24 Apr Tigris Newsletter April 2014
The exploration field-season in both eastern and western Turkey is now fully underway and we have some news on further exploration initiatives and an update on the independent qualified report and audited financials.
To set the scene; like other members of the G20 developing nations, Turkey’s rapid economic growth has slowed (albeit GDP growth of 4% in 2013…) and the country is now facing a period of some political uncertainty with both Presidential and Parliamentary elections due over the coming 14 months. Managing change is one reliable constant in our business and it is our view that sustainable foreign investment in any case, regardless of the jurisdiction or the political dynamics, should, as best as it can, aim to parallel government aspirations, and be deployed together with national enterprises and with the engagement of local communities and other local stakeholders.
More specifically for our sector, in Turkey, we believe this means local management, local partnerships, local expertise and community buy-in. It also means a clear focus on real value-adding, on finding economically significant deposits and with a fair wind and the regulators blessing, on developing them into profitable and responsible mines as quickly as possible.
This is Tigris’ strategy and we look forward to keeping you regularly updated as the strategy unfolds and the Company evolves.
In eastern Turkey work is continuing primarily in the Pertek region and focussed on mapping the localised skarns and intrusion-hosted vein-systems to identify a significant near surface concealed copper and/or gold deposit (see Figure 1). The mapping will also generate drill targets for later this year.
An extensive XRF soil sampling program conducted recently on the Kolonkaya southeast license (100% Tigris) has revealed some promising anomalies. More than two potential drill locations have been identified in altered quartz monzonite and diorite with high copper potential; 5.6% copper in soils and follow-up rock samples returning copper >1% (plus 1% results currently being finalised at the lab).
At the Gömeç porphyry/epithermal gold project in western Turkey (Tigris earning 50%, see previous newsletter) the collection of further drainage geochemical data, and ground magnetic and radiometric surveys are underway in preparation for further drill-testing later this year. At this stage we anticipate fence-drilling will be conducted in the area of very high soil geochemistry at Samantasi, where previous scout drilling has returned 50.4m at 1.3g/t gold and 18.7g/t silver and an undrilled breccia body has returned 14.6g/t gold over a 4m channel sample. Scout drilling will be conducted elsewhere along the 10km extent of the system to test other breccia bodies and sub-cropping low sulphidation epithermal veins.
Other significant drill intersections at Gömeç include:
30.0m at 1.1g/t gold
16.7m at 6.4g/t gold
12.3m at 1.2g/t gold; and
11.3m at 1.5g/t gold
Management believe that Gömeç has significant resource potential and is well-placed with on-surface high-grade breccia and vein bodies to provide early cash-flow through an initial toll-treatment scenario.
At the Uğur Tepe porphyry copper-gold project (Tigris earning 50%, see previous newsletter) fracture density mapping has been completed (see Figure 2) over the nest of porphyry bodies and saw-cut channel sampling across the newly discovered Yuvaçik gold occurrence is currently underway. The fracture density mapping is basically a means of mapping permeability intensity, with areas of high fracture permeability assumed to be the main conduits for gold and copper mineralizing fluids. This data will be integrated with other information such as existing soil geochemistry, new ground magnetics and radiometrics and will be used to guide drilling later in the year. It is interesting to note that drilling to-date at Uğur Tepe, whilst encouraging (including 71m @ 0.4g/t gold, 0.3% copper and 50m @ 0.4g/t gold, 0.3% copper) was focussed on localised occurrences of quartz-magnetite alteration and has not, for the most part, tested areas deemed to be of high fracture permeability (and thus inferred mineralizing potential) or areas that were highlighted in gold soil geochemistry.
Arsimet Strategic Alliance
We are pleased to announce that we have recently executed a Strategic Exploration Alliance Agreement with Arsimet Madençilik a newly-formed private Turkish exploration company led by Mr Doğan Besler, a widely-known and well-regarded resource sector and social and community specialist in Eastern Turkey. Arsimet will conduct exploration in areas which, prior to the PKK peace process and up until very recently, were largely inaccessible. These areas include a section of the remote high volcanic plateau, which measures some 200km by 100km in aerial extent, is known to host some extensive hydrothermal alteration systems (some of-which were identified by Tigris during the 2011 airborne reconnaissance program) with potential for Miocene-Pliocene age porphyry copper-gold and epithermal gold styles of mineralization. Arsimet brings unique local knowledge and a focus on community engagement and sustainable development to exploration in this remote, underexplored and highly prospective region of southeast Turkey. Exploration will be fully-funded and guided by Tigris. New licenses or “Special Project Areas” will be secured and identified by Arsimet and then transferred to new joint-venture companies owned 70% Tigris and 30% Arsimet. Parties will then contribute on a pro-rata basis or dilute by standard formula. Dilution below 10% will convert to a 1% NSR.
Independent Report and audited financials
Tigris has retained Jim Royall of CSA-Global UK to complete a 43-101 compliant qualified persons report on all of its Turkish assets. We are hoping to have this report completed by the latest end of June concurrent with audited financials to that date and in readiness for IPO should a window of opportunity arise.
MD Eastern Turkey Exploration Alliance
Bsc Sociology, lecturer in sociology and psychology. 30 years experience in the Turkish mining sector. Extensive regional knowledge, land and community experience in Eastern Turkey. Founded three companies, producing chrome and marble and exploring for gold and copper in eastern Turkey.