Stratex International making good progress at Inlice and Altintepe gold projects in Turkey

Stratex International PLC (AIM: STI) said a scoping study to identify key issues and ensure optimum fast-track development for the Inlice and Altintepe gold projects in Turkey is now complete, with recommendations by international consultancy Golder Associates being implemented.

Shares rose 6.5 percent on the news in London morning trade.

Inlice and Altintepe contain a current combined oxide gold resource of approximately 570,000 ounces and are targeted to be brought into production within 18 and 36 months, respectively, together with joint venture partner NTF Insaat Ticaret Ltd Sti.

Pit-sampling of the Inlice project talus resource is completed and infill resource drilling is underway. Detailed proposals for metallurgical studies of oxide-gold material are under review to identify the optimum process for recovering gold at Inlice.

At the Altintepe project, initial drilling will focus on the higher grade zones of the mineralisation defined to date. Infill drill programmes to upgrade the resource categorisation are being prepared for the Çamlık East, Extension Ridge, and Kayatepe zones and drilling will commence shortly.

Detailed metallurgical test work will be commissioned on both projects, with test work anticipated to commence at Inlice in January 2010. Costs and suppliers of modular processing plants and equipment have also been identified in anticipation of fast-tracking the move to production following completion of feasibility studies at Inlice.

The draft of the definitive joint venture agreement has been reviewed by both parties and no major material differences have arisen. Subject to final review on various legal and taxation points, NTF and Stratex anticipate completion and execution by the end of November 2009.

Upon signature of the definitive agreement, Stratex will transfer the Inlice and Altintepe projects into the JV company and allocate 55 percent of the equity in the JV to NTF, upon which NTF will pay Stratex US$1 million. Thereafter, NTF will finance feasibility studies on Inlice up to an amount of US$2 million prior to a decision to move to production, at which point Stratex may opt to contribute or dilute and/or accept a loan of up to US$2 million from NTF to fund its contribution to construction costs.

In parallel with the Inlice studies, NTF will finance the immediate start-up of pre-feasibility studies on Altintepe to a level of US$500,000 and, subject to positive outcomes, will fund a further US$2 million of feasibility studies to take the project to a decision on whether to move to construction and production. At that point Stratex will have the option to contribute or dilute.

The Inlice project contains an open-pittable, in situ oxide resource of 944,495 tonnes grading 2.29 grammes per ton gold for 69,324 oz. Metallurgical test work will also be undertaken on the predominantly inferred oxide resource of 28,000 oz of gold contained in talus material at the project.

At Altintepe, the oxide resource currently stands at 472,318 oz Au, comprising 13,098,137 tonnes grading 1.12 g/t Au in all categories at a cut-off of 0.2 g/t Au and including 8.3 Mt grading 1.48 g/t Au. Infill drilling will focus initially on the higher-grade Extension Ridge mineralisation - an inferred resource of 1.73 Mt grading 2.17 g/t Au for a total of 120,906 oz Au.

Stratex's portfolio covers 11 licence blocks in central and western Turkey totalling approximately 1,690 square kilometres. Stratex's total resources in Turkey stand at circa 1 million oz of oxide and sulphide gold and approximately 3.2 million oz of silver.  

The company has a 5.45 percent stake in PLUS-quoted exploration company Sheba Exploration (UK) PLC and signed a binding letter of intent with Sheba to explore highly prospective gold licences held by Sheba in Ethiopia.