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Update: Stratex International encouraged by results from West Africa

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Gold explorer Stratex International (LON:STI) is identifying targets for a follow-up drill programme in West Africa after encouraging early stage results from Liberia and Senegal.

Stratex explored five targets at Dalafin in Senegal: Faré, Konkonou, Baytilaye, Saroudia, and Madina Bafé.

Results from reverse air blast (RAB) and air core (AC) drilling programme at the project confirmed a new discovery with intersections at Faré, Baytilaye and Saroudia. Results are still pending from Madina Bafé.

At North Suehn in Liberia, Stratex identified a gold-in-soil anomaly of more than 30 parts per billion (ppb) gold over a strike of 4.5 km. Follow up trenching will investigate the bedrock source with two anomalous areas identified by stream sediment geochemical survey.

Bob Foster, Stratex’s chief executive, said the results vindicated the company’s move into West Africa.

“We are still awaiting analytical data from mineralisation intersected at the Madina Bafé prospect but the very positive intersections reported from Faré and Baytilaye in particular are extremely encouraging.”

Drilling so far has only targeted the upper few metres of the soil and weathered rock and it was possible some of the gold had leached downwards in response to weathering processes, he added.

“Multiple mineralised zones have been identified, many open at depth and along strike, and other lower-priority zones still remain to be drilled.

“We now face the welcome task of having to prioritise zones for follow-up drilling after the rainy season ends in September.”

Broker Northland added that the results from West Africa highlighted Stratex’s exploration pedigree.

The positive intersections from initial drilling at the Faré and Baytilaye prospects justify further work, while initial results at North Suehn Project were also positive.

Stratex also released data from east Africa yesterday. Northland said though drill results from the first two campaigns at the Blackrock project, in Ethiopia, did not discover a continuation at depth of the bonanza gold grades defined at surface, they demonstrated the widespread nature of gold mineralisation within the project.

Stratex has also only tested a relatively small proportion of the extensive system of veins at the Blackrock.

The potential for porphyry and skarn-style mineralisation at Berahale and the discovery of additional veins at Mariam Hill, also in Ethiopia, represent further exploration upside potential, said Northland, which rates Stratex as significantly undervalued. It has a 12.8p target price and ‘buy’ stance.

Shares were 4.5p today.

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