ASX Announcement & Media Release Drilling ... - SLIDEBLAST.COM
ASX Announcement & Media Release 18 February 2014
Drilling returns further wide zones of gold mineralisation and high grade zones up to 15.95g/t gold at Kestanelik Chesser Resources Limited (ASX: CHZ) is pleased to announce continued strong gold results from its Kestanelik Gold Project in north-west Turkey. Highlights;
New drill results continue to confirm and exceed predictions from the August 2013 resource of 703,000 ounces of gold
Significant intersections include:
25.0 metres at 2.00 g/t gold (from 35.0 metres) including 3.0 metres at 9.10g/t gold
18.0 metres at 1.39 g/t gold (from surface) including 1.0 metre at 15.95 g/t gold
35.8 metres at 1.11 g/t gold (from 16.0 metres) including 4.5 metres at 3.65 g/t gold
1 metre at 10.20 g/t gold (from 19.0 metres)
18.0 metres at 1.89 g/t gold (from 35.0 metres) including 4.0 metres at 4.8 g/t gold
22 metres at 1.51 g/t gold (from 35.0 metres) including 6 metres at 4.26 g/t gold
All assays have now been received and work is well under way on a resource update due for release in the June quarter of 2014
The current resource base is 703,000 ounces at 2.15 g/t gold, including an indicated resource of 183,000 ounces at 3.53 g/t gold, most of which is less than 50 metres from surface.
Chesser Resources Ltd is pleased to announce the receipt of additional drill results from the drill program commenced in the fourth quarter of 2013 at the Kestanelik Gold Project in NW Turkey. Assay results have now been received for all of the 89 holes completed in the current program, with the new results representing 668 metres of diamond drilling and 4048 metres of RC drilling out of the total of 10,000 metres completed in this phase. The Managing Director of Chesser Resources, Dr Rick Valenta, said “the drilling continues to return a number of intercepts which are better than the existing resource model at the same location and with all the results now back, we are on track for a solid boost to the Kestanelik Indicated resource and working toward a strong Prefeasibility Study. “The Prefeasibility study is expected to show that we have a low cost project based on the current resource and our aim is to put it into production while we continue to expand the footprint of near-surface high grade gold mineralisation through ongoing exploration,” he said. The new assay results are from holes drilled in the area of the inferred portion of the Kestanelik resource, and are part of the program designed to bring additional resources into the high grade indicated resource. Most of the drilling was carried out to test the shallower portions of the resource which are more likely to be accessed early in the life of the project. The assay results
confirm the presence of near surface mineralisation, and in many cases have returned grades and thicknesses better than those estimated in the resource. Significant new drill intercepts include:
25.0 metres at 2.00 g/t gold (from 35.0 metres) in KERC-190 including 3.0 metres at 9.10 g/t gold
18.0 metres at 1.39 g/t gold (from 98.0 metres) in KERC-175 including 1.0 metre at 15.95 g/t gold
35.8 metres at 1.11 g/t gold (from 16.0 metres) in KED-271 including 4.5 metres at 3.65 g/t gold
1 metre at 10.20 g/t gold (from 19.0 metres) in KERC-179
18.0 metres at 1.89 g/t gold (from 35.0 metres) in KERC-166 including 4.0 metres at 4.8 g/t gold
22 metres at 1.51 g/t gold (from 35.0 metres) in KERC-190 including 6 metres at 4.26 g/t gold
7 metres at 2.05 g/t gold (from 28.0 metres) in KERC-191 including 1 metre at 11.65 g/t gold
Figures 2 to 5 show the interpreted geometries of mineralised bodies associated with some of these key intercepts. Results from the drilling will be used to complete a JORC resource for release in the June Quarter of 2014, with timing being dependent on modelling. The updated JORC resource will be a key input to ongoing mine design and production scheduling which will form part of the Kestanelik Prefeasibility Study. Kestanelik Prefeasibility Study Excellent progress continues to be made with the Prefeasibility Study. Most metallurgical testwork is now complete and tests have confirmed the use of a standard SABC (SAG mill – Ball mill – Crusher) grinding circuit and high gold recovery from a standard CIL leach circuit. Lycopodium is nearing completion of the process design and layout, major equipment quotes have been received and mechanical engineering design is nearing completion. Norwest have examined tailings disposal options and the required studies to investigate a filtered, dry stack tailings alternative have commenced. Geotechnical and hydrogeological evaluations are continuing from the holes and samples drilled in November and December. Preliminary mine pit designs have been developed but will not be finalized until the results from the geotechnical tests are known. Data is being collated for the Environmental Impact Assessment submission and activities are progressing towards a public meeting during the second quarter of 2014.
