PERTH (miningweekly.com) – A prefeasibility study (PFS) into ASX-listed junior Exterra Resources’ Second Fortune underground mine, at the Linden gold project in Western Australia, has proven positive.
The PFS estimates that the mine could produce about 56 600 oz of gold over a two-and-a-half-year mine life, delivering revenue of A$80-million.
A capital investment of some A$5-million would be required, while C1 cash operating costs have been estimated at around A$720/oz.
The company told shareholders on Thursday that the results of the PFS were very positive, and indicated that Exterra could establish the project quickly, generate early cash flow and pay back the up-front capital within a short timeframe on existing reserves.
“We will continue to expand the Second Fortune main lode resource with further drilling at depth and along strike, and also determine the viability of mining the footwall, hanging wall and west lodes at Second Fortune, which are adjacent to the main lode.”
The company said that it would also continue with its exploration drilling of a number of high priority prospects and targets on the Linden project area.
Exterra currently has all regulatory approvals in place to start mining at Second Fortune.