Exterra announces positive results from Zelica

THE DRILL SERGEANT: Exterra Resources has received results from drilling undertaken at the company’s Zelica gold project.

Best results from the drilling include:

–    7 metres at 4.90 grams per tonne gold from 26 metres;

–    4m at 5.35 g/t gold from 11m;

–    5m at 2.95 g/t gold from 37m; and

–    5m at 2.84 g/t gold from 69m.

The drilling was carried out at Zelica, located 20 kilometres to the North West of the company’s Linden project in Western Australia, throughout the months of November and December 2011.

 

Source: Company announcement

 

The program was aimed at confirming mineralisation below the current pit and extending and infilling mineralisation over the 400 metres to the north of the pit where prior drilling was intermittent.

The company said the grades reported from the latest drilling support previous drill results and remain relatively high for a vat leach style of project.

According to Exterra previous operators of the Zelica project had completed ground work including pre-strip on the 300m open pit mine, grade control drilling the base of the open pit ready for operation, construction of two vat leach ponds and drilled water bores.

“It is this level of preparatory work that has provided a strong foundation for Exterra to re-commence mining operations at Zelica, subject to regulatory approvals and resource confirmation,” Exterra said in its ASX announcement.

“In this regard, Exterra has applied to have the existing Exploration Licence (E39/1578) converted to a Mining Lease (MLA 39/1082), which is due for grant in the second quarter of 2012.

“The current results are being interpreted alongside previous drilling with the aim of providing an updated geological/resource model that will indicate where further drilling will be required.”

Exterra said it is scheduled to begin a 10 hole diamond drilling program in the first quarter of the year at the Second Fortune Gold Mine at Linden.

This drilling will be focusing on extending and upgrading the current Inferred Resource with drilling to 300m vertical.