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Forward Program A further phase of drilling is planned contingent on the receipt of additional drill permits from the Turkish General Directorate of Forestry. In addition, a program of detailed rocksaw sampling of all veins is under way, with results expected to be received in time for incorporation in the resource update. Meanwhile, work is continuing on mine, process and tailings design, as well as studies which will contribute to the Kestanelik Environmental Impact Assessment.
Figure 1. Plan view showing location of sections in figures 2-5
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Figure 2. Cross section showing the interpreted geometry of mineralised bodies intersected by drillhole KED-271
Figure 3. Cross section showing the interpreted geometry of mineralised bodies intersected by drillhole KERC-166
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Figure 4. Cross section showing the interpreted geometry of mineralised bodies intersected by drillhole KERC-194
Figure 5. Cross section showing the interpreted geometry of mineralised bodies intersected by drillholes KERC195, KED-264, and KED-264a
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Hole_ID KED-271 KED-272 KED-273 KERC-163 KERC-166 KERC-170 KERC-171 KERC-172 KERC-173 KERC-174 KERC-175 KERC-177 KERC-178 KERC-179 KERC-180 KERC-181 KERC-182 KERC-183 KERC-184 KERC-184A KERC-185 KERC-186 KERC-187 KERC-188 KERC-189 KERC-190 KERC-191 KERC-192 KERC-193 KERC-193A KERC-194 KERC-195 KERC-196 KERC-197 KERC-198 KERC-199 KERC-200 KERC-201 KERC-202 KERC-203 KERC-204 KERC-205 KERC-206 KERC-207 KERC-208 KERC-209
Easting 481601 481746 481747 481197 481097 482284 481744 482198 481741 482300 481744 482379 482453 482306 481703 482281 481962 481704 481703 481705 481377 481705 481708 481349 481351 481329 481661 481441 481660 481661 481415 481328 481325 481656 481656 481438 481611 481641 481481 481611 481606 481606 481482 481604 480972 481495
Northing 4462012 4462101 4462102 4462566 4462547 4462040 4462105 4461977 4462105 4461971 4462098 4461898 4461928 4462068 4462085 4461866 4461993 4462087 4462082 4462078 4462544 4462084 4462080 4462506 4462504 4461983 4462052 4461893 4462058 4462056 4462007 4461985 4461985 4462052 4462054 4461890 4461920 4462137 4462029 4461921 4461927 4461926 4462030 4461927 4462414 4462055
Elevation 303 325 325 306 268 393 325 385 324 388 325 375 382 395 319 375 388 319 319 319 324 318 319 308 308 213 311 231 311 311 225 213 213 311 311 231 305 305 257 305 305 305 257 304 211 273
Azimuth 146 191 168 288 289 0 308 0 259 0 197 0 0 0 299 0 156 302 208 208 40 203 128 17 42 179 112 2 38 38 126 198 216 245 296 354 137 344 183 102 353 333 193 325 316 163
Dip -68 -56 -54 -53 -55 -90 -60 -90 -56 -90 -47 -90 -90 -90 -50 -90 -48 -65 -47 -47 -75 -59 -45 -45 -56 -45 -70 -52 -60 -60 -50 -62 -45 -58 -64 -45 -53 -45 -50 -75 -45 -59 -45 -51 -62 -46
