Hasançelebi

Hasançelebi is a high-sulphidation epithermal gold-silver project which lies within the Yamadağ Volcanics of the Anatolian block, approximately 500 km SE of Ankara. Hosted within probable Miocene-age andesitic and dacitic rocks, early exploration has identified continuous alteration and mineralization over a strike length of approx. 7 km.

Figure 1. View east along Hasançelebi. Note silica ledges dipping to north (left).

Silica ledges (Figs. 1 and 2) are found outcropping close to the contact between andesitic/dacitic flows and the underlying sequence of clastic sediments and minor limestone units. Geological evidence from exploration thus far points to the silica and contained gold being stratigraphically controlled. Rock chip sample results to date have identified 858 m at 0.69 g/t Au over a mean width of 7.4 m, and includes a 22 m-thick section averaging 1.16 g/t (Fig.3).

Figure 2. Geological map of Hasançelebi property highlighting drill hole locations - silica zones shown in red.

Teck Madencilik Sanayi Ticaret A.S. ('Teck') is currently funding exploration and development at Hasançelebi under the terms of a joint-venture agreement. During 2010, Teck completed a first-pass drilling programme which saw 11 holes drilled for a total of 2,524 metres (Table 1). Results demonstrated the potential for low-grade, high-tonnage, near-surface gold mineralisation extending over a distance of between 1,000 metres and 2,000 metres, and vertical continuity of the system confirmed down to 300 metres in some areas.

The 2011 drill programme was focused on determining the full extent of near-surface mineralisation and also targeted a potential feeder zone that had been defined during a land-based magnetic survey. A subsequent IP (induced polarisation) survey during the early part of 2011 provided more detailed targeting and a further programme of five diamond drill holes totalling 1,572 metres was completed in the latter half of the year. Best results include 16.05 metres averaging 0.45 g/t Au and 15.75 metres averaging 0.28 g/t Au.

Two holes totalling 543 metres were also drilled into a new prospect (Karakaya Tepe) near the eastern end of the main Hasançelebi system, believed to be an iron oxide-copper-gold occurrence. The two best intersections returned were from hole HCD-11 - 28.00 metres averaging 0.30 g/t Au and 40.80 metres averaging 0.69 g/t Au.

These results are currently being reviewed with Teck to determine what work should be undertaken during 2012.

Table 1. First-phase drilling programme

* Drill hole HCD-03A was a depth continuation of HCD-03

Reported intersection lengths are believed to be close to true lengths