Stratex CEO Bob Foster highlights significant extension to Hasançelebi gold project

Stratex International (LON:STI) has defined significant  extensions to three gold mineralised zones at its Hasançelebi project in central Turkey, following results of an eleven hole drilling program.

The company highlighted that the results demonstrate Hasançelebi’s potential for low-grade, high-tonnage, near-surface gold.

Investors welcomed the news with the shares climbing more than six percent this morning. The share was last changing hands around 5.35 pence.

"This initial drilling has been very encouraging,” Stratex chief executive Bob Foster said.

Hasançelebi is being explored in partnership with Teck Resources (TSX:TCK), via an option deal agreed in September 2009.  Teck funded the drilling program as part of its ‘earn-in’ commitments.

Speaking with Proactive Investors Foster said that Hasançelebi has potential for better results.

Foster highlighted that Hasançelebi is a major mineralised system that covers around 7 kilometres, and the partners have now drilled along a 2.8 kilometre strike.

To date the partners have drilled eleven holes for a total of 2,524 metres. In this morning’s results Stratex revealed that the three gold-enriched zones extend over a distance of as much as 2,000, indicating a significant increase in the mineralized strike of approximately 900 m previously reported in May last year.

According to Foster, drilling has reinforced the findings of early sampling and mapping, and so far it has demonstrated the mineralisation to be confined to near-surface ‘volcanic units’, Foster said.

“Replacement of specific volcanic beds by gold-bearing silica has the potential to generate large-tonnage bodies,” Foster said.

The drilling results include 15.35 metres grading 1.35 grams per tonne (g/t) gold, 20.70 metres grading 0.63g/t gold and 0.38% copper, 13.10 metres grading 0.68g/t gold and 29.3 metres grading 0.53g/t gold.

Now it has completed  its minimum earn-in requirement for 2010 - US$500,000 - Teck will have to spend a further US$1.5 million on exploration  before it earns its 51% stake.

The next phase of exploration is expected to start around April or May, after a winter break starting in mid-November.

Whilst the precise details of future exploration are still being worked on, Foster highlighted that both Stratex and Teck are encouraged by results to date and they are looking to build on them.

The partners have yet to establish how continuous the mineralisation is, and they haven’t yet determined the source of the near surface mineralisation, Foster said.

According to Foster there is potential to uncover higher-grade feeder channels.

Stratex believes the results justify further in-fill drilling to define a resource, with further exploration drilling along strike, and to explore for higher-grade ‘feeder channels’, Foster said.

Beyond the initial option, Teck can also earn a further 19%, taking its interest to 70%, by spending a further US$3 million over a subsequent three year period.

In this morning’s statement Foster also touched on the company’s other prospects in Turkey.

"This is an exciting time for our Turkish gold portfolio,” Foster added.

The company has a number of interests in Turkish gold projects, notably the Inlice and Altıntepe projects, as well as the Oksut joint venture with Centerra Exploration (TSX:CG).

The Inlice and Altıntepe projects are being developed through a separate joint venture with Turkish partner NTF Insaat Ticaret.

Inlice is Stratex’ most advanced project, a feasibility study is nearing completion and it is on schedule for the end of 2010.

Foster highlighted that a positive outcome will pave the way for first gold production by the end of 2011 or early in 2012 - following permitting and construction.

Stratex owns 45% and NTF Insaat Ticaret has a 55% interest in the NS Madencilik joint venture company, which owns both Inlice and Altıntepe.

In relation to the Oksut project Foster told Proactive Investors that an update is expected fairly soon, in around 3 - 4 weeks.

Drilling is currently underway on site, and Foster highlighted that the project has provided good results, which led to an in-house resource estimate of at 3.8 Mt (million tones) grading 1.21 g/t gold for 147,814 oz (ounces) gold.

“It has been a very positive year at Oksut, and we look forward to updating the market shortly.”

Centerra is funding US$3 million in exploration over three years to acquire a 50% interest in Oksut. The Canadian miner has already met its year one minimum commitment.

It has further options to increase its interest up to 70% by spending another US$3 million.

Overall Centerra would have to spend US$6 million over 5 years for a 70% stake.

Stratex also has interests in gold assets in Ethiopia and Djibouti, collectively the assets are known as the Afar project.

The company has recently signed a Heads of Agreement with an AngloGold Ashanti (NYSE:AU) joint venture company to advance the assets.

AngloGold’s Thani Ashanti unit is funding a substantial exploration and drilling programme.