Depth 236 220 212.4 140 80 30 70 20 65 40 171 50 40 60 127 40 77 135 145 61 91 160 50 85 80 100 50 150 60 25 90 115 100 72 75 135 157 50 133 130 111 170 133 135 90 150
Table 1 – Location information for newly reported holes
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Hole From To Interval Gold Silver Gold m-g Zone KERC-163 8.00 28.00 20.00 0.66 0.53 13.20 KK2 INCLUDING 20.00 24.00 4.00 1.02 0.60 4.08 KERC-166 9.00 11.00 2.00 1.66 1.90 3.32 KERC-166 35.00 53.00 18.00 1.89 1.59 33.98 KK3 INCLUDING 36.00 40.00 4.00 4.80 3.35 19.20 INCLUDING 38.00 39.00 1.00 9.80 4.30 9.80 KERC-170 14.00 15.00 1.00 0.56 0.60 0.56 SED-BX KERC-170 22.00 23.00 1.00 0.53 0.30 0.53 NSI KERC-171 K2K1 KERC-172 0.00 13.00 13.00 0.57 0.36 7.42 SED-BX INCLUDING 0.00 1.00 1.00 1.27 0.60 1.27 INCLUDING 4.00 5.00 1.00 1.32 0.40 1.32 NSI KERC-173 K2K1 KERC-174 0.00 31.00 31.00 1.02 0.85 31.65 SED-BX INCLUDING 6.00 7.00 1.00 4.55 2.20 4.55 INCLUDING 12.00 14.00 2.00 2.44 0.45 4.87 KERC-175 98.00 116.00 18.00 1.39 0.42 24.98 K3HW INCLUDING 109.00 110.00 1.00 15.95 3.50 15.95 K3HW KERC-177 11.00 19.00 8.00 1.07 0.49 8.54 SED-BX INCLUDING 12.00 14.00 2.00 2.66 1.05 5.32 NSI KERC-178 SED-BX KERC-179 19.00 20.00 1.00 10.20 4.60 10.20 SED-BX KERC-179 35.00 37.00 2.00 0.70 2.10 1.40 INCLUDING 35.00 36.00 1.00 1.01 2.50 1.01 KERC-180 52.00 68.00 16.00 1.40 0.49 22.38 K1 KERC-180 80.00 84.00 4.00 0.90 0.38 3.61 KERC-180 109.00 127.00 18.00 1.05 2.56 18.88 K1FW INCLUDING 121.00 127.00 6.00 2.10 2.73 12.58 K1FW KERC-181 0.00 2.00 2.00 0.72 0.45 1.43 SED-BX INCLUDING 0.00 1.00 1.00 1.22 0.60 1.22 NSI KERC-182 KS KERC-183 52.00 53.00 1.00 1.08 1.70 1.08 K2K1 KERC-183 87.00 106.00 19.00 0.43 3.26 8.09 KA KERC-184A 0.00 61.00 61.00 0.50 0.43 30.20 K2K1 INCLUDING 4.00 5.00 1.00 2.36 0.70 2.36 KERC-184* 0.00 23.00 23.00 0.68 0.36 15.73 K2K1 INCLUDING 18.00 19.00 1.00 6.55 2.70 6.55 KERC-184* 39.00 54.00 15.00 0.58 0.33 8.69 INCLUDING 43.00 45.00 2.00 1.47 0.60 2.95 KERC-184* 57.00 68.00 11.00 0.98 0.39 10.76 K2M INCLUDING 60.00 62.00 2.00 3.58 0.65 7.16 KERC-184* 70.00 75.00 5.00 0.88 0.64 4.38 KERC-184* 93.00 136.00 43.00 0.42 1.36 18.10 INCLUDING 107.00 109.00 2.00 2.50 0.80 5.00 KERC-185 11.00 13.00 2.00 2.96 2.90 5.91 KK1 KERC-186 30.00 91.00 61.00 0.53 0.19 32.51 INCLUDING 46.00 48.00 2.00 3.04 0.25 6.09 K2M INCLUDING 64.00 67.00 3.00 1.65 0.87 4.94 INCLUDING 66.00 67.00 1.00 2.78 1.60 2.78 KERC-187 32.00 37.00 5.00 0.82 0.82 4.08 K2K1 KERC-188 17.00 20.00 3.00 0.76 1.23 2.28 KK1 KERC-189 29.00 33.00 4.00 1.54 1.55 6.18 KK1 INCLUDING 31.00 32.00 1.00 3.80 2.80 3.80 KERC-190 35.00 57.00 22.00 1.51 1.31 33.22 K1FW INCLUDING 46.00 52.00 6.00 4.26 3.13 25.54 INCLUDING 49.00 51.00 2.00 8.58 4.70 17.15 KERC-190 74.00 99.00 25.00 2.00 2.51 50.08 K2M INCLUDING 76.00 79.00 3.00 9.10 8.00 27.30 *KERC-184 - No Sample intervals between 36-39m, 54-57m and 68-70m Table 2 Composite results for newly reported holes. True widths are interpreted to be 45% to 85% of reported widths. Continued on next page
