Malcolm Gold Project

The Malcolm Project consists of granted Mining Lease M37/1164 (105 ha), over 2.0km in strike, and contains the historic North Star and Richmond Gem gold mines which produced 40,000 oz of gold at an average grade of 21.03 g/t Au and 28.00 g/t Au respectively between 1894 and 1915. The project is located 18km to the east of Leonora and 70km to the NW of Zelica/Eucalyptus in the NE Goldfields of WA.

Significant results - previous drilling include (Table 1):

DDHNS1                0.3m at 121.90 g/t Au at North Star
NSP8                      2.0m at 51.52 g/t Au at North Star
RGP17                   2.0m at 20.05 g/t Au at Richmond Gem
RGP34                   1.0m at 24.75 g/t Au at Richmond Gem

Significant results - historic underground sampling at North Star include (Table 2):

UGNS016                0.71m at 102.63 g/t Au
UGNS020                0.76m at 169.50 g/t Au
UGNS023                0.91m at 31.10 g/t Au

It is clear from the historic drilling and underground sampling data summarised below on Table 1 and 2 that this project presents an opportunity for further high grade Resources and potential development in line with Exterra’s high grade Second Fortune project at Linden.

These added Resources and exploration potential further position Exterra to take advantage of the current gold price and move towards early production.

EXPLORATION HISTORY

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.

Significant RC and Diamond Drill intersections from exploration prior to 2005 are summarised below:

Hole NoNorthingEastingFrom (m)To (m)Intercept (m)Au g/tProspect
LGSRC00555074944515323.31Richmond Gem
RGP3055854900303332.22Richmond Gem
DDHNS167134885125.7126.00.3121.90North Star
LGNRC01157824733505115.03Richmond Gem
LGNRC01258164721374144.10Richmond Gem
Including3839110.42
LNSRC0146711500571034.48North Star
NSP765604970495233.26North Star
NSP865604940121123251.52North Star
including122123199.80
RGP165820474961264.14Richmond Gem
RGP17567047778789220.05Richmond Gem
including8889136.30
RGP26584247102424.35Richmond Gem
111435.58
including1314114.20
RGP2758204740162153.22Richmond Gem
RGP34580047253335212.88Richmond Gem
RGP34including3435124.75
RGP35580047007071116.50Richmond Gem
RGP757614739545629.60Richmond Gem
RGP8574047653334122.25Richmond Gem

These results confirm the high grade nature of the North Star and Richmond Gem prospects.

Mineralisation at Richmond Gem and North Star comprises multiple narrow (up to 2.0 metre) high grade quartz veins/reefs with common visible gold. Past exploration has been non-systematic, with the project held by one group for 17 years, and in Exterra’s view the potential to extend the current resources at Richmond Gem and North Star, along strike and at depth is high. The occurrence of “blind” mineralised lodes, with little or no surface geochemical signature, appears highly likely, due to multiple parallel mineralised reefs having already been discovered and exploited at shallow depths.

Historic production from the North Star underground mine to 1915 is reported as 28,120 oz from 40,936 tonnes at 21.3 g/t Au and 11,679 oz from 12,788 tonnes at 28.0 g/t Au from the Richmond Gem mine.

NORTH STAR HISTORIC UNDERGROUND SAMPLING

The North Star underground mine was geologically mapped and sampled on two levels in the 1890’s and this data has been digitized from available plans by Regal.

Sampling was completed on the 45.7 metre level (10 samples), over a strike of approximately 50 metres, at 5 metre spacing and on the 22.9 metre level (15 samples) over a strike of approximately 80 metres at 5 metre spacing.

The following table lists the more significant underground samples: 

Sample NoLevel (m)GDA NorthGDA EastSample Interval (m)Au g/t
UGNS00145.767977563540930.7620.21
UGNS00245.767977553540970.3631.10
UGNS00345.767977523541010.5110.89
UGNS00445.767977493541050.38127.51
UGNS00545.767977453541070.28116.63
UGNS00745.767977423541100.2820.22
UGNS00845.767977393541130.3641.99
UGNS00945.767977373541170.3810.89
UGNS01145.767977333541210.4110.89
UGNS01245.767977243541260.4610.89
UGNS01622.967977253541550.71102.63
UGNS01722.967977283541520.7431.10
UGNS01822.967977313541510.7134.21
UGNS02022.967977383541450.76169.50
UGNS02122.967977413541420.7173.09
UGNS02322.967977463541350.9131.10
UGNS02522.967977573541230.2554.43
UGNS02722.967977523541130.2018.66
UGNS02822.967977563541100.4123.33
UGNS03222.967977733540950.3610.89

Table 2 These results further confirm the high grade nature of the North Star lode system

MALCOLM PROJECT RESOURCES

The Malcolm project Resources* are tabulated below:

ProspectTonnesGrade g/t AuOuncesClassification
North Star U/G33,80023.7425,800Inferred
Richmond Gem72,1004.059,400Inferred
Richmond Gem South36,3002.282,700Inferred
Total142,2008.2837,900Inferred

Table 3 (*Information from Regal Resources Ltd 2006)


The 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. (Fig 2)

Exterra propose to further review the current Resources and historic data and plan exploration drilling to confirm and extend the current Resource base at Malcolm.

project Image

Fig 2. Malcolm Project Regional Location