The Altıntepe (‘Gold Hill’) gold project is located near the town of Fatsa close to the Black Sea coast of northern Turkey. In April 2007 Stratex entered into an option agreement to acquire 100 % of the Altıntepe project from Teck Cominco’s Turkish subsidiary, Teck Cominco Arama ve Madencilik San. Tic. A.S. (TCAM). Altıntepe was previously the focus of exploration by Odyssey Resources through a joint venture with Teck Cominco.

Geological mapping by Stratex and logging of historical drill core from 30 drill holes (from a total Odyssey Resources drill programme of 79 holes) indicated that the prospect is underlain by an advanced argillic lithocap extending over an area of at least 8 square kilometres (Fig.1). High-sulphidation epithermal gold mineralization is an integral part of the lithocap and consists of wide zones dominated by silica alteration – Çamlık and Çamlık East. In places, this is accompanied by intermediate-sulphidation epithermal gold mineralization (Extension Ridge and Kayatepe) that occurs as a series of linear, fault-controlled veins and related stockworks. Further exploration work identified two additional zones- Sinan and Orta.

In August 2008 Stratex fully excercised its option agreement with Teck Cominco to acquire 100 % of the property by completing a total of 4,752.5 m diamond drilling. TCAM has waived any right to earn-back into the project and merely retain an underlying 1.5 % Net Smelter Return (‘NSR’) royalty from any future production whilst Stratex, now the sole owner, has exclusivity of any desicions regarding future direction of the project. A portion of the property is also held by a third party that holds a NSR royalty of 2.5 % which can be reduced to 1.25 % by a payment of US$ 750,000.

Figure 1. Simplified geological map of the Altıntepe prospect illustrating key mineralized zones identified to date.

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ExplorationTargets and Resource Drilling:

Çamlık East

Resource and exploration drilling at Çamlık East commenced in Q4 2007. The first three holes (ST-CKE-DD-1, 2 and 3) were drilled on a north-south fence line (East 365494) that includes historical drill holes ATDH-1 and KD-33, which previously returned 93.6 metres grading 2.79 g/t Au and 45.5 metres with 1.0 g/t Au. Results of Stratex drilling are as follows:

Table 1: Drill intersections from Çamlık East

Hole	Dip	Depth  (m)	Intersection					Details
			From (m)	To (m)	Width (m)	Au (g/t) (cut-off grade 0.2 g/t)	Ag (g/t)
ST-CKE-DD-01	-060°	106.70	0.00	106.70	106.70	1.29	3.13	Oxide+Sulphide Zone
			0.00	98.90	98.90	1.37	3.34	Oxide Zone
ST-CKE-DD-02	-060°	100.00	0.00	98.60	98.60	0.42	0.85	Oxide+ Sulphide Zone
			0.00	63.70	63.70	0.54	1.04	Oxide Zone
ST-CKE-DD-03	-060°	85.00	0.00	27.80	27.80	1.39	2.86	Oxide Zone
			0.00	73.70	73.70	0.63	1.91	Oxide Zone
ST-CKE-DD-04	-060°	73.00	0.00	65.30	65.30	1.26	7.00	Oxide Zone
ST-CKE-DD-05	-060°	75.30	0.00	62.60	62.60	3.08	8.04	Oxide Zone
ST-CKE-DD-06	-060°	50.20	0.00	30.20	30.20	0.54	4.92	Oxide Zone
ST-CKE-DD-07	-060°	74.80	0.00	55.00	55.00	0.34	1.99	Oxide Zone
ST-CKE-DD-08	-060°	53.10	-	-	-	-	-	Drillhole stopped
ST-CKE-DD-09	-060°	75.00	3.00	62.40	59.40	1.27	5.52	Oxide Zone
ST-CKE-DD-10	-060°	40.00	11.50	18.30	6.80	0.35	1.31	Oxide Zone
ST-CKE-DD-11	-060°	54.00	4.20	28.00	23.80	0.35	2.21	Oxide Zone
ST-CKE-DD-12	-060°	33.70	0.00	13.60	13.60	1.27	17.02	Oxide Zone
ST-CKE-DD-13	-060°	35.00	0.00	28.30	28.30	0.50	5.00	Oxide Zone
ST-CKE-DD-14	-060°	50.00	0.00	50.00	50.00	0.23	2.76	Oxide+ Sulphide Zone
ST-CKE-DD-15	-060°	100.00	0.00	74.60	74.60	1.67	18.53	Oxide Zone
			74.60	100.00	25.40	1.22	4.07	Sulphide Zone

 

Figure 2. Cross-section of the central part of the Çamlık East Zone

Figure 3. Cross-section of the Çamlık East Zone, 100 m east of Fig. 3.

