Öksüt is Stratex’s latest high-sulphidation (HS) gold discovery in Central Anatolia, located 25 km south of Develi and 70 km south of Kayseri. It is a new 109.4  km2 licence area with the key licence acquired in October 2007. This key licence, Ortaçam Tepe, was targeted on the basis of significant gold grades (including 0.93 g/t Au over 25 m) yielded from rock samples obtained during 2007.

Prospect Geology

The Öksüt property comprises Miocene andesitic lava flow domes overlain by alternating pyroclastics (andesitic volcanic breccias/agglomerates and andesitic lithic tuff) and lava flows. These units show strong lithological controlled alteration, predominantly silicification and advanced argillic alteration. The altered units are overlain by Pliocene lava flows.

The main silica types are:

• brecciated silica;
• massive silica;
• vuggy/granular silica
• quartz-alunite/kaolinite;
• opal/chalcedonic silica .

Since the discovery of Ortaçam, a number of further potential drill targets have been identified on the basis of rock-chip sampling (Fig. 1).

Figure1.Potential drill targets identified by rock-chip sampling at Öksüt.

Exploration

Mapping and sampling commenced in April 2008 with a view to fast-track a reconnaissance drilling programme. Significant gold grades obtained from rock chip sampling identified the Ortaçam zone as an early priority. They include:

• 21 metres grading 2.91 g/t Au;
• 111 metres grading 0.90 g.t Au;
• 21 metres grading 2.67 g/t Au;
• 24 metres grading 1.72 g/t Au;
• 18 metres grading 2.61 g/t Au (57 metres grading 0.29 g/t Au)

At Ortaçam, the zone of massive and vuggy silica is exposed over an area of 200 m by 300 m, with an estimated thickness of approximately 100m (Figs. 2 and 3). The shallow dip of the beds (6-20 degrees towards the NNE) demonstrates that the silica zones are lithologically controlled, related to the lateral replacement of near-horizontal volcanic beds. This lateral bed-controlled mineralization has the potential of generating a large near-surface tonnage of mineralized material and is characteristic of very large high-sulphidation mines e.g. Yanacocha (35 Moz) and Pierina (9 Moz) in Peru. The silicified zones show both vertical and lateral zonation, although the former is more dominant. Vertically the zonation is observed as opal/chalcedony ± kaolinite at high elevations, overlying quartz-kaolinite and quartz-alunite horizons, subsequently overlying massive and vuggy silica.

Figure 2. Ortaçam;  massive and locally vuggy silica zones looking from north-west.

Figure 3. Results from rock chip sampling of m assive and locally vuggy silica zones at Ortaçam, looking from west.

The project advanced rapidly during 2008 with 18 km of access road being constructed/upgraded to facilitate initial drilling of the Ortaçam Zone, as shown in the following site plan (Fig. 4):

Figure 4. Ortaçam site plan showing the newly constructed roads, drill hole locations and identified zones of silica alteration.

Stratex commenced drilling at Öksüt in mid-August 2008 (Fig. 4 and Fig. 5) and has completed 3,352.50 metres to date. Results are shown below (Table. 1). ODD-8 yielded 270.20 metres averaging 1.22 g/t Au using a 0.2 g/t Au cut-off. To date this is the longest interval of continuous gold mineralization drilled by Stratex on any of its projects. ODD-12 yielded the best intersection to date of 93.60 metres grading 5.61 g/t Au.

Hole	Dip	Intersection
		From (m)	To      (m)	Length (m)	Au (g/t) (cut-off grade 0.2 g/t)
ODD-1	-075°	No significant intersection
ODD-2	-075°	0.80	20.10	19.30	2.96
ODD-3	-075°	14.75	77.20	62.45	2.16
ODD-4	-075°	71.80	145.10	73.30	1.36
ODD-5	-075°	No significant intersection
ODD-6	-045°	0.00	171.70	171.70	0.51
ODD-7	-045°	7.30	113.00	105.70	0.59
ODD-8	-045°	0.00	270.20	270.20	1.22
including		0.00	45.50	45.50	1.58
including		77.00	117.70	40.70	2.77
including		224.60	262.80	38.20	2.94
including		226.40	234.50	8.10	10.23
ODD-9	-045°	No significant intersection
ODD-10	-045°	Discontinuous intersections >0.2 g/t
ODD-11	-045°	0.00	15.70	15.70	1.82
and		111.00	204.40	93.40	0.37
ODD-12	-045°	0.00	93.60	93.60	5.61
and		169.70	196.50	26.80	1.05
ODD-13	-045°	No significant intersection

ODD-14	-045°	0.00	93.80	93.80	0.26
including		20.00	35.50	15.50	0.75
ODD-15	-045°	0.00	138.00	138.00	0.26
and		173.50	213.10	39.60	0.31
ODD-16	-060°	4.75	47.10	42.35	2.03
including		10.10	27.50	17.40	3.00

Table 1.  Drilling results from the Ortaçam Zone. All intersections are within the oxide zone.

