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.
Feasibility study shows low cash costs at Stratex Intl’s Inlice gold project
Stratex International (LON:STI) said the feasibility study for its Inlice gold project in Turkey has returned positive results, showing that the deposit is viable and can be rapidly progressed into production.
The report showed a relatively low total cash operating cost of US$412 per ounce of gold produced and a life-of-project gold production of 50,150 ounces. Projected after-tax internal rate of return (IRR) has been estimated at 22.9 percent using a US$1,100/oz gold price, which would increase to an IRR of 31.8 percent at US$1,200/oz.
Furthermore, use of joint venture (JV) partner NTF’s mining fleet leads to after-tax IRR of 36.9 percent at a gold price of US$1,100/oz and 47.9 percent at US$1,200/oz.
“To date the feasibility study has demonstrated that the relatively small Inlice gold deposit is economically viable and can be put into production rapidly," said chief executive of Stratex Bob Foster.
“Work remains to optimise the economics, including exploitation of the reserve over a shorter period by moving to a two or even a three shift operation.
“These improvements... are expected to result in an even more robust project that we regard as the first step towards building a substantial gold-producing company in Turkey,”
Total reserves stand at 1,095,000 tonnes grading 1.69 grammes per tonne (g/t) gold comprising 629,000 tonnes of in situ material averaging 2.36 g/t gold and 466,000 tonnes of talus material averaging 0.79 g/t gold for 59,600 ounces of contained gold.
Work is continuing to optimise the economics of the operation, which includes increasing its effective capacity from one to two or three shifts per day. This should not delay engineering, procurement, construction management and eventual production.
Mining is expected to commence at the end of the first quarter of 2012 with first gold production targeted at the end of the second quarter of the same year.
The company also noted that it has been making good progress with early-stage permitting discussions with local, provincial, and government agencies.
