Latest News

Released 09:30 30-Jul-2013
Number 4527K09 

Stratex International Plc  

(‘Stratex' or ‘The Company')

Turkey Update

Stratex International Plc, the AIM-quoted exploration and development company focussed on gold and base metals in Turkey, East Africa and West Africa, is pleased to provide an update on its exploration and development activities in Turkey, including further details on the development of its 45%-owned Altıntepe gold project and drilling results from its Muratdere copper-gold-porphyry project that is the subject of a share purchase agreement with Lodos Maden Yatırım Sanayii ve Ticaret A.Ş. ('Lodos').

Highlights

Altıntepe

• Environmental Impact Study (‘EIS') approved following successful public consultation process where no objections were lodged
• Bahar Madencilik Sinayi ve Ticaret Ltd Sti ("Bahar") now vested at 55% and have confirmed production decision subject to permits
• Bahar have confirmed that construction will commence immediately on grant of permit
• Initial production target of three million tonnes averaging 1.34 g/t Au, plus half million tonnes of low-grade material averaging 0.35 g/t Au, over 40 months
• Additional resources expected to be brought into mine plan sequentially

Muratdere

• 7,900 metres of diamond drilling completed since March 2012. Significant results include:  

• 73.20 m @ 1.33% Cu and 35.70 m @ 0.71% Cu (MDD-61)
• 20.20 m @ 1.58% Cu and 48.30 m @ 0.57% Cu (MDD-71)
• 26.05 m @ 0.78% Cu and 123.20 m @ 0.48% Cu (MDD-75)
• 15.10 m @ 0.90% Cu and 73.60 m @ 0.44% Cu (MDD-77)
• 19.50 m @ 1.15% Cu and 33.50 m @ 0.92% Cu (MDD-81)
• 20.00 m @ 0.82% Cu (MDD-82)
• 17.50 m @ 1.00% Cu and 47.50 m @ 0.63% Cu (MDD-83)

• Resource drilling now underway on 50 m spacing
• Lodos now vested at 61% following payment of U$500,000 to Stratex

Other projects

• Stratex is currently in discussions with a number of Turkish companies regarding potential joint ventures or acquisitions on some of its less strategic assets

Bob Foster, Chief Executive Officer said: "Stratex remains well placed in the current market with its two key development projects being funded by Turkish partners. The EIS for Altıntepe has been approved and our partners Bahar are waiting for the Forest Permit to be awarded by the authorities before commencing construction. Unfortunately there appears to be a substantial backlog of applications for such permits from many sectors but Bahar have confirmed their commitment to go forward as soon as approval has been received and anticipate that construction will take no longer than six months."

"The on-going drilling at the Muratdere copper-gold-molybdenum deposit has been encouraging and has continued to demonstrate higher copper grades generated by enrichment in the weathered zone where substantial intersections of secondary sulphide material ("supergene enrichment") have been recorded, as well as long intersections of underlying primary sulphide ("hypogene") and mixed ("transition") mineralisation. Following payment of US$500,000 to Stratex, Lodos has now vested at 61% of the project and has appointed a number of international and local consultancies to contribute to its feasibility study.

"Satisfactory progress is being made in our two strategic alliances, with Antofagasta and Centerra. However, following a review of other less strategic properties, discussions have now commenced with Turkish companies who have expressed interest in acquisition or joint venture."

Further Details

Altıntepe

The EIS, prepared by Golder Associates (Turkey) Ltd, has been approved by the Ministry of the Environment, with no objections lodged by the public following the four-week public consultation period. As a result Bahar have vested at 55% of the project.

Approval of the Forest Permit is awaited but it is understood that a large number of such applications are still awaiting approval and it is not clear when the Permit will be awarded. However, once awarded, Bahar will immediately start construction and have advised the Company that this will take approximately six months, after which loading of the leach pad and leaching will commence.

The mine planning calls for a total of approximately three million tonnes of ore with a grade of 1.34 g/t Au, plus approximately half a million tonnes of low grade ore averaging 0.35 g/t Au, to be mined over an initial 40-month period. The bulk of the mineralized material will come from the Camlik East Pit, with a smaller tonnage from the North Pit. Exploitation will then extend to other mineralized zones in the licence area.