 

Figure 5. Initial drilling of the Ortaçam Zone, looking towards the south-west.

Results show that partial to complete oxidation persists down to a vertical interval of more than 100 metres, dependent on the degree of pervasive fracturing present within the silica zones. This is reflected in the distribution of oxide gold values observed in Fig. 6. The mineralization in the Ortaçam Zone is largely confined to steeply inclined breccia zones, with outcropping silica representing more extensive upper parts of breccia zones that taper at depth. Those holes with no significant intersections have enabled the Company to gain a better understanding of the geometry of the mineralization.

Figure 6. Cross-section of drill hole ODD-08 at the Ortaçam Zone.

The Ortaçam Zone, measuring approximately 200 m x 300 m, is the first of a number of discrete, possibly linked, silica zones in the Öksüt prospect that Stratex has investigated. Extensive alteration and anomalous gold, with multiple values exceeding 0.1 g/t gold, have already been identified and mapped over an area of 8 square kilometres, extending the known area of mineralization from the originally identified 6 square kilometres.

Figure 7. Ortaçam and Büyükmese Zones, looking from the south.

Mapping and soil sampling over the full prospective area (4,000 m x 4,000 m) during 2008 highlighted five new prospective target zones (Fig.1), which are scheduled to be explored in due course. Four of these are outcropping zones (Ortaçam North, Büyükmese, Kızılağıl, Küçükmese) which have been delineated for further exploration and possible drilling. A fifth area (Devetası) has been defined by anomalous concentrations of Au (to 0.29 g/t), copper, molybdenum, and bismuth in soil samples, and may be indicative of a concealed porphyry system.

In May 2009, an additional significant zone of gold anomalies was identified extending at least 1,300 m in a north-south direction in the western part of the licence block, approximately 2,000 m west of the highly prospective Ortaçam Zone. Follow up reconnaissance work has indicated that this area is underlain by a poorly exposed and previously unrecognised zone of predominantly quartz-alunite alteration and pockets of vuggy silica. This new discovery suggests that exploration of the low-lying intervening ground should be a priority. Submissions are being made to the appropriate authorities for the construction of drill-access roads, drill sites and excavation of trenches for the next stage of the exploration and development programme that will enable the Company to further define the economic potential of this discovery.

In August 2009, the Company signed an option/joint venture agreement with Centerra to explore and develop Öksüt. Under the terms of the agreement, Centerra is committed to spending a minimum of US$ 500,000 in the first year, with the option to fund US$ 3 million over three years for a 50% interest in the project. Centerra also has the option to increase its interest to 70% after the first three years by expending an additional US$ 3 million over the following two years.

After the initial drilling during 2008, follow-up work was undertaken during Q3/Q4 2009 for three holes (ODD-14, ODD-15 and ODD-16) over a total of 674.60 metres. Hole ODD-14 did not intersect significant gold mineralization. Hole ODD-15 yielded 138.00 metres at 0.26 g/t Au, and 39.60 metres grading 0.31 g/t Au together with high copper values averaging 1.79 % and accompanying 20-40 ppm molybdenum values. These anomalies are being reviewed in terms of its relevance to porphyry gold-copper systems. Drill hole ODD-16 intersected a broad zone of patchy silica alteration immediately beneath talus cover and returned significant gold intercepts >1 g/t Au, including 42.35 metres grading 2.03 g/t Au.

In addition, a significant coincident IP (high chargeability) and magnetic anomaly has been defined 400 metres south-west and down-dip of the Ortaçam Zone. The geophysical characteristics of this are such that it constitutes a high-priority drill target for possible high-sulphidation or porphyry-style mineralization.

Following the completion of sixteen diamond drill holes during 2008 and 2009 for a total of 3,352 m of drilling, Stratex has undertaken a preliminary in-house gold resource calculation of the Ortacam Zone to JORC standards using the manual cross-sectional method. The estimated resource calculated for the oxide material is147,814 oz gold, with an average grade of 1.21 g/t Au using a cut-off of 0.2 g/t Au. Eighty six percent of the oxide gold resource (127,825 oz @ 1.38 g/t) is Indicated, the remainder being Inferred (19,989 oz @ 0.67 g/t).

The down-dip extension of the Ortacam Zone and a further four zones of mineralization containing anomalous gold values are currently the subject of detailed evaluation by the Stratex-Centerra team with a view to prioritising the 2010 drilling programme which will recommence in Q2/Q3.