Latest News

Released 07:00 07-Mar-2014

Number 7491B

Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining

Stratex International Plc  

(“Stratex” or “the Company”)

Stratex Provides Operational Update

Stratex International Plc, the AIM-quoted exploration and development company, is pleased to provide an update on its operations in Turkey, West Africa, and East Africa.

Stratex CEO, Bob Foster, commented, “As we come to the end of the first quarter of 2014 Stratex has an optimum portfolio of anticipated near-term production from the Altintepe project in Turkey, subject to completion of permitting, together with future royalty revenue from Öksüt, a new discovery at Dalafin in Senegal, early stage pipeline exploration in Liberia, and a strategic investment and management of exploration with Tembo that gives shareholders an excellent spread of assets with real potential for further substantial value creation.

“The epithermal mineralisation that we discovered in the Afar Region of the Ethiopian Rift Valley remains an important target for us, especially Blackrock, and we are also working closely with our partner Thani with the intention of drilling the key Pandora project in Djibouti as well as identifying new acquisition opportunities. Some projects, including the Tendaho project (Megenta), have now been relinquished where our on-going exploration has indicated that the discovery potential is low. Relinquishing such projects is an absolutely critical part of our exploration strategy and ensures that we manage and direct our financial resources to best effect. 

“The next few months should see a steady stream of important news flow relating to future cash flow and to our exciting but still early-stage discovery in Senegal.”

TURKEY

Altintepe

A range of technical and engineering studies continue at Altintepe and Stratex’s partner company, Bahar Madencilik Sinayi ve Ticaret Ltd Sti (“Bahar”), has advised on the following:

·         International consultants have been updating the resource model and resource dilution, and will produce a life-of-mine production plan shortly;

·         Density studies of run-of-mine ore and stacked heap-leach material are in progress, leading to final design of the heap leach process; and

·         In-house metallurgical test work on high-grade, intermediate-grade, and low-grade materials have almost been completed from both Camlik East (the first zone to be exploited) and Extension Ridge and percolation and slump rates and potential consumption rates for cyanide, lime, and cement are underway.

Muratdere

·         Drilling programme to facilitate optimised design of pit(s) now complete. Two pits proposed using 0.3% Cu cut-off to yield initial resource of 15.087 M tonnes averaging 0.54% Cu and 0.10 g/t Au, of which 66% is classified as Indicated Resource and the remainder as Inferred Resource.

·         Metallurgical test work well-advanced using an internationally respected consultancy group.

·         Kinetic tests to determine acid rock drainage now into second month of five-month test period.

·         Geotechnical consultancy has commenced geotechnical survey of the selected location for the tailings dam.

·         Completion of the feasibility study targeted for second half of 2014.

Öksüt royalty

On 19 February 2014 Centerra Gold (“Centerra”) announced the completion of a preliminary economic assessment of the Oksut project - http://www.centerragold.com/sites/default/files/news-releases-en/cg-oksut.pdf. Production is projected to commence in 2016 and will ultimately rise to 125,000 oz per annum with a life-of-mine production of 893,000 oz gold. Following the sale of the Oksut project to Centerra (Press Announcement dated 12 December 2012) Stratex received a cash payment of US$20 million. The Company will also be a recipient of a 1% net smelter return royalty on gold production, capped at a further US$20 million. Subject to the outcome of Centerra’s full feasibility study, Stratex could see first royalty receipts as early as the latter part of 2016.

Other projects

The Company continues to participate in strategic alliance exploration programmes in Turkey with partners Antofagasta and Centerra respectively and exploration has also commenced with a soil-sampling programme funded by Centerra on the Enez project in Thrace, western Turkey. The Company will update the market on any major developments during the year.

The Company also continues to discuss the disposal of the Hasançelebi, Karaağac, and Doğanbey projects with potential Turkish partners in return for cash and/or royalty considerations.

WEST AFRICA

Senegal

Dalafin

Following the excellent early diamond and RC (reverse circulation) drill results from the Faré South prospect in the Dalafin licence area (best results including 59.6 m @ 2.2 g/t Au and 96.0 m @ 1.51 g/t Au – Press Announcement dated 19 February 2014), step-out drilling 100 m either side of Line 4 has now commenced and one deep hole has been targeted to intersect the wide mineralised zone along Line 4 at depths of between approximately 25 m and 75 m beneath the known mineralisation hosted by a porphyry and associated breccia system.

A combination of diamond drilling and air core drilling will then be undertaken on the Madina Bafé prospect in the southernmost part of the licence area where multiple targets have been identified on the basis of outcropping veins, regolith geochemistry, and the earlier RAB (rotary air blast) drilling completed during 2013.

In the meantime, recent drill results from the Baytilaye and Saroudia prospects are being reviewed with a view to possible further drilling. It should also be noted that only the highest-priority soil-geochemistry and early RAB drilling programmes have been followed up. Other targets may well be considered for drilling but Faré South and Madina Bafé are the current priorities.

With a strong footprint in Senegal and a valued partner in Senegalese company EMC (Energy and Mining Corporation), Stratex continues to seek new opportunities in the country.

