www.stratexinternational.com
Stratex International is an exploration and development company focusing on gold and high-value base metals. The company objective is to be a leading-edge and innovative explorer whilst creating revenue from gold and base metal production via well-managed joint-ventures.
Since formation, Stratex has rapidly amassed a portfolio of high-potential exploration licences in Turkey and Ethiopia, primarily focussed on gold.
Stratex to option into AbiAdi gold project in Ethiopia’s Tigray province
Stratex International PLC (LON:STI) has signed a binding Heads of Terms agreement with privately owned LozBez Mining Private Ltd Co to option into the AbiAdi-Gichke gold project located in the prospective Tigray province in northern Ethiopia.
In a statement, the company said the licence area covers 967 square kilometres of highly prospective ground for gold and base metal mineralisation in northern Ethiopia within the Arabian-Nubian Shield. The deal is in line with Stratex's strategy to increase its land position in the prospective Ethiopian gold sector.
Gold mineralisation has been identified over a strike length of approximately 5 kilometres associated with intrusive rocks and a major NE-trending linear feature.
Following expenditure of US$50,000 during an initial three month due-diligence period, Stratex can earn up to 75 percent of AbiAdi following the funding of all exploration to a total expenditure of US$1 million and the completion of 3,000 metres of diamond drilling over a 36 month period.
Once Stratex has the 75 percent stake, it will form a joint venture with LozBez, into which AbiAdi will be placed. Stratex may then earn a further 10 percent of the JV company through additional expenditure of US$2 million. Stratex can commission a feasibility study at any time following the initial expenditure of US$1 million and the formation of the JV.
Following the completion of the feasibility study and the decision to proceed to mine production, if either party fails to contribute to the construction and commissioning costs, their equity share will be reduced using an industry-standard contribute-and-dilute formula. Should either party be reduced below 10 percent, their equity share will be diluted to a 2 percent Net Smelter Return royalty.
The AbiAdi project is located in the Tigray province of northern Ethiopia, approximately 60 kilometres north-west of the provincial capital of Mekele, and 80 kilometres south of Stratex's existing Tigray exclusive exploration licence.
LozBez has completed a preliminary programme of geological mapping and sampling of outcropping rocks and stream sediments across the central-eastern portion of the licence.
This work has identified a prospective northeast-trending structure and an elongate intrusive, both of which contain anomalous concentrations of gold over a distance of more than 5 kilometres, with historical chip sampling assay grades up to 8.45 grammess per tonne gold and 41.9 g/t silver in separate samples.
Local artisanal miners are exploiting both alluvial and bedrock mineralisation and are recovering coarse flakes of gold up to 2 millimetres in size.
Stratex chairman David J. Hall said, "We have a strong exploration portfolio in the region, the value of which was recently underpinned by our agreement with Thani Ashanti, an AngloGold Ashanti joint-venture company, to fast-track the development of our prospective licence areas in the Afar Depression of eastern Ethiopia and Djibouti.
“Interestingly the geological setting is very similar to the Zara gold deposit in Eritrea where Chalice Gold has defined an indicated resource of 5 Mt grading 5.3 g/t Au for 840,000 oz,” he added.
