The Muratdere property comprises two licences covering a substantial granodiorite-porphyry system located 250 km west of Ankara. The eastern part of the porphyry system was first identified by the Turkish government’s Mineral Research and Exploration Institute (MTA) following work undertaken in the period 1999-2001. Systematic soil sampling over the property by MTA yielded up to 1,100 ppb (1.1 g/t) gold, 1,450 ppm copper, and 120 ppm molybdenum, and rock samples gave maxima of 1,200 ppm (1.2 g/t) gold, greater than 1% copper (the copper content exceeded the level measurable by the analytical technique used), and 1,000 ppm molybdenum.

MTA drilled two holes on what Stratex believes to be the eastern edge of the porphyry body; MTA2 gave an intersection of 194 m @ 0.2 % copper and 0.02 % molybdenum and the upper 10 m of the hole is reported to have averaged 0.5 % copper. No gold values were reported. Full results of the drilling still remain confidential to MTA.

Recently completed geological mapping by Stratex has demonstrated that the porphyry system extends east-west for a distance of at least 4,000 m and has a width of between 200 m and 400 m. Mineralization consists of narrow magnetite- and sulphide-bearing quartz veins and disseminated sulphide minerals in the rock. Collection of 22 samples by Stratex across the eastern end of the porphyry wherever rocks were exposed yielded 12 samples with copper exceeding 500 ppm and maxima of 6,520 ppm and 4,560 ppm in samples containing visible copper oxides. Gold was anomalous, with values up to 0.16 g/t, and molybdenum to 419 ppm.

During the second half of 2006 the company undertook detailed soil sampling over the full extent of the poorly exposed porphyry body to define the distribution of the mineralization and associated alteration patterns. The soil sampling, on a 100 m x 50 m grid (358 samples), demonstrated that the system was anomalous in gold (>10 ppb) and copper (>100 ppm) along the complete strike. Molybdenum values were anomalous at the >10 ppm level along the 2,700 m-long eastern lobe, with a significant number of values in the range 102-414 ppb (0.01-0.04 %). The high molybdenum values were broadly coincident with gold in the range 100-416 ppb (0.416 g/t), and two gold-molybdenum-rich areas were clearly coincident with high values of copper in the range 1,000-2,000 ppm (0.1-0.2 %).

Subsequent geophysical surveys (induced polarisation and magnetic) during Q2 2007 generated targets coincident with the most strongly anomalous geochemical zones and these are the focus of a reconnaissance drill programme that commenced in May. The first three drill holes intersected typical porphyry-hosted quartz vein-type stockwork mineralization partially overprinted by faulting and associated silicification. The results were as follows:

• MDD-1: 0 to 110.80 metres grading 0.25% Cu, 0.08 g/t Au, and 0.036% Mo
• MDD-2: 0 to 152.25 metres grading 0.21% Cu, 0.07 g/t Au, and 0.048% Mo
• MDD-3: 0 to 284.70 metres grading 0.30% Cu, 0.13 g/t Au, and 0.013% Mo including 26.75 metres grading 0.39% Cu, 0.20 g/t Au, and 0.013% Mo starting at 36.0 metres

The results from MDD-3, drilled approximately 500 metres east of MDD-1 & 2, revealed a more strongly mineralized part of the porphyry system.