The Altıntepe (‘Gold Hill’) gold project is located near the town of Fatsa on 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). Logging of historical drill core from 30 drill holes throughout the prospect indicated that it is underlain by an advanced argillic lithocap with a minimum size of 8 square kilometres. 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.

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

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Previous Work

Altıntepe has a current National Instrument 43-101 (Canadian) resource estimate of 311,543 oz Au, using a 0.4 g/t Au cut-off. This resource calculation is based on an indicated resource of 1,191,377 tonnes grading 1.87 g/t Au, and an inferred resource of 5,355,577 tonnes grading 1.39 g/t Au. The resource is hosted in two zones, Çamlık East (formerly 2G-Çamlıktepe) and Extension Ridge. Historical drilling returned high-grade intersections including 124 m grading 2.4 g/t Au from surface (Hole KD-34) and 31 m grading 4.9 g/t Au from 12 m (KD-1). Gold mineralization has previously been reported in ten different zones over circa 8 sq km, having been investigated by a total of 79 drill holes. Bottle roll and column leach tests on oxide material from Çamlık East have been carried out at the Kappes Cassidy & Associates Research Lab in Reno, Nevada, U.S.A. Very high gold recoveries ranging from 91.4 % to 97.9 % were obtained with low sodium cyanide, lime and cement consumption even for low grade ore material.

Fig. 2. On-site strategy meeting, Orta Zone

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 to date 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

 

Fig. 3. Cross-section of the central part of the Çamlık East Zone

Fig. 4. Cross-section of the Çamlık East Zone, 100 m east of Fig. 3.

Total drilling to end-January 08 amounts to approximately 1,100 m, with assay results still awaited for the subsequent drill holes. These latest 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 to date 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 to date 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

 

Fig. 5.  Cross-section of hole ST-KT-DD-01, Kayatepe Zone

Fig. 6.  Mineralized intermediate-sulphidation breccia (cm-scale)

Sinan and Orta 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.

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.

Option Agreement

Under the terms of the option agreement with Teck Cominco's Turkish subsidiary TCAM, Stratex was required to complete 5,000 m drilling in order to earn 100 % of the property. Subsequent to Stratex exercising the option, TCAM could then exercise the option to earn-back into the property by completing 10,000 m of drilling within a 42 month period. Instead TCAM waived this right early, with Stratex only having completed 4,752.5 m of the total required drillng. They will therefore merely retain an underlying 1.5 % Net Smelter Return (‘NSR’) royalty from any future production whilst Stratex, now the sole owner, have exclusivity of any desicions regarding future management 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.

The company have recently carried out further chip sampling on the property which, incorporated with 13 diamond drill holes drilled by previous operators, has led to the preparation of an additional in-house cross-sectional resource calculation to JORC standards.  The total in-house, JORC-compliant oxide resources for Altıntepe now stands at 472,318 oz gold, 276,114 oz of which falls in the Measured and Indicated categories.

It is the Company's intention to indentify a mining-capable partner to progress the project through scoping studies and feasibility, thus minimising risk and expenditure prior to any production decision.