Located 250 km west of Ankara, the Muratdere property comprises three licences covering a substantial copper-gold- granodiorite-porphyry system with significant silver, molybdenum and rhenium credits. The porphyry system extends east-west for a distance of c.4,000 m and has a width of between 200 m and 400 m. The JORC-compliant Inferred Resource of 51 million tonnes (186,000 tonnes Cu, 204,296 oz Au, 3.9 million oz Ag, 6,390 tonnes Mo and 17,594 kg Re) extends over a distance of approximately 2,000 metres but is open-ended to the east and west and at depth, suggesting considerable potential to increase the resource.
In December 2011, Stratex entered into a joint-venture agreement with Lodos, a wholly-owned mining investment company of Pragma Finansal Danışmanlık Ticaret A.Ş. ('Pragma', previously referred to as 'InvestCo'), a leading private Turkish financial institution and investment company, for the development of the Muratdere project. As part of its earn-in to a 70% interest in Muratdere, Lodos completed drilling, made cash payments totalling US$2.2 million to Stratex, and completed a feasibility study in May 2015. Please click here for further details.
Since that time the economic environment has continued to deteriorate and the prices of copper and gold have declined. As such, Stratex has decided not to contribute its pro-rata share of recent project financing and as a result its interest in the project has been reduced to 14.87%. The Company will continue to assess the supply-demand scenario for copper and may consider supporting future work should it believe that the demand for copper and hence the price justifies its participation.
In the event that a party's equity interest falls below 10%, its interest shall be converted to a 1.2% Net Smelter Returns royalty.