These intersections are all from oxide mineralization that extends from surface. It is the Company’s intention to undertake further metallurgical test work on new samples of oxide material generated by the current Çamlık drilling and surface sampling programme.
 
Channel sampling of the recently excavated adit at Çamlık East returned values ranging from 1.58 g/t to 3.4 g/t Au, and averaging 2.22 g/t Au over the 25.4 m length of the adit.

Çamlık

Resource and exploration drilling at Çamlık commenced in Q1 2008. Drilling results are as follows:

Table 2: Drill intersections to date from Çamlık

Hole	Dip	Depth  (m)	Intersection					Details
			From (m)	To      (m)	Width (m)	Au (g/t) (cut-off grade 0.2 g/t)	Ag (g/t)
ST-CK-DD-01	-060°	75.60	26.50	48.20	21.70	0.34	0.66	Oxide Zone
ST-CK-DD-02	-060°	131.20	0.00	131.20	131.20	0.40	1.48	Oxide Zone
ST-CK-DD-03	-060°	89.50	0.00	89.50	89.50	0.60	3.38	Oxide Zone
ST-CK-DD-04	-060°	90.60	0.00	90.60	90.60	0.52	1.07	Oxide Zone

 

Kayatepe

Mapping and sampling at Kayatepe has identified a silicified zone that is exposed along a strike length of 500 m and 100 m in width. Within this zone, subsequent drilling has defined a relatively higher grade oxide section measuring approximately 400 m by 50 m. The weighted average grades of selected channel samples are:

• 1.21 g/t Au and 3.08 g/t Ag over 41.0 m;
• 6.63 g/t Au and 16.31 g/t Ag over 33.5 m;
• 12.98 g/t Au and 14.22 g/t Ag over 14.0 m and a maximum grade of 30.4 g/t Au over 2.0 m;
• 0.95 g/t Au and 20.79 g/t Ag over 51.0 m; and
• 0.82 g/t Au and 2.09 g/t Ag over 16.0 m.

Table 3: Drill intersections from Kayatepe

Hole	Dip	Depth  (m)	Intersection					Details
			From (m)	To      (m)	Length (m)	Au (g/t) (cut-off grade 0.2 g/t)	Silver (g/t)
ST-KT-DD-01	-060°	120.80	0.00	120.80	120.80	2.35	10.14	Oxide+Sulphide Zone
			0.00	45.20	45.20	1.37	18.43	Oxide Zone
			45.20	120.80	75.60	1.37	5.18	Sulphide Zone
ST-KT-DD-02	-070°	70.50	0.00	70.50	70.50	2.16	23.04	Oxide+Sulphide Zone
			0.00	47.00	47.00	2.62	30.99	Oxide Zone
			47.00	70.50	23.50	1.25	7.14	Sulphide Zone
ST-KT-DD-03	-050°	25.10	0.00	9.10	9.10	0.41	1.77	Oxide Zone
ST-KT-DD-04	-045°	35.10	1.70	18.60	16.90	0.55	20.54	Oxide Zone
ST-KT-DD-05	-045°	103.30	0.00	91.00	91.00	1.34	9.52	Oxide Zone
ST-KT-DD-06	-045°	60.30	0.00	54.90	54.90	2.38	6.16	Oxide+Sulphide Zone
			0.00	21.20	21.20	3.55	3.55	Oxide Zone
ST-KT-DD-07	-045°	75.30	0.00	32.20	32.20	0.77	18.04	Oxide Zone
ST-KT-DD-08	-045°	26.50	0.00	26.70	26.70	0.49	8.86	Oxide Zone
ST-KT-DD-09	-045°	12.60	0.00	11.60	11.60	0.35	6.57	Oxide Zone
ST-KT-DD-10	-045°	15.40	2.00	15.40	13.40	0.46	4.27	Oxide Zone
ST-KT-DD-11	-045°	23.40	0.00	23.40	23.40	0.97	16.60	Oxide Zone
ST-KT-DD-12	-045°	45.50	0.00	82.30	82.30	2.43	2.84	Oxide+Sulphide Zone
			0.00	45.50	45.50	3.64	3.90	Oxide Zone

