Stratex International One2One Forum - 14th June 2012 - Proactive ...

Proactive Investor
14 th June 2012
Successful Exploration &
Discovery Company Underpinned
by Future Gold Production

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June 2012
2

Overview
AIM-quoted Exploration and Development company focussed on gold and base
metals in East Africa and West Africa, underpinned by a strong exploration portfolio
and two mine development projects in Turkey
Discovered to date:
2.26 Moz Au
7 Moz Ag
186 kt Cu
Major JV and equity partners include: AngloGold Ashanti, Antofagasta, Centamin,
Centerra, Teck, Thani Ashanti
JV investment to date of US$13.7 M (with a further min of US$16.2 M [+/- US$20 M]
subject to earn-in)
Positive cash flow possible by mid/late-2013
£7.9 M PLACEMENT MARCH 2012 TO DELIVER FURTHER EXPLORATION SUCCESS
3

Risk Management Strategy
Clear focus on discovering and exploiting mineral wealth
Multiple plays increase odds of success
Continuous monitoring and reviewing of investment strategies
JV partners ensure risk is shared and/or eliminated
Value created with minimal cash exposure
Growing reputation enables negotiation of increasingly better partnerships and potential
rewards
Production agreements with local companies realise value from smaller projects
Cash-flow
4

Creating Value
Cost-effective exploration
Asset
Total Stratex
spend (£)
Total partner
spend (£)
Total Au (oz)
Stratex retained
Au (oz)
Öksüt 509,424 2,063,273 1,047,872 523,936 (50%)
314,361 (30%)
Muratdere 631,628 - 204,300* 204,300 (100%)
61,290 (30%)
Altıntepe 850,854 333,333 593,100** 593,100 (100%)
266,895 (45%)
Stratex cost per
retained oz (£)
0.97
1.62
3.09
10.31
1.43
3.19
TOTAL 1 st earn-in 1,321,336 1.50
2 nd earn-in 642,546 3.10
* Resource at Muratdere includes 186 kt Cu, 3.9 Moz Ag and 6,390 t Mo (not included)
** Resource at Altıntepe includes 3.18 Moz Ag (not included)
5

Our Interests
+ Two exploration
projects
+ Six exploration and
two development
projects
+ Eight exploration
projects
Rift
Resources
+ 49.5% passive
holding in new
industrial minerals
company
6

East Africa Operations
Shehagne
Blackrock
- Afar Project,
incl Megenta & Pandora
Under-explored with major gold and
base metal potential
Mining-friendly regime in Ethiopia –
Corporate tax 30%; royalties 5-8%; tax
free importation; transparent code
exploration thro’ to mining;
government 5% free-carried interest
Growing mining interest – BHP Billiton,
Centamin, Nyota Minerals, Allana
Potash, MidRoc, Tigray Resources,
Ethiopian Potash Corp
Stratex first-mover advantage in
discovering new gold province in Afar
Depression of Ethiopia
7

East African Assets
Ethiopia & Djibouti
ARABIAN-NUBIAN
SHIELD
Prospective for gold
and base metal
deposits
AFAR
EPITHERMAL
GOLD PROVINCE
Bonanza gold
grades on surface
0 250 km
0 250 km
After Corti, 2009
8

30 km
Blackrock
100%-owned licence - 299 sq km over four extensive areas of low -sulphidation mineralisation
>30 km veining identified in the 4 Zones
Five substantial vein systems outcropping at Black Water Zone – Stanley, Nesbitt, Oasis, Theodore and Baker
Black Water Zone – aerial photograph
E
BAKER
THEODORE
?
?
OASIS
38.3 g/t Au
60.4 g/t Au
NESBITT
34.6 g/t Au
Potential blind extensions under wadi gravels
250 m
STANLEY
9

Blackrock
Nesbitt structure
Oasis structure
Theodore structure
1 2 3 4 5
Individual veins over 50 m.
MAJOR DISCOVERY
Outcropping mineralisation
High level similar to Megenta
Critical boiling zone textures
Silica-replaced bladed calcite
10

Black Water Drilling to Date
4,745 m drilling completed. Best results to date
include:
Baker
250 m
Hole Length (m) Au (g/t)
BW-DD-001 0.70 0.48
BW-DD-002 2.41 0.29
BW-DD-003 4.65 0.51
including 1.45 0.67
BW-DD-009 0.95 0.81
BW-DD-16
Oasis
34.8 g/t Au
Nesbitt
18.7 g/t Au
Veins thicken significantly to the north, e.g. 5.35 m
vein in BW-DD-8 at 99.75 m depth – awaiting results
‘Blind’ quartz vein zone identified at 84 m under
gravels in BW-DD-16 – over 2,000 m of blind veins
interpreted for Black Water alone
6.1m @ 1.0 g/t Au
7.8 & 5.0 g/t Au
60.1 g/t Au
Additional drilling tested high grade outcrops on
Baker, Oasis, Nesbitt, and Stanley
Bulk of results awaited
Stanley
1.2m @ 5.7 g/t Au
38.3 g/t Au
11

