The Kat Gap Project is an advanced gold exploration opportunity at the southern end of the Forrestania Greenstone Belt, covering 37.5 square kilometres.
Significantly, former gold producer Sons of Gwalia estimated a non-JORC resource of 440,000 tonnes at 2.9 g/t for 42,000 ounces of contained gold at Kat Gap in 2003.
The shallow unmined gold deposit was discovered in the 1990s, which was the subject of a scoping study by Sons of Gwalia.
Furthermore, past high-grade reverse circulation drill intercepts include 15 metres at 15.1 g/t gold from 39 metres depth and 6 metres at 19.1 g/t gold from 17 metres depth.
The project also includes a 5-kilometre long, open-ended geochemical anomaly, with limited drill testing to date.
Classic will pay the vendor a $50,000 option fee in which it can purchase the tenements within 18 months for a total consideration of $250,000.
In addition to the option fee, Classic must spend $140,000 on the tenements during the option period.
The company’s near-term focus remains on drilling at the Forrestania Gold Project, which contains an existing resource of 5.9 million tonnes at 1.25 g/t for 240,000 ounces of gold.
Classic is aiming to increase the resource at Forrestania through its upcoming drill program scheduled to commence this quarter.
Justin Doutch, managing director, commented: "We are very pleased to have executed this agreement as the Kat Gap tenements will significantly strengthen Classic’s foothold in the highly prospective Forrestania region which currently stands at over 450 square kilometre, in an area that we strongly believe has the potential to host a world-class gold deposit.
“Classic is also assessing a number of additional regional consolidation opportunities within the Forrestania region that we believe have the scope to further bolster our gold inventory in the near-term, and we look forward to updating our shareholders on these opportunities in due course.”