Liberia

Sinoe

Having signed a binding Purchase Agreement with Australian junior company, Aforo Resources Limited (“Aforo”) (Press Announcement dated 11 February 2014), the Company has now commenced an infill soil sampling programme over the eastern target area where Aforo’s earlier soil sampling on a grid of 800 m x 100 m had already identified multiple ENE-trending linear gold-in-soil anomalies within an area measuring approximately 10 km x 7 km. This area straddles the major ENE-trending Dugbe Shear Zone (“DSZ”) and a number of NE-trending interpreted splay shears that are probably an integral part of the same structural system.

Two further areas of interest have been identified by stream sediment sampling between 5 km and 10 km to the west of the first target area and the catchment areas drained by the relevant streams will be the subject of reconnaissance soil sampling on a 800 m x 100 m grid. Interpreted NE-trending shear zones transect both target areas and appear to play a role in the localisation of Hummingbird’s Dugbe F (1.8 M oz Au) and Tuzon (2 M oz Au) deposits 7-10 km to the south.

North Suehn

Following completion of additional trenching on the Blackiestown target and follow-up soil sampling over areas of interest identified by stream sediment sampling, no compelling targets have emerged to justify further expenditure. The Company has advised partner-company BG Minerals accordingly and is now in discussion to determine the optimum way forward for both parties.

EAST AFRICA

Ethiopia

Blackrock

The Company remains positive about the potential for a discovery within the 30 km of mineralised systems identified to date in this northern part of the Ethiopian Rift Valley. Mapping and outcrop sampling during 2013 continued to identify new zones of mineralisation with grades of 33.7 g/t Au and 32.9 g/t Au reported from 50 cm-wide quartz-calcite veins in the Saba Zone (Press Announcements dated 4 February 2013 and 24 July 2013). The Company has completed approximately 9,800 m of drilling but recognises that this drilling has only effectively tested about 5 km of the mineralised systems. An application for extension of the licence for a further year has now been submitted and further drilling is planned following a review of all data and consideration of the new zones identified during 2013.

The Company is also awaiting award of two new licences in the Rift Valley, covering areas where remote sensing studies have indicated good potential for further discoveries.

Berahale and Tigray

These two licences in the older Arabian Nubian Shield rocks of northern Ethiopia were targeted for structurally controlled gold deposits (“orogenic gold deposits”) and volcanogenic massive sulphide deposits such as the Bisha deposit across the border in Eritrea. Vein-type gold mineralisation was identified in Berahale and also porphyry-associated hydrothermal alteration and minor sulphide mineralisation but subsequent more-detailed mapping and sampling failed to reveal anything of real significance and the licence has been relinquished.

Exploration of the Tigray licence lead to the discovery of high-grade gold veins in the Mariam Hill area (Press Announcement dated 24 July 2013). However, more detailed mapping indicated that the veins were of limited width (≤ 50 cm) and although flat lying, were sufficiently widely spaced apart to mean that they could not be a viable mining target. Consequently this licence has also been relinquished.

Afar Project

The Afar Project comprises the Tendaho licence in Ethiopia and the multiple licences in Djibouti that include the Pandora prospect. Exploration of these licences was funded by the Thani-Ashanti Alliance and managed by Stratex. The Thani-Ashanti Alliance was a joint venture between Dubai-based Thani Emirates Resources Holdings Ltd and AngloGold Ashanti (“AGA”). However, AGA has reduced its exploration activities world-wide and, as a result, has withdrawn from the joint venture. Stratex is now working closely with Thani as the sole partner to take this project forward and also consider other opportunities in the region.

Djibouti: The Oklila system (comprising the Pandora and Pyrrha veins) remains a very attractive drill target with a total of 10 km of veins now identified including the inferred structures beneath wadi sediments and surface cover. The Pandora and Pyrrha veins have returned consistently positive gold contents along outcropping strike lengths of 2.3 km and 1.54 km respectively. Stratex is in discussion with Thani with a view to scheduling the logistics of the programme and the start date of drilling, which both companies recognise as a highly prospective project. 

Tendaho: The results of the latest drill campaign on the Megenta prospect confirmed earlier observations of gold-rich but very narrow veins and zones of silicification but no robust continuous wide mineralised systems were intersected (Press Announcement dated 20 January 2014). Relatively deep drilling was undertaken in the hope of intersecting stronger mineralised zones in more competent basement rocks beneath the young basalts and sediments of the Rift Valley but this did not prove successful. Consequently the licence has now been relinquished

Tanzania

Tembo

Following the recent non-brokered private financing of Tembo Gold Corporation (Press Announcement dated 19 December 2013), Stratex now holds 12.89% of the TSX-quoted company and, in concert with the New Africa Mining Fund II and Concept Capital Management Ltd, shares a controlling interest of approximately 58% of Tembo. The new funds are being utilised for a drilling programme on Tembo’s licence portfolio in the vicinity of African Barrick’s Bulyanhulu gold mine in Tanzania. Drilling commenced in December 2013 and is targeting three key mineralised zones that have already been identified from previous drilling as hosting gold mineralisation – Ngula 1, Nyakagwe, and Nyakagwe Village. In parallel with this drilling programme, a ground-based induced polarisation (“IP”) survey will be undertaken across multiple NW-trending magnetic lineaments that are located approximately 3 km along strike from the NW-trending Bulyanhulu lodes. The IP survey is intended to identify zones of sulphide mineralisation that will then be prioritised for drilling.

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For further information please visit www.stratexinternational.com, email [email protected], or contact:

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 Inlice and 51 per cent of its Muratdere project. Stratex has a well-developed strategy to use its strong 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.