Next Investors logo grey

Argonaut sees potential for further exploration success by Classic


Published 25-JUL-2018 10:43 A.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Argonaut analyst, James Wilson has pointed to some promising aspects that have emerged from Classic Minerals’ (ASX:CLZ) latest drill campaign at the Forrestania Gold Project (FGP) in Western Australia (CLZ:80% of gold rights, Hannans Ltd (HNR) 20%).

Location of mineralisation at Kat Gap is encouraging

Drilling at the Kat Gap prospect returned multiple shallow high-grade intercepts as indicated below.

Next Investors Image

Wilson was particularly interested in the new zone of mineralisation discovered 30 kilometres west of the main Kat Gap lode within granite rocks, noting that gold mineralisation within the Forrestania Belt most commonly occurs along the granite-greenstone contact.

The better results from this area were 8 metres at 7.14 g/t gold and 3 metres at 10.7 g/t gold.

Next Investors Image

Positive news over the last month certainly hasn’t been lost on investors with the company’s shares doubling from a 12 month low of .03 cents in late June to an intraday high of .06 cents yesterday. Tuesday’s trading volumes were the fourth highest in the last 12 months.

The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

New high grade mineralisation at Lady Magdalene

Wilson also commented on the 10 holes that were drilled at the Lady Magdalene deposit, highlighting that thick zones of mineralisation were intercepted in the main lode and a new zone of high grade mineralisation was discovered to the north within narrow cross-cutting quartz veins.

It should be noted here that whilst the company has delivered strong results, investors should still take a cautious approach to their investment decision in this stock and seek professional financial advice.

Wilson noted that these veins drilled to the north of Lady Magdalene were in a similar orientation to those seen in the Lady Ada deposit 600 metres to the south.

Whilst narrow, he said these veins have the potential to thicken and host significant gold, as witnessed in the Lady Ada pit which would significantly lift the grade of the current resource.

Existing resource and access to infrastructure

Classic already has a starter resource from historic exploration containing circa 240,000 ounces at 1.4g/t gold, and Wilson sees the potential to rapidly expand upon this with a fresh approach and modern exploration techniques.

He also noted that the Lakewood / Marvel Loch processing facility is 100 kilometres north of the project area.

The plant has a processing capacity of about 1.2 million tonnes per annum, which he believes is currently underfed.

Classic has a preferred client agreement with plant operator, Minjar and a Memorandum of Understanding (MOU) with a private third party for specific mining, haulage and treatment costs in return for profit sharing.

Wilson is of the view that grades witnessed in the recent drilling should support economic transport and tolling.

Lithium potential

He also pointed to the area’s lithium potential, particularly in light of the discovery of the world class Mt Holland lithium discovery by Kidman Resources.

Wilson noted that Classic’s tenements are also prospective for lithium with a number of pegmatites being identified from historic mapping.

The company recently composited two rock chip samples from historic holes proving the presence of LCT-pegmatite style mineralisation.

It should be noted that broker projections and price targets are only estimates and may not be met. Those considering this stock should seek independent financial advice.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.