http://www.proactiveinvestors.com.au Proactiveinvestors RSS feed en Thu, 23 Nov 2017 05:20:27 +1100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Exterra Resources: Independent Expert concludes Anova Metals merger fair and reasonable ]]> http://www.proactiveinvestors.com.au/companies/news/182357/exterra-resources-independent-expert-concludes-anova-metals-merger-fair-and-reasonable-182357.html Exterra Resources Ltd (ASX:EXC) has unanimously recommended that shareholders vote in favour of the merger proposal with Anova Metals Ltd (ASX:AWV).

The Independent Expert has also concluded that in the absence of a superior proposal, the Scheme is fair and reasonable and is in the best interest of Exterra shareholders.

Details of the merger

Under the merger implementation agreement, Anova has agreed to acquire all of the issued capital of Exterra by way of a scheme of arrangement.

READ: Exterra Resources opens gold production window for later in 2017

The merged entity will have a top tier portfolio of production, development and exploration projects under the guidance of an experienced and proven management team.

It will advance the combined entity towards becoming a multi‐jurisdictional gold producer.

Core assets

A merged entity would own JORC Resources of 1.23 million gold ounces and Ore Reserves of 65,000 gold ounces across two advanced projects with exploration upside.

The first being Exterra’s Linden gold project which features the Second Fortune gold mine, located in Western Australia, which is commencing production.

The second being Anova’s permitted and production-ready Big Springs gold project located in U.S. state of Nevada.

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Mon, 14 Aug 2017 14:44:00 +1000 http://www.proactiveinvestors.com.au/companies/news/182357/exterra-resources-independent-expert-concludes-anova-metals-merger-fair-and-reasonable-182357.html
<![CDATA[News - Exterra Resources Ltd to farm-in to nearby gold project ]]> http://www.proactiveinvestors.com.au/companies/news/180260/exterra-resources-ltd-to-farm-in-to-nearby-gold-project-180260.html Exterra Resources Ltd (ASX:EXC) has executed a farm-in and joint venture agreement over the Bar Twenty Gold Project located 20 kilometres from its Second Fortune Gold Mine in Western Australia.

The Bar Twenty project development will be run in parallel with the flagship Second Fortune Mine development.

Bar Twenty provides Exterra with the potential to generate a secondary source of ore to add to the planned production from the Second Fortune Mine.

Exterra has the right to explore and develop Bar Twenty and can earn a 75% joint venture interest by producing 5,000 ounces of gold from Bar Twenty.

On commencement of the joint venture, Exterra will contribute to all ongoing expenditure on a 75:25 pro rata basis.


Agreement details

The agreement with Bar Twenty Pty Ltd includes a farm-in stage followed by a joint venture.

Key terms of the agreement include:

- Exterra has the right to explore and develop Bar Twenty;
- Exterra can earn a 75% joint venture interest by producing 5,000 ounces of gold from Bar Twenty; and
- On commencement of the joint venture, Exterra and Bar Twenty Pty Ltd must contribute to all ongoing expenditure on a 75/25 pro rata basis.

Bar Twenty Pty Ltd may elect to:

- Have its joint venture contributions carried by Exterra to a maximum of $1,000,000, and repaid from 50% of Bar Twenty Pty Ltd’s entitlement to gold produced from Bar Twenty (secured against the tenements); or
- Convert its joint venture interest to a right to receive a 2.5% net smelter royalty.


Asset details

The Bar Twenty Gold Project consists of a granted mining lease and 3 granted prospecting licences and has been reverse circulation drilled by Bar Twenty Pty Ltd, with 80 holes completed for 1,785 metres of drilling.

It has historical gold workings at 5 prospects over 1,000 metres of strike.

At the South-East (Main) Workings, 56 reverse circulation holes for 1,377 metres have been drilled to outline the gold mineralisation.

Results include:

- 3 metres at 9.7 g/t gold from 2 metres;
- 6 metres at 3.4 g/t gold from 10 metres;
- 6 metres at 3.6 g/t gold from 5 metres;
- 2 metres at 10.8 g/t gold from 2 metres;
- 4 metres at 7.5 g/t gold from 19 metres; and
- 4 metres at 6.0 g/t gold from 22 metres.

The project features quartz-hosted gold suitable for upgrading through the Exterra ore sorting plant.


Planned exploration

Further reverse circulation drilling is planned to commence early in July, which, when combined with the current data available, will be used to generate a JORC resource estimate.

This will then form the basis of economic studies to determine the potential for mine development.

Results will be announced when they become available


Second Fortune update

The Second Fortune Mine development remains the primary project, and key focus, for Exterra.

The recently received works approval for the operation of the evaporation ponds allows the pit and underground workings to be dewatered and inspected in preparation for final design activities on both the portal and decline.

Surface infrastructure development is ongoing and the target start-up of the mining operation remains Q4 2017.

Processing of the mullock dumps through the sorting circuit is ongoing with product and fines being accumulated for the primary parcel of ore to be toll treated.


Recent merger with Anova Metals

Exterra recently entered a merger agreement with Anova Metals (ASX:AWV).

Under the merger implementation agreement, Anova has agreed to acquire all of the issued capital of Exterra by way of a scheme of arrangement.

The merged entity will have a top-tier portfolio of production, development and exploration projects under the guidance of an experienced and proven management team.

It will advance the combined entity towards becoming a multi‐jurisdictional gold producer with a project portfolio featuring Western Australia and Nevada in the U.S.

A merged entity would own JORC compliant resources totalling 1.23 million ounces of gold and Ore Reserves totalling 65,000 ounces gold across two advanced projects with exploration upside.

The process of implementing the merger with Anova Metals is ongoing and in line with the proposed schedule.

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Tue, 04 Jul 2017 10:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/180260/exterra-resources-ltd-to-farm-in-to-nearby-gold-project-180260.html
<![CDATA[News - Exterra Resources merger synergies drives share price ]]> http://www.proactiveinvestors.com.au/companies/news/178944/exterra-resources-merger-synergies-drives-share-price-178944.html Exterra Resources (ASX:EXC) shares have traded over 20% higher today as the company has entered a merger agreement with Anova Metals (ASX:AWV).

Under the merger implementation agreement Anova has agreed to acquire all of the issued capital of Exterra by way of a scheme of arrangement.

Geoff Laing, director, commented: “This is a compelling transaction for both Exterra and Anova that will combine near term cash flows with exploration upside.

"We look forward to working with the Anova team to advance Big Springs to production and particularly to applying sorting technology where it provides a competitive advantage.

“The combined entity will have a strong project portfolio experienced development team and a balance sheet that allows progress to development.”


Merger summary

The merged entity will have a top tier portfolio of production, development and exploration projects under the guidance of an experienced and proven management team.

It will advance the combined entity towards becoming a multi‐jurisdictional gold producer with a project portfolio featuring Western Australia and Nevada in the U.S.

Both company’s boards believe that the combination of Anova’s strong balance sheet and Exterra’s near term production Linden gold project is compelling for shareholders of both companies.

Exterra’s board have unanimously recommended that all Exterra shareholders vote in favour of the merger.

Exterra shareholders who collectively hold 19.92% of Exterra have executed statements of intention stating that they will vote in favour of the merger subject to the same qualifications.


Core assets

A merged entity would own JORC compliant resources totalling 1.23 million ounces of gold and Ore Reserves totalling 65,000 ounces gold across two advanced projects with exploration upside.

The first being Exterra’s Linden gold project which features the Second Fortune gold mine, located in Western Australia, which is commencing production.

The second being Anova’s permitted and production-ready Big Springs gold project located in the U.S. state of Nevada.


Interim funding arrangements

To ensure that Exterra is able to continue to progress the development of the Second Fortune project whilst the merger is being implemented, Anova has agreed to advance up to $2 million in loan funding to Exterra prior to completion of the scheme.


Analysis

This proposed merger importantly provides access to short term funding for the development of the Linden gold project.

It also provides Exterra shareholders with access to a larger and more liquid market through the increased scale of the merged entity.

The merged entity will provide Exterra with an additional 1.03 million ounces of JORC gold resources through Anova’s Big Springs near‐production project, with significantly greater exposure to exploration and development upside.

Results of a completed feasibility study recently revealed the financial and technical viability of the Second Fortune gold mine.

The study was based on developing a mine below the existing open pit and generating a sorted concentrate for toll treating.

Some of the key metrics are impressive, including forecast life-of-mine free cash-flow of $25 million before financing costs; and an internal rate of return of 133%.

The mine benefits from access to infrastructure, as its located 220 kilometres from Kalgoorlie in Western Australia.

The first court hearing to convene the scheme meeting and approve the scheme booklet for the merger is targeted for mid to late July 2017.

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Thu, 08 Jun 2017 14:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/178944/exterra-resources-merger-synergies-drives-share-price-178944.html
<![CDATA[News - Exterra Resources to reveal scheme of arrangement ]]> http://www.proactiveinvestors.com.au/companies/news/178806/exterra-resources-to-reveal-scheme-of-arrangement-178806.html Exterra Resources (ASX:EXC) has been granted a trading halt by the ASX, pending details of a scheme of arrangement.

Exterra recently revealed a Feasibility Study that concludes that the Second Fortune Gold Mine is financially and technically viable.

The study is based on developing a mine below the existing open pit and generating a sorted concentrate for toll treating.

The halt will remain in place until the opening of trade on Thursday 8th June 2017, or earlier if an announcement is made to the market.

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Tue, 06 Jun 2017 10:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/178806/exterra-resources-to-reveal-scheme-of-arrangement-178806.html
<![CDATA[News - Exterra Resources opens gold production window for later in 2017 ]]> http://www.proactiveinvestors.com.au/companies/news/178304/exterra-resources-opens-gold-production-window-for-later-in-2017-178304.html Exterra Resources (ASX:EXC) has revealed a Feasibility Study that concludes that the Second Fortune Gold Mine is financially and technically viable.

The study is based on developing a mine below the existing open pit and generating a sorted concentrate for toll treating.

This delivers the potential for gold production as soon as the end of 2017.

Some of the key metrics are impressive, including: Forecast LOM free cash-flow of $25 million before financing costs; and an Internal Rate of Return of 133%.

The all-in sustaining cost is forecast at A$1176 an ounce, well above the current Australian Denominated gold price of circa A$1655 an ounce.

The mine benefits from access to infrastructure, as its located 220 kilometres from Kalgoorlie in Western Australia.

John Davis, executive chairman, commented: "The completion of the Feasibility Study is a major milestone in the development of the Second Fortune mining operation.

"We are very pleased to confirm the robust economics of the Second Fortune project and look forward to securing financing and commencing the mining activities."


Full key highlights from study

- Life-of-mine (LOM) production target of 392kt grading 5.8g/t Au for 73koz of gold;

- Reserve increase of 15% from 56koz of 65koz;

- Mining inventory increase of 20% from 61koz to 73koz;

- Forecast LOM free cash-flow of $25m before financing costs;

- Capital payback period of 13 months;

- Net Present Value (NPV8%) of 21.5m;

- Internal Rate of Return of 133%;

- First gold production targeted for Q3 2017 from dumps and Q4 from underground;

- Initial mine life of 2 years, with significant resource potential at depth on the Main Lode and on the subsidiary Hanging wall, Footwall and West Lodes;

- Estimated funding requirement of $9.4m ($7.2 capital and $2.2m working capital) An additional $3m working capital contingency will be provisioned to mitigate operational risk;

- Estimated LOM C1 cash cost of $989/oz and all-in sustaining cost (AISC) of $1,176/oz;

- Exploration programmes at the Linden Gold Project area continuing, aimed at expanding the current 131koz resource; and

- Sorting will de-risk future and underground mining at Second Fortune by rejecting waste dilution prior to haulage and processing, reducing one of the major risks in narrow vein mining.

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Thu, 25 May 2017 13:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/178304/exterra-resources-opens-gold-production-window-for-later-in-2017-178304.html
<![CDATA[News - Exterra Resources produces first sorted ore at Second Fortune ]]> http://www.proactiveinvestors.com.au/companies/news/177123/exterra-resources-produces-first-sorted-ore-at-second-fortune-177123.html Exterra Resources (ASX:EXC) has commenced processing commercial scale material through its ore sorting plant at the Second Fortune gold mine in Western Australia.

Results to date show sorting of ore will significantly reduce the cost of hauling and processing Second Fortune ore.

Sorting will de-risk future underground mining at Second Fortune by rejecting waste dilution prior to haulage and processing, reducing one of the biggest risks in narrow vein mining.

John Davis, executive chairman, commented: “The commencement of processing operations is a major milestone in the development of the Second Fortune mining operation.

“We are very excited to be operating one of the first commercial sorting plants in the Australian gold mining business.”


Background

Exterra’s projects are all located in the Archaean Yilgarn Craton of Western Australia, a world class gold province which includes the Kalgoorlie Golden Mile deposit, which has produced over 50 million ounces of gold.

During November 2016, Exterra commenced the construction phase of its recently approved Second Fortune gold mine.

The Second Fortune underground mine feasibility study highlighted the low cost entry to gold production.

Study details include:

- 131,000 ounces at 8.5 g/t gold JORC Resource at Second Fortune;
- 56,300 ounces at 9.7 g/t gold JORC Reserve at the Main Lode only;
- $97 million revenue to 300vm on Main Lode over 30 months;
- $34 million net cash flow (at A$1700 an ounce gold price); and
- +/-A$5 million pre-production capital.


Ore sorting

Ore sorting technology is used in numerous mining operations to reject low grade material  post mining and before haulage and processing expenses are incurred.

The plant is currently being operated on mullock material generated when the Second Fortune mine was operated in the 1980s.

Early indications of the circuit performance are very positive with sorted concentrate upgrades of 2 to 3 times the feed grade concentration.

The installed process plant, which is 100% owned by Exterra, has significantly greater capacity than that required for the planned underground mining operation.