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Hole From To Interval Gold Silver Gold m-g Zone KERC-191 28.00 35.00 7.00 2.05 1.06 14.32 K2M INCLUDING 30.00 31.00 1.00 11.65 6.30 11.65 KERC-192 0.00 7.00 7.00 0.73 0.88 5.12 K2M KERC-193^ 2.00 14.00 12.00 0.52 0.40 6.26 INCLUDING 10.00 14.00 4.00 1.09 0.45 4.36 KERC-193^ 27.00 36.00 9.00 0.70 0.42 6.33 K2K1 INCLUDING 27.00 28.00 1.00 3.35 1.30 3.35 KERC-193^ 39.00 59.00 20.00 0.45 0.35 9.02 INCLUDING 48.00 49.00 1.00 1.42 0.60 1.42 KERC-194 0.00 18.00 18.00 1.39 1.20 24.97 K1FW INCLUDING 0.00 4.00 4.00 3.96 3.90 15.84 INCLUDING 0.00 2.00 2.00 6.08 5.40 12.16 KERC-195 23.00 37.00 14.00 1.17 1.09 16.34 INCLUDING 31.00 36.00 5.00 2.45 2.02 12.23 K2M INCLUDING 31.00 32.00 1.00 7.13 5.90 7.13 KERC-195 45.00 54.00 9.00 1.08 2.03 9.71 INCLUDING 47.00 49.00 2.00 2.72 6.15 5.43 KERC-196 48.00 57.00 9.00 0.82 1.01 7.40 K2M INCLUDING 52.00 56.00 4.00 1.40 1.45 5.58 NSI KERC-197 K2M NSI KERC-198 K2K1 KERC-199 0.00 10.00 10.00 0.62 2.30 6.19 K2M KERC-199 62.00 65.00 3.00 2.00 0.63 5.99 INCLUDING 64.00 65.00 1.00 4.38 1.30 4.38 KERC-200* 112.00 113.00 1.00 3.61 1.90 3.61 K3HW KERC-200* 138.00 157.00 19.00 0.53 2.05 10.03 INCLUDING 142.00 144.00 2.00 1.52 2.30 3.03 KERC-201 10.00 37.00 27.00 0.72 0.68 19.44 K1 INCLUDING 28.00 37.00 9.00 1.18 1.14 10.63 KERC-202 0.00 2.00 2.00 1.84 1.05 3.69 INCLUDING 1.00 2.00 1.00 3.27 1.90 3.27 KERC-202 17.00 20.00 3.00 1.26 0.50 3.79 K1 INCLUDING 18.00 20.00 2.00 1.80 0.65 3.59 KERC-202 61.00 65.00 4.00 2.07 1.13 8.30 INCLUDING 64.00 65.00 1.00 7.60 3.30 7.60 KERC-203 6.00 7.00 1.00 1.07 0.70 1.07 K3HW KERC-203 50.00 51.00 1.00 1.66 0.10 1.66 NSI KERC-204 K2M NSI KERC-205* K2M KERC-206 7.00 14.00 7.00 1.14 1.00 7.97 INCLUDING 9.00 11.00 2.00 2.88 2.75 5.75 K2K1 KERC-206 57.00 66.00 9.00 0.84 0.44 7.59 INCLUDING 60.00 62.00 2.00 2.03 1.20 4.06 KERC-206 68.00 69.00 1.00 1.16 0.40 1.16 NSI KERC-207 K2M KERC 208 86.00 90.00 4.00 1.22 0.85 4.86 KK3 KERC-209 21.00 22.00 1.00 2.76 2.80 2.76 KERC-209 28.00 30.00 2.00 1.92 1.90 3.84 K1 KERC-209 32.00 40.00 8.00 1.54 1.25 12.32 INCLUDING 34.00 37.00 3.00 3.09 2.47 9.27 KED -271 16.30 52.10 35.80 1.11 1.98 39.56 K2M INCLUDING 17.60 22.10 4.50 3.65 4.70 16.42 INCLUDING 19.10 20.60 1.50 8.72 5.00 13.08 KED -271 154.50 169.40 14.90 0.79 1.04 11.77 K3HW INCLUDING 160.50 162.00 1.50 5.28 3.40 7.92 KED-272 201.00 205.00 4.00 1.45 1.10 5.80 K3HW INCLUDING 203.00 205.00 2.00 2.65 1.40 5.30 KED -273 19.30 30.20 10.90 0.37 0.14 4.07 K3HW INCLUDING 24.40 27.60 3.20 0.54 0.25 1.73 ^KERC-193 - No Sample intervals between 14-17m, 18-19m and 20-27m Table 2 continued. Composite results for newly reported RC holes. True widths are interpreted to be 45% to 85% of reported widths.
