Projects

Exterra’s projects have been selected on the basis of their exploration potential and the scope for development of high grade, high margin gold deposits to fund future growth of the Company. Exterra has three gold projects located in the NE Goldfields region of Western Australia. During 2014 Exterra completed a positive Pre-Feasibility study into development of a high grade underground mine at Second Fortune within the Linden Gold project, 230km NW of Kalgoorlie. All Regulatory approvals are in place to commence mining operations.

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Exterra’s gold projects lie within the Archaean Yilgarn Craton in Western Australia, a world class gold province which has been a prolific producer of gold since the late 1880’s and includes the Kalgoorlie “Golden Mile” deposit which has produced over 50 million ounces of gold since discovery in 1893.

At the Linden Gold project, Second Fortune mine, Exterra completed a number of campaigns of diamond drilling during 2011/12 which resulted in an upgraded Resource calculation and the completion of a positive Pre-Feasibility study during 2014 for the development of a high grade underground gold mine at Second Fortune. All Regulatory Approvals are in place for mine development and financing discussions are currently in progress.

Exterra’s Malcolm and Zelica gold projects also contain JORC Compliant Resources and also represent near term production opportunities, following further drilling.

Exterra’s JORC Compliant Resources now total 2.16 million tonnes at 4.1 g/t Au for 286,600 ounces. Refer Table A.
Exterra’s JORC Compliant Reserves total 180,800 tonnes at 9.68 g/t Au for 56,265 ounces. Refer Table B.

Project Measured Indicated Inferred Total
Tonnes (‘000)Grade (g/t Au)Oz (‘000)Tonnes (‘000)Grade (g/t Au)Oz (‘000)Tonnes (‘000)Grade (g/t Au)Oz (‘000)Tonnes (‘000)Grade (g/t Au)Oz (‘000)
Linden – Second Fortune---
Main Lode (JORC 2012)---206.810.268.030.38.68.3237.110.076.3
Footwall Lode (JORC 2004)+---18.58.95.452.97.412.571.47.817.9
West Lode (JORC 2004)+---4.24.2.6107.26.121.0111.46.021.6
Linden – Second Fortune Total---229.510.074.0248.67.157.1478.18.5131.1
Zelica (JORC 2004)+---358.21.719.0212.61.611.0570.81.630.0
Eucalyptus* (JORC 2004)+------973.02.887.6973.02.887.6
Malcolm (JORC 2004)+------142.28.337.9142.28.337.9
TOTAL---587.74.993.01576.43.8193.62164.14.1286.6

The Mineral Resources reported are inclusive of those Mineral Resources modified to produce Ore Reserves.

*Eucalyptus tenements subject to current Forfeiture Action.

+ This Mineral Resource information was first prepared and disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Minor arithmetic variations to that reported below in 2013 may occur due to rounding of decimal places

LodeProvenProbableTotal
TonnesGade g/t AuOuncesTonnesGade g/t AuOuncesTonnesGade g/t AuOunces
Main Lode1807909.68562651807909.6856265

Note: Based on 1.0m Min Mining Width diluted Resource at 4.0 g/t Au lower cut-off

Second Fortune Ore Reserves are contained within the Second Fortune Main Lode Resource

Competent Persons Statement

Information in this report that relates to estimation, depletion and reporting of the Second Fortune Main Lode Mineral Resources is extracted from the Company’s ASX announcement dated 19 December 2013 (December Announcement) which is available to view on the Company’s website. The Company confirms that all the material assumptions underpinning the information relating to estimation, depletion and reporting of the Second Fortune Main Lode Mineral Resource referred to in the December Announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the information is presented has not been materially modified from the original December Announcement.

Information in this report that relates to Ore Reserves is extracted from the Company’s ASX announcement dated 24 July 2014 (July Announcement) which is available to view on the Company’s website. The Company confirms that all the material assumptions underpinning the information relating to Ore Reserves referred to in the July Announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the information is presented has not been materially modified from the original July Announcement.

Information in this report that relates to database compilation, sampling processes, geological interpretation and mineralisation, project parameters and costs and overall supervision and direction of the Second Fortune Main Lode Mineral Resource is extracted from the Company’s ASX announcement dated 19 December 2013 (December Announcement) which is available to view on the Company’s website. The Company confirms that all the material assumptions underpinning the information relating to database compilation, sampling processes, geological interpretation and mineralisation, project parameters and costs and overall supervision and direction of the Second Fortune Main Lode Mineral Resource referred to in the December Announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the information is presented has not been materially modified from the original December Announcement.

Information in this report that relates to the Zelica Mineral Resources is based on information compiled by Don Maclean (Member of the Australian Institute of Geoscientists). Mr Maclean is a principal consultant for Ravensgate Mining Industry Consultants Pty Ltd. Mr Maclean has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Maclean consents to the inclusion in the report of the statements based on his information in the form and context in which they appear.

Information in this report that relates to the remaining Mineral Resources is based on information compiled by John Davis (Member of the Australasian Institute of Mining and Metallurgy). Mr Davis is a part time consultant of the Company. Mr Davis has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Davis consents to the inclusion in the report of the statements based on his information in the form and context in which they appear.