The Board of Exterra Resources has approved the plan to re-commence mining operations at the wholly owned Second Fortune Mine.
Image credit: Exterra Resources ASX release
“The approval initiates an important new phase for the company, on the back of recent transactions, to transition from exploration to development,” the Perth-based company told the ASX.
“The development phase will commence with the construction of evaporation ponds, required for mine dewatering, prior to early phase mining operations.”
Exterra said the construction contract for the ponds will be let in coming days and work will commence on approval for the Project Management Plan.
According to the company, other key milestones to commencement of mining include: approval of surface project Management Plan; finalisation of ore sale/purchase agreement; award of mining contract; pit and underground dewatering; haul road construction; sorting plant construction; and portal development and crown pillar recovery.
Construction of the evaporation pond is expected to start next month and mining in early 2017.
Exterra’s Executive Chairman, John Davis said that in addition to commencement of the mine development, drilling at Second Fortune will commence in the coming days.
He said the drilling programme was designed to provide additional information on those areas of the resource currently in the inferred categories and particularly those near the surface that may be mined during the early phase of operation.
“We are very pleased to be able to announce our transition into the development phase at Second Fortune with the support of the Mitchell River team and our various contract partners,” Mr Davis added.
“We look forward to advancing the development of the project through to production over coming months.”
