Last checked at 26 Aug 2010 07:00
Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining
26 August 2010
Stratex International Plc ('Stratex' or 'the Company')
Scoping and Feasibility Update from Turkish Development Projects:
First Production From Inlice Targeted Q4 2011
Stratex International Plc, the AIM-quoted exploration and development company is pleased to announce an update on progress at the Company's Inlice and Altıntepe gold projects in Turkey.
Highlights
·; Fast-tracking the Inlice project towards production by Q4 2011 and the Altıntepe project through scoping and feasibility, with production targeted for Q4 2012 - current combined oxide gold resource of approximately 570,000 ounces
·; Scoping study continues at Altıntepe - infill drilling completed at the Kayatepe Zone and drilling now underway on the Extension Ridge Zone
·; Best drill intersections at Kayatepe include:
o KT-DD-15 38.00 metres oxide + sulphide grading 4.01 g/t Au
o KT-DD-16 34.00 metres oxide + sulphide grading 6.23 g/t Au
o KT-DD-19 14.00 metres oxide + sulphide grading 1.81 g/t Au
And at Extension Ridge
o ER-DD-1 22.50 metres oxide grading 6.17 g/t Au
o ER-DD-2 20.80 metres oxide + sulphide grading 3.06 g/t Au
·; Feasibility study continuing on Inlice with two bulk samples of talus material shipped to USA for metallurgical test work by Kappes, Cassiday & Associates ('KCA'). Feasibility due to be completed in Q4 2010
·; Geotechnical evaluation of clays underway for use in construction of heap leach pads
Stratex CEO Bob Foster said, "We are delighted with the progress of the scoping and feasibility studies on our Inlice and Altıntepe gold projects in Turkey.We continue to develop them alongside our joint venture partner, NTF Insaat Ticaret Ltd Sti ('NTF'), and are targeting first gold production from Inlice by Q4 2011.
"Results from the scoping study currently underway at Altıntepe are encouraging. Infill drilling at the Kayatepe and Extension Ridge zones indicates that the mixture of upper oxide material and lower transition material should make a significant contribution to the total gold recovered from Altıntepe, due to the higher gold content of the associated sulphide material. The full scoping study results, due to be completed by the end of 2010, will enable us to assess Altıntepe's economic potential as we look to advance it towards production by the end of 2012.
"Additionally, two bulk samples of talus material from Inlice are being tested by KCA, as part of the feasibility study, to determine the levels of potential gold recovery. We look forward to completing the study at Inlice in Q4 2010, which will allow us to gain a clearer understanding of Inlice's gold production potential. From there, we hope to plan and commence a mine development programme as we fast-track Inlice towards gold production by Q4 2011."
Detailed Information
The development of the Inlice and Altıntepe gold projects, which contain a current combined oxide gold ('Au') resource of approximately 570,000 ounces ('oz'), is being funded by the Company's joint venture partner NTF Insaat Ticaret Ltd Sti ('NTF') through NS Madencilik Sanayi Ticaret Anonim Sti ('NS Madencilik'), the joint-venture development company 45% owned by Stratex.
The Inlice project contains a total resource of 262,300 oz Au utilising a geologically well defined cut-off grade of 0.1 g/t Au. The open-pittable, in situ oxide resource is 944,495 tonnes grading 2.29 g/t Au for 69,324 oz.
At Altintepe, the oxide resource currently stands at 472,318 oz Au, comprising 13,098,137 tonnes grading 1.12 g/t Au in all categories at a cut-off of 0.2 g/t Au and including 8.3 Mt grading 1.48 g/t Au.
Altıntepe
The scoping study at the Altıntepe prospect has advanced rapidly with infill drilling, recommended by independent consultants SRK (see RNS dated 3 February 2010), of the Kayatepe Zone now complete. The drilling has targeted the oxide zone and underlying transition zone (partly oxidized) which contains material that will be most amenable to recovery of gold by heap leaching. The drilling has demonstrated a mixture of upper oxide material and lower transition material (oxide and sulphide material that has been partially oxidized) as expected. Previous preliminary metallurgical test work has indicated lower recoveries for the transition material; however the Board is encouraged by the higher gold contents and believes that such material should make a significant contribution to the total gold recovered from Altıntepe.
Diamond drilling has now commenced on the Extension Ridge Zone. The first two holes on Extension Ridge have proved particularly encouraging with higher gold grades in the oxide material than expected. Averaged assay values of 37.90 m @ 6.17 g/t Au and 17.00 m @ 3.47 g/t Au for oxide material are significantly higher than the in-house-estimated grade of 2.17 g/t Au (press release of 10 September 2008), although the full significance of this will only become evident upon completion of the drill programme at this zone.
Following completion of the drill programme on Extension Ridge, which is scheduled for no later than the end of September 2010, bulk samples of oxide and transition material will be collected and shipped to the KCA facility in Nevada for metallurgical test work.
