Last checked at 9 Jun 2010 07:00
Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining
9 June 2010
Stratex International Plc ('Stratex' or 'the Company')
Expands Epithermal Gold Licence Area in the Afar Depression of the Main Ethiopian Rift
Stratex, the AIM quoted company focussed on gold and base metals with exploration and development targets in Turkey and in Ethiopia,announces it has expanded its activities into Djibouti, having been awarded six new licences covering 535 km2 in the highly prospective Afar Depression of the Main Ethiopian Rift. This brings the Company's total land package in the Afar Depression to 2,780 km², straddling the border of both Ethiopia and Djibouti, and gives Stratex a large number of Rift-related epithermal gold targets in this exciting new metallogenic province.
Overview
v Six highly prospective licences totalling 535 km2 acquired over epithermal gold targets in Djibouti
v New licences represent extension of recently discovered epithermal gold province in the Afar Depression, with total package now 2,780 km²
v Previous surface sampling and drilling on alteration targets already confirmed presence of Megenta-type gold mineralization in Djibouti
v Initial two year licence term on Djibouti licences - with option to extend
v Management team strengthened by international consultant
v Stratex to hold 90% interest in licences with 5% retained by government and 5% retained by founders of Green River Company in return for exploration database
David Hall Executive Chairman of Stratex said, "Having explored for epithermal gold in South America and elsewhere for many years, I believe the Afar Depression represents an exciting new epithermal gold province. Importantly, we have an early-mover advantage in the region, and we have used this to stake a large ground position which straddles the border between eastern Ethiopia and Djibouti.
"Given the Company's healthy cash position, coupled with the support we have received from the governments in both Ethiopia and Djibouti, we are ideally positioned to rapidly advance our development programme in the Afar region and define the economic potential of our land position.
"Stratex would also like to welcome Franco Maranzana, as consultant to the Afar programme. Franco is a highly experienced geologist and manager of 40 years experience and is fluent in eight languages including French and Arabic. His invaluable experience will be extremely useful in this region."
The outstanding potential of the area has been confirmed by leading epithermal independent consultant Richard Sillitoe, after a recent field visit to the area for Stratex (Reported 7 June 2010).
Richard Sillitoe commented, "Recognition of the Megenta hydrothermal system clearly highlights the potential of the rest of the Afar Depression for low-sulphidation epithermal gold systems, some of which may have been more deeply exhumed than the Company's recent Megenta gold discovery in Ethiopia."
Detailed Information
The 535 km² licence areas in Djibouti cover the geological extension of the Company's Tendaho licences in Ethiopia where the initial discovery of the Megenta gold occurrence has led to the identification of a number of Rift settings with the potential for hosting gold. The main paved highway from the port of Djibouti to Ethiopia transects the Djibouti licence package and the Tendaho licence area in Ethiopia.
The Djibouti licences have been granted for an initial period of two years and thereafter are extendable for two further periods of eighteen months each. Stratex holds a 90% interest in the licences, with the Djibouti government retaining a 5% interest and has the right but not the obligation to purchase a further interest, up to a maximum of 35% by funding the costs of the required capital investment for mine construction, following completion of a successful exploration programme and a feasibility study. Stratex also has an agreement with the founding partners of former Djibouti-focussed exploration company Green River Geology for their entire exploration database in return for a 5% interest in any concession. This interest can be purchased by Stratex for US$2 million upon a decision as to production.
Since identifying the potential of the northern part of the Main Ethiopian Rift as prospective for hot-spring-related gold deposits over two years ago, Stratex has moved rapidly to acquire an extensive land position in the Afar Depression. Desk-based research of geothermal reports, remote sensing and follow-up ground work led to the discovery of the Company's Megenta project in eastern Ethiopia, an un-eroded, gold-bearing, low-sulphidation epithermal system. Additionally, rock chip samples returned up to 16.7 g/t Au from chalcedonic silica veins that outcrop over an area of some 6 km² and which highlight the potential for unexposed gold mineralization (Reported on 7 June 2010).
Stratex's management believe that the Afar Depression could hold similar epithermal systems as those found at the Cerro Vanguardia mine in Patagonia, and the Sleeper mine in Nevada, which have hosted multi-million-ounce deposits and are commonly characterized by bonanza grades in excess of 30 g/t.
Stratex has been well received by the authorities in Djibouti. The licence terms, and legal and fiscal conditions are competitive whilst the Minister and Secretary General of the Ministry of Energy and Natural Resources have also been very supportive.