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About Chesser Resources Limited
Chesser is an Australian-based ASX-listed exploration company (ASX: CHZ), exploring for gold and base metals in Turkey. The Company is currently conducting an aggressive, but focused, exploration program on its Kestanelik epithermal gold project. The Company’s flagship project, Kestanelik, is situated in western Turkey, some 10 kilometres southeast of the Dardanelles, and enjoys good access together with excellent infrastructure. It hosts low sulphidation epithermal quartz veining with identified high-grade gold mineralisation and bonanza grades. Kestanelik has an indicated resource of 183,000 ounces of gold at a grade of 3.53 g/t Au, and total resource of 703,000 ounces of gold at 2.15 g/t Au, 65% of which lies within 50 metres of the surface at an average grade of 2.54 g/t Au. The Company has declared a 303,000 oz gold resource (91,000 oz Indicated and 212,000 oz Inferred) on its Sisorta project in north-eastern Turkey. The Board and management of Chesser, backed by the Company’s major shareholders, are committed to unlocking value from this highly prospective portfolio of projects and the Company is committed to advancing its existing portfolio while continuing to seek new advanced opportunities.
Company Directors & Management
Company Information
Top Shareholders
Rob Reynolds Rick Valenta Simon O’Loughlin Simon Taylor Peter Lester Morrice Cordiner
Chairman Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director
Management Macquarie MEC Acorn Capital Baker Steel Institutions – 30% Top 40 ≈ 62%
Stephen Kelly Nigel Ricketts Cem Yuceer
CFO/Company Secretary Project Director Kestanelik Exploration Manager
ABN: 14 118 619 042 Address: 96 Stephens Road South Brisbane Qld 4101 Australia Telephone: +61 7 3844 0613 Contact: [email protected] Chesser Website: www.chesserresources.com.au
The exploration data and results contained in this report are based on information reviewed by Dr Rick Valenta, a Fellow of the Australian Institute of Mining and Metallurgy. He is Managing Director of the Company and has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Dr Valenta has consented to the inclusion in this release of the matters based on his information in the form and context in which it appears. The information in this report that relates to Kestanelik in-situ Mineral Resources is based on information compiled by Mr. Ian Taylor of Mining Associates Ltd. Mr. Taylor is the competent person for the Kestanelik resource estimate and takes overall responsibility for it. He is a of the Australian Institute of Geoscientists and a Chartered Professional of the Australasian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a "Competent Person" as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr. Taylor consents to the inclusion of such information in this Report in the form and context in which it appears. The information in this report that relates to Sisorta in-situ Mineral Resources is based on information compiled by Mr. Gary Giroux of Giroux Consultants Ltd. Mr. Giroux is the competent person for the Sisorta resource estimate and takes overall responsibility for it. He is a Member in good standing of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (a "Recognised Overseas Professional Organisation" under the JORC code) and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a "Competent Person" as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code) and has the appropriate relevant qualifications, experience and independence to qualify as a "Qualified Person" under National Instrument 43-101 "Standards of Disclosure for Mineral Projects" (NI 43-101). Mr. Giroux consents to the inclusion of such information in this Report in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
For further details please contact: Rick Valenta Tel: (+61 7) 3844 0613 Further information is available at: www.chesserresources.com.au Page 9
Table 1. Kestanelik Mineral Resource estimate reported including low grade halo (>0.5g/t gold cut off)
Indicated Inferred Total
Kestanelik Mineral Resource – August 2013 Grade Ounces Tonnes Au (g/t) Ag (g/t) Au Oz Ag Oz 1,609,000 3.53 2.6 183,000 135,000 8,584,000 1.89 1.8 521,000 493,000 10,193,000 2.15 1.9 703,400 628,900
Full details of the Kestanelik Mineral Resource estimate are provided in the Company’s ASX released dated 12 August 2013.
Appendix One The following sections are provided to ensure compliance with the JORC (2012) requirements for the reporting of new drill results for the Kestanelik deposit. Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling techniques
Drilling techniques
Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple. Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
The Kestanelik deposit has been sampled by a mixture of diamond and RC drill holes, with a nominal drill spacing ranging from 25m by 25m to 50m by 50m. HQ / NQ core is cut in half using a diamond saw (100% of core recovered) and half of the core is submitted for analysis. All RC drilling was sampled on 1m intervals. Maximum HQ / NQ sample interval is 2.5m & minimum sample interval 0.5m (note: 1m of half HQ will weigh between 3 to 4kg) (0.3% of samples are less than 0.5m). Zones of mineralisation defined by epithermal veining and brecciation, plus or minus sulphides or iron oxides after sulphides, are sampled separately. Based on the gold grain size (100mm over a given interval.