Exterra continues to evaluate a number of opportunities that will utilise the spare capacity and provide production flexibility.


Analysis

The ore sorting technology delivers a number of major advantages in line with Exterra’s strategy of generating near term gold production to fund exploration and expansion.

Exterra retains a number of mineralised dumps around the Second Fortune site and estimates over 40,000 tonnes of material is readily accessible.

Sampling campaigns on the dumps indicate that dump grades may be in the range of 1-2 g/t gold.

By running samples of this material through a screening and sorting process, Exterra can quantify the value of the dumps as a revenue source pre underground mining at Second Fortune.

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Tue, 02 May 2017 13:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/177123/exterra-resources-produces-first-sorted-ore-at-second-fortune-177123.html
<![CDATA[News - Exterra Resources receives final required plant approval ]]> http://www.proactiveinvestors.com.au/companies/news/176962/exterra-resources-receives-final-required-plant-approval-176962.html Exterra Resources (ASX:EXC) has received its licence to operate the sorting plant, which is the final approval required to commence operations at the Second Fortune gold mine in Western Australia.

The Second Fortune gold mine is currently being developed, which will see Exterra become a gold producer.

Mullock material will be recovered from the dumps and processed through the sorting circuit as required to viably haul and process it remotely.

This trial phase, which will be used to quantify the value of the dumps as a revenue source before underground mining begins at Second Fortune is expected to take several weeks.

John Davis, executive chairman, commented: “Now that the operating licenses are in place we look forward to ramping up production from the mullock dumps as the preliminary stage to starting the mine at Second Fortune.”


Second Fortune development update

The sorting plant and associated infrastructure have been installed and are undergoing commissioning.

Commissioning is at an advanced stage and early indications of the circuit performance are very positive.

Details of the circuit performance and the potential impact on the integrated mining and mullock project will be discussed in coming weeks.

The focus of the mine planning has shifted to a hybrid owner’s contractor model which is expected to deliver significant benefits to the project.

The mine design and operating philosophy are being finalised based on the benefits sorting delivers with respect to managing dilution, and recovery of marginal grade material.

Details of the updated design and project metrics are to be released in coming weeks.

Toll treatment terms have been agreed and haulage terms are being reviewed and discussions are ongoing with preferred contractors.


Background

Exterra’s projects are all located in the Archaean Yilgarn Craton of Western Australia, a world class gold province which includes the Kalgoorlie Golden Mile deposit, which has produced over 50 million ounces of gold.

During November 2016, Exterra commenced the construction phase of its recently approved Second Fortune gold mine.

The Second Fortune underground mine feasibility study highlighted the low cost entry to gold production.

Study details include:

- 131,000 ounces at 8.5 g/t gold JORC Resource at Second Fortune;
- 56,300 ounces at 9.7 g/t gold JORC Reserve at the Main Lode only;
- $97 million revenue to 300vm on Main Lode over 30 months;
- $34 million net cash flow (at A$1700 an ounce gold price); and
- +/-A$5 million pre-production capital.

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Thu, 27 Apr 2017 11:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/176962/exterra-resources-receives-final-required-plant-approval-176962.html
<![CDATA[News - Exterra Resources outlines multi-commodity potential at Grass Flat ]]> http://www.proactiveinvestors.com.au/companies/news/175115/exterra-resources-outlines-multi-commodity-potential-at-grass-flat-175115.html Exterra Resources (ASX:EXC) has identified gold, iron ore and base metal potential at its recently acquired Grass Flat Project located in the central goldfields of Western Australia.

A review of historical exploration has identified potential for near surface high-grade gold deposits as well as large low-grade pitable gold deposits.

Furthermore, the review identified both iron ore prospectivity and volcanogenic massive sulphide (VMS) base metal targets.

Historical assays include gold intersections of 14 metres at 12.2 g/t gold from 56 metres and iron ore intersections of 34 metres at 59.4% iron from 0 metres.

Exterra will systematically evaluate all of these prospects to prioritise exploration for the 2017 field season.

John Davis, executive chairman, commented: “Strategies are being developed with respect to which of the prospective commodities receive early exploration funding during the 2017 field season.”

Exterra shares have more than doubled over the past 12 months, currently trading at $0.044.

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Tue, 21 Mar 2017 15:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/175115/exterra-resources-outlines-multi-commodity-potential-at-grass-flat-175115.html
<![CDATA[News - Exterra Resources sees gold, iron ore and base metal potential at Grass Flat ]]> http://www.proactiveinvestors.com.au/companies/news/174499/exterra-resources-sees-gold-iron-ore-and-base-metal-potential-at-grass-flat-174499.html Exterra Resources (ASX:EXC) has identified multi-commodity potential at its recently acquired Grass Flat Project located in the central goldfields of Western Australia.

A review of historical exploration has identified potential for near surface high-grade gold deposits as well as large low-grade pitable gold deposits.

Furthermore, the review identified both iron ore prospectivity and volcanogenic massive sulphide (VMS) base metal targets.

Exterra will systematically evaluate all of these prospects to prioritise exploration for the 2017 field season.

John Davis, executive chairman, commented: “The board is extremely encouraged by this early stage compilation of historic work at Grass Flat and plans are being made to verify, ground truth and follow-up much of this previous exploration work.”


Grass Flat

The project is located 200 kilometres north of Southern Cross or 250 kilometres northwest of the major gold mining centre of Kalgoorlie.

Good potential for near surface, high-grade gold deposits exists within 7 separate prospects including the historic Halley’s East gold mine.

Best intercepts from this historical drilling include:

- 14 metres at 12.2 g/t gold from 56 metres;
- 14 metres at 3.69 g/t gold from 25 metres;
- 8 metres at 5.87 g/t gold from 4 metres;
- 8 metres at 3.54 g/t gold from 12 metres; and
- 18 metres at 1.63 g/t gold from 26 metres.

Potential for large, low-grade open pitable gold resources within banded iron formation.

Best intercepts from this target include:

- 24 metres at 1.07 g/t gold from surface to end of hole;
- 21 metres at 0.89 g/t gold from surface to end of hole; and
- 8 metres at 1.47 g/t gold from surface to 8 metres.

Considerable hematite iron ore potential exists with historic work identifying 8 separate prospects within the 38 kilometres of banded iron formation that occurs within Exterra’s licences.

The Muldoon prospect contains a small, high-grade independently estimated hematite resource and best intercepts from previous drilling include:

- 34 metres at 59.4% iron from 0 metres;
- 32 metres at 60.4% iron from 6 metres; and
- 38 metres at 59.2% iron from 6 metres.

Exterra’s licences contain 12 kilometres strike of a volcanogenic massive sulphide horizon, prospective for copper-lead-zinc-silver-gold located immediately north of historic prospects with drill proven mineralisation.

Grass Flat has good infrastructure including a haul road from the recently mined Halley’s East gold deposit which is centrally located within, the project area.


Background

Exterra’s projects are all located in the Archaean Yilgarn Craton of Western Australia, a world class gold province which includes the Kalgoorlie Golden Mile deposit, which has produced over 50 million ounces of gold.

During November 2016, Exterra commenced the construction phase of its recently approved Second Fortune gold mine.

The Second Fortune underground mine feasibility study highlighted the low cost entry to gold production.

Study details include:

- 131,000 ounces at 8.5 g/t gold JORC Resource at Second Fortune;
- 56,300 ounces at 9.7 g/t gold JORC Reserve at the Main Lode only;
- $97 million revenue to 300vm on Main Lode over 30 months;
- $34 million net cash flow (at A$1700 an ounce gold price); and
- +/-A$5 million pre-production capital.

Most recently, Exterra had its amended works approval accepted by the Department of Environmental Regulation for processing and dewatering at the Second Fortune.

The sorting plant and associated infrastructure has been recently relocated to site for final assembly.

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Thu, 09 Mar 2017 09:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/174499/exterra-resources-sees-gold-iron-ore-and-base-metal-potential-at-grass-flat-174499.html
<![CDATA[News - Exterra Resources receives environmental green light at Second Fortune gold mine ]]> http://www.proactiveinvestors.com.au/companies/news/174412/exterra-resources-receives-environmental-green-light-at-second-fortune-gold-mine-174412.html Exterra Resources (ASX:EXC) has had its amended works approval accepted by the Department of Environmental Regulation for processing and dewatering at the Second Fortune gold mine in Western Australia.

The Second Fortune gold mine is currently being developed, which will see Exterra become a gold producer.

The sorting plant and associated infrastructure has been recently relocated to site for final assembly.

John Davis, executive chairman, commented: “It is pleasing that we will be able to de-risk our surface works in parallel with the ongoing mine development program.

“Integration of ore sorting into the Second Fortune mining project allows for the generation of cash flows from surface assets such as mullock while providing robustness to the proposed underground operation.”


Site development updates

Recent site updates at Second Fortune include:

- Delivery to site and assembly of the ore sorting unit and associated infrastructure, including conveyors, generator and compressor;
- Delivery to site of the mobile screening plant;
- Delivery to site of mine offices;
- Cell II of the evaporation pond nearing completion and a significant drop in the pit water level on the back of water extracted for the pond construction;
- Clearing of the Second Fortune haul road; and
- Ongoing discussions with mining contractors for the development and operation of the underground works.

The site is now equipped for the ramp up phase of the project.

Operator training on the screening plant has been completed and the crusher plant training is expected to take place in the next two weeks.

Water requirements for the ongoing construction of the evaporation ponds has significantly reduced the water level in the Second Fortune pit.

On completion of cell II and approval of the requisite licence to dewater, final dewatering of the pit and remnant underground workings can take place.


Self-funding nearby exploration

Future cash flows from the Second Fortune mine will provide Exterra the capacity to self-fund exploration in the future.

Exterra Resources retains a prospective land package in the Second Fortune area with numerous advanced exploration targets and projects at both Zelica and Malcolm.

Exterra also retains the Grass Flat Project north of the Diemals Mining Centre.

In addition to the work programs for the development of the Second Fortune Mine, the company is undertaking an extensive review of the above projects and the outcomes will be released as they become available.


Background

Exterra’s projects are all located in the Archaean Yilgarn Craton of Western Australia, a world class gold province which includes the Kalgoorlie Golden Mile deposit, which has produced over 50 million ounces of gold.

During November 2016, Exterra commenced the construction phase of its recently approved Second Fortune gold mine.

The Second Fortune underground mine feasibility study highlighted the low cost entry to gold production.

Study details include:

- 131,000 ounces at 8.5 g/t gold JORC Resource at Second Fortune;
- 56,300 ounces at 9.7 g/t gold JORC Reserve at the Main Lode only;
- $97 million revenue to 300vm on Main Lode over 30 months;
- $34 million net cash flow (at A$1700 an ounce gold price); and
- +/-A$5 million pre-production capital.

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Wed, 08 Mar 2017 09:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/174412/exterra-resources-receives-environmental-green-light-at-second-fortune-gold-mine-174412.html
<![CDATA[News - Exterra Resources demonstrate high gold recoveries at Second Fortune ]]> http://www.proactiveinvestors.com.au/companies/news/173756/exterra-resources-demonstrate-high-gold-recoveries-at-second-fortune-173756.html Exterra Resources (ASX:EXC) has demonstrated gold recoveries averaging 95% in conformational metallurgy work at the Second Fortune mine in Western Australia.

The metallurgical test work confirms historical data and is an important milestone towards securing ore purchase and tolling agreements.

The Second Fortune gold mine is currently being developed, which will see Exterra transition into a gold producer.

Exterra is currently mobilising the sorting plant at the Second Fortune in preparation for its commission in the pre-mining phase, expected to generate saleable gold concentrate.

Mining contract discussions are ongoing and site surface works advancing well.


Metallurgy details

A metallurgical leach program was carried out on both Second Fortune samples and Mullock Dump samples to confirm previous leaching results.

The program was designed to provide variability data with respect to the Second Fortune deposit, including tests on sorted concentrates.

In addition, the program included tests on concentrates derived from bulk sorting tests on the Mullock dumps.

All Second Fortune samples demonstrated very high gold recoveries, in the range of 94-98% and averaging ~95%, at a grind size of ~150 microns.

Gravity recoveries were also high averaging 69%.

Second Fortune tests demonstrated that low cyanide consumptions, ~0.28 kilograms per tonne, can be expected and the ore contains very low levels of deleterious elements.

The Mullock Dump samples demonstrated high gold recoveries, averaging ~96%, at a grind size of ~150 microns. Gravity recoveries were also high averaging 71%.


Background

Exterra’s projects are all located in the Archaean Yilgarn Craton of Western Australia, a world class gold province which includes the Kalgoorlie Golden Mile deposit, which has produced over 50 million ounces of gold.

During November 2016, Exterra commenced the construction phase of its recently approved Second Fortune gold mine.

The Second Fortune underground mine feasibility study highlighted the low cost entry to gold production.

Study details include:

- 131,000 ounces at 8.5 g/t gold JORC Resource at Second Fortune;
- 56,300 ounces at 9.7 g/t gold JORC Reserve at the Main Lode only;
- $97 million revenue to 300vm on Main Lode over 30 months;
- $34 million net cash flow (at A$1700 an ounce gold price); and
- +/-A$5 million pre-production capital.


Analysis

The confirmation of historical metallurgical work with this recent test work is a positive result for Exterra as it provides confidence that operating costs will remain low.

Exterra is on track to become a gold producer within the next few months through the commissioning of Second Fortune.

Importantly, future cash flows from the Second Fortune mine will provide Exterra the capacity to self-fund exploration in the future.

Furthermore, The Linden project hosts a number of advanced prospects within close proximity to the Second Fortune gold mine including Linden Star, Hill East and Golden Orb.

All prospects have the potential capacity to add gold ounces to the mine development and further enhance the project economics.

Shares in Exterra are trading up 120% over the past 12 months, currently priced at $0.051.