Low-Sulphidation Systems - Hitting the Shoots
Extorre’s Cerro Moro Project - Zoe Discovery: projected long section
>900 m strike with no
significant values
NB: BONANZA-GRADE
SHOOTS EASILY
MISSED

Thani Ashanti JV
Extensive land position in Afar district, incl. licences covering
Megenta and Pandora
Thani Ashanti earning-in to initial 51% through US$3 M exploration
funding over 2 years – potential US$44 million total expenditure
At Megenta, 3,000 m drill programme has confirmed 3 km gold
system:
MG-DD-12 - 3.25 m @ 4.49 g/t Au incl. 0.70 m @ 19.5 g/t
MG-DD-10 - 43.20m @ 0.67 g/t Au incl. 2.9 m @ 3.56 g/t Au
Thani Ashanti due to undertake airborne magnetic survey over
Tendaho (incl. Megenta)
At Pandora, early channel sampling over main 1,500 m vein has
identified wide gold-mineralised zones with multiple higher-grade
intervals
Both projects to be drilled during 2012
13

Pandora, Djibouti
Channel sampling returned multiple >10 g/t
values & wide gold-mineralised zones >10 m:
20.35 g/t Au over 1.90 m (P-CH-17)
11.91 g/t Au over 2.60 m (P-CH-22)
15.42 g/t Au over 1.65 m incl. 27.10 g/t Au
over 0.50 m (P-CH-4)
13.90 m @ 5.75 g/t Au (PS-CH-4)
23.28 m @ 1.52 g/t Au (P-CH-29)
13.50 m @ 2.14 g/t Au (PS-CH-3)
18.31 m @ 1.43 g/t Au (P-CH-30)
View SE along main 1,500 m Pandora vein
14

Deseado Massif Comparison
Cerro Vanguardia
>6.0 M oz Au
Source: Mariana Resources
Cerro Negro*
3.1 M oz Au
Expanded to 5.1 M oz Au
Distance Megenta to Blackrock
Manatial Espejo
1.2 M oz Au equiv.
Mina Martha
22 M oz Ag equiv.
San Jose
1.99 M oz Au equiv.
Las Calandrias
Cerro Moro
2.4 M oz Au equiv.
(131,000 m drilled+)
Cap Oeste
Geological Setting:
Rifting – same as Afar
Bimodal rhyolites & basalts - Afar
Rhyolite domes – defined in Afar
** Goldcorp acquired Cerro Negro for C$3.6 Billion = c.$1,000/oz **
15

West Africa
200 km
West Africa Licences
Dalafin licence covers 636 sq km in prospective Birimian Kédougou-Kenieba gold belt
Four early-stage exploration licences over 1,985 sq km in Mauritania
Nine deposits >1 million oz Au discovered to date in Kédougou-Kenieba gold belt
16

Dalafin – Exploration Underway
Trench - Saroudia
Trench - Baytilaye
17

Turkish Operations
6 early and mid-stage exploration
prospects – drilling programmes
anticipated at 4 projects in 2012
2 resource development projects with
first gold pour anticipated 2013
Muratdere
Inlice
Altıntepe
Ӧksüt
Altunhisar
Hasançelebi
New copper exploration initiative with
Antofagasta Minerals
18

Öksüt +1Moz Gold Discovery
High-sulphidation gold discovery in central
Turkey, currently being funded by a Canadian
major JV partner Centerra B.V:
50% vested interest for US$3 M
Opted to earn additional 20% for a further
US$3 M
Stratex interest of 50% free carried for
next US$3 M expenditure over next 2
years
758,144 oz Au
Total resource 1,047,872 oz gold
289,729 oz Au
Scope for further resource upgrade - 2012
drilling programme now underway
* rock-chip sampling result prior to drilling
19

Öksüt – Ortaçam North
Best intersection to date: ODD-55: 268.00 m @ 2.34 g/t Au
Open to north and east – drilling underway
20

Muratdere
Muratdere porphyry copper-gold-molybdenum project - 250 km west of Ankara
186,000 t Cu + 204,296 oz Au + 3.9 Moz Ag + 6,390 t Mo + 17.6 t Re identified
0.36 % Cu, 0.12 g/t Au, 0.0125 % Mo – yields saleable copper concentrate
Turkish investor DD for $1.7 M for 51%; + $0.5M + drilling & complete feasibility for 70%
Currently awaiting result of due-diligence and decision to proceed
21

Additional Turkish Assets
Hasançelebi gold project, 500 km SE of Ankara –
Teck funding exploration to US$2 M for 51% interest
Further exploration anticipated 2012
Altunhisar gold project, 260 km SE of Ankara –
Centerra funding exploration to US$1.5 M for 51% interest
Drilling anticipated 2012
Antofagasta strategic alliance to explore for copper deposits –
Antofagasta funding initial US$1 million for 16 month target-generation
and exploration programme
Target prioritisation and possible licence acquisitions in 2012
22