Bahar will receive 80% of net cash flow once production commences with 20% payable to Stratex until it has recovered its investment. Upon completion of capital recovery, net cash will be disbursed on the basis of 55% to Bahar and 45% to Stratex.

Muratdere

Following the signing of a Heads of Agreement with Pragma Finansal Danışmanlık Ticaret A.Ş. ("Pragma") in December 2011, Pragma's wholly-owned subsidiary company Lodos acquired 51% of the Muratdere copper-gold-molybdenum project following confirmatory drilling and the payment of US$1.7 million to the Company (see press release dated 20^th December 2012), a total of 62 holes have now been drilled for 8,375 metres. Lodos has now vested at 61% following payment of US$500,000 to the Company and can acquire a further 9% (for a total of 70%) by completion of a feasibility study.

Table 1: Significant intercepts from Muratdere diamond drilling during 2013. Cut-off 0.3% Cu.

Drilling has mostly targeted the upper 100 m of the deposit, where supergene enrichment of the copper is commonly evident. Encouragingly however, where drilling has penetrated some distance into hypogene material, long intersections of material grading 0.35-0.5% copper have been identified. Examples include:

• MDD-53: 96.20 m @ 0.37% Cu & 182 ppm Mo
• MDD-55: 110.50 m @ 0.37% Cu & 348 ppm Mo
• MDD-57: 103.50 m @ 0.37% Cu & 92 ppm Mo
• MDD-74: 71.70 m @ 0.49% Cu, 0.12 g/t Au, 259 ppm Mo
• MDD-75: 123.20 m @ 0.48% Cu, 0.20 g/t Au, 348 ppm Mo

Preliminary test work (press release dated 12 December 2011) has indicated that such sulphide material could potentially yield a saleable concentrate and consequently there may be a significant potential to exploit the hypogene sulphide material as well as the supergene and transition (mixed) material nearer the surface.   

Resource drilling is now underway on 50 m spacing.

International consultants have been appointed for the mining work and local consultants for tailings management, and processing consultants will be appointed soon. The EIS is  being undertaken by SRK Danışmanlık ve Mühendislik A.Ş. ("SRK"), who remain as advisers on environmental issues.

Hasançelebi

Following further geophysical studies and additional drilling, Teck Madencilik Sanayi Ticaret A.S. ("Teck") has completed its committed expenditure and has decided not to pursue any further interest. Negotiations are now underway with another third party that has expressed interest in the project.

Altunhisar

Centerra Gold Inc. funded a programme of extended soil and rock sampling and also drilled one and two holes, respectively, in the Karanlikdere and Balcı alteration zones. No significant mineralisation was identified and no further work is anticipated.

Alliance projects

The Company continues to work closely with Antofagasta and Centerra on copper and gold exploration programmes respectively and the market will be updated on any significant developments in due course.

Other projects

The Company is in discussion with a number of Turkish companies that have variously expressed interest in the Karaağac project and those licences still held in the Konya area - Doğanbey, Doğanbey South, and Karacaoren.

Bob Foster, Chief Executive Officer, is a Competent Person as defined by various international instruments and takes responsibility for the release of this information.

* * ENDS * *

For a glossary of technical terms please visit http://www.stratexinternational.com/technical-glossary/

For further information please visit www.stratexinternational.com, email [email protected], or contact:

Notes to editors:

Stratex International is a well-funded AIM-quoted exploration and development company focussed on gold and high-value base metals in Turkey, East Africa and West Africa. Since listing on AIM in 2006, Stratex has had an impressive track record of successful exploration supported by joint-venture partnerships, both with major international mining companies and local companies to maximise the potential of its discoveries.

In December 2012 the Company announced the sale of its 30% interest in the Öksüt gold project for cash of 20 times its original US$1 million investment and retained a royalty of 1% up to a maximum additional value of US$20 million.

To date Stratex has discovered more than 2.2 million ounces of gold and 7.9 million ounces of silver, as well as 186,000 tonnes of copper. The Company is well cashed and is therefore well-placed to advance its existing exploration programmes and is also actively seeking to acquire advanced projects that are at the drill-ready stage or even have identified resources, particularly in East Africa and West Africa.