Last checked at 13 Jan 2014 07:00
Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining
Stratex International Plc
("Stratex" or "the Company")
Strategic Overview -
Continued focus on value creation in 2014
Stratex International Plc, the AIM-quoted exploration and development company focussed on gold and base metals, is pleased to provide an update on its activities in Turkey, East Africa and West Africa and outlines its commitment to create shareholder value.
Highlights:
· Stratex continues to use its strong cash position to invest in and fast-track quality projects;
· Encouraging first results from 33,000 metre RAB drilling programme at Dalafin project and follow-up drilling already confirming significant mineralisation;
· Muratdere project nears completed feasibility study;
· Production anticipated to commence at Altintepe this year; and
· Drilling commenced at Tembo Gold project in follow-up to high-grade intersection of 15 m @ 22.81 g/t Au from 299 metres downhole.
Commenting on Stratex's activities in 2013 and plans for the coming year, Christopher Hall, Chairman, said: "Stratex's prospect generator business model saw the US$27 million of cash resulting from monetisation in 2012 put to good use in 2013, with the addition of strategic investment into our basic business of exploration of our own properties using our own and joint venture funds. During the year we completed a 33,000 metre RAB (Rotary Air Blast) drilling programme on our Dalafin project in Senegal; commenced a second phase diamond and RC (Reverse Circulation) programme which is currently underway; carried out follow up drilling at Blackrock and Megenta in Ethiopia and made our first strategic investment in Tembo Gold Corporation based on the excellent prospectivity and proximity of their ground holdings to the 14 Moz Bulyhanlulu gold mine in Tanzania.
"We start 2014 with a strong cash balance; approximately £10 million and are increasingly confident of future operating cash flow from our 45% owned Altintepe gold mine in Turkey given the relatively short, 6 month, construction period once we have received the final outstanding permits.
"Given the outstanding follow up results to date, with one intersection returning 7 metres at 86.39 g/t gold from 19 metres depth in the borehole, exploration will be focussed on the Dalafin project in Senegal, where we hold a 75% interest. We expect to release further results in the next few weeks from what is an exciting multi-target project. Results are also awaited from Phase two drilling at Megenta. Elsewhere in East Africa we expect to see some activity in Djibouti where the Oklila project holds the strongest, yet untested, potential in our Rift Valley programme. In Turkey, our partner Lodos is working towards completion of a feasibility study on the Muratdere copper-gold porphyry and we should also see the results of our more closely focussed drill programme at Tembo in the first half of the year.
"Management continues to maximise benefit for minimum expenditure and to conserve cash pending the start of cash-flow from Altıntepe. We have solid finances, highly prospective projects and excellent teams in each of our three operating hubs and we look forward to an exciting year of building more value for shareholders."
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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 |
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Bob Foster / Christopher Hall / Claire Bay
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Grant Thornton UK LLP | Tel: +44 (0)20 7383 5100 |
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Philip Secrett / Melanie Frean / Jen Clarke
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Northland Capital Partners Limited | Tel: +44 (0)20 7796 8800 |
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Gavin Burnell / Luke Cairns / Alice Lane /John Howes
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SP Angel Corporate Finance LLP | Tel: +44 (0)20 3463 2260 |
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Ewan Leggat / Tercel Moore
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Yellow Jersey PR Limited | Tel: +44 (0)20 3664 4087 | ||||
Dominic Barretto / Anna Legge / Philip Ranger | |||||
Notes to editors:
AIM-quoted (2006) Stratex International is focussed on the exploration and development of gold and high-value base-metal deposits in Turkey and East and West Africa.
It has discovered more than 2.2 million ounces of gold and 7.9 million ounces of silver and has a strong cash position following the US$ 20M sale of its interest in the Öksüt gold project in Turkey, and its c. US$ 20M future production royalties, along with the sales of 45 and 51 per cent of its Inlice and Muratdere projects, respectively. Stratex has a well-developed strategy to use its cash balance to move it towards a sustainable cash flow position from operations.
Its focus has been to form joint-venture partnerships with local private companies and major international mining companies, such as Antofagasta and Centerra in Turkey, and Thani Ashanti in East Africa while the corporate objectives are to progress majority-owned projects towards economic evaluation and development and to take advantage of quality opportunities in the smaller exploration company sector.