With the AUD gold price trading at A$1,635 per ounce, this is a favourable period to be making the transition into gold production.

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Mon, 27 Feb 2017 10:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/173756/exterra-resources-demonstrate-high-gold-recoveries-at-second-fortune-173756.html
<![CDATA[News - Exterra Resources discovers more gold as production looms ]]> http://www.proactiveinvestors.com.au/companies/news/172675/exterra-resources-discovers-more-gold-as-production-looms-172675.html Exterra Resources (ASX:EXC) has discovered more gold from the latest reverse circulation drilling program at Linden Star, which is located just 500 metres to the south west of the Second Fortune mine in Western Australia.

The Linden Star program in December covered 14 holes for 888 metres, with highlights:

– 4 metres at 7.1g/t gold from 13 metres;
– 2 metres at 8.0g/t gold from 64 metres;
– 2 metres at 2.3g/t gold from 32 metres; and
– 4 metres at 1.8g/t gold from 52 metres.

The Second Fortune program in October covered 13 holes for 985 metres, with highlights:

– 1.5 metres at 8.7g/t gold from 39 metres;
– 1 metres at 16.8g/t gold from 70 metres; and
– 0.5 metres at 12.4g/t gold from 39 metres.

Historic costeaning, shallow drilling and sampling of old workings and mullock dumps at Linden Star had demonstrated that gold bearing quartz structures are present along a strike length of over circa 500 metres.

The vein system is adjacent to one of the major bounding structures of the Laverton Tectonic Zone in an area of magnetite destruction interpreted to represent hydrothermal alteration.


Analysis

The program at Linden Star and Second Fortune Extended has confirmed the potential to outline near surface high grade gold resources to add further ounces to the Second Fortune mine development.

This development is progressing on track for first gold production in early 2017.

Exterra is currently focussed on compilation of a comprehensive and detailed geological, structural, geophysical and mineralization maps of the Second Fortune and Linden area to assist in refinement of existing drill targets and generation of new targets for planned 2017 exploration programs.

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Mon, 06 Feb 2017 14:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/172675/exterra-resources-discovers-more-gold-as-production-looms-172675.html
<![CDATA[News - Exterra Resources prepares to assemble gold processing plant ]]> http://www.proactiveinvestors.com.au/companies/news/171915/exterra-resources-prepares-to-assemble-gold-processing-plant-171915.html Exterra Resources (ASX:EXC) continues to advance the development of the Second Fortune gold mine within the Linden Project located 220 kilometres from Kalgoorlie.

The sorting plant is being pre-assembled in Perth and will be shipped to site in February.

The mobile crushing and screening units have been acquired and will be shipped to site in late January.

The plan remains to assemble the plant on site in February and commission it on existing stockpiles at Second Fortune.

John Davis, commented: “The program is advancing as planned and we are pleased to be able to accommodate development personnel on site in our own camp.

“We look forward to assembling the process plant on site and getting access to the dewatered pit.”


Background

Exterra’s projects are all located in the Archaean Yilgarn Craton of Western Australia, a world class gold province which includes the Kalgoorlie Golden Mile deposit, which has produced over 50 million ounces of gold.

During November 2016, Exterra commenced the construction phase of its recently approved Second Fortune gold mine.

The Second Fortune underground mine feasibility study highlighted the low cost entry to gold production.

Study details include:

- 131,000 ounces at 8.5 g/t gold JORC Resource at Second Fortune;
- 56,300 ounces at 9.7 g/t gold JORC Reserve at the Main Lode only;
- $97 million revenue to 300vm on Main Lode over 30 months;
- $34 million net cash flow (at A$1700 an ounce gold price); and
- +/-A$5 million pre-production capital.


Other development updates

The project management plan has been approved by the Department of Mines and Petroleum.

Work continues on finalising details of the mining contract with the preferred tenderer.

Construction of the evaporation ponds for dewatering the pit and underground operation is progressing well.

The first of the two ponds is complete and work has commenced on the second pond. Commissioning of the pit dewatering system has commenced.

Site surface works are at an advanced stage with the completion of the accommodation camp and associated infrastructure.

Old process workings have been removed and remaining sheds and pads are being modified for use as mining workshops and laydown areas.


Analysis

Exterra is on track to become a gold producer within the next few months through the commissioning of Second Fortune.

Importantly, future cash flows from the Second Fortune mine will provide Exterra the capacity to self-fund exploration in the future.

Furthermore, The Linden project hosts a number of advanced prospects within close proximity to the Second Fortune gold mine including Linden Star, Hill East and Golden Orb.

All prospects have the potential capacity to add gold ounces to the mine development and further enhance the project economics.

During December, Exterra commenced a 1,000 metre drilling program to follow-up high priority targets located less than 500 metres from the Second Fortune open pit.

With the drill program running in parallel with mine development, Exterra shareholders remain leveraged to exploration upside.

Shares in Exterra are trading up over 4x over the past 12 months, currently priced at $0.051.

With the AUD gold price trading at A$1,595 per ounce, this is a favourable period to be making the transition into gold production.

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Fri, 20 Jan 2017 11:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/171915/exterra-resources-prepares-to-assemble-gold-processing-plant-171915.html
<![CDATA[News - Exterra Resources commences drilling alongside gold mine development ]]> http://www.proactiveinvestors.com.au/companies/news/170300/exterra-resources-commences-drilling-alongside-gold-mine-development-170300.html Exterra Resources (ASX:EXC) has commenced a 1,000 metre drilling program to follow-up high priority targets at Linden Star and Second Fortune Extension located within the Linden Project located 220 kilometres by road from Kalgoorlie.

Drilling will be conducted alongside the recently commenced development of the Second Fortune gold mine where surface works are well advanced.

The drill targets are located less than 500 metres from the Second Fortune open pit. Drilling will follow up historical intercepts including 9 metres at 7.6 g/t gold from 25 metres depth.

John Davis, chairman, commented:

"The program at Linden Star and Second Fortune Extended has the potential to outline near surface high grade gold resources to add further ounces to the Second Fortune mine development, which is progressing on track for first gold production in early 2017."


Drill target details

Historical shallow drilling and sampling of old workings and mullock dumps demonstrate that gold bearing quartz structures are present along a strike length of over 500 metres.

The vein system is adjacent to one of the major bounding structures of the Laverton Tectonic Zone in an area of magnetite destruction interpreted to represent hydrothermal alteration.


Historical drilling includes:

Drilling during 1984-1987

- 9 metres at 7.6 g/t gold from 25 metres;
- 3 metres at 6.4 g/t gold from 5 metres;
- 1 metre at 4.4 g/t gold from 17 metres; and
- 1 metre at 3.9 g/t gold from 29 metres.

Drilling during 2010-2011

- 2 metres at 4.1 g/t gold 14 metres;
- 1 metre at 97.4 g/t gold from 23 metres; and
- 5 metres at 4.0 g/t gold from 15 metres.


Second Fortune gold mine development

During November 2016, Exterra commenced the construction phase of its recently approved Second Fortune gold mine, which is part of the Linden Project.

Construction will take four to six weeks after which time the open pit and underground workings will be dewatered.

The company’s recent $4 million capital raising ensures that funding for the pre-production activities is in place.

Future cash flows from the Second Fortune mine will provide Exterra the capacity to self-fund exploration in the future.


Analysis

The Linden project hosts a number of advanced prospects within close proximity to the Second Fortune gold mine including Linden Star, Hill East and Golden Orb.

All prospects have the potential capacity to add gold ounces to the mine development and further enhance the project economics.

Exterra is on track to become a gold producer within the next 6 months.

Importantly, future cash flows from the Second Fortune mine will provide Exterra the capacity to self-fund exploration in the future.

Shares in Exterra are trading up five times year to date, currently priced at $0.05.

With the drill program commencing in parallel with mine development, Exterra shareholders remain leveraged to exploration upside.

]]>
Mon, 12 Dec 2016 14:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/170300/exterra-resources-commences-drilling-alongside-gold-mine-development-170300.html
<![CDATA[News - Exterra Resources Ltd begins construction of Second Fortune gold mine ]]> http://www.proactiveinvestors.com.au/companies/news/168771/exterra-resources-ltd-begins-construction-of-second-fortune-gold-mine-168771.html Exterra Resources Ltd (ASX:EXC) has commenced the construction phase of its recently approved Second Fortune gold mine, which is part of the Linden Project and located 220 kilometres by road from Kalgoorlie.

Construction will take four to six weeks after which time the open pit and underground workings will be dewatered.

The company’s recent $4 million capital raising ensures that funding for the pre-production activities is in place.

Future cash flows from the Second Fortune mine will provide Exterra the capacity to self-fund exploration in the future.

John Davis, executive chairman, commented: “The development program is advancing as planned and we are very pleased to be able to move into this pre-production phase on the back of the recently completed capital raising.”


Background

Exterra’s projects are all located in the Archaean Yilgarn Craton of Western Australia, a world class gold province which includes the Kalgoorlie Golden Mile deposit, which has produced over 50 million ounces of gold.

The company is currently undertaking a development study on the Second Fortune gold mine, which is part of the Linden Project and positioned 220 kilometres by road north northeast of Kalgoorlie.

The Second Fortune underground mine feasibility study highlighted the low cost entry to gold production.

Study details include:

- 131,000 ounces at 8.5 g/t gold JORC Resource at Second Fortune;
- 56,300 ounces at 9.7 g/t gold JORC Reserve at the Main Lode only;
- $97 million revenue to 300vm on Main Lode over 30 months;
- $34 million net cash flow (at A$1700 an ounce gold price); and
- +/-A$5 million pre-production capital.

Exterra has executed a management and services agreement with the Mitchell River Group (MRG).

MRG brings the requisite skills to the Linden Project on a cost plus basis to ensure a smooth development pathway for the Second Fortune mine.


Analysis

Exterra is on track to become a gold producer within the next 6 months.

With the AUD gold price trading at A$1,670 per ounce, this is a favourable period to be making the transition into gold production.

Recent ore sorting test work has proven successful at Second Fortune resulting in an average grade uplift of 2.6 times.

This will have a positive impact on both the economics of the operation and also lead to an increase in the mineable reserve.

Furthermore, opportunity exists to extend the resource at depth and along strike providing potential to extend the mine life.

Shares in Exterra are trading up 7 times year to date, currently priced at $0.07.

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Thu, 10 Nov 2016 09:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/168771/exterra-resources-ltd-begins-construction-of-second-fortune-gold-mine-168771.html
<![CDATA[News - Exterra Resources Ltd: Gold Production in FY17 ]]> http://www.proactiveinvestors.com.au/companies/news/168368/exterra-resources-ltd-gold-production-in-fy17-168368.html Gold Production in FY17, Blue-Sky Exploration Amongst the Majors.


Key Points

- Exterra Resources’ (EXC) flagship deposit at the Linden Project has a current Reserve of 56.3koz @ 9.7g/t (total Inferred/Indicated Resource ~131.1koz @ 8.5g/t) near Laverton in the Eastern Goldfields.

Estimated cash flow from a projected 2.5yr mine life is ~A$34m (based on current Reserve) and total unit costs estimated at ~$1,050-$1,100/oz.


- Significant regional exploration upside across following key targets (further targets to be defined):

Hill East – Significant gold mineralisation near surface with over 1km of strike. First time it has been drilled in 20 years and has a strong porphyry association.

Golden Orb – High priority target and represents a new discovery near-surface, which has also reported anomalous silver (2m @ 22.15 g/t Ag).


- Exterra is currently negotiating contract mining rates (with a number of groups) and a potential ore sales/toll treatment agreement with nearby milling facilities (Carosue Dam, Sunrise Dam, Lakewood and Granny Smith all within vicinity of the EXC’s tenements).

The deposit is located on a mining licence and only requires minimal approvals to press ahead with full mine development.

EXC is planning to start ore production within the next 6 months.


- Ore sorting has proven successful at Second Fortune (average grade uplift in test work = 2.6x).

This will have a positive impact on both the economics of the operation and also lead to an increase in the mineable Reserve (we estimate it could be over 70koz).

Additionally, the current resource is only down 350m with a high probability of extending at depth, building on the mine life and significantly increasing potential cash flow. The Second Fortune deposit is also open along strike.

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Wed, 02 Nov 2016 10:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/168368/exterra-resources-ltd-gold-production-in-fy17-168368.html
<![CDATA[News - Exterra Resources raises $4M to support rapid gold mine development ]]> http://www.proactiveinvestors.com.au/companies/news/167326/exterra-resources-raises-4m-to-support-rapid-gold-mine-development-167326.html Exterra Resources Ltd (ASX:EXC) has raised $4.025 million through a placement of shares priced at $0.07 to progress the Second Fortune Gold Mine into production and cash flow. 

Second Fortune lies within the company’s 100% owned Linden Project located in the Yilgarn region of Western Australia.

Exterra has entered into a management and services agreement with the Mitchell River Group to develop the Second Fortune Gold Mine.

The Board resolved to recommence mining operations on 28 September 2016 and project development is moving ahead rapidly.

Mining is scheduled for early 2017 and future cash flows will provide Exterra with the ability to self-fund future exploration.

The Second Fortune underground mine feasibility study estimates $34 million of net cash flow over 30 months.


Background

Exterra’s projects are all located in the Archaean Yilgarn Craton of Western Australia, a world class gold province which includes the Kalgoorlie Golden Mile deposit, which has produced over 50 million ounces of gold.

The company is currently undertaking a development study on the Second Fortune gold mine, which is part of the Linden Project and positioned 220 kilometres by road north northeast of Kalgoorlie.

The Second Fortune underground mine feasibility study highlighted the low cost entry to gold production.

Study details include:

- 131,000 ounces at 8.5 g/t gold JORC Resource at Second Fortune;
- 56,300 ounces at 9.7 g/t gold JORC Reserve at the Main Lode only;
- $97 million revenue to 300vm on Main Lode over 30 months;
- $34 million net cash flow (at A$1700 an ounce gold price); and
- +/-A$5 million pre-production capital.

