic Minerals' commitment to the long-term success of the Kat Gap Project and its vision to become a profitable gold miner. The indicated upgrade allows for the calculation of JORC Compliant Reserve ounces, facilitating monetisation and value creation at Kat Gap

Classic will look to trial mine a good portion of the oxide component of the indicated resource down to a depth of 45m. The trial pit is likely to take approximately 2 months to complete3 . The derivation of the Ore Reserve should take about 2 months from the trial mining data and would cost about $ 100,000.00. Based on the results received, the Company anticipates moving into production within 2 months of an economically viable Ore Reserve.

The company is confident that the following three (3) processes will provide it with the data it requires to obtain an ore reserve. 1. Conversion of Indicated Resource to Mining Ore Reserve. To enable an effective conversion from the current indicated resource to a mining ore reserve, an oxidised portion of the indicated block model needs to be interrogated by a trial mining open pit. Ore from the trial pit will be mined according to the current block model outline. It will then be processed through the Gekko gravity plant allowing for an accurate reconciliation of the tonnes, grade and recoverable ounces of gold from the indicated block model. In essence, the trial pit will test the block model against what is actually mined. This information will ultimately test the veracity of the existing block model and indicated resource and provide invaluable data to obtain a mining ore reserve. 2. Mine engineering data. A trial pit will give the geological and engineering teams the ability to measure structural data firsthand from the walls and floor of the trial pit. This additional data will allow selection of the best geotechnical parameters to maximise safety and minimize strip ratios. Realistic dilution and ore loss parameters will also be gleaned. This will greatly assist in a more effective mining ore reserve determination. 3. Geological data. The trial pit will allow direct structural measurements to be taken of exposed gold mineralisation. Trial mining may also shed light on the presence and attitude of additional lodes that could be targeted for increases to the overall resource, which in turn could have a positive effect on project economics. Grade distribution can also be studied to determine how varying grade models stand up to results of the trial, allowing optimisation of both modelling and drilling activities

Data from the trial pit mining exercise will hopefully set the scene for a potentially much larger future stage two open pit down to fresh rock. Classic CEO Dean Goodwin said: I'm so excited about getting those earthmoving machines back to work on the trial pit because in the next month or so we'll finally get a good hard look at the high-grade portion of the main ore zone within the new indicated resource. It's going to be one of those special moments. They don't come along very often in one's career so I can't wait. It's a proud moment for me and the rest of the team to see all that hard work that has gone into the drilling and resource work over these last few years come to fruition.

Contact:

Email: contact@classicminerals.com.au

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