Karaağaç, located within the Murat Dagi licence block of western Turkey, is one of a number of prospects identified within a licence block covering an area of 121 km² situated 30 km north-east of the town of Usak and 300 km west-south-west of Ankara. The licence block covers a thrust-faulted sequence of limestones and schists that have been intruded by, and now partly overlain by, volcanic rocks of Miocene age.
Detailed geological mapping of outcropping rocks in this hilly terrain led to the identification of a gently undulating blanket-like thrust (fault) zone and underlying altered limestone unit that extend over an area of approximately 3.5 km². Systematic chip sampling of the outcropping thrust zone and altered limestone has yielded numerous values in excess of 0.5 g/t gold and high values of 2 m @ 9.71 g/t gold and 1 m @ 6.92 g/t gold along approximately 7 km of the exposed thrust contact.
Continuous sampling over the full vertical width of the mineralized zone, estimated to be up to tens of metres in places, has not yet been possible due to the limited extent of the outcropping rocks.
A programme of diamond and RC drilling was completed in May 2007 which defined an inferred mineral resource of 156,798 oz Au. The Company are currently evaluating how to proceed with the project and are considering further work and/or a joint venture.
Elsewhere in the Murate Dagi licence block, two licences to the north (not containing any gold resource) have now been transferred to Kucuk-Kral_Antimon Kursun Maden, a private Turkish mining company focused on the production of antimony, in return for a 2.5 % Net Smelter Return royalty on all future mineral production from the licences. The 2.5 % Net Smelter Return royalty will be split, with Stratex receiving 1% of the royalty and the other 1.5 % will be payable to Teck Cominco Madencilik, from whom Stratex originally acquired the Murat Dagi licence package. Stratex has concluded that the gold potential of the two licences is very low and they will now be evaluated by Kucuk with a view to mining the known antimony mineralization. In the meantime Stratex continues to seek a partner to undertake further exploration work with a view to extend the existing 156,798 oz gold resource within the retained licence block (Karaağaç).