Exterra has executed a management and services agreement with the Mitchell River Group (MRG).

MRG brings the requisite skills to the Linden Project on a cost plus basis to ensure a smooth development pathway for the Second Fortune mine.

All regulatory approvals have been received to commence project development of an underground mining operation.


Drilling program

Drilling of 13 reverse circulation holes was recently completed to further define strike extensions to the north and south of the Second Fortune Mine Resource. 

This has the potential to increase the current Reserve and further enhancing project economics.

Results will be reported as soon as they become available.

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Thu, 13 Oct 2016 09:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/167326/exterra-resources-raises-4m-to-support-rapid-gold-mine-development-167326.html
<![CDATA[News - Exterra Resources Ltd gets ready to raise ]]> http://www.proactiveinvestors.com.au/companies/news/167175/exterra-resources-ltd-gets-ready-to-raise-167175.html Exterra's strategy has a focus on high-grade, high-margin gold projects with near term production potential.

The trading halt will remain in place until the opening of trade on Thursday 13th October 2016, or earlier if an announcement is made to the market.

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Tue, 11 Oct 2016 08:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/167175/exterra-resources-ltd-gets-ready-to-raise-167175.html
<![CDATA[News - Exterra Resources Ltd granted licenses in high-grade gold field ]]> http://www.proactiveinvestors.com.au/companies/news/166983/exterra-resources-ltd-granted-licenses-in-high-grade-gold-field-71378.html Exterra Resources Ltd (ASX:EXC) has now been granted prospecting licences over the high-grade Grass Flat Gold Project in Western Australia.

Exterra has commenced a review of the project which confirmed the presence of a large number of potentially economic grade gold intercepts.

Highlights from reverse circulation drilling include: 4 metres at 9.56g/t gold, including 1 metre at 33.47g/t gold; and 7 metres at 9.20g/t gold, including 3 metres at 18.90g/t gold.

The project was identified through a review of historical exploration by previous holders.


Analysis

Exterra's strategy has a focus on high-grade, high-margin gold projects with near term production potential.

The potential has already been identified at Grass Flat.

The next steps will be highly anticipated.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 06 Oct 2016 10:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/166983/exterra-resources-ltd-granted-licenses-in-high-grade-gold-field-71378.html
<![CDATA[News - Exterra Resources Ltd board approves gold mining at Second Fortune ]]> http://www.proactiveinvestors.com.au/companies/news/166570/exterra-resources-ltd-board-approves-gold-mining-at-second-fortune-71248.html Exterra Resources Ltd’s (ASX:EXC) board has approved the plan to re-commence mining at the wholly owned Second Fortune gold mine within the Linden Project located in Western Australia.

The approval is significant and initiates the development phase, which will commence with the construction and mine de-watering.

Mining is scheduled for early 2017 and future cash flows will provide Exterra with the ability to self-fund future exploration.

The Second Fortune underground mine feasibility study estimates $34 million of net cash flow over 30 months.

John Davis, chairman, commented: “We look forward to advancing the development of the project through to production over coming months.”


Background

Exterra’s projects are all located in the Archaean Yilgarn Craton of Western Australia, a world class gold province which includes the Kalgoorlie Golden Mile deposit, which has produced over 50 million ounces of gold.

The company is currently undertaking a development study on the Second Fortune gold mine, which is part of the Linden Project and positioned 220 kilometres by road north northeast of Kalgoorlie.

The Second Fortune underground mine feasibility study highlighted the low cost entry to gold production.

Study details include:

- 131,000 ounces at 8.5 g/t gold JORC Resource at Second Fortune;
- 56,300 ounces at 9.7 g/t gold JORC Reserve at the Main Lode only;
- $97 million revenue to 300vm on Main Lode over 30 months;
- $34 million net cash flow (at A$1700 an ounce gold price); and
- +/-A$5 million pre-production capital.

Exterra has executed a management and services agreement with the Mitchell River Group (MRG).

MRG brings the requisite skills to the Linden Project on a cost plus basis to ensure a smooth development pathway for the Second Fortune mine.

All regulatory approvals have been received to commence project development of an underground mining operation.


Drilling program

In addition to commencement of the mine development, drilling at Second Fortune will commence in coming days.

The drilling program is designed to provide additional information on those areas of the resource currently in the inferred categories and particularly those near the surface that may be mined during the early phase of operation.

Exterra retains a highly prospective land package in the Second Fortune area with numerous advanced exploration targets and projects at both Zelica and Malcolm.


Next steps

Key milestones to commencement of mining include:

- Approval of the surface Project Management Plan;
- Finalisation of ore sale/purchase agreement;
- Procurement of ore sorting machine;
- Construction of evaporation ponds;
- Award of mining contract;
- Approval of mine Project Management Plan;
- Pit and underground dewatering;
- Haul road construction;
- Sorting plant construction; and
- Portal development and crown pillar recovery.

Construction of the evaporation pond is expected to start in October and mining in early 2017.


Analysis

The board approval to commence the development phase at Second Fortune represents a core milestone for Exterra as it transitions from gold explorer to gold producer.

Second Fortune has the potential for a high-grade, profitable, narrow vein underground mining operation, with a low estimated capital cost via third party processing.

The mine feasibility study has already demonstrated the project is robust, generating free cash of $34 million at current gold prices, with preproduction costs of $5 million.

Recent ore sorting trials have proved successful for Exterra - by minimising the amount of ore needing to be hauled and processed, the company will be able to lower costs.

The potential to remove waste from ore also has a significant impact on the potential to mine narrow vein ore by removing mining dilution at low cost allowing for greater conversion of resources to reserves.

Exterra is trading up 680% year to date, currently priced at $0.078.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 28 Sep 2016 09:40:00 +1000 http://www.proactiveinvestors.com.au/companies/news/166570/exterra-resources-ltd-board-approves-gold-mining-at-second-fortune-71248.html
<![CDATA[News - Exterra Resources Ltd completes ore sorting trials ahead of gold production ]]> http://www.proactiveinvestors.com.au/companies/news/166416/exterra-resources-ltd-completes-ore-sorting-trials-ahead-of-gold-production-71208.html Exterra Resources Ltd (ASX:EXC) has successfully completed an ore sorting trial, a key milestone in the development of the Second Fortune gold mine within the Linden Project located in Western Australia.

The trial involved processing multiple bulk samples from Second Fortune using a Tomra ore sorting plant.

The results show that in excess of 60% of ore mass can be rejected on site prior to haulage and processing.

By eliminating waste material from the ore, costs can be lowered and project economics can be improved.

John David, chairman, commented: “We are very pleased with the outcome of the sorting programmes and the potential benefits the technology delivers to the project. 

“We look forward to advancing the development of the project through to production over coming months.”


Gold production opportunity

The company is currently undertaking a development study on the Second Fortune gold mine, which is part of the Linden Project and positioned 220 kilometres by road north northeast of Kalgoorlie.

The Second Fortune underground mine feasibility study highlighted the low cost entry to gold production.

Study details include:

- 131,000 ounces at 8.5 g/t gold JORC Resource at Second Fortune;
- 56,300 ounces at 9.7 g/t gold JORC Reserve at the Main Lode only;
- $97 million revenue to 300vm on Main Lode over 30 months;
- $34 million net cash flow (at A$1700 an ounce gold price); and
- +/-A$5 million pre-production capital.

Exterra has executed a management and services agreement with the Mitchell River Group (MRG).

MRG brings the requisite skills to the Linden Project on a cost plus basis to ensure a smooth development pathway for the Second Fortune mine.

Production is scheduled for Q1 2017.

All regulatory approvals have been received to commence project development of an underground mining operation.


Analysis

The ore sorting trials have proved successful for Exterra - by minimising the amount of ore needing to be hauled and processed, Exterra will be able to lower costs.

Second Fortune has the potential for a high-grade, profitable, narrow vein underground mining operation, with a low estimated capital cost via third party processing.

The mine feasibility study has already demonstrated the project is robust, generating free cash of $34 million at current gold prices, with preproduction costs of $5 million.

The inclusion of sorting to the project will likely provide a significant benefit to the project operating costs. 

The potential to remove waste from ore also has a significant impact on the potential to mine narrow vein ore by removing mining dilution at low cost allowing for greater conversion of resources to reserves.

Exterra is trading up 680% year to date, currently priced at $0.078.

Key milestones to be achieved include:

– Mining Approvals: Granted
– Water Abstraction licence: Granted
– Mining design and scheduling: In progress
– Ore Sales Term Sheet: Advanced
– Mining contractor appointment: Advanced
– Financing: Discussions underway

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Mon, 26 Sep 2016 12:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/166416/exterra-resources-ltd-completes-ore-sorting-trials-ahead-of-gold-production-71208.html
<![CDATA[News - Exterra Resources Ltd to deliver a low cost entry to gold production ]]> http://www.proactiveinvestors.com.au/companies/news/166117/exterra-resources-ltd-to-deliver-a-low-cost-entry-to-gold-production-71092.html Exterra Resources Ltd (ASX:EXC) continues to deliver on the potential of the wholly-owned Linden Gold Project in Western Australia.

Recently, the company identified economic mineralisation at three prospects.

The Linden Project hosts the Second Fortune gold mine. All regulatory approvals have been received to commence project development of an underground mining operation.

The Second Fortune underground mine Feasibility Study highlighted the low cost entry to gold production.

Metrics included:

- 131,000 ounces at 8.5g/t gold JORC Resource at Second Fortune;
- 56,300 ounces at 9.7g/t gold JORC Reserve at the Main Lode only;
- $97 million Revenue to 300vm on Main Lode over 30 months;
- $34 million Net Cash Flow (at A$1700 an ounce gold price); and
- +/-A$5 million Pre-Production Capital.

A management / services agreement is in place with Mitchell River Group for mine development.

Production is scheduled for Q1 2017.


Analysis

Second Fortune has the potential for a high-grade, profitable, narrow vein underground mining operation, with a low estimated capital cost via third party processing.

Key milestones to be checked off:

– Mining Approvals: Granted
– Water Abstraction licence: Granted
– Mining design and scheduling: In progress
– Ore Sales Term Sheet: Advanced
– Mining contractor appointment: Advanced
– Financing: Discussions underway

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 20 Sep 2016 09:20:00 +1000 http://www.proactiveinvestors.com.au/companies/news/166117/exterra-resources-ltd-to-deliver-a-low-cost-entry-to-gold-production-71092.html
<![CDATA[News - Exterra Resources Ltd appoints Geoff Laing to the board ]]> http://www.proactiveinvestors.com.au/companies/news/165496/exterra-resources-ltd-appoints-geoff-laing-to-the-board-70576.html Exterra Resources Ltd (ASX:EXC) has now appointed Geoff Laing as an executive director of the company.

Mitchell River Group (MRG) nominated Laing as a director to add production based expertise to the board in preparation for the roll out of the Second Fortune Gold Mine development strategy.

Exterra recently executed a management and services agreement with the MRG.

Following Laing’s appointment, John Davis will assume the role of executive chairman.

The company’s projects are all located in the Archaean Yilgarn Craton in Western Australia.

This is a world-class gold province which has been a prolific producer since the late 1880’s and includes the Kalgoorlie “Golden Mile” deposit which has produced over 50 million ounces of gold since discovery in 1893.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 22 Aug 2016 08:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165496/exterra-resources-ltd-appoints-geoff-laing-to-the-board-70576.html
<![CDATA[News - Exterra Resources Ltd discovers more gold as production nears ]]> http://www.proactiveinvestors.com.au/companies/news/165495/exterra-resources-ltd-discovers-more-gold-as-production-nears-70494.html Exterra Resources Ltd (ASX:EXC) has received final assays from the 76 hole program, which has identified economic mineralisation at three prospects within the wholly owned Linden Project in Western Australia.

Results including 2 metres at 5.74 g/t gold were discovered at Second Fortune Extended, Mt Linden and Pipeline prospects.

The Linden Project hosts the Second Fortune gold mine. All regulatory approvals have been received to commence project development of an underground mining operation.

This final batch of results follows the first two batches which identified multiple mineralised holes grading up to 57.8 g/t gold.

Further sampling is underway to provide a basis for interpretation leading to follow-up drilling.


Drill result details

This batch of assay results represents the Second Fortune Extended, Mt Linden and Pipeline prospects and is the final batch of the 76 hole drilling program at Linden.

Highlights include:

- Second Fortune Extended: 2 metres at 5.74 g/t gold from 39 metres (hole ended in mineralisation);
- Second Fortune Extended: 2 metres at 3.68 g/t gold from 36 metres;
- Mt Linden: 8 metres at 1.08 g/t gold from 74 metres including 1 metres at 2.16 g/t gold;
- Mt Linden: 2 metres at 1.50 g/t gold from 31 metres;
- Mt Linden: 2 metres at 0.97 g/t gold from 70 metres; and
- Pipeline: 2 metres at 2.27 g/t gold from 29 metres including 1 metre at 2.81 g/t gold.

The drilling at Second Fortune Extended has confirmed economic grade gold mineralisation 350 metres to the south of the Second Fortune mine.

Aeromagnetic data suggests this mineralisation may be linked to the Second Fortune mine.


Near term gold production

The company is currently undertaking a development study on the Second Fortune gold mine, which is part of the Linden Project.

Second Fortune is positioned 220 kilometres by road north northeast of Kalgoorlie and has an underground reserve of 181,000 tonnes grading 9.7 g/t gold for 56,300 ounces.

All regulatory approvals have been received to commence project development of an underground mining operation.

Exterra recently executed a management and services agreement with the Mitchell River Group (MRG).

MRG brings the requisite skills to the Linden Project on a cost plus basis to ensure a smooth development pathway for the Second Fortune mine.

Studies currently underway include: ore sorting test work, treatment of surface stockpiles for early cash flow, mine plan optimisation, mine dewatering and camp/site works.


