16th Oct 2014 13:32
LONDON (Alliance News) - Stratex International PLC Thursday said it has completed its drilling programme on the Tembo gold project in Tanzania and is currently completing a strategic review to plan the next step for the programme, including the possibility of entering a joint venture or merging.
Stratex shares were down 5.8% to 2.05 pence per share Thursday afternoon.
The diamond drilling programme comprised 27 drill holes totalling 6,843 metres in depth across five targets: Ngula 1, Ngula 2, Buly Trend, Nyakagwe Village and Nyakagwe East.
No significant structures or mineralisation were discovered at Ngula 1 and Ngula 2 and drilling beneath the Buly Trend intersected a wide zone with a lot of veins but with limited gold mineralisation.
At Nyakagwe East and Nyakagwe Village, notable intersections were found and drilling intersected significant gold grades and mineralised structures, it said in a statement.
The mineralisation found at Nyakagwe Village is trending northeast, suggesting potential gold mineralisation across the Tembo license, and Nyakagwe East returned significant interceptions to enhance its potential, it added.
Nyakagwe East reported results of 4.42 grames per tonne of gold over 2.6 metres out of 130 metres including 10.57 grammes per tonne over 1 metre. Another hole produced 8.44 grammes per tonne of gold over 1.3 metres from 99.9 metres including 25 grammes per tonne over half a metre. Lastly, 6.55 grammes per tonne of gold over 7.5 metres from 370.5 metres.
Nyakagwe Village reported results including 9.64 grammes per tonne of gold over 4 metres from 85.25 metres, including 24.72 grammes per tonne of gold over 1.5 metres. Another hole intercepted 15.1 grammes per tonne of gold over 1 metre from 54 metres. Also, 5.49 grammes per tonne of gold over 5 metres from 65.1 metres and 35.1 grammes per tonne of gold from 2.5 metres including 167 grammes per tonne of gold over half a metre from 53.4 metres.
Following the results, drilling has been suspended to allow the data to be reviewed and for a strategic corporate strategy to be completed. During the hiatus, the company is reviewing the best path to follow for the project during difficult market conditions to create value for shareholders, it said in a statement.
The company is considering a wide range of options, including small- to medium-scale production and possibly financing further exploration. Stratex will also look at the potential for a merger or a joint venture, it said.
The poor market conditions have resulted in the company conducting private placings and securing public financing to keep going, which in turn has resulted in a "poor valuation" for the company and shareholder dilution, it said.
Stratex is looking at small- to medium-scale production to avoid this continuing until market conditions improve. This would require close spaced drilling between Ngula 1, Nyakagwe East and Nyakagwe Village as they present the most likely opportunities for small open pit development, it said in a statement.
It is currently discussing conceptual design parameters with mining and process consultants, plant manufacturers, operators and contract mining groups, it added.
By Joshua Warner; [email protected]; @JoshAlliance
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