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Exterra Resources Renegotiates Acquisition Of 88,500 Gold Ounce Project

Exterra Resources (ASX: EXC) has the right to take up between 90% and 100% ownership of the Eucalyptus Gold Project in Western Australia, following a renegotiation of the terms of a joint venture.

Under new terms, Exterra Resources will not be required to make any payments to joint venture partners Regal Resources and Ozmay to take up its interest in the project.

Instead, Exterra will apply to join in the current legal proceedings in the Wardens Court from the first of April through to completion, and will fund the legal action.

The Eucalyptus Project is the subject of an Exemption from Expenditure and forfeiture action before the Warden's Court. Proceedings are well advanced, and Exterra is hopeful of a resolution in the near future.

If successful, Exterra will add 88,500 ounces of gold Inferred JORC Resources to its total gold resources.

Eucalyptus is located just 1.5 kilometres north of Exterra's Zelica Gold Project, where the company secured a Mining Lease earlier this month.

Given the proximity to Zelica, Exterra plans to fast track exploration at Eucalyptus with the aim of increasing the potential mine life at Zelica.

Zelica project

Exterra's Zelica project hosts a Measured and Inferred JORC Resource of 1.2 million tonnes at 2.22 grams per tonne (g/t) for 85,700 ounces of contained gold.

The newly secured mining lease covers about 50 hectares, including the Zelica deposit and the existing vat leach infrastructure.

Mineralisation at Zelica has been defined across a strike length of more than 1 kilometre, and remains open to the north, south and at depth.

Exterra is in the process of completing a Scoping Study at Zelica, with results expected to be released in the June quarter.

In addition, the company is in discussions with a large international engineering firm regarding construction and financing of a vat leach operation at the project.

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