Overview

Stratex is an AIM-listed company currently focusing on the exploration and development of gold and high-value base metals in Turkey and Ethiopia. Together with Turkish partner NTF it is progressing the Inlice and Altıntepe oxide gold resources through feasibility studies, with initial production anticipated from Inlice by 2011 and from Altıntepe by 2013. Stratex is also exploring and drilling its latest oxide-gold discovery, Öksüt, financed by option/JV partner Centerra Exploration and exploring Hasançelebi through a JV funded by Teck Resources. Stratex’s strong cash position has enabled the Company to consider opportunities outside Turkey, and in 2009 the Company announced its expansion into Ethiopia through a JV agreement with Sheba Exploration. In addition, Stratex has secured exploration licencing for a further 1,579 km2 within the Afar Region of Ethiopia, based on encouraging results from initial channel sampling at the Megenta project. Stratex continue to expand this new and exciting regional play.

 

History

Formed in 2004, the company has been positioned to take advantage of the current paucity of exploration activities and the resultant projected shortage in supply of precious and base metals. Since formation Stratex has rapidly amassed a portfolio of high-potential exploration licences in central and western Turkey, and in Ethiopia. This portfolio underpinned a successful listing on AIM on 4th January 2006 and has since been added to as a result of the Company's informed and aggressive approach to terrane analysis and prospect identification.

 

Strategy overview

The strategic intent is to maximize shareholder value through the continuing development of this focused portfolio. Revenues will be generated by:-

• Developing defined gold resources into mines via a production joint-venture agreement with Turkish civil engineering and contract mining company NTF; or

• Discovery of major new gold projects via joint-venture agreements with companies that have the technical and financial capabilities to put large resources into production. Those projects not meeting the +1 million oz gold resource requirements of major companies would be spun into the NTF JV, thus ensuring growth of the NTF-driven company into a significant gold producer; or

• Ongoing go-it-alone exploration to define new targets in Turkey and Ethiopia using the innovative exploration philosophies and techniques that have proved so successful to date and selling resulting new discoveries to a third-party company whilst retaining a royalty payment based on future metal production.

 

Joint ventures

Stratex currently has three key joint venture operating agreements in Turkey:-

• NTF Ä°nÅŸaat Ticaret Limited Åžirketi, whereby NTF earns up to 55% in both Inlice and Altıntepe by financing them to completion of feasibility studies; and
• Centerra Exploration, whereby Centerra can earn up to a maximum of 70% of the Öksüt project by financing exploration to a total of US$ 6 million, with a commitment to an initial US$ 500,000 of expenditure in the first year.
• Teck Resources Limited, whereby Teck can earn up to a maximum of 70% of the Hasançelebi project by financing exploration to a total of US$ 5 million, with a commitment to an initial US$ 500,000 of expenditure by 31st December 2010.

and a further JV in Ethiopia:-

• a 70:30 JV agreement with Sheba Exploration to acquire licences and generate new targets within northern Ethiopia

 

Operations

Stratex has a UK-based Board of Directors, including Chairman, CEO, CFO and two non- executive directors, with a head office in London. The Turkish operations are managed from offices in Ankara and include the country manager plus a team of geologists. Operations in Ethiopia are managed from offices in Addis Ababa and include a country manager, GIS technician, and a team of geologists.

Additional specialist exploration resources are provided through variable outsourcing contracts in order to minimise overheads.

 

People

Stratex recognizes that its single key strength is its personnel. This starts with its team of young and very able geologists based in Turkey and Ethiopia. Our Turkish team is led by General Manager Bahri Yildiz, who has unsurpassed knowledge of the geology and mineral deposits of Turkey and a superb track record of mineral deposit discoveries over the past 28 years. The senior executive is led by Chairman David Hall and CEO Bob Foster, who between them have over 60 years of exploration and development experience around the world. Supporting the Board is CFO Perry Ashwood, with a track record of senior financial management positions, and Non-Executive Directors Christopher Hall and Peter Addison.

 

Summary

In summary the key attributes and strengths of the company are:-

• Road map to mid-term gold production with Turkish company NTF
• Joint venture with Centerra Exploration to fast-track investigation of the important new Öksüt gold discovery
• Joint venture with Teck Resources to fast-track investigation of the Hasançelebi high-sulphidation property
• New epithermal district discovered in the Afar depression
• Valuable and continually evolving portfolio of projects with identified resources and considerable exploration potential 
• Highly experienced management team supported by top-level financial and commercial colleagues at Board level
• Highly effective operating model with a low cost base