Exterra Resources (ASX: EXC) has announced a high grade Inferred JORC Resource of 142,200 tonnes at 8.28 grams per tonne(g/t) gold for 37,900 ounces contained gold for the Malcolm Project it acquired from Regal Resources.
This brings the company's total JORC resource to 311,000 ounces at 4.3g/t gold.
Malcolm provides Exterra with an opportunity for further high grade resources and potential development in line with Exterra's high grade Second Fortune project at Linden.
It further positions the company to take advantage of the current gold price and move towards early production.
Exterra plans to further review the current Resources and historic data and plan exploration drilling to confirm and extend the current Resource base at Malcolm.
Malcolm was acquired as part of the Eucalyptus project acquisition announced in May 2012 though it is not part of the current legal action over the Eucalyptus project.
It consists of the granted Mining Lease M37/1164, over 2 kilometres in strike and containing the historic North Star and Richmond Gem gold mines that produced 40,000 ounces of gold at an average grade of 21.03g/t gold and 28g/t gold respectively between 1894 and 1915.
The project is located 18 kilometres to the east of Leonora and 70 kilometres northwest of Zelica/ Eucalyptus in Western Australia's North East Goldfields.
Limited campaigns of drilling were carried out at the Malcolm project from 1983 to 2005, with 135 holes completed and with 90% of holes less than 60m in depth. No on ground exploration has been carried out since 2005.
Notable results from previous drilling include 0.3 metres at 121.9g/t gold and 2 metres at 51.52g/t gold at North Star and 2 metres at 20.05g/t gold and 1 metre at 24.75g/t gold at Richmond Gem.
Underground sampling at North Star has also returned 0.71 metres at 102.63g/t gold, 0.76 metres at 169.5g/t gold and 0.91 metres at 31.1g/t gold.
Malcolm project is linked to the Linden/Zelica/Eucalyptus projects by the Butcher Well Haul Rd and logistically could be developed as part of Exterra's overall production plans in the NE Goldfields region.
Exterra has a mining lease over the Linden Project, which contains established infrastructure from historic operations and includes the high grade Second Fortune Resource of 461,900 tonnes at 8.8g/t gold for 131,200 ounces of contained gold.
The project has near-term development potential with toll treatment options.
Last year Exterra increased its holding at Linden with the acquisition of a 100% interest in an exploration licence contiguous with the existing tenements.
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