Last checked at 18 Apr 2016 07:00
Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining
Stratex International Plc
("Stratex" or "the Company")
Altıntepe Production Update
Stratex International Plc, the AIM-quoted exploration and development company focused on gold and base metals in Turkey, East Africa and West Africa, is pleased to provide an update on its 45%-owned Altıntepe Gold Mine ("Altıntepe", the "Project" or the "Mine") in Turkey where first gold pour was reported at the end of 2015 (Press Release dated 6th November 2015). During 2016, sales up to 16th March stood at 12,280 oz gold ("Au"), and to date the operating company Altıntepe Madencilik has generated total revenues of US$14.3 million.
Bob Foster, Stratex Chief Executive Officer commented: "Altıntepe has seen a significant increase in gold production in the first 2.5 months of the year and is on target to deliver the minimum expected annual production of 30,000 oz gold during 2016. Our partner Bahar Madencilik has managed the initial ramp-up very successfully and we are now working closely with them to optimise the mine development schedule for the next few years. This will allow us to critically evaluate the requirements for working and development capital."
Further Details:
Further to the Company's initial Altıntepe production update last month (announcement dated 8th March 2016), the Mine has now completed its ramp-up to full production capacity and quarterly reporting is being established.
During 2016, up to 16th March, 12,280 oz gold was sold, generating Project revenues of US$14.16 million. Total Project revenues to date, including the sale of 608 oz gold in December 2015 and by-product silver, stand at US$14.3 million. Heavy precipitation during Q1 resulted in a significant drop in the production capacity for the pre-treatment of the ore (crushing and agglomeration) but trials are now underway with a clay treatment circuit to ensure that this problem is minimised in the future.
Contract mining is being undertaken by Stratex's partner Bahar Madencilik ("Bahar"), with Altıntepe Madencilik responsible for all other elements including mine planning, grade control, processing, and sale of the doré to a refinery in Turkey. Total operating costs (less closure and working capital costs) currently stand at approximately US$560/oz, with the contract-mining cost fixed at US$450/oz until 30th June 2016.
As previously disclosed, further technical and economic assessment is being undertaken by Altıntepe Madencilik on the Extension Ridge zone, ready for the start of Stage 2 exploitation during the later stages of mining of the Çamlık East and Çamlık resources. Drilling is already underway to define oxide-dominant and sulphide resources to support medium-term mine planning.
As per the terms of the Joint Venture agreement (Press Release dated 6th December 2011), partner company Bahar Madencilik is entitled to recover its pre-production costs (including US$39 million construction costs) from 80% of the net free cash flow; thereafter the net proceeds will be distributed 55% Bahar, 45% Stratex. The Company is working closely with Bahar to optimise the mine development schedule and to determine the requirements for working and development capital through to eventual mine closure, after which consideration can be given to the sustainable future disbursement of net cash to Bahar and Stratex (to the extent possible) throughout the life of the mine.
In the meantime, Altintepe Madencilik has approved the reimbursement of some additional costs incurred before the production decision, resulting in a repayment of US$4.2 million to Bahar and US$190,000 to Stratex.
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For further information please visit www.stratexinternational.com, email info@stratexplc.com, or contact:
Stratex International Plc | Tel: +44 (0)20 7830 9650 |
Bob Foster / Christopher Hall / Claire Bay
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Grant Thornton UK LLP | Tel: +44 (0)20 7383 5100 |
Philip Secrett / Jen Clarke / Daniel Bush
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Northland Capital Partners Limited | Tel: +44 (0)20 3861 6625 |
Gerry Beaney / David Hignell (Corporate Finance) Abigail Wayne / John Howes (Broking) | |
Notes to Editors:
Since listing in 2006, Stratex has discovered more than 2.2 million ounces of gold and 7.09 million ounces of silver, as well as 186,000 tonnes of copper. The Company achieved first gold pour at its 45%-owned Altıntepe gold mine in Turkey in November 2015 and recently sold its 1% Net Smelter Returns royalty in the Öksüt gold project for US$4.5 million. It also owns 14.87% of a copper-gold project at feasibility stage. With its current cash position, projected cash returns and no debt, the Company is well-placed to advance its existing exploration programmes and is also actively seeking to acquire advanced projects that are at the drill-ready stage or even have identified resources.