EXTERRA RESOURCES LTD ACN 138 222 705
ASX Code: EXCwww.exterraresources.com.au Issued Capital:
Ordinary Shares: 333.2m
Options: 50.7m
Cash (30 Sept 2016) $1.65 million
Directors and Management: John Davis
Executive Chairman
Geoff LaingExecutive Director
Justin BrownNon-Executive Director
Dennis WilkinsCompany Secretary
25 OCTOBER 2016
Exterra Resources Limited ("Exterra" or "the Company") is pleased to provide a summary of activities undertaken by the Company during the September 2016 quarter which has focussed on the Linden Gold Project Second Fortune Mine Development and Linden Exploration.
HIGHLIGHTS:- Board Approval to Recommence Mining at the Second Fortune Gold Mine under the Mitchell River Group (MRG) Management and Services Agreement.
- Successful Ore Sorting trials at Second Fortune confirms Mass Yield Reduction and Increased Ore Grade with potential to improve Project Economics.
- Subsequent to the end of the quarter the Project Management Plan (PMP) for commencement of surface infrastructure works at Second Fortune Mine approved by DMP.
- The Second Fortune Mine Evaporation Dam Construction Contract is in the final stages of being awarded to the preferred contractor.
- Exploration results extend the Second Fortune Gold Trend at least 350m to the South and further confirmed the potential of the Mt Linden Prospect.
- Grass Flat Gold Project Tenements Granted enabling the Commencement of On-ground Exploration.
- Subsequent to the end of the quarter Exterra raised $4.025 million via an oversubscribed share placement to institutional and high net worth investors to be used for Second Fortune Mine Development, Exploration and working capital.
- Board Re-Structure with Mitchell River Group representative Geoff Laing appointed Executive Director to support the Second Fortune Mine Development.
- LINDEN GOLD PROJECT, Western Australia (100% interest)
-
Second Fortune Underground Mine Development
Mine design and scheduling are at an advanced stage in line with plans to award a mining contract before the end of 2016. Previous designs have been updated to include the provision for the extraction of the crown pillar in parallel to the decline development to the west of the main load. Ongoing work includes incorporating design aspects specific to the strategy of integrating ore sorting into the operation.
Figure 1: Second Fortune Main Lode long section showing mineralised zones, Resource and Probable Reserve outlines and schematic decline design from existing Feasibility Study. -
Second Fortune Ore Sorting
Optical sorting trials involving the processing of multiple bulk samples of Second Fortune ore have been successfully completed using a Tomra ore sorting plant. The test work has demonstrated the effectiveness of the technology in pre-concentrating the gold bearing quartz by eliminating waste material and thereby improving project economics.
Ore sorting technology is currently used in numerous mining operations to pre-concentrate ore prior to processing. Recent work undertaken by Exterra has utilised optical (colour) technology which has proved to be highly effective in recovering quartz from the host waste rock. The impact of effective sorting is significant, not only with respect to the reduction of haulage and treatment costs but also with respect to the mining operation. The results show that in excess of 60% of "ore mass" can be rejected on site prior to haulage and processing.
Demonstration Ore Sorting ResultsCampaign #1
kg
Au g/t
Mass Yield
Au Deportmen
Feed
33.3
4.3
Product
14.3
9.6
43%
96%
Reject
19
0.34
57%
4%
Campaign #2
kg
Au g/t
Mass Yield
Au Deportmen
Feed
372.5
3.9
Product
113
11.8
30%
92%
Reject
259.5
0.4
70%
8%
It is anticipated that a sorting circuit will be located at the mine site to process run of mine (ROM) material. ROM ore will be crushed and screened prior to sorting. The significantly upgraded sorted product will be dispatched to third party processing facilities while the waste will be stockpiled at site.
Figure 2: Second Fortune Sorting Flowsheet - Project Management Approval and Commencement of Surface Works
The Project Management Plan (PMP), PM-796-216114, in relation to the commencement of mining operations at Second Fortune was approved by the DMP on the 12 October 2016. Site works will commence starting with the construction of the evaporation ponds. The contract to construct the ponds which are located to the north of the existing pit is in the final stages of being awarded to the preferred contractor. It is expected that construction will take four to six weeks. Dewatering of the open pit and remnant underground workings will commence on completion of construction and on obtaining the Works Approval License.
Other site works will commence on the back of the PMP approval, including the camp upgrade and preparation of the mining contractor laydown area. The recent $4.025M capital raising ensures that funding for the pre-production activities is in place and that critical path items can be addressed immediately. The haul road construction will commence as soon as relevant clearing approvals have been obtained.
Exterra Resources Limited published this content on 25 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 October 2016 01:27:03 UTC.
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