To expedite the administration and management of the Djibouti holdings and exploration Stratex has appointed Dr. Franco Maranzana as lead consultant for the Djibouti project. He has 40 years experience in project management and assessment of natural resources, evaluation of mineral potential, natural risks mitigation, and environmental factors. Franco has had longstanding international exposure, and has been involved with Governments and international organisations in projects world-wide.
Djibouti
The potential of Djibouti was first recognised by Don Gustafson, the lead geologist in the discovery of the McLaughlin hot-spring gold deposit in Nevada, whilst working for the United States Geological Survey. Subsequent but limited work was undertaken by the Green River Geology company, a private company founded by Don Gustafson with two senior Anglo American geologists - Murray Surtees and Roy Corrans.
The French Territory of the Afars and the Issas became Djibouti in 1977. Located in Eastern Africa, Djibouti occupies a strategic geographic location at the mouths of the Gulf of Aden and the Red Sea. It shares borders with Eritrea, Ethiopia, and Somalia, and serves as an important transhipment location for goods entering and leaving the East African highlands.
The directors have found the government authorities to be very supportive of Stratex's plans and anticipate that exploration will commence in the near future.
For more details on Stratex's concession areas in the Afar Depression, please visit our website at http://www.stratexinternational.com/operations/afardepression.asp
Sampling, assaying, and QA/QC
Stratex's sampling of drill core and outcropping rocks conforms to industry-wide good practice, with drill core being split using a diamond saw, and with chain of custody being observed for all samples. Analysis is undertaken by ALS Chemex at its laboratories in Johannesburg, South Africa, and the Company maintains QA/QC on all analytical work via the use of certified reference materials, field duplicates, and blank samples in addition to monitoring of internal laboratory check-analyses.
Executive Chairman David Hall, EuroGeol, is a Competent Person as defined by various international instruments and takes responsibility for the release of this information.
* * ENDS * *
For further information please visit www.stratexinternational.com, email info@stratexplc.com, or contact:
| David Hall | Stratex International Plc | Tel: +44 (0) 20 7830 9650 |
| Bob Foster | Stratex International Plc | Tel: +44 (0) 20 7830 9650 |
| Claire Palmer | Stratex International Plc | Tel: +44 (0) 20 7830 9650 |
| Tim Metcalfe | Westhouse Securities Limited | Tel: +44 (0) 20 7601 6100 |
| Martin Davison | Westhouse Securities Limited | Tel: +44 (0) 20 7601 6100 |
| Jason Bahnsen | Fox Davies Capital | Tel +44 (0) 20 7936 5230 |
| Felicity Edwards | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
| Elisabeth Cowell | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Notes to editors:
Stratex International Plc is an AIM-quoted exploration and development company focussing on gold and base metal opportunities in Turkey northern Ethiopia, and the Afar Depression of eastern Ethiopia and Djibouti.
Stratex has a two-prong strategy: firstly it is moving to production through its partnership with NTF, with initial production targeted at Inlice by end 2011 and at Altıntepe by end 2012/early 2013; and secondly to discover and develop new projects by focused low-cost exploration, adding maximum value prior to optioning/joint venturing or selling on to a dedicated mining company, including NS Madencilik.
Turkey
·; Total resources stand at 1.17 million oz of gold (combined oxide and sulphide gold) and approximately 3.2 million oz of silver
·; Partnership with NTF, a technically capable and well-financed Turkish company, to rapidly develop the 542,318 oz oxide resources of the Inlice and Altıntepe projects
·; An option/joint venture agreement with Centerra Exploration B.V., a wholly owned subsidiary of Centerra Gold Inc., to explore and develop the Öksüt project, a high-sulphidation gold discovery located in Central Anatolia
·; An option/joint venture agreement over the Hasançelebi project, a high-sulphidation gold project in central Turkey with Teck Madencilik Sanayi Ticaret A.S., a Turkish subsidiary of Teck Resources Limited of Canada, a major shareholder in Stratex.
Ethiopia
·; 5.45% shareholding in PLUS-quoted exploration company Sheba Exploration (UK) plc ('Sheba')
·; Ajoint venture with Sheba to (i) earn-in to an initial 60% of the prospective 37 sq km Shehagne gold project in Ethiopia, and (ii) explore targets in northern Ethiopia on a 70:30 joint venture basis
·; 2,780 sq km land position over new epithermal gold discovery and multiple related gold targets in the Afar Depression which straddles the border of eastern Ethiopia and Djibouti.