Classic Minerals Advances 250ktpa CIL Plant with IPS Global EPCM Appointment

Strategic Plant Development

Classic Minerals Limited (ASX – CLZ) has taken a significant step forward in its Forrestania gold project by completing a design study for a 250,000 tonnes per annum (tpa) Carbon-in-Leach (CIL) processing plant. The study, conducted by Como Engineers, confirms the viability of a staged expansion strategy leveraging existing infrastructure and modular components. This approach aims to balance capital efficiency with operational flexibility, allowing Classic to scale throughput as ore supply and market conditions permit.

Integral to this development is the appointment of IPS Global Pty Ltd as the preferred Engineering, Procurement, and Construction Management (EPCM) contractor. IPS Global’s prior involvement in Classic’s 80ktpa gravity plant provides continuity and technical assurance as the company transitions to this larger-scale operation. The plant’s design includes key processing equipment such as a primary ball mill, classification screens, an Intensive Leach Reactor for gravity concentrate treatment, and a full CIL circuit with reagent storage and dosing systems.

Resource Base and Feed Strategy

The initial feed for the new plant is expected to come from the Ladies Gold Project, comprising the Lady Ada and Lady Magdalene deposits. Together, these hold a combined JORC 2012 Mineral Resource of approximately 6.95 million tonnes at 1.33 grams per tonne gold, equating to nearly 298,000 ounces. While no formal Ore Reserve or production target has been declared yet, ongoing mine-level studies aim to refine project timing and sequencing.

Classic is testing multiple throughput scenarios – a fail-safe 250ktpa configuration designed to recover capital from its own ore; a 500ktpa intermediate expansion supported by a nearly complete study; and a longer-term 1 million tpa target contingent on strategic partnerships and secured third-party ore supply. This tiered approach reflects a pragmatic balance between organic growth and external collaboration.

Operational and Legal Challenges

Exploration activities at Forrestania have been temporarily paused due to seasonal weather and access constraints, delaying drilling programs aimed at extending high-grade zones and upgrading resource classifications. Meanwhile, Classic continues to pursue full legal title transfers for the Hyden tenements acquired in 2023. These remain subject to Supreme Court proceedings following disputes with vendor successors. The company remains confident in its legal position and views resolution as critical to unlocking unencumbered development pathways and enhancing investor confidence.

Strategic Outlook

Classic Minerals’ strategy is to establish itself as a low-cost, regionally significant gold producer and toll treatment hub within the Forrestania district. The modular plant design and pre-permitted infrastructure aim to reduce lead times and capital intensity, while enabling throughput expansion up to 1 million tonnes per annum. By consolidating regional ore bodies and offering toll milling services, Classic seeks to optimise plant utilisation and create alternative revenue streams.

Looking ahead, the company’s success will hinge on navigating legal complexities, securing strategic partnerships, and restarting exploration to replenish and grow its resource base. The staged development plan positions Classic to adapt to evolving market conditions while building a sustainable operational platform.