Core is sawn in half and one half (50%) is submitted for analysis. Bulk 1m RC samples are transported from site to the warehouse in Lapseki (local town) where they are split using a ‘Gilson’ splitter. 30% of the sample (~8kg) is submitted to ALS – Global labs in Izmir for preparation. Wet RC samples are sent to the lab for drying, and then riffle splitting down to 1kg. The 50% sampling of the HQ core is considered appropriate for the mineralisation type; however PQ core is planned for more rigorous metallurgical testwork. The 30% split of the RC samples is considered to be representative. A 10 - 12% portion of the sample would be adequate (as long as the riffle splitting is done properly), which is between 2.5 – 3kg. The ALS prep on the sample split includes, weighing, drying, crushing (80% passing 2mm), split to 1kg, pulverising (80% passing 75micron) using an LM2 grinding vessel (see http://www.impautomation.com/Products/Products-by-Product-Type). Approximately 200g of pulverised material is flown to the ALS Global lab in Vancouver Canada: A 50g split is taken for fire assay with AAS finish (Au-AA24) and a 1g sample is taken for aqua regia digest and then ICP-AES finish for 35 elements (ICP-41). A blank sample, a standard sample and a duplicate sample are randomly inserted approximately every 20 samples that are submitted. For RC drilling the duplicate is collected from the riffle splitter at the time of sampling. For diamond drilling samples a duplicate is made from rejects returned from the laboratory and resubmitted under a different number. It has been suggested that ¼ core would be better as a duplicate (McLean, 2012). The analysis for gold is by 50g fire assay with an AAS finish which is considered a ‘total’ technique. A 30g charge is probably sufficient, but 50g is more representative. ALS–Global have their own rigorous ‘in lab’ QAQC procedures and
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Criteria
JORC Code explanation
Verification of sampling and assaying
model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
Commentary are ISO 17025 accredited for precious metal and base metal analyses.
Samples have been re-submitted to other labs to check the main laboratory for accuracy.
Some strongly anomalous holes have been twinned and / or resubmitted for assay, however this has not been done for every anomalous hole. It is more likely that an anomalous RC hole will be twinned by a diamond hole. The early drill holes were logged on paper and then ‘key punched’ into a computer; KERC001 – 118 and KED001 to 170. From KED171 the logging was entered directly into a computer (‘Logchief’ software), typed in by the geologist with verification conducted via ‘Datashed’. The sampling is written down in a notebook and then ‘key punched’ into the computer (also part of Datashed).
Location of data points
Data spacing and distribution
Orientation of data in relation to geological structure
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control.
At the completion of the drill hole the collar was surveyed using a Trimble R6 which gives 0.25m horizontal and 0.5m vertical accuracy (http://trl.trimble.com/docushare/dsweb/)
The coordinates used are coordinate system ED50 / UTM Zone 35/ Central Meridian 27 The Kestanelik project has a digital terrain model (DTM) which has been constructed using Quickbird data, processed by Arcasoy Consulting, Turkey. The main Kestanelik zone, from Karakovan to the central area was surveyed by surveyors, who created 1 to 10m spaced contours. Ortho-rectification was completed by recent Quickbird image, with 59 field markers (white crosses).
Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied.
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised
The drill hole spacing is in vertical and horizontal fans, not on an even grid, due to the steep terrain and limitation of permitted drill sites. However, in most cases there are drill intercepts along strike and down dip of 20 to 35m on the dominant veins. The mineralized domains for Kestanelik have demonstrated sufficient continuity in both geology and grade to support the definition of Mineral Resources and Reserves, and the classifications applied under the 2012 JORC Code.
The drilling has been targeted to intersect mineralised veins at a steep angle, although some oblique holes have been drilled due to the locations of permitted drill sites. However, this has been taken into account in such a way as to eliminate sampling bias. No significant sample bias based on drill hole orientation is noted
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Criteria
JORC Code explanation
Sample security
Audits reviews
or
structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The measures taken to ensure sample security.
The results of any audits or reviews of sampling techniques and data.
Commentary
The chain of custody is managed by Chesser. The core / RC samples are transported directly to the yard at Lapseki where the RC retain samples and all the core (half core) is in a secured facility (fenced with 24 hr guards).
An independent audit of the Kestanelik project was conducted by consultant Neil McLean of Geodiscovery in 2012, and Mining Associates also conducted a review as part of their site visit in 2013.
Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary Mineral tenement and land tenure status
Exploration done by other parties
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. Acknowledgment and appraisal of exploration by other parties.
Chesser Resources, through its 100% owned Turkish Subsidiary, has vested 100% ownership in the Kestanelik tenements.
Geology
Drill hole Information
The Kestanelik property is located on Operating licences: 58380 & 58467, which are held in the name of Batı Anadolu Madencilik Sanayi ve Ticaret A.Ş., a wholly-owned Turkish subsidiary of Chesser Resources Ltd. A 2.5% Net Smelter Return Royalty is payable to the group from whom Chesser originally optioned the property.
Tuprag (the 100% owned Turkish subsidary of Eldorado) was the previous owner of the Kestanelik tenements and they conducted mapping, rockchip sampling and shallow RC drilling. Tuprag intersected some high grade gold intercepts but due to some poor results at depth in Karakovan and Kara Tepe areas they decided that the system was deeply eroded and the exposure was below the high grade gold zone. There are historical workings of unknown age with open stopes and inclined shafts and drives in and around the mineralised quartz veins. The workings do not exceed a depth of ~20m.
Deposit type, geological setting and style of mineralisation.
The gold deposit type is low sulphidation epithermal vein
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above
system hosted within a package of mica schists of reported pre-Permian age in proximity to the western contact of a hornblende dacite porphyry stock of probable Oligocene or Miocene age. Serpentinised ultramafic rock occurs within the schist package along the eastern side of the stock. Refer to table 1
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Criteria
JORC Code explanation
Commentary
sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cutoff grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.
These relationships are particularly important in the reporting of Exploration Results.
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
Diagrams
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
See figures 1 and 2
Balanced reporting
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
Every drillhole completed on the property has been reported, regardless of whether it has returned high or low grades. Higher grade drillholes are reported with significant detail, while lower grade drillholes generally have fewer reported intercepts. Holes with no economically significant intercepts are reported as such in each release of results, with the label “No Significant Intercept”.
Data aggregation methods
Relationship between mineralisatio n widths and intercept lengths
In all previous ASX press releases the assays are given ‘uncut’ unless otherwise stated & weighted averaging of results is used: in which the average grade is the sum of the products of length and grade for each sample in the interval, divided by the total length of the interval. A nominal cutoff of 0.2g/t is used for identification of potentially significant intercepts for reporting purposes, though a 0,5g/t cutoff has been used in resource modelling. Most of the reported intercepts are shown in sufficient detail, including gold maxima and subintervals, to allow the reader to make an assessment of the balance of high and low grades in the intercept. Informing Samples have been composited to two metre lengths honouring the geological boundaries and adjusted where necessary to ensure that no residual sample lengths have been excluded (best fit). Metal equivalents are not used.
Mineralised structures at Kestanelik are variable in orientation, and therefore drill orientations have been adjusted from place to place in order to allow intersection angles as close as possible to true widths. Exploration results have been reported as an interval with ‘from’ and ‘to’ stated in tables of significant economic intercepts. Tables clearly indicate that true widths will generally be narrower than those reported. An estimate of true width can be made based on the known strike of mineralised quartz veins or quartz breccias, although it should be noted that these features are not absolutely planar and anastomosing does occur, with variable strike and dip.
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Criteria
JORC Code explanation
Commentary
Other substantive exploration data
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
Further work
The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale stepout drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
Geophysical survey results and surface geochemistry results have been reported. All samples are measured for bulk density, which at 3 3 Kestanelik ranges from 2.1 g/cm to 2.85 g/cm . Multi element assaying is conducted routinely on all samples for a suite of potentially deleterious elements including Arsenic, Sulphur, Zinc and Magnesium. Some geotechnical study has been undertaken on the project, with the aim of determining rock strength and planning pit wall angles. Metallurgical testing has been carried out on bulk samples of drillcore and RC chips. Tests of the ground water have been made.
Future drilling will continue to test known mineralisation along strike and down dip at close spacing (20 x 40m approx) and will also target untested zones of potential mineralisation (based on surface geochemistry, geology or resistive targets from IP).
Section 3 Estimation and Reporting of Mineral Resources (Criteria listed in section 1, and where relevant in section 2, also apply to this section.) Section 3 does not pertain to this report.
Section 4 Estimation and Reporting of Ore Reserves (Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.) Section 4 does not pertain to this report.