 

Figure 4.  Cross-section of hole ST-KT-DD-01, Kayatepe Zone

Figure 5.  Mineralized intermediate-sulphidation breccia (cm-scale)

 

Sinan, Orta and Karakısla Zones

Two new zones of mineralization, Sinan and Orta, were identified towards the end of 2007. The 500 m-long Orta Zone is located between Extension Ridge and Kayatepe and comprises extensive silica-pyrite mineralization associated with quartz-vein stockwork and hydrothermal breccias. The Sinan Zone appears to be an 800 m north-eastward extension of Çamlık East. Although poorly exposed, the average width of the Sinan Zone appears to be 50-60 m and it will be sampled as part of the ongoing exploration programme. Karakıla is a further high-sulphidation target in the western part of the property.

International consultant Dr Dick Sillitoe has also highlighted the presence of a >350 m-wide zone of pervasive quartz-pyrophyllite alteration in the western part of the claims area. This is thought to be an integral part of the lithocap alteration and might provide a vector towards a possible porphyry centre. This possibility will be investigated as a part of the ongoing exploration programme.

Figure 6. On-site strategy meeting, Orta Zone

 

Resource and Metallurgical Testwork

Stratex has completed an in-house JORC-compliant resource based on the cross-sectional method, utilizing a combination of drillhole data and results of channel sampling at surface. The total in-house, JORC-compliant oxide resource for Altıntepe now stands at 472,318 oz gold, with 276,114 oz falling into the Measured and Indicated categories (see table below).

Table 4: Altıntepe Au Resource

Category	Tonnes *	Grade (g/t Au)	Gold (oz)
Measured	287,333	1.78	16,453
Indicated	9,287,370	0.87	259,661
Inferred	3,523,434	1.73	196,204
Total	13,098,137	1.12	472,318

* Using SG of 2.14 t/m3

 

The oxide resource also includes 2,371,689 oz silver, equivalent to approximately 21,300 oz gold at spot prices of $800 for gold and $12 for silver and a silver recovery of 60 %, giving a total of approximately 493,600 oz of oxide Au + Au(eq). A further 101,695 oz Au and 7,300 oz Au(eq) have been identified in the unoxidized sulphide material, giving a total Altıntepe oxide plus sulphide resource of approximately 602,500 oz Au + Au(eq).

Preliminary cyanide-leach test work was completed by Wardell Armstrong International Ltd on oxide samples from all five main zones. Carbon-in-leach (CIL) tests on material ground to less than 75 micron and bottle roll tests on material crushed to less than

12 mm indicate the potential for high gold recoveries from all material, although a lower recovery (68.5 %) was recorded for the leach tests on coarse material from Extension Ridge (see table below):

Table 5: Altıntepe Metallugical Testwork

Zone	CIL (<75 micron)	Bottle roll (12 mm)
Camlık	96.40 %	95.00 %
Camlık East	94.10 %	96.50 %
Karakısla	92.80 %	96.60 %
Kayatepe	91.80 %	86.70 %
Extension ridge	87.50 %	68.50 %

Leaching rates were high and both cyanide and lime consumptions were low to moderate. This reinforces earlier bottle roll and column leach tests carried out on oxide material from Çamlık East at the Kappes Cassidy & Associates Research Lab in Reno, Nevada, U.S.A. (commissioned by Odyssey Resources). Very high gold recoveries were obtained, ranging from 91.4 % to 97.9 % with low sodium cyanide and lime consumption even for low grade ore material. The testwork thus suggests that the oxide material from Altıntepe is amenable to processing by low-cost heap leaching methods, a key factor that considerably enhances the potential economic viability of the project.

In February 2010, the Company signed a Definitive Agreement with major Turkish construction and contract mining company NTF following the announcement of an initial Memorandum of Understanding (MoU) on 15 June 2009. This agreement sets out the terms under which Stratex will work with NTF to develop the Inlice and Altintepe gold projects towards feasibility and production.

Further information relating to this agreement can be found in the 'Media>Latest Press Releases' section of our website.