No drilling is scheduled for the Camlik East Zone where the in-house-calculated oxide gold resource of 142,206 oz @ 1.09 g/t Au (87 % indicated - 0.1 g/t Au cut-off utilised due to sharp boundaries to mineralised body) is believed to be adequately defined for the purposes of initial mine planning.
Table 1: Results from recent diamond drilling of Kayatepe (KT) and Extension Ridge (ER) zones (cut-off >0.2 g/t Au)
| Hole no. | Dip | From | Length1 | Grade (g/t Au) | ||
|
| (degrees) | (m) | (m) | Oxide | Trans | Total Ox + Trans |
|
|
|
|
|
|
|
|
| KT-DD-14 | -60 | 0.00 | 4.00 | 1.31 |
|
|
| and |
| 4.00 | 4.90 |
| 0.57 |
|
| Total |
| 0.00 | 8.90 |
|
| 0.90 |
| KT-DD-15 | -50 | 0.00 | 6.50 | 1.26 |
|
|
| and |
| 6.50 | 18.50 |
| 4.59 |
|
| and |
| 25.00 | 10.50 | 5.32 |
|
|
| and |
| 35.50 | 2.50 |
| 2.31 |
|
| Total |
| 0.00 | 38.00 |
|
| 4.07 |
| KT-DD-16 | -50 | 0.00 | 13.00 | 1.30 |
|
|
| and |
| 13.00 | 21.00 |
| 9.27 |
|
| Total |
| 0.00 | 34.00 |
|
| 6.23 |
| KT-DD-17 | -50 | 0.00 | 20.00 | 0.42 |
|
|
| KT-DD-18 | -50 | 0.00 | 27.00 | 0.31 |
|
|
| KT-DD-19 | -60 | 0.00 | 20.50 | 0.85 |
|
|
| and |
| 20.50 | 3.00 | 0.44 |
|
|
| Total |
| 0.00 | 23.50 |
|
| 0.80 |
| KT-DD-20 | -60 | 0.00 | 4.50 | 1.31 |
|
|
| and |
| 4.50 | 9.50 |
| 2.05 |
|
| Total |
| 0.00 | 14.00 |
|
| 1.81 |
| KT-DD-21 | -60 | 0.00 | 1.70 | 0.43 |
|
|
| and |
| 1.70 | 2.30 |
| 0.80 |
|
| Total |
| 0.00 | 4.00 |
|
| 0.62 |
| ER-DD-01 | -45 | 0.00 | 37.90 | 6.17 |
|
|
| ER-DD-02 | -55 | 0.00 | 17.00 | 3.47 |
|
|
| and |
| 17.00 | 3.80 |
| 1.24 |
|
| Total |
| 0.00 | 20.80 |
|
| 3.06 |
1 Length not necessarily representative of true thickness
Both the Kayatepe and Extension Ridge zones form the spines of prominent low hills and thus stripping ratios for the potential open-pit heap-leach operations should be low. Preliminary metallurgical test work (accelerated bottle roll tests) on oxide material from the Kayatepe and Extension Ridge zones, together with Camlik East, undertaken in 2008 (press release dated 10 September 2008) demonstrates that gold should be liberated readily by heap leaching of the oxide material, with recoveries of 86.7% and 96.5% for Kayatepe and Camlik East respectively and 68.5% for Extension Ridge; higher recoveries of 91.8% and 87.5% were reported for fine grind and leach tests on the Kayatepe and Extension Ridge material.
Subject to a successful outcome of the scoping study on the Altıntepe project, NTF will proceed to funding the full feasibility study on the project to a total cost (including scoping study) of US$2.5 million. A decision is anticipated by the end of 2010.
Inlice
KCA is focussed on completing the Inlice feasibility study in Q4 2010. Two bulk 200 kg samples of talus material (mineralized rock and soil overlying the southern flank of the Inlice East Zone) have been shipped to KCA to resolve potential levels of gold recovery. Samples of in-situ material from Inlice have already been undergoing detailed metallurgical test work for the past few months to determine the leaching characteristics of the different types of mineralized material.
To support the design and construction of the heap leach pads, test work on samples of clay material from the area around Inlice has commenced at the Middle East Technical University, Ankara, to evaluate hydraulic conductivities, moisture contents, compaction characteristics, and plastic indices.
About NTF production joint venture agreement
Under the terms of the agreement, a joint venture company, NS Madencilik Insaat Ticaret Ltd Sti has been formed to manage the technical evaluation of the Inlice and Altıntepe projects, the successful outcome of which will see the projects go into production. NTF is earning-in to 55% of Inlice by funding a feasibility study up to US$2 million. On the Altıntepe project, NTF is funding a US$0.5 million scoping study with the option to earn up to a 55% interest in the project by funding a feasibility study to an additional US$2 million.
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 Vancouver, Canada, and Romania, 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.
CEO Dr. Bob Foster, FIMM, CEng, 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 Rift Valley of eastern Ethiopia.
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 present at 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 Hasancelebi 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')
·; A joint 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
·; 2,245 sq km land position over new epithermal gold discovery and multiple related gold targets in the Afar Rift region of eastern Ethiopia.