Exterra increases Second Fortune
THE DRILL SERGEANT: Exterra Resources has increased the high-grade Second Fortune lode Resource at the company’s 100 per cent-owned Linden gold project.
The increase follows the recent completion of a nine hole diamond drilling program.
The combined Indicated and Inferred Resource for the Second Fortune Main lode and associated hangingwall and footwall lodes at a 4.00g/t gold lower cut-off now totals:
461,900 tonnes at 8.8 grams per tonne gold for 131,200 ounces of gold.
The updated Resource represents an increase of 151 per cent from the maiden Resource reported by Exterra in May 2011 (Inferred 207,000 Tonnes at 7.9 g/t gold).
Second Fortune Main Lode Long Section Resources. NOTE: This long
section outlines Resources associated with the Main Lode only and a
further 240,800 Tonnes at 7.1 g/t gold for 54,600 ounces is contained in
the adjacent Hanging wall and Footwall lodes. Source: Company
announcement
The company highlighted the fact 47 per cent of this updated Resource is classified as Indicated.
The Second Fortune lode Resource has now been defined to approximately 300 metres below surface and remains open at depth.
The Resource contains both footwall and hangingwall lodes, immediately adjacent to the main lode, which the company expects will increase gold ounces per vertical metre.
“The substantially increased Resource confirms the robust nature of the Second Fortune lode system being a significant high grade gold deposit and confirms Exterra’s confidence in progressing development activities via a Pre-Feasibility study,” Exterra Resources said in the company’s ASX announcement.
“Exterra has elected to complete a Pre-Feasibility study on the current Resource to determine the viability of an underground operation prior to completing infill and step out drilling.”
Development activities which will form the basis of the company’s Pre-Feasibility study and which are underway include:
– Environmental Baseline studies;
– Underground mining contractor discussions;
– Underground mine design optimisation studies; and
– Toll treatment arrangements.
The company said it anticipates treatment of ore offsite in the initial stages will be beneficial in that it allows for a shorter time frame to production with significantly less capital costs.
Exterra said it is currently in discussions with nearby plant operators with regards to the potential treatment of Second Fortune ore.