Exterra Resources Ltd (NYSE: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.
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.
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.