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.
UPDATE: Stratex International reveals excellent drill results from Öksüt gold project
---Adds broker comment---
Stratex International (LON:STI) this morning said that the latest batch of drill results from the Ortaçam North area on the Öksüt project in Turkey were excellent.
The best results included one hole with 199.6 metres grading 2.06 grams per tonne gold, containing 60.3 metres at 4.7 grams per tonne of oxide gold. Another had 116 metres grading 1.10 grams per tonne.
This confirms Ortaçam North as a major zone of gold mineralisation, it said.
According to Stratex a 400 metre-wide near-vertical pipe-like vent hosts mineralisation over a probable area of at least 200 x 280 metres. It said that the continuity of the gold grades still need to be fully defined.
The mineralisation is open at depth and oxidation is estimated to extend to 400 metres vertically
"These exciting results, together with the previously reported exceptional downhole intersections of 234.40 metres at 2.08 g/t gold and 220.20 metres at 1.83 g/t gold, mostly in oxide material, now define the Ortaçam North Zone as a significant zone of gold mineralisation,” said chief executive Bob Foster.
He added: “We are confident that this zone will significantly increase the previously reported project resource of 317,256 ounces of gold contained within the Ortaçam Zone.
Stratex also said that the preliminary test work on Öksüt suggests that oxide material and lesser amounts of transition material will be amenable to recovery of gold by heap-leaching.
Drilling work continues so that Stratex can evaluate the full extent of the breccia pipe.
A new independent resource estimate is expected early next year.
According to Fox-Davies analyst Peter Rose drill results from Öksüt have been rare since drilling began in April. But they have been worth the wait, he says.
“The latest results continue to confirm long intervals at reasonable grades, and the additional drilling is helping to characterise the geology of the deposit, which is increasingly looking like a bulk tonnage target with a higher grade core,” Rose said in a note to clients.
“We like that the grades start at relatively shallow depths (remember that the holes are angled and so the real depth of the mineralisation will be shallower than the down hole depth indicates) and also that the ground above the area of higher grade mineralisation appears to show low grade gold values (around 0.3 g/t Au) which could pay for the pre stripping.
“This would significantly impact the economics of any potential project.”
Rose believes that the results are a good indication that the Öksüt resource will be considerably higher than the current 284,000 ounces.
The analyst today repeated a ‘buy’ recommendation on Stratex with a 12.5p target price.
Meanwhile Northland Capital also sees the stock as a ‘buy’ with a 13.3p target.
“The gold mineralisation appears to be dominantly contained in the oxide material, which is amenable to recovery of gold by heap-leaching,” said Northland Capital analyst Dr Ryan Long.
“Drilling is on-going and continues to offer encouraging results and we expect to see a significant upgrade to the Öksüt resource by year end.
“We continue to see significant potential in the remainder of Stratex International’s portfolio and highlight the upcoming drill program at the 100 per cent owned, Black Rock project in the Afar Depression, Ethiopia for upcoming news.”
Additionally Stratex told investors that its joint venture partner Centerra has now spent US$3 million on the Öksüt project. That means it has now earned its 50 per cent stake in the project.
Centerra can increase its stake in the project again by spending more money on the project in the next 90 days. It can earn an additional 20 per cent by spending US$3 million on exploration.
"We are delighted that Centerra, having accelerated its expenditure to earn to 50 per cent, is now moving rapidly to advance the project,” Foster added.
“An independent updated resource will be commissioned once the current phase of drilling has been completed towards the end of this year and we look forward to further defining the economic potential of this highly prospective high-sulphidation gold project."
