Exploration works have started on schedule to exploit the oxide potential of the Northern Shear Zone of the Manica project.
A diamond drilling programme will focus on the previously identified drill ready target near the Guy Fawkes area.
An infill geochemical soil sampling will concentrate on the area between the Guy Fawkes and Boa Esperança prospects, along the Northern Shear Zone.
Chairman Benjamin Bussell said: "Whilst the company is strongly focused on the exploration programme underway along the Northern Shear Zone, which looks to substantially grow the oxide resource base, we are also pleased with the high grade sulphide zone identified at our existing Fair Bride deposit.
Using a 3.0g/t cut-off, the Fair Bride prospect contains in excess of 1moz of gold at an average grade of 4.13g/t.
"This is an interesting high grade deposit accounting for over a third of the total Manica's JORC compliant resource and warrants further investigation."
Exploration Work Underway
The programme and test work on the Northern Shear Zone will focus on the area from the Guy Fawkes to Boa Esperança prospects, at the Manica Gold Project has commenced on schedule.
The diamond drilling programme will focus on the previously identified drill ready target near the Guy Fawkes area whilst the infill geochemical soil sampling will concentrate on the area between the Guy Fawkes and Boa Esperança prospects, along the Northern Shear Zone.
High Grade Zone at Fair Bride Prospect
The company is continually reviewing the wealth of data that exists for the Manica Gold Project and is identifying areas for follow up work and priority targets.
The company said the review is progressing well and has led to the identification of a high grade zone within the Fair Bride Prospect.
Fair Bride, which hosts 2.6moz of the Manica Gold Project's ~3moz, contains 1,025,904 ounces of gold at an average grade of 4.13g/t using a 3.0g/t cut-off.
This high grade zone at the Fair Bide prospect is inclusive of the total resource inventory at the Manica Gold Project.
Today's announcement of exploration commencing at the advanced Manica project with a JORC resource of almost 3 million ounces of gold sets the scene to grow the oxide resource base. In addition, identifying the high grade sulphide zone identified at the existing Fair Bride deposit provides further upside.
At the current market cap. and share price of $0.36, we consider Terranova to be signficantly undervalued on its resource base relative to peers.