Exterra Resources acquires new prospecting license near Zelica gold tenements

Exterra Resources (ASX: EXC) has acquired a new prospecting license surrounding the company’s existing Zelica tenements.

The Zelica gold project already hosts a JORC Measured and Inferred Resource of 1.2 million tonnes at 2.22 grams per tonne (g/t) gold, which is open along strike and at depth - with test work highlighting 92% recoveries.

The significance of the new prospecting licence is that it provides the potential for strike extensions of the Zelica mineralised trend.

The tenement also provides Exterra with a strategic landholding off strike, which may be used in the future as potential vat or heap leach pad sites.

Exterra will kick off a new reverse circulation drilling program at Zelica next month, focussed on infilling the resource in the existing pit area as well as extending the resource to the north where the existing drilling density is low.

The planned program will test up to the boundary with the newly acquired prospecting licence, and if the results are positive, the program may be extended further northwards.

The prospecting licence is due for renewal in the near term and Exterra’s due diligence to date has not revealed any reason why the renewal should not be granted on application.

On satisfactory completion of Exterra’s due diligence on the tenement, the company will provide cash consideration of $50,000 to the current owner.

Completion of the acquisition is due to take place on or around 23 September 2011.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19957/exterra-resources-acquires-new-prospecting-license-near-zelica-gold-tenements-19957.html