Analysis

The final batch of drill results continues to exhibit the potential the under-explored Linden Project has to identify economic resources.

Gold mineralisation at Second Fortune Extended highlights the potential for additional gold resources proximate to the proposed Second Fortune gold mine.

Similar to previous batches, intervals end in gold, and the full extent of the gold mineralisation is yet to be fully understood.

Any additional resources identified within the Linden Project will complement the Second Fortune gold mine, which is currently the subject of a development study.

Studies on Second Fortune are progressing positively with potential evident for increasing early cash flow and decreasing operating costs and capex.

MRG’s experience in project management, funding and development should support a smooth pathway to profitable gold production from Second Fortune.

Exterra is trading up 600% year to date, currently trading at $0.07.

Exterra maintains a dual-exploration focus on gold and lithium, ensuring strong news flow in the near-term.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 17 Aug 2016 09:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165495/exterra-resources-ltd-discovers-more-gold-as-production-nears-70494.html
<![CDATA[News - Exterra Resources Ltd eyes gold production at Second Fortune ]]> http://www.proactiveinvestors.com.au/companies/news/165494/exterra-resources-ltd-eyes-gold-production-at-second-fortune-70427.html Exterra Resources Ltd (ASX:EXC) is progressing multiple studies related to the development of the Second Fortune gold mine located within the 100% owned Linden Project in Western Australia.

Exterra recently executed a management and services agreement with the Mitchell River Group (MRG).

MRG brings the requisite skills to the Linden Project on a cost plus basis to ensure a smooth development pathway for the Second Fortune mine.

Studies currently underway include: ore sorting test work, treatment of surface stockpiles for early cash flow, mine plan optimisation, mine dewatering and camp/site works.

John Davis, managing director, commented:

“We are very pleased with the progress to date by the Mitchell River Group as part of the ‘owners team’ to develop the Second Fortune gold mine with already some potential positive impacts on the project economics being outlined and we look forward to further developments.”


Study details

Various studies have commenced as part of the project development, resulting in potential positive impacts on the project economics.

These studies have been supported by MRG site visits along with other consultants investigating various aspects of the mine development including:

- Ore sorting test work (lower costs): In progress with first pass results indicating the potential to significantly upgrade the mined ore bulk grade with an associated reduction in tonnages, thereby reducing haulage and processing costs.  

- Surface stockpiles (early cash flow): Investigation of potential for early cash flow from treatment of surface ore stockpiles utilising the ore sorting technology. Detailed sampling currently in progress to finalise grade and tonnage estimates.

- Mine plan optimisation (early cash flow): Investigating options to mine the high grade Crown Pillar below the current open pit in early development to bring forward first cash flows.

- Mine dewatering (lower capital costs): Reviewing mine dewatering options.

- Camp/site works (lower capital costs): Reviewing camp/site works to maximise existing surface infrastructure.


Near term gold production

The company is currently undertaking a development study on the Second Fortune gold mine, which is part of the Linden Project.

Second Fortune is positioned 220 kilometres by road north northeast of Kalgoorlie and has an underground reserve of 181,000 tonnes grading 9.7 g/t gold for 56,300 ounces.

All regulatory approvals have been received to commence project development of an underground mining operation.


Analysis

Studies on Second Fortune are progressing positively with potential evident for increasing early cash flow and decreasing operating costs and capex.

MRG’s experience in project management, funding and development should support a smooth pathway to profitable gold production from Second Fortune.

The underground resource at Second Fortune remains open in many directions.

Exterra is trading up 590% year to date, currently trading at $0.069.

Exterra maintains a dual-exploration focus on gold and lithium, ensuring strong news flow in the near-term.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 15 Aug 2016 09:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165494/exterra-resources-ltd-eyes-gold-production-at-second-fortune-70427.html
<![CDATA[News - Exterra Resources Ltd substantial shareholder increases stake on-market ]]> http://www.proactiveinvestors.com.au/companies/news/154249/exterra-resources-ltd-substantial-shareholder-increases-stake-on-market-70142.html Exterra Resources Ltd's (ASX:EXC) substantial shareholder, Berhard Stephens, has increased his stake in the company through on-market purchases.

In three trades during July, Stephens lifted his stake to 11.55% from 10.27%.

Exterra maintains a dual-exploration focus on gold and lithium, ensuring strong news flow in the near-term.


Exterra enters agreement for Linden Project

Exterra has executed a Management and Services Agreement with the Mitchell River Group (MRG).

MRG brings the requisite skills to the Linden Project on a cost plus basis to ensure a smooth development pathway for the Second Fortune Mine.

A MRG representative will be appointed to the board.

MRG recently invested $500,000 in Exterra by participating in the successful $1.5 million share placement.

John Davis, managing director for Exterra, commented:

“We are very pleased to have the Mitchell River Group as part of the “owners team” to develop the Second Fortune gold mine in a very strong gold market, and as a shareholder of the company, which shows support for the company’s projects and potential.

"Their experience in project management, funding and development should provide a smooth pathway to profitable gold production from Second Fortune and we look forward to MRG being part of the team."

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 01 Aug 2016 08:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154249/exterra-resources-ltd-substantial-shareholder-increases-stake-on-market-70142.html
<![CDATA[News - Exterra Resources Ltd discovers more high grade gold zones at Linden ]]> http://www.proactiveinvestors.com.au/companies/news/154248/exterra-resources-ltd-discovers-more-high-grade-gold-zones-at-linden-69892.html Exterra Resources Ltd (ASX:EXC) has received more positive assays from its drilling program at the 100% owned Linden Project located in Western Australia.

This batch of results has identified multiple mineralised gold zones grading up to 57.8 g/t gold across the Hill East, Golden Orb and Alawa prospects within Linden.

These results follow the first batch of assays where 23 of the 25 holes returned gold mineralised intersections.

At Hill East, drilling has now confirmed widespread economic grade gold mineralisation over at least 1 kilometre.

The Linden Project also hosts the Second Fortune underground gold mine, which could see Exterra become a gold producer in the short term.

Further assay results from drilling completed at Cuckoo Hawk, Pipeline, Second Fortune Extended, Marloo and Mt Linden are expected shortly.


Drill result details

This batch of assay results represents the Hill East, Golden Orb and Alawa prospects and is a part of the 76 hole drilling program at Linden.

Highlights include:

- Hill East: 7 metres at 2.66 g/t gold from 32 metres including 5 metres at 3.37 g/t gold;
- Golden Orb: 5 metres at 2.86 g/t gold from 30 metres including 3 metres at 3.96 g/t gold;
- Golden Orb: 2 metres at 3.68 g/t gold from 33 metres;
- Golden Orb: 2 metres at 5.22 g/t gold from 11 metres including 1 metre at 9.31 g/t gold;
- Alawa: 2 metres at 39.47 g/t gold from 66 metres including 1 metre at 57.80 g/t gold; and
- Alawa: 1 metre at 8.19 g/t gold from 58 metres.

These results at Hill East further confirm significant gold mineralisation with associated highly anomalous arsenic over at least 1 kilometre of strike and near surface.

The Golden Orb represents a potential new discovery and a new priority target amongst a growing regional portfolio of targets within this poorly explored tenement package.

Alawa’s high grade narrow vein style gold intersected confirms potential for a Second Fortune style deposit. The intercept is along strike from previous work and remains open along strike and at depth.


Near term gold production

The company is currently undertaking a development study on the Second Fortune gold mine, which is part of the Linden Project.

Exterra have recently executed a term sheet with the Mitchell River Group (MRG) which contemplates the parties entering into a management agreement.

The agreement would allow MRG to bring the technical and commercial personnel, experienced in project development, to the Linden Project on a cost plus basis to ensure a smooth development pathway for the Second Fortune Mine.

Second Fortune is positioned 220 kilometres by road north northeast of Kalgoorlie, and is currently the subject of a development study.

All regulatory approvals have been received to commence project development of an underground mining operation.


Analysis

This second batch of drill results continues to exhibit the potential the under-explored Linden Project has to identify economic resources.

Gold mineralisation at Hill East highlights the potential for open pittable gold deposits at Linden and follow up drilling is warranted.

Positively, a number of intervals end in gold, and the full extent of the gold mineralisation will not be fully understood until the remaining assays are returned.

The mineralisation discovered at Golden Orb and Alawa are representative of potential new discoveries and further highlights the growing regional portfolio of targets within this poorly explored tenement package.

Any additional resources identified within the Linden Project will complement the Second Fortune gold mine, which is currently the subject of a development study.

Exterra Resources recently received commitments to raise A$1.5 million through the placement of 37.5 million shares at $0.04 per share.

Exterra is trading up 570% year to date, currently trading at $0.067.

Exterra maintains a dual-exploration focus on gold and lithium, ensuring strong news flow in the near-term.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 19 Jul 2016 09:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154248/exterra-resources-ltd-discovers-more-high-grade-gold-zones-at-linden-69892.html
<![CDATA[News - Exterra Resources Ltd’s substantial shareholder increases stake yet again ]]> http://www.proactiveinvestors.com.au/companies/news/154247/exterra-resources-ltds-substantial-shareholder-increases-stake-yet-again-69635.html Exterra Resources Ltd’s (ASX:EXC) substantial shareholder, Bernard Stephens, has increased his stake in the company for the second time within two months.

Stephens has now moved to a 10.27% stake, from 8.21%, after both purchasing shares on market and participating in the recent $1.5 million share placement.

This builds on his recent increase to 8.21% from 6.53% in late May through on market purchases.

Exterra currently has a dual focus on gold and lithium.

Exterra is currently pursuing debt funding to fund development of the Second Fortune mine alongside the Mitchell River Group (MRG), a mining investment partnership and technical services consultancy.

Exterra and MRG have executed a term sheet which contemplates the parties entering into a management agreement.

The agreement would allow MRG to bring the technical and commercial personnel, experienced in project development, to the Linden Project on a cost plus basis to ensure a smooth development pathway for the Second Fortune Mine.

Second Fortune is the company's most developed prospect within its Western Australian gold exploration portfolio, and is located within its wholly-owned Linden Gold Project 220 kilometres north northwest of Kalgoorlie.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 05 Jul 2016 17:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154247/exterra-resources-ltds-substantial-shareholder-increases-stake-yet-again-69635.html
<![CDATA[News - Exterra Resources Ltd enhances Second Fortune strategy on surging gold price ]]> http://www.proactiveinvestors.com.au/companies/news/154246/exterra-resources-ltd-enhances-second-fortune-strategy-on-surging-gold-price-69601.html Exterra Resources Ltd (ASX:EXC) is taking advantage of the surging gold price, which is currently trading in Australian Dollars at circa A$1800 an ounce.

The company is currently undertaking a development study on the Second Fortune gold mine, which is part of the Linden Project, located in the world class gold province of the Archaean Yilgarn Craton in Western Australia.

Exterra has now advised that the company and Pybar Mining Services Pty Ltd have agreed to terminate the current joint development strategy for Second Fortune.

This was done in favour of pursuing a more conventional debt/equity financing arrangement given improved market conditions and the new operational arrangements with the Mitchell River Group (MRG).

Exterra and MRG have executed a term sheet which contemplates the parties entering into a management agreement.

The agreement would allow MRG to bring the technical and commercial personnel, experienced in project development, to the Linden Project on a cost plus basis to ensure a smooth development pathway for the Second Fortune Mine.

On this basis, MRG will be working closely with Pybar to finalise financing and an underground mining and services contract going forward.


Next steps

Exterra will now pursue debt funding in a very strong gold market, using the experience of MRG, to fund development of the Second Fortune mine and with all profits from gold production remaining 100% Exterra.

This also reduces dilution to shareholders and preserves the upside exposure in relation to the mine.


Second Fortune

Second Fortune is positioned 220 kilometres by road north northeast of Kalgoorlie, and is currently the subject of a development study.

All regulatory approvals have been received to commence project development of an underground mining operation.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 04 Jul 2016 10:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154246/exterra-resources-ltd-enhances-second-fortune-strategy-on-surging-gold-price-69601.html
<![CDATA[News - Exterra Resources Ltd drills out widespread gold at Linden project ]]> http://www.proactiveinvestors.com.au/companies/news/154245/exterra-resources-ltd-drills-out-widespread-gold-at-linden-project-69533.html Exterra Resources Ltd (ASX:EXC) has identified multiple mineralised zones from the first batch of assays received from the wholly owned Linden Gold Project.

The drilling program is focused on the Golden Orb, Hill North and Hill East prospects within the Linden project.

Multiple broad intersections were defined at Hill East including 16 metres at 1.75 g/t gold from 9 metres depth.

23 of the 25 holes returned gold mineralised intersections.

Significant quantities of gold are being intersected in the oxide and transitional zones highlighting the potential for open pittable gold deposits.

36 holes have been drilled at Golden Orb and Hill North with results expected soon.


Drill result details

The drill results from Hill East confirm the need for further follow-up drilling at the prospect.

Highlights include:
- 16 metres at 1.75 g/t gold from 9 metres including 7 metres at 2.49 g/t gold;
- 13 metres at 1.80 g/t gold from 12 metres including 3 metres at 3.53 g/t gold;
- 11 metres at 1.33 g/t gold from 31 metres including 7 metres at 1.74 g/t gold;
- 5 metres at 4.06 g/t gold from 58 metres;
- 8 metres at 2.10 g/t gold from 25 metres; and
- 4 metres at 3.17 g/t gold from 23 metres.

Further results from the drilling completed to date are pending.


Analysis

The first batch of drill results from Hill East shows shallow gold mineralisation with potential to be mined using an open pit.

Drilling at Hill East represents the first systematic drilling since the 1990s and further confirms the potential for significant tonnage gold resources.

Results are still to come from Hill North and Golden Orb, where drill results in October 2015 represented a new discovery with grades of up to 13.5 g/t gold.

