Name and Location
Second Fortune underground gold mine project, Australia.

Client
Exterra Resources.

Project Description
A prefeasibility study (PFS) on the Second Fortune mine, in Western Australia, has confirmed a robust, low-capital, low operating cost gold mining project.

The project’s main lode has total mineral resources of 237 100 t grading 10 g/t gold, and minor lode mineral resources estimated at 241 000 t grading 7 g/t.

The PFS is based on underground mining of the Second Fortune main lode, with ore processed off site under an ore purchase heads of agreement with Saracen Gold Mines. The ore will be delivered to Saracen’s Carosue Dam processing plant, 80 km to the south.

Underground mining will be conducted through a portal cut in the floor of the current pit. A 4.5 m × 4 m decline will be developed to the base of the current workings, 62 m below surface. Level drives will be developed at 20 m intervals from crosscuts centrally located along the strike. Mining will involve long-hole retreat open stoping, with a combination of mechanical and hand-held methods, using a single boom jumbo.

Average annualised production is estimated at 20 000 oz of gold.

The project has an initial mine life of 2.5 years.

Net Present Value/Internal Rate of Return
The project has a net present value at 8% of A$13.4-million and a cash payback period of 14 months.

Value
Preproduction costs are estimated at A$5-million.

Duration
Not stated.

Latest Developments
Exterra has all regulatory approvals in place to start mining at Second Fortune.

Key Contracts and Suppliers
Ravensgate and Q G Consulting (geology resource estimation); Intermine Engineering Consultants (ore reserves and underground mine design/financial modelling); MineGeoTech (geotechnical studies); Rockwater (groundwater and surface-water studies); ALS Metallurgy (metallurgical testwork); Coffey (evaporation pond design); and MBS Environmental (Geochemical and environmental studies).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Exterra Resources, tel +61 8 6315 1411 or fax +61 8 9486 7093.
Ravensgate, tel +61 8 9226 3606 or fax +61 8 9226 3607.
QG Consulting, tel P. +61 8 9433 3511.
Intermine Engineering Consultants, tel +61 8 9319 2940.
MineGeoTech, cell +61 407 997 376 or fax +61 8 9091 6204.
Rockwater, tel + 61 8 9284 0222, fax +61 8 9284 1785 or email consult@rockwater.com.au.
ALS Metallurgy, tel +61 8 9344 2416.
Coffey, tel +61 8 9091 7720, fax +61 8 9021 1764 or email contactus@coffey.com.
MBS Environmental, tel +61 8 9226 3166, fax +61 8 9226 3177 or email info@mbsenvironmental.com.au.