Altintepe

Altıntepe, located near the town of Fatsa close to the Black Sea coast of northern Turkey, is prodominantly a high-sulphidation epithermal gold deposit hosted within an advanced argillic lithocap which over an area of at least 8 square kilometres (Figs. 1, 2). 

Figure 1. Mineralized outcrop at Altıntepe

In places, this is accompanied by intermediate- sulphidation epithermal mineralisation that occurs as a series of linear, fault-controlled veins and related stockworks (Fig. 3).

Figure 2. Simplified geological map of the Altıntepe prospect illustrating key mineralized zones

Figure 3. Mineralized intermediate-sulphidation breccia (cm-scale)

The following cross-sections show the sub-surface extension of mineralization, based on outcrop mapping and drilling intersections, at Çamlık East (Fig. 4) and Kayatepe (Fig. 5).

Figure 4. Cross-section of the central part of the Çamlık East Zone

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

Two further zones of mineralization, Sinan and Orta (Fig. 2), were identified towards the end of the exploration programme although have not been drilled. 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.

Since fully exercising its option to acquire 100% of the project from Teck Resources ('Teck') in April 2008, Stratex has completed a total of 4,752.5 m diamond drilling across the property, realising an total in-house resource (based on the cross-sectional method) of 593,131 oz gold, including 491,426 oz Au in oxide and transitional material (Table.1). At the Extension Ridge and Kayatepe zones, Measured and Indicated resources of oxide and transition material accounts for approximately 90% of the resource in the two zones, with gold grades of 1.8-2.1 g/t Au and 1.7-2.4 g/t Au in oxide and transition material respectively.  

Table 1. Altıntepe oxide material, transition material and sulphide material Au resources (0.2 g/t Au cut-off)

The resource also includes 2,371,689 oz silver (Ag) in oxide material, and a further 812,819 oz Ag in sulphide material.

Preliminary cyanide-leach test work has been 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 (Table. 2). This test work suggests that the oxide material from Altıntepe is mostly amenable to processing by low-cost heap leaching methods, a key factor that considerably enhances the potential economic viability of the project. However further metallurgical tests are necessary to confirm the leaching characteristics.

Table 2: Altıntepe Metallugical Testwork

Bahar Madencilik, a private Turkish contract gold mining company, has recently signed a Heads of Agreement with Stratex to enter into a joint venture for development of Altintepe. Free carry will substantially reduce financial risk for the company whilst providing exposure to future net cash flow.

Under the terms of the agreement, Bahar will pay Stratex US$250,000, seven days after the two Altintepe licences are transferred to Altintepe Madencilik, the operating company for the project. A positive decision to proceed to production will enable Bahar to vest at 55% of Altintepe Madencilik, with all costs of the EIS and technical and financial studies to be borne by Bahar. Should Bahar opt not to proceed to production, Stratex will assume 100% ownership of the Project.

Subject to successful outcome of an Environmental Impact Study and technical and other due-dilligence studies, Bahar will then advance Altintepe to production. Importantly, Bahar has a strong track record of mining in Turkey, in particular contract gold mining and processing, as well as the technical capabilities and in-house mining fleet to rapidly advance development of the project.