TIDMSTI
RNS Number : 8710G
Stratex International PLC
11 August 2016
Stratex International Plc / Index: AIM / Epic: STI / Sector:
Mining
Stratex International Plc
("Stratex" or "the Company")
Altıntepe Gold Mine Q2 Update:
H1 Revenues of US$32.73 million
Stratex International Plc, the AIM-quoted exploration and
development company focussed on gold and base metals in Turkey and
West Africa, provides a Q2-update on its 45%-owned Altıntepe Gold
Mine ("Altıntepe", the "Project" or the "Mine") in Turkey, where
first gold pour was reported at the end of 2015 (Press Release
dated 6 November 2015).
Highlights:
- Project sales in H1-2016 of gold and silver generated total
revenues of US$32.73 million. Aggregate project revenues (5(th)
November 2015 to 30(th) June 2016) stand at US$33.39 million;
- Successful installation and testing of new clay treatment
facility increased the production rate of the crusher circuit by
40% in Q2-2016 compared to Q1-2016;
- H1-2016 production rates from Camlık and Camlık East at budgeted levels;
- Total operating costs (less working capital and closure costs) for H1-2016 are estimated to be approximately US$560/oz, which includes a contract mining cost of US$450/oz;
- Stage I exploration and reserve drilling at the Extension
Ridge zone is nearing completion, with 44 holes completed for 4,033
metres at end-June;
- Construction of Phase II leach pad is underway with completion
anticipated during November 2016; and
- Assessment of longer-term life-of-mine (beyond Phase 1) production planning continues.
Bob Foster, Stratex Chief Executive Officer commented: "We are
delighted to report that H1 gold and silver sales have generated
total revenues of US$32.73 million. In addition, our partner Bahar
Madencilik ("Bahar") has advised us that production remains on
track to meet the minimum annual production target of 30,000 oz
gold, with 19,467 oz gold produced to 30 June 2016. In the
meantime, life-of-mine planning with our partner has flagged the
requirement for development capital (to be funded out of Project
revenues) and closure planning, although final numbers will in part
be dependent on the conclusion of the current Stage I exploration
and reserve drilling on the Extension Ridge zone. We are working
with Bahar to establish a sound policy for funding future capital
expenditure and mine-closure costs. Once these requirements have
been agreed and accurately costed, the level of distribution of net
cash to both parties throughout the life of mine - on the agreed
accelerated payback basis of 80% to Bahar and 20% to Stratex until
Bahar has recovered its pre-production costs - can commence. In the
meantime, the elevated gold price is a very positive factor in the
longer-term life-of- mine evaluation and planning."
Further Details:
The installation and testing of a new clay treatment facility
(announcement dated 17 April 2016) has proven very successful and
the crusher circuit throughput now commonly exceeds the targeted
3,500 tpd, a 40% improvement in the production rate compared to
Q1-2016.
During Q2-2016, throughput at the Mine delivered a total of
281,149 tonnes ore at an average grade of 1.35 g/t Au with end-H1
mine reconciliation (based on an average gold grade of 85%)
indicating production of 19,467 oz at 1.49 g/t Au from the Camlık
East and Camlık zones. The Mine remains on track to deliver at
least 30,000 oz Au in 2016.
H1-2016 sales of gold and silver generated total revenues of
US$32.73 million and at 30(th) June 2016, total project revenues
since start of production (announcement dated 6 November 2016)
stood at US$33.39 million.
The cost of contract mining by Stratex's partner Bahar
Madencilik ("Bahar") was US$450/oz. Altıntepe Madencilik (owned 45%
by Stratex; 55% by Bahar) is responsible for all other elements
including mine planning, grade control, processing, and sale of the
doré to a refinery in Turkey. Total operating costs, less closure
and working capital costs, during H1-2016 are estimated to be
approximately US$560/oz.
Discussions continue with Bahar, with regard to mine planning,
and a critical-path analysis by Stratex and Bahar is focusing on
the following:
-- Expansion of the leach pad area, required for the latter part
of Phase I production from Camlik East through to the processing of
further material from Camlık zone during Phase II and possibly the
Extension Ridge zone - construction of the leach pad for Phase II
is currently underway with completion anticipated during November
2016;
-- Assessment of longer-term life of mine production planning (therefore beyond Phase I).
Stage I exploration and reserve drilling on the Extension Ridge
zone to facilitate the planning is nearing completion, with 44
holes drilled for 4,033 metres to end of June 2016.
Proceeds from doré sales continue to accrue to the operating
company, Altıntepe Madencilik, but distribution of net cash awaits
agreement by Stratex and Bahar on the post-Phase I mine-development
plan and the evaluation of the Project's future requirements for
capital expenditure and working capital. A number of capital items,
totalling c. US$1.8 million, and including the new clay circuit,
have already been expensed to Altıntepe Madencilik. This is further
to the US$39 million pre-production capital expenditure paid by
Bahar as part of their earn-in to 55% of the Project. Once the
longer term planning of the Mine has been fully evaluated and
provision made for future capital requirements, including eventual
mine closure, distribution of net cash can be initiated on the
agreed accelerated payback basis of 80% to Bahar and 20% to
Stratex, until Bahar has recovered its pre-production costs.
Thereafter, the net cash generated will be distributed 55% to Bahar
and 45% to Stratex.
* * ENDS * *
For further information please visit
www.stratexinternational.com, email info@stratexplc.com, or
contact:
Stratex International Tel: +44 (0)20 7830 9650
Plc
Bob Foster / Christopher Hall / Claire Bay
Grant Thornton UK LLP Tel: +44 (0)20 7383 5100
Philip Secrett / Jen Clarke / Daniel Bush
Hannam & Partners Tel: +44 (0)20 7907 8500
Neil Passmore/ Andrew
Chubb
Notes to Editors:
Since listing in 2006, Stratex has discovered more than 2.2
million ounces of gold and 7.09 million ounces of silver, as well
as 186,000 tonnes of copper. The Company achieved first gold pour
at its 45%-owned Altıntepe gold mine in Turkey in November 2015 and
during H1-2016 the Mine produced 19,467 oz Au. It also owns 14.87%
of a copper-gold project at feasibility stage. With its current
cash position, projected cash returns and no debt, the Company is
well-placed to advance its existing exploration programmes and is
also actively seeking to acquire advanced projects that are at the
drill-ready stage or even have identified resources.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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