Any additional resources identified within the Linden Project will compliment the Second Fortune gold mine, which is currently the subject of a development study.

Exterra Resources recently received commitments to raise A$1.5 million through the placement of 37.5 million shares at $0.04 per share.
$500,000 of the raising was taken up by the Mitchell River Group (MRG), a mining investment partnership and technical services consultancy.

Both the placement funds and the partnership with MRG will ensure Second Fortune progresses smoothly towards production in the near term.

Exterra maintains a dual-exploration focus on gold and lithium, ensuring strong news flow in the near-term.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 30 Jun 2016 09:20:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154245/exterra-resources-ltd-drills-out-widespread-gold-at-linden-project-69533.html
<![CDATA[News - Exterra Resources Ltd raises $1.5M at premium to develop gold mine ]]> http://www.proactiveinvestors.com.au/companies/news/154244/exterra-resources-ltd-raises-15m-at-premium-to-develop-gold-mine-69487.html Exterra Resources Ltd (ASX:EXC) has received commitments to raise A$1.5 million through the placement of 37.5 million shares at $0.04 per share, a premium of 11% to the last traded price.

Shares were placed to professional and sophisticated investors with $500,000 worth going to the Mitchell River Group (MRG), a mining investment partnership and technical services consultancy.

Exterra and MRG have also executed a term sheet which contemplates the parties entering into a management agreement to development the Second Fortune gold mine.

Second Fortune, 220 kilometres by road north northeast of Kalgoorlie, is currently the subject of a development study, with all regulatory approvals received to commence project development of an underground mining operation.

Both the funds and the partnership with MRG will ensure Second Fortune progresses smoothly towards production in the near term.


Placement details

The placement was made to new investors and existing shareholders to raise A$1.5 million by the issue of 37,500,000 ordinary fully paid shares at $0.04 per share.

Shares came with a one for four attaching option with an exercise price of A$0.06 per option and a 36 month expiry.

MRG have committed to take $500,000 worth of the total issued shares and subject to shareholder approval receive two tranches of 17.85 million incentive options for nil consideration, subject to vesting conditions.

MRG provides seed funding and management for projects to move through feasibility stages into production.

MRG have supported the establishment of a number of substantial project development companies and mining operations including Exco Resources Ltd, Anova Metals Ltd (ASX:AWV), African Energy Resources Ltd (ASX:AFR) and Panoramic Resources Ltd (ASX:PAN).


Analysis

The placement being completed at a premium shows the strong market support for the transaction from existing and new shareholders.

A partnership with MRG exemplifies the quality of the Second Fortune gold mine and creates a development pathway to gold production.

Year to date, the stock is trading up 330% as Exterra maintains its dual-exploration focus on gold and lithium, ensuring strong news flow in the near-term.

The 4,000 metre drill program at the Linden Gold project is due to complete this week with first results due shortly.

Follow up exploration is currently being planned at the company's Moolyella Lithium project where phase 1 of exploration returned assay results grading up to 1.25% lithium.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 28 Jun 2016 13:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154244/exterra-resources-ltd-raises-15m-at-premium-to-develop-gold-mine-69487.html
<![CDATA[News - Exterra Resources Ltd raising funds for next round of lithium exploration ]]> http://www.proactiveinvestors.com.au/companies/news/154243/exterra-resources-ltd-raising-funds-for-next-round-of-lithium-exploration-69415.html Exterra Resources Ltd (ASX:EXC) has been granted a trading halt by the ASX, with its shares placed in pre-open.

Exterra requested the halt pending details of a capital raising.

Earlier in the month the company identified up to 1.25% lithium from its maiden exploration program at the wholly-owned Moolyella Lithium Project, located in the Pilbara region of Western Australia.

Planning of the next phase of field work is currently in progress.

The halt will remain in place until the opening of trade on Tuesday 28th June 2016, or earlier if an announcement is made to the market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 24 Jun 2016 07:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154243/exterra-resources-ltd-raising-funds-for-next-round-of-lithium-exploration-69415.html
<![CDATA[News - Exterra Resources Ltd's maiden exploration returns lithium at Moolyella ]]> http://www.proactiveinvestors.com.au/companies/news/154242/exterra-resources-ltds-maiden-exploration-returns-lithium-at-moolyella-69044.html Exterra Resources Ltd (ASX:EXC) has identified up to 1.25% lithium from its maiden exploration program at the wholly-owned Moolyella Lithium Project.

The project is located in the Pilbara region of Western Australia.

A review of the historic project data had previously confirmed anomalous values up to 1.82% lithium in pegmatite lithologies.

Exterra’s field geologist has confirmed the potential for medium to high-grade lithium mineralisation within the project area and has recommended that further sampling of pegmatites outside the mapped area be undertaken.

There will be a particular focus to the south at Prospectors Creek and Pegmatite Gully East where significant concentrations of lithium minerals were observed and highly anomalous lithium recorded.

Planning of the next phase of field work is currently in progress.

John Davis, managing director, commented:

“Following completion of phase 1 of exploration activities on the ground at the Moolyella Lithium Project and with the reporting of highly anomalous lithium values in rock chip sampling, supporting earlier work, the potential of the project to host economic grade lithium mineralisation is further confirmed.

"We look forward to reporting ongoing exploration results as they come to hand."


Exploration details

Values of up to 1.25% lithium were recorded in the Pegmatite Gully East area and 0.89% lithium in the Prospectors Creek area where limited prior sampling has occurred.

This confirms the potential for new target areas, with Exterra planning further work.

Mapping and sampling focussed in the Pegmatite Gully Main area where pegmatite outcrop was extensive.

Sampling was also carried out in the Pegmatite Gully East and Prospectors Creek area to the south of the project area where initial observations indicate the potential presence of large concentrations of lithium minerals and not previously sampled.

The majority of anomalous samples above 0.10% lithium occurred in the Pegmatite Gully Main area.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 06 Jun 2016 09:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154242/exterra-resources-ltds-maiden-exploration-returns-lithium-at-moolyella-69044.html
<![CDATA[News - Exterra Resources Ltd updates on Second Fortune gold mine ]]> http://www.proactiveinvestors.com.au/companies/news/154241/exterra-resources-ltd-updates-on-second-fortune-gold-mine-68983.html Exterra Resources Ltd (ASX:EXC) has advised that documentation and finalisation of the Profit Share Agreement and the Mining Services Agreement under the Binding Term Sheet has not been finalised.

The agreement was executed on the 18th April 2016 with Pybar Mining Services Pty Ltd for a joint and a profit share based development of the Second Fortune Gold Mine.

Exterra and Pybar are currently working towards completion of all documentation in accordance with the terms of the agreement.

The company said it is expected to be completed on or before the 18th July 2016.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 02 Jun 2016 08:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154241/exterra-resources-ltd-updates-on-second-fortune-gold-mine-68983.html
<![CDATA[News - Exterra Resources Ltd drills potential new gold discovery at Linden ]]> http://www.proactiveinvestors.com.au/companies/news/154240/exterra-resources-ltd-drills-potential-new-gold-discovery-at-linden-68893.html Exterra Resources Ltd (ASX:EXC) has commenced follow-up air-core and reverse circulation drilling at the Golden Orb, Hill North and Hill East prospects at its wholly-owned Linden Gold Project.

Linden is located in the Archaean Yilgarn Craton of Western Australia, a world-class gold province which has been a prolific producer of gold since the late 1880’s.

The province includes the Kalgoorlie “Golden Mile” deposit which has produced over 50 million ounces of gold since discovery in 1893.

Exterra said that the Golden Orb Prospect represents a potential new discovery and a new priority target, which forms part of a growing regional portfolio within a poorly explored tenement.


Drilling program

The total program will cover circa 4000 metres in 76 holes following up previous drilling by the company.

At Golden Orb, drilling will focus on down dip and along strike extensions.

Previous results include: 2 metres at 8.02g/t gold from 3 metres; 13 metres at 1.29g/t gold from 0 metres; and 4 metres at 3.80g/t gold from 8 metres.

The program will also target the Hill East and Hill North prospects where historic drilling has reported economic grade intersections.

These include: 20 metres at 3.99g/t gold from 0 metres; 6 metres at 2.37g/t gold from 38 metres; and 6 metres at 3.10g/t gold from 16 metres.


Analysis

Exterra is maintaining its dual-exploration focus on gold and lithium, ensuring strong news flow in the near-term.

The gold drilling program will deliver assays from mid-2016.

Over at the company's lithium interests, there are 150 samples at the lab, with results expected in around one week.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 30 May 2016 09:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154240/exterra-resources-ltd-drills-potential-new-gold-discovery-at-linden-68893.html
<![CDATA[News - Exterra Resources Ltd has assays pending from Moolyella Lithium ]]> http://www.proactiveinvestors.com.au/companies/news/154239/exterra-resources-ltd-has-assays-pending-from-moolyella-lithium-68802.html Exterra Resources Ltd (ASX:EXC) has now wrapped up phase 1 exploration on Exploration Licence E45/4462 at the Moolyella Lithium Project.

The project is located in a proven lithium province, in the Pilbara region of Western Australia.

Other lithium companies exploring in the area have received a 10-fold increase in their market valuations.

Exterra now has 150 samples at the lab, with results expected within the next 10 days.

John Davis, managing director, commented:

“Following the grant of Exploration Licence 45/4462 we have now completed phase 1 of exploration activities on the ground at the Moolyella Lithium Project with visual evidence supporting the potential of the project to host significant Lithium mineralisation.

"We look forward to reporting results once they become available.”

Moolyella is located 100 kilometres east of Pilbara Minerals' resource measuring 80.2 million tonnes of mineralised spodumene pegmatites at 1.26% lithium.

Altura also has a resource of 35.7 million tonnes of mineralised spodumene pegmatites at 1.05% lithium.


Exploration details

Following a review of data, this confirmed reconnaissance rock chip sampling during 2011/12 over an area of 2 square kilometres had recorded up to 1.82% lithium in pegmatite lithologies.

The subsequent completion of a field visit during March 2016 by the company confirmed the location of previous pegmatite bearing reverse circulation drill holes.

These had not been assayed for lithium.

An exploration crew were mobilised and during the field campaign completed:

- Re-sampling of historic reverse circulation drill hole chips which indicate pegmatite lithologies and which are potentially lithium bearing;

- Geological mapping to outline the extent of potential lithium bearing pegmatites, the presence of spodumene (pegmatite lithium mineral) and structural controls; and

- Rock chip sampling of identified pegmatite rocks to determine their lithium content.


Analysis

Once the results for the 150 samples are received and interpreted, planning for a reverse circulation drilling program will begin to determine the extent of lithium bearing pegmatites.

Exterra’s field geologist has confirmed the potential for medium to high-grade lithium mineralisation within the Moolyella project area.

Therefore further sampling of pegmatites outside the mapped area will be undertaken, focused to the south and east of Pegmatite Gully where significant concentrations of lithium minerals were observed.

Last month Exterra attracted very strong investor demand to raise $1 million for exploration.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 25 May 2016 09:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154239/exterra-resources-ltd-has-assays-pending-from-moolyella-lithium-68802.html
<![CDATA[News - Exterra Resources Ltd advances profit share JV for Second Fortune Gold Mine ]]> http://www.proactiveinvestors.com.au/companies/news/154237/exterra-resources-ltd-advances-profit-share-jv-for-second-fortune-gold-mine-68650.html Exterra Resources Ltd (ASX:EXC) is progressing the development of the Second Fortune Gold Mine as part of its dual focus on two demand-driven commodities, gold and lithium.

Exterra is finalising documentation with Pybar Mining Services for a joint, profit share based development of the gold mine.

The profit sharing agreement and due diligence will be finalised within two weeks and the overall agreement is to be finalised by July.

The overall agreement is in the form of a binding term sheet and was entered into with Pybar during April.

Second Fortune is the company's most developed prospect within its Western Australian gold exploration portfolio, and is located within its wholly-owned Linden Gold Project 220 kilometres NNW of Kalgoorlie.


Second Fortune PFS outcomes on higher A$1,700/oz gold price

- Net cash flow of A$34 million after capital and State Royalties
- A discounted NPV of A$28.1 million
- Mining Inventory of 61,500 ounces of gold at 9.4g/t gold (diluted)
- Production (allowing for mill recoveries) of 56,600 ounces of gold
- C1 cash operating cost of A$720 per ounce of recovered gold
- C3 total cash cost of A$1,015 per ounce of recovered gold
- Low pre-production capital expenditure of ~A$5 million
- All regulatory approvals are currently in place to commence mining


Lithium portfolio

Exterra recently commenced exploration at the 90% owned Moolyella Lithium Project located in the proven Pilbara region of Western Australia.

Moolyella is located within a historical tin and tantalum producing district and proximate to Altura Mining Ltd's (ASX:AJM) and Pilbara Minerals Ltd's (ASX:PLS) lithium projects.

Moolyella is 100 kilometres east of Pilbara Minerals' resource measuring 80.2 million tonnes of mineralised spodumene pegmatites at 1.26% lithium.

Historical rock chip sampling over 2 square kilometres recorded highly anomalous values up to 1.82% lithium in pegmatite rocks. 

An exploration crew will conduct re-sampling of historic reverse circulation drill hole chips, geological mapping and rock chip sampling.


Analysis

The Pybar/Exterra joint development of the Second Fortune Gold Mine leverages Exterra to a strong AUD gold price trading near its 3 year high at A$1,750 per ounce.

The Exterra share price is up 370% year to date trading at $0.047 per share.

Exterra has a portfolio of two key demand-driven commodities in gold and lithium with projects located in proven areas.

The Moolyella Lithium Project is located within a known lithium province that hosts companies who have seen up to a 10x uplift in their share prices.