Turkish Development Assets
NTF – HEP dam construction
Inlice Project
500 m
Ana West
Ana East
Stratex 45% interest, JV with NTF 55%
JORC Reserve: 59.6 Koz Au: Resource 69 Koz Au (oxide) plus
164 Koz Au (sulphide)
Production targeted 2013 – provisionally 15,000-20,000 oz pa
EIS approved; previous feasibility study to be reviewed to finalise
conceptual design & improve economics
23

Turkish Development Assets
Altıntepe
Extension Ridge
Kayatepe Zone
Camlik East
500 m
Bahar Mining completing feasibility for 55% and carrying all pre–production costs
In-house JORC Resource: 491 Koz Au (oxide + transition), 101 Koz Au (sulphide), 2.37 Moz
Ag (oxide), 813 Koz Ag (sulphide)
Infill drilling completed; positive public meeting with stakeholders
Production provisionally targeted for 2013 – 30,000 oz per annum - subject to feasibility
24

Valuation Drivers 2012
Turkey
Öksüt - on-going drilling to increase resource base, funded by Centerra (US$3 M to earn 70%)
Altıntepe – accelerated development (partner on site and funding to production)
Inlice – EIS completed; financing & development - production anticipated mid/late-2013 (45% STI)
Muratdere - post-due-diligence, partner to pay US$1.7 M (51 %) & complete feasibility (70 %)
Ethiopia
Initial drill programme planned Q4 on Pandora
On-going drilling to identify bonanza zones at Blackrock
Second-phase drill programme at Megenta to test system at depth – Thani Ashanti funding
West Africa
Airborne geophysical survey and drilling planned at Dalafin during 2012
Reconnaissance exploration for discovery in Mauritania
25

Conclusion
Focused exploration and development business
Experienced management team
Clear strategy to minimise risk and extract maximum potential
rewards
Multiple plays
Major JV partners
Local production agreements
First-mover advantage in Afar (Ethiopia/Djibouti)
Tangible success
Two gold-development projects in Turkey
Significant +1M oz Öksüt gold discovery in Turkey
New gold district discovery in Afar – incl. Blackrock
Acquisition of West African portfolio
26

Corporate Data
Share Data AIM-Listed (STI)
13 th June 2012
Shares in issue
Fully diluted shares
Share price
466.76 M
489.87 M
6.12 p
52 High 10.63 p
52 Low 5.56 p
Market cap.
Cash Position
£28.59 M
£7.00 M
(at end-May 2012)
Key Shareholders
ANGLOGOLD ASHANTI 11.51 %
BLACKROCK INC. 11.01 %
TECK RESOURCES LIMITED 7.65 %
FOREST NOMINEES 5.54 %
GRAHAM N J 4.87 %
RICHMOND CAPITAL LLP 3.89 %
DIRECTORS 4.72 %
ANTOFAGASTA 2.22 %
THANI ASHANTI 2.20 %
Nomad – Grant Thornton
Broker – Northland Capital
Co-broker – Fox-Davies Capital
27

Management
Christopher Hall
Non- Executive
Chairman
Christopher Hall has over 39 years of wide ranging experience in the mining sector. He is currently the in-house mining
adviser to Grant Thornton LLP, principally assisting the Capital Markets team with clients listed on London Stock Exchange
and the AIM market. Christopher joined Stratex in February 2008 as Non-Executive Director.
Bob Foster
Chief Executive Officer
Thirty-seven years of experience as a professional economic geologist in exploration, mining, and applied academic posts
and has particular expertise in the genesis and exploration of gold deposits, having worked in Europe, Central Asia, North
and South America and throughout Africa.
Perry Ashwood
Chief Financial Officer
Perry qualified as a Chartered Accountant in 1971, training with Spain Brothers & Co. and KPMG. During his 40-year
professional career he has worked in senior management with British Oxygen Ltd, Rank Xerox Ltd, and Intermec
International Inc. before becoming an independent consultant in 2000.
David J. Hall
Executive Director
(East Africa)
David has 30 years of experience in the exploration sector and has worked on and assessed exploration projects and
mines in over 50 countries including Turkey, where he worked for four and half years. He also worked as Consultant
Geologist for Minorco South America, where he subsequently became Exploration Manager for AngloGold in 1999.
John Cole-Baker
Executive Director
(West Africa)
Bahri Yildiz
General Manager, Turkey
With over 40 years of experience, John has been involved in infrastructure and mining development projects, at various
levels up to Project Director, as well as restructuring projects in Africa, Europe, the Former Soviet Union, the Middle East,
and the Indian sub-continent. Since the 1990’s he has also been Director of a number of consultancy companies and is
currently an advisor to UNCTAD.
A Turkish national with a career spanning 30 years dedicated to mineral exploration and mining geology throughout Turkey.
Bahri commenced his career in1980 with the government's General Directorate of Mineral Research and Exploration. More
recently he was Exploration Manager Turkey for Dardanel Madencilik, the Turkish subsidiary of major Canadian mining
company Inco Ltd before joining Stratex in 2005.
Franco Maranzana
General Manager,
Djibouti
A professional economic geologist for over 50 years, Franco has worked in over 100 countries for governments,
international organizations, multinationals and as a consultant, mainly in mineral exploration, country potential assessment,
negotiations and also on natural risks and themes of international cooperation.
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