Exterra signs ore agreement with Saracen
PERTH (miningweekly.com) – Junior miner Exterra Resources has signed an ore processing agreement with fellow-listed Saracen Mineral Holdings, which would see ore from the Second Fortune mine being processed at Carosue Dam.
Under the terms of the one-year agreement, Exterra would mine, sample and haul ore from its Second Fortune mine, in Western Australia, to Saracen’s Carosue Dam process plant, paying a fixed fee per dry ton for the treatment of the ore.
Saracen, in turn, would pay Exterra for the recoverable metal, based on an agreed grade.
The Carosue Dam plant is located some 90 km from the Second Fortune site.
Exterra told shareholders on Thursday that the agreement represented a critical milestone for the company and another step towards achieving the stated goal of returning the Second Fortune gold mine to production.
“With certainty achieved in the ore processing arrangements and with the near completion of all regulatory requirements for project go-ahead, Exterra can now focus on the most appropriate mine development that delivers maximum economic benefit to the company and its shareholders,” the firm said.
The Second Fortune mine has a Joint Ore Reserves Committee-compliant resource of 131 200 oz. All the relevant approvals for the restart of the project have been lodged and Exterra expected to start project development and underground mining by the end of 2013, or the start of 2014.
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