Upcoming news flow for Exterra includes:

- An update on exploration activities at Moolyella;
- Finalisation of the profit share agreement and technical and legal due diligence for the Second Fortune Gold Mine;
- Exploration drilling at the Golden Orb and Hill East gold prospects within the Linden Project;
- Finalisation of the mining services agreement and toll treating agreement for the Second Fortune Gold Mine; and
- Further updates and field work at Grass Flat gold project.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 17 May 2016 10:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154237/exterra-resources-ltd-advances-profit-share-jv-for-second-fortune-gold-mine-68650.html
<![CDATA[News - Exterra Resources Ltd receives notice of initial substantial holder ]]> http://www.proactiveinvestors.com.au/companies/news/154236/exterra-resources-ltd-receives-notice-of-initial-substantial-holder-68589.html Exterra Resources Ltd (ASX:EXC) has a new substantial shareholder after receiving a notice from Bernard Stephens, with a 6.53% stake.

Exterra is focused on the Moolyella Lithium Project located in the Pilbara region of Western Australia.

The company holds an option to purchase a 90% interest in the project, which is located within a historical tin and tantalum producing district.

Historical rock chip sampling over 2 square kilometres recorded highly anomalous values up to 1.82% lithium in pegmatite rocks.

An exploration crew is being mobilised to conduct re-sampling of historic reverse circulation drill hole chips, geological mapping and rock chip sampling.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 13 May 2016 11:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154236/exterra-resources-ltd-receives-notice-of-initial-substantial-holder-68589.html
<![CDATA[News - Exterra Resources Ltd commences lithium exploration at Pilbara hot spot ]]> http://www.proactiveinvestors.com.au/companies/news/154235/exterra-resources-ltd-commences-lithium-exploration-at-pilbara-hot-spot-68522.html Exterra Resources Ltd (ASX:EXC) is now operating in a very well known lithium province that hosts companies who have seen up to a 10x uplift in their share prices.

The Moolyella Lithium Project is located in the Pilbara region of Western Australia, proximate to Altura Mining's (ASX:AJM) and Pilbara Minerals' (ASX:PLS) lithium projects.

Exterra holds an option to purchase a 90% interest in the Moolyella project, which is located within a historical tin and tantalum producing district.

Historical rock chip sampling over 2 square kilometres recorded highly anomalous values up to 1.82% lithium in pegmatite rocks.  

An exploration crew is being mobilised to conduct re-sampling of historic reverse circulation drill hole chips, geological mapping and rock chip sampling.

John Davis, managing director, commented:

“Based on historic information available to date, we are optimistic that with further exploration the Moolyella Lithium Project has the potential to host significant Lithium mineralisation”.


Recent capital raisings

During April, Exterra raised $1 million via two share placements.

$0.5 million was raised from a heavily oversubscribed placement including to a Sydney small cap resources fund at $0.04 per share.

This was preceded by a raising of $0.5 million at $0.021 per share to sophisticated investors with funds being used for exploration on the Linden Gold project and the Moolyella Lithium Project.


Analysis

Exterra has moved into a proven lithium province, which has helped drive the share price up 390% year to date, currently trading at circa $0.049 per share.

Moolyella is located 100 kilometres east of Pilbara Minerals' resource measuring 80.2 million tonnes of mineralised spodumene pegmatites at 1.26% lithium.

Altura also has a resource of 35.7 million tonnes of mineralised spodumene pegmatites at 1.05% lithium.

Exterra is moving towards gold production through the joint development of the Second Fortune gold mine, which leverages it to a rising AUD gold price, now trading at A$1,730 per ounce.

Upcoming news flow for Exterra includes:

- Exploration activities at Moolyella;
- Drilling at the Golden Orb and Hill East gold prospects within the Linden Project;
- The Pybar/Exterra joint development of the Second Fortune gold mine; and
- Further updates and field work at Grass Flat gold project.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 10 May 2016 11:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154235/exterra-resources-ltd-commences-lithium-exploration-at-pilbara-hot-spot-68522.html
<![CDATA[News - Exterra Resources Ltd picks up high grade gold prospect ]]> http://www.proactiveinvestors.com.au/companies/news/154234/exterra-resources-ltd-picks-up-high-grade-gold-prospect-68411.html Exterra Resources Ltd (ASX:EXC) has lodged a number of applications over a highly mineralised gold field 150 kilometres north of Southern Cross, Western Australia.

The 270 square kilometre area, now called the Grass Flat gold project, contains historic economic grade drill intersections of up to 33.47 g/t gold at multiple prospects.

However, this was not the only high grade gold identified in the data review. There was also one of 7 metres at 9.20 g/t gold including 3 metres at 18.90 g/t.

The opportunity, consisting of 6 prospecting licenses and 2 exploration licenses, was identified through a review of historical exploration by previous holders.

Data indicates 67 reverse circulation drill holes contain gold intercepts in excess of 1 metre at >0.5 g/t gold at a number of prospect areas.

Exterra will now review the data in detail to determine the extent of mineralisation and propose further exploration.


Background

Exterra is a gold and lithium explorer with a number of high grade gold projects in the Yilgarn region and a lithium project at Moolyella in the Pilbara region of Western Australia.

Exterra recently signed an option agreement to acquire a 90% interest in the Moolyella lithium project, which has demonstrated potential for commercial lithium grades.

A recent data review at Moolyella showed rock chip samples with grades of up to 1.82% Li2O.

Exterra is currently preparing to commence work at Moolyella which will comprise re-sampling of historic drill spoils which contain significant logged intersections of pegmatite rocks.

In parallel, a term sheet has been entered into with a well known mining contractor, PYBAR Mining Services Ltd to develop the Second Fortune Gold Mine at the 100% owned Linden Project.
 
Exterra is also awaiting approvals to commence drilling at the Golden Orb and Hill East Prospects at Linden, with drilling to commence as soon as the clearances are received.


Recent capital raisings

During April, Exterra raised $1 million via two share placements.

$0.5 million was raised from a heavily oversubscribed placement including to a Sydney small cap resources fund at $0.04 per share.

This was preceded by a raising of $0.5 million at $0.021 per share to sophisticated investors with funds being used for exploration on the Linden Gold project and the Moolyella Lithium Project.

Drilling at the Golden Orb Prospect represents the first ever drilling into this target. The target was first defined as a surface geochemical anomaly.


Analysis

Using historical publicly available data to identify and peg exploration targets is one of the most economical exploration methods.

Exterra is a six-bagger year to date, currently trading at $0.062, which represents strong premiums for investors to the recent placement (prices) of $0.021 and $0.04.

The funding has allowed Exterra to ramp up exploration on a number of projects that will provide a pipeline of news flow including:

- Drilling at the Golden Orb and Hill East prospect at the Linden Project;
- The Pybar/Exterra joint development of the Second Fortune gold mine;
- Ground activities on the Moolyella Lithium project in the Pilbara region of Western Australia; and
- Further updates and field work at Grass Flat.


Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 03 May 2016 13:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154234/exterra-resources-ltd-picks-up-high-grade-gold-prospect-68411.html
<![CDATA[News - Exterra Resources Ltd finds strong demand for lithium, gold cash raiser ]]> http://www.proactiveinvestors.com.au/companies/news/154233/exterra-resources-ltd-finds-strong-demand-for-lithium-gold-cash-raiser-68265.html Exterra Resources Ltd (ASX:EXC) has raised an additional $0.5 million from a heavily oversubscribed placement including to a Sydney small cap resources fund at $0.04 per share.

The funding follows an earlier raising of $0.5 million at $0.021 per each to sophisticated investors that will fund exploration on the Linden Gold project and the Moolyella Lithium Project.

This will be in parallel to the Exterra/PYBAR joint development of the Second Fortune gold mine.

The raisings also included attaching options and was brokered by Taylor Collison Ltd.

Drilling at the Golden Orb Prospect represents the first ever drilling into this target. The target was first defined as a surface geochemical anomaly.

The prospect, along with the remaining area of the Linden Project, occurs within the prolific Laverton Tectonic Zone, which has seen monster discoveries of over 25 million ounces of gold from numerous deposits including Wallaby, Sunrise Dam, Granny Smith, Red October and Mt Morgans.

The funds will also be put to work at the Moolyella Lithium Project, in the Pilbara region of Western Australia which has a history of tin and tantalum production from mineralised pegmatites from 1898 until 1986 with no systematic lithium exploration having been carried out to date.

Rock chip sampling during 2011/12 over an area of 2 sq km recorded the presence of highly anomalous lithium in a significant number of samples analysed.

Exterra’s managing director John Davis said: ”...this funding allows Exterra to ramp up exploration drilling at the Linden project at the exciting Golden Orb prospect, in parallel with the Pybar/Exterra joint development of the Second Fortune gold mine, and to accelerate ground activities on the Moolyella Lithium project in the Pilbara region of Western Australia.

This will provide a pipeline of news flow as exploration and development initiatives move forward.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 26 Apr 2016 10:09:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154233/exterra-resources-ltd-finds-strong-demand-for-lithium-gold-cash-raiser-68265.html
<![CDATA[News - Exterra Resources Ltd raising funds for Pilbara lithium ]]> http://www.proactiveinvestors.com.au/companies/news/154232/exterra-resources-ltd-raising-funds-for-pilbara-lithium-68239.html Exterra Resources Ltd (ASX:EXC) has been granted a trading halt by the ASX pending details of a capital raising, with its shares placed in pre-open.

Exterra is gearing up to explore the Moolyella Lithium Project in the Pilbara region of Western Australia, and recently was granted an exploration licence.

The project is located 23 kilometres east north east of Marble Bar and consists of one exploration licence application covering 86 square kilometres.

This is located within one of the most prolific historical tin and tantalum producing districts of the Archaean Pilbara Craton.

Tin/Tantalum mining operations have been carried out on the Moolyella tin field from their discovery in 1898 until 1986.

The halt will remain in place until the opening of trade on Wednesday 27th April 2016, or earlier if an announcement is made to the market.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Fri, 22 Apr 2016 13:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154232/exterra-resources-ltd-raising-funds-for-pilbara-lithium-68239.html
<![CDATA[News - Exterra Resources Ltd granted exploration license for Moolyella Lithium ]]> http://www.proactiveinvestors.com.au/companies/news/154231/exterra-resources-ltd-granted-exploration-license-for-moolyella-lithium-68204.html Exterra Resources Ltd (ASX:EXC) can now look forward to exploring the highly prospective Moolyella Lithium Project in the Pilbara region of Western Australia, after the grant of Exploration Licence E45/4462.

The project is located 23 kilometres east north east of Marble Bar and consists of one exploration licence application covering 86 square kilometres.

This is located within one of the most prolific historical tin and tantalum producing districts of the Archaean Pilbara Craton.

Tin/Tantalum mining operations have been carried out on the Moolyella tin field from their discovery in 1898 until 1986.

Earlier in the year, Exterra secured an option to acquire 90% of the Moolyella project (E45/4462).

Exterra has commenced a review of the project which confirmed reconnaissance rock chip sampling during 2011/12 over an area of 2 square kilometre recorded the presence of highly anomalous lithium in a significant number of samples analysed.

The best results include the previously recorded sample of 1.82% lithium, 1.06% lithium and 0.63% lithium.


John Davis, managing director, commented:

“Now that Exploration Licence 45/4462 has been granted, we can focus on commencing systematic exploration activities on the ground, which is supported by the broad distribution of anomalous lithium mineralisation from previous first pass exploration.

"We can then determine the potential for significant lithium mineralisation in the Moolyella Li/Ta/Sn mineral field”.


Field visit

Exterra also completed a field visit during March 2016 which confirmed the location of previous reverse circulation drill holes and the presence of drill cuttings containing pegmatite lithologies, which have not previously been assayed for lithium.

Drill cuttings will be reviewed and re-sampled where pegmatites are recorded and pegmatite locations mapped in preparation for drilling.


The Moolyella Project

It is not until recent times that the lithium potential in the Pilbara region has been investigated to any level.

Rock chip samples in the Pegmatite Gully area at Moolyella have shown results up to 1.82% lithium.

This compares favourably with lithium projects at Pilgangoora, 100 kilometres to the west of Moolyella, where Pilbara Minerals Ltd (ASX:PLS) have a Resource of 80.2 million tonnes of mineralised spodumene pegmatites at 1.26% lithium.

Altura Mining Ltd (ASX:AJM) has a Resource of 35.7 million tonnes of mineralised spodumene pegmatites at 1.05% lithium.

The Moolyella lithium, tin, tantalum project has similar geological and mineralogical characteristics to the Pilgangoora district, containing spodumene (Li2O) bearing pegmatites, which have not been subject to any systematic exploration.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 21 Apr 2016 10:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154231/exterra-resources-ltd-granted-exploration-license-for-moolyella-lithium-68204.html
<![CDATA[News - Exterra Resources Ltd attracts funds for Linden Gold and Moolyella Lithium ]]> http://www.proactiveinvestors.com.au/companies/news/154230/exterra-resources-ltd-attracts-funds-for-linden-gold-and-moolyella-lithium-68191.html Exterra Resources Ltd (ASX:EXC) will raise $500,000 from investors to progress exploration at the Linden Gold project and the Moolyella Lithium Project.

Linden is located 220 kilometres from Kalgoorlie in Western Australia.

At Moolyella, a review of historical rock chip sampling in 2011/12 over an area of 2 square kilometres included the presence of lithium in a significant number of samples analysed.

The best results include the previously recorded sample of 1.82% lithium, 1.06% lithium and 0.63% lithium.

The company has also signed a new joint development agreement for the Second Fortune Gold Mine with PYBAR Mining Services Pty Ltd.

Funds were placed to new investors and existing shareholders at $0.021.

There is also a one for two attaching option exercisable at A$0.035 over a twelve month term.


John Davis, managing director, commented:

"We are very pleased with this successful placement and the support shown by existing and new shareholders to our register.

"This funding allows Exterra to continue exploration drilling at the Linden project at the exciting Golden Orb prospect, in parallel with the Pybar/Exterra joint development of the Second Fortune gold mine, and to commence ground activities on the Moolyella Lithium project in the Pilbara region of WA.

"These activities position Exterra to provide ongoing updates on a number of exploration and development initiatives as we move forward.”


PYBAR Mining Services Pty Ltd agreement

Exterra has signed a binding term sheet with hard rock mining contractor PYBAR Mining Services Pty Ltd for the establishment of a joint, profit share based development of the Second Fortune Gold Mine.

Details include:

- PYBAR to provide all funding to develop the Second Fortune Gold Mine under a life of mine Mining Services Contract based initially on the Main Lode Probable Reserve of 56,300 ounces at 9.7 g/t gold.

- PYBAR will pay Exterra a Net Profits Interest (NPI) at a rate of 30% until PYBAR has recovered its peak cash drawdown and EXC will be paid at a rate of 55% thereafter.

- PYBAR will advance an initial $250,000 to Exterra as a pre-payment under the NPI no later than three months from Commencement, subject to the satisfaction of Conditions Precedent.

- Exterra to retain 100% of the exploration upside exposure outside of an agreed Mining Area around the Second Fortune Mine.

Davis added: “We look forward to welcoming PYBAR on board as partners.

"PYBAR are a well-respected underground mining contractor with projects throughout Australia, including at Red October and Deep South for Saracen Mineral Holdings."

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 20 Apr 2016 13:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154230/exterra-resources-ltd-attracts-funds-for-linden-gold-and-moolyella-lithium-68191.html
<![CDATA[News - Exterra Resources Ltd to reveal JV details at Second Fortune Gold Mine ]]> http://www.proactiveinvestors.com.au/companies/news/154229/exterra-resources-ltd-to-reveal-jv-details-at-second-fortune-gold-mine-68110.html Exterra Resources Ltd (ASX:EXC) has been granted a trading halt by the ASX, pending a material transaction regarding the joint development of the Second Fortune Gold Mine.

The mine is located within Exterra’s wholly-owned Linden Gold Project, 220 kilometres from Kalgoorlie in Western Australia.

At current Australian Dollar gold prices, Second Fortune could be a highly profitable, low capital expenditure mine, with a quick re-start.

The halt will remain in place until the opening of trade on Wednesday 20th April 2016, or earlier if an announcement is made to the market.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 18 Apr 2016 09:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/154229/exterra-resources-ltd-to-reveal-jv-details-at-second-fortune-gold-mine-68110.html
<![CDATA[News - Exterra Resources Ltd ratchets up lithium exploration in WA ]]> http://www.proactiveinvestors.com.au/companies/news/154228/exterra-resources-ltd-ratchets-up-lithium-exploration-in-wa-67666.html Exterra Resources Ltd (ASX:EXC) has recorded further rock chip sample results from its recently optioned Moolyella Lithium Project within the Archean Pilbara Craton of Western Australia.

A review of historical rock chip sampling in 2011/12 over an area of 2 square kilometres included the presence of lithium in a significant number of samples analysed.

The best results include the previously recorded sample of 1.82% lithium (Li2O), 1.06% Li2O and 0.63% Li2O.

These confirm the potential of the Moolyella Lithium project to host significant lithium bearing pegmatites.

Lithium is recovered from both mineral deposits, largely from the mineral spodumene (Li2O.Al2O3.4SiO2) and from salts, largely from lithium-rich brines in salt lakes.

The majority of exploration to date at Moolyella has focussed on the tin and tantalum potential. It is not until recently that the lithium potential in the Pilbara region has been investigated to any level.

The lithium grades found in limited exploration for lithium at Moolyella of up to 1.82% Li2O compares favourably against advanced lithium projects at Pilgangoora, 100 kilometres to the west of Moolyella.

Where, most notably Pilbara Minerals Ltd's (ASX:PLS) lithium resource of 80.2 million tonnes of mineralised spodumene pegmatites grading 1.26% Li2O and Altura Mining Ltd's (ASX:AJM) lithium Resource of 35.7 million tonnes of mineralised spodumene pegmatites grading 1.05% Li2O are notable lithium discoveries.

The Moolyella lithium, tin and tantalum project has similar geological and mineralogical characteristics to the Pilgangoora district.

They contain spodumene (Li2O) bearing pegmatites, which have not been subject to any systematic exploration to date.

This provides a strong case for Exterra to ratchet up exploration for lithium at Moolyella.

John Davis, Exterra’s managing director was Senior Mine Geologist/Geological Superintendent for Greenbushes Tin NL at the Greenbushes Minesite during 1984-86, when the lithium (spodumene) zone was recognised and first production commenced, commented:

“Indications from the initial review of the geology and early stage lithium analyses, along with the broad distribution of anomalous lithium mineralisation from first pass exploration, it is clear that there is potential for significant lithium mineralisation in the Moolyella Li/Ta/Sn mineral field."


Next steps at Moolyella

A number of historic reverse circulation drillholes have also been identified by Exterra that targeted pegmatite occurrences at Moolyella exploring primarily for tin and tantalum and were not assayed for lithium.

Next up, Exterra will investigate the availability of sample pulps and or drill cuttings on site to determine whether lithium assays can be undertaken at minimal cost.

From the available drill logs, broad intersections of up to 13 metres downhole were logged as pegmatites.

Therefore the drilling appears to have intersected significant widths of lithium prospective rocks and re-logging and re-assaying for the holes may provide a very cost effective way to advance the project.


The Moolyella Project

The project is located 23 kilometres east north east of Marble Bar and consists of one exploration licence application ELA 45/4462 covering 86 square kilometres.

This is located within one of the most prolific historical tin and tantalum producing districts of the Archaean Pilbara Craton. Tin/Tantalum mining operations have been carried out on the Moolyella tin field from their discovery in 1898 until 1986.

Exterra has an option to purchase a 90% interest in the Moolyella Lithium Project.


Second Fortune gold mine

Exterra's flagship is the Second Fortune underground gold mine within Exterra’s 100% owned Linden Gold Project, 220 kilometres NNW of Kalgoorlie in Western Australia.

A recent update on a Pre-Feasibility Study (PFS) to bring the mine into production revealed that with projected pre-production capital expenditure of just A$5 million and C3 total cash operating costs of A$1,015 an ounce, the project would earn net cash flow of A$34 million after capital and State Royalties.

The projected highly profitable mine could be brought into production quickly as it is fully permitted and under a profit share agreement with Pit n Portal Corporate Services.


Analysis

The current market cap of Exterra at circa $5 million certainly does not take into account a near term gold production and cash flow potential at Second Fortune, nor the unfolding lithium story at the Moolyella Project.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 23 Mar 2016 09:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/154228/exterra-resources-ltd-ratchets-up-lithium-exploration-in-wa-67666.html
<![CDATA[News - Exterra Resources revisits Second Fortune mine on higher gold prices ]]> http://www.proactiveinvestors.com.au/companies/news/154227/exterra-resources-revisits-second-fortune-mine-on-higher-gold-prices-67147.html Rising gold prices have seen Exterra Resources (ASX:EXC) revisit development of its Second Fortune underground gold mine within Exterra’s 100% owned Linden Gold Project 220km NNW of Kalgoorlie in Western Australia.

An increase of A$300 per ounce in the Australian dollar gold price relative to the A$1,400 used in the pre-feasibility study in 2014 has resulted in a 100% or $18 million uplift in the cash surplus.

At current gold prices the projects metrics show Second Fortune would be a highly profitable, low capital expenditure mine that could be brought into production quickly.

This would see a payback on capital invested of only 11 months.

Significantly, all regulatory approvals are currently in place to commence mining.

The earlier PFS also used higher contracting rates than in the current climate and diesel prices of $1.30 per litre which clearly have fallen heavily.

Managing director John Davis said, "given the current environment we would expect cash costs to fall, creating a further upside case for the development of the mine.”

Operating costs of the mine could also be expected to fall since the 2014 study with a flow on effect of a higher gold price on available ounces, cash flow and mine life.

"Unlike many other planned developments being both fully permitted and with low capital requirements, the Second Fortune gold mine can be brought into production quickly," Davis said.


Pre-feasibility study outcomes on higher A$1,700/oz gold price

- Net cash flow of A$34 million after capital and State Royalties
- A discounted NPV of A$28.1 million
- Mining Inventory of 61,500 ozs of gold at 9.4 g/t Au (diluted)
- Production (allowing for mill recoveries) of 56,600 ozs of gold
- C1 cash operating cost of A$720/oz of recovered gold
- C3 total cash cost of A$1,015/oz of recovered gold
- Low pre-production capital expenditure of ~A$5 million
- All regulatory approvals are currently in place to commence mining


Next steps

Exterra and Pit n Portal Corporate Services Pty Ltd are currently working under a profit share option agreement for the joint development of the Second Fortune gold mine.

Work under the agreement has included completion of 17 diamond drill holes in December 2015.

The results show the high grade and continuity of the main lode system.

The low pre-production capital expenditure of circa A$5 million and with regulatory approvals in place to commence mining provides a compelling development case.

Price catalysts ahead for Second Fortune include an updated resource inventory and feasibility study which is anticipated to be completed by 29 February 2016.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 23 Feb 2016 10:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/154227/exterra-resources-revisits-second-fortune-mine-on-higher-gold-prices-67147.html
<![CDATA[News - Exterra Resources enters hot Pilbara lithium sector ]]> http://www.proactiveinvestors.com.au/companies/news/154226/exterra-resources-enters-hot-pilbara-lithium-sector-67044.html Exterra Resources (ASX:EXC) has dialled into the hot lithium sector after acquiring an option to purchase a 90% interest in the Moolyella Lithium Project within the Archean Pilbara Craton of Western Australia.

Given rock chips values of up to 1.82% lithium from limited reconnaissance work, only the potential surface of the project has been scratched.

A tenement grant is expected imminently.

Exterra's plan is to locate historic exploration samples for re-assay (most were not assayed for lithium), which may provide a low cost pathway to expand the lithium dataset.

The company will also conduct follow-up sampling and mapping to commence within the March 2016 quarter.

The lithium focussed work program will run in parallel with development of the company's Second Fortune Gold Mine.

Second Fortune is located in the wholly-owned Linden Gold Project.


10-baggers in the Pilbara

The Pilbara region is a proven lithium bearing resource area as established by Pilbara Minerals (ASX:PLS), whose shares have increased 10-fold in less than a year.

The company's wholly-owned the Pilgangoora Project, is a world-class high quality lithium-tantalum resource, and the second largest spodumene-tantalite resource in the world.

Altura Mining (ASX:AJM) also has exposure in the region, with its shares trading around 8-times higher than just six months ago.

John Davis, managing director for Exterra, commented:

“Exterra is very pleased to have entered into this option arrangement to acquire ground within the highly prospective Pilbara region."


Details of the option

- Exterra must pay a $5,000 option fee within 5 business days of signing for an exclusive 6 month option period.

- Exclusive option period can be extended by Exterra for a further 3 months on payment of an additional $5,000.

- Exterra may exercise the option at any time during the option period to obtain a 90% interest in tenement E45/4462 by issuing 5,000,000 ordinary shares in Exterra to the vendor.


Moolyella

The Moolyella Project is located 23 kilometres east north east of Marble Bar and consists of one exploration licence application ELA 45/4462 covering 86 square kilometres holding a substantial position within one of the most prolific historical tin and tantalum producing districts of the Archaean Pilbara Craton.

Tin/Tantalum mining operations have been carried out on the Moolyella tin field from their discovery in 1898 until 1986.

Early workers did not explore for lithium, however more recent, reconnaissance level work has highlighted the significant lithium potential.


Analysis

Given the extensive historic tin/tantalum working contained with the Moolyella project, together with the encouraging lithium results obtained to date, it clearly demonstrates the potential of the area to host significant lithium mineralisation.

Adding interest, the area is also prospective for spodumene and other associated lithium minerals within pegmatite host units.

Exterra has therefore skilfully parachuted into a hot commodity, and even hotter district, which has seen locals such as Pilbara Minerals (10-bagger) and Altura Mining (8-bagger) attract investors.

The option costs are very minimal, and therefore the move is a de-risked strategy into the sector.

The next steps are intriguing, and early exploration notes will be highly prized.

Early trading volume after the announcement shows investors are dialling into Exterra.

Exterra offers investors an entry at the ground level into lithium in the Pilbara. If the company has early exploration success, the current $0.022 share price will be a thing of the past.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 16 Feb 2016 10:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/154226/exterra-resources-enters-hot-pilbara-lithium-sector-67044.html
<![CDATA[News - Exterra Resources plans more gold drilling after high-grade hits ]]> http://www.proactiveinvestors.com.au/companies/news/154225/exterra-resources-plans-more-gold-drilling-after-high-grade-hits-65683.html Exterra Resources (ASX:EXC) is set for another round of diamond drilling at the Second Fortune project in Western Australia after a previous campaign returned high-grade gold results.

The upcoming program will consists of eight diamond drill holes totalling 155 metres of reverse circulation pre-collars and 925 metres of NQ diamond coring.

This work will focus on the Main Lode, which holds an indicated resource of 207,000 tonnes at 10.2 g/t gold for 68,000 ounces of gold and an underground reserve of 181,000 tonnes at 9.7 g/t gold for 56,300 ounces of gold.

Results from the new drilling are expected to contribute to a revised resource which will form the basis of a revised mine plan and Feasibility Study to develop the Second Fortune underground mine.

Previous drilling at Second Fortune returned intersections including 0.63 metres at 46 g/t gold from 103.47 metres, 0.94 metres at 10.4 g/t gold from 170.9 metres and 0.4 metres at 16.9 g/t gold from 199.35 metres.

Another hole also marked 1.14 metres at 31.44 g/t gold from 168.76 metres.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 19 Nov 2015 10:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/154225/exterra-resources-plans-more-gold-drilling-after-high-grade-hits-65683.html