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Exterra Resources sees gold, iron ore and base metal potential at Grass Flat

The Grass Flats project was recently acquired by Exterra.
Exterra Resources sees gold, iron ore and base metal potential at Grass Flat
Exterra is in the process of developing the Second Fortune gold mine

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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