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Drilling returns further wide zones of gold mineralisation and high grade zones up to 15.95g/t gold at Kestanelik Chesser Resources Limited (ASX: CHZ) is pleased to announce continued strong gold results from its Kestanelik Gold Project in north-west Turkey. Highlights;
New drill results continue to confirm and exceed predictions from the August 2013 resource of 703,000 ounces of gold
Significant intersections include:
25.0 metres at 2.00 g/t gold (from 35.0 metres) including 3.0 metres at 9.10g/t gold
18.0 metres at 1.39 g/t gold (from surface) including 1.0 metre at 15.95 g/t gold
35.8 metres at 1.11 g/t gold (from 16.0 metres) including 4.5 metres at 3.65 g/t gold
1 metre at 10.20 g/t gold (from 19.0 metres)
18.0 metres at 1.89 g/t gold (from 35.0 metres) including 4.0 metres at 4.8 g/t gold
22 metres at 1.51 g/t gold (from 35.0 metres) including 6 metres at 4.26 g/t gold
All assays have now been received and work is well under way on a resource update due for release in the June quarter of 2014
The current resource base is 703,000 ounces at 2.15 g/t gold, including an indicated resource of 183,000 ounces at 3.53 g/t gold, most of which is less than 50 metres from surface.
Chesser Resources Ltd is pleased to announce the receipt of additional drill results from the drill program commenced in the fourth quarter of 2013 at the Kestanelik Gold Project in NW Turkey. Assay results have now been received for all of the 89 holes completed in the current program, with the new results representing 668 metres of diamond drilling and 4048 metres of RC drilling out of the total of 10,000 metres completed in this phase. The Managing Director of Chesser Resources, Dr Rick Valenta, said “the drilling continues to return a number of intercepts which are better than the existing resource model at the same location and with all the results now back, we are on track for a solid boost to the Kestanelik Indicated resource and working toward a strong Prefeasibility Study. “The Prefeasibility study is expected to show that we have a low cost project based on the current resource and our aim is to put it into production while we continue to expand the footprint of near-surface high grade gold mineralisation through ongoing exploration,” he said. The new assay results are from holes drilled in the area of the inferred portion of the Kestanelik resource, and are part of the program designed to bring additional resources into the high grade indicated resource. Most of the drilling was carried out to test the shallower portions of the resource which are more likely to be accessed early in the life of the project. The assay results
confirm the presence of near surface mineralisation, and in many cases have returned grades and thicknesses better than those estimated in the resource. Significant new drill intercepts include:
25.0 metres at 2.00 g/t gold (from 35.0 metres) in KERC-190 including 3.0 metres at 9.10 g/t gold
18.0 metres at 1.39 g/t gold (from 98.0 metres) in KERC-175 including 1.0 metre at 15.95 g/t gold
35.8 metres at 1.11 g/t gold (from 16.0 metres) in KED-271 including 4.5 metres at 3.65 g/t gold
1 metre at 10.20 g/t gold (from 19.0 metres) in KERC-179
18.0 metres at 1.89 g/t gold (from 35.0 metres) in KERC-166 including 4.0 metres at 4.8 g/t gold
22 metres at 1.51 g/t gold (from 35.0 metres) in KERC-190 including 6 metres at 4.26 g/t gold
7 metres at 2.05 g/t gold (from 28.0 metres) in KERC-191 including 1 metre at 11.65 g/t gold
Figures 2 to 5 show the interpreted geometries of mineralised bodies associated with some of these key intercepts. Results from the drilling will be used to complete a JORC resource for release in the June Quarter of 2014, with timing being dependent on modelling. The updated JORC resource will be a key input to ongoing mine design and production scheduling which will form part of the Kestanelik Prefeasibility Study. Kestanelik Prefeasibility Study Excellent progress continues to be made with the Prefeasibility Study. Most metallurgical testwork is now complete and tests have confirmed the use of a standard SABC (SAG mill – Ball mill – Crusher) grinding circuit and high gold recovery from a standard CIL leach circuit. Lycopodium is nearing completion of the process design and layout, major equipment quotes have been received and mechanical engineering design is nearing completion. Norwest have examined tailings disposal options and the required studies to investigate a filtered, dry stack tailings alternative have commenced. Geotechnical and hydrogeological evaluations are continuing from the holes and samples drilled in November and December. Preliminary mine pit designs have been developed but will not be finalized until the results from the geotechnical tests are known. Data is being collated for the Environmental Impact Assessment submission and activities are progressing towards a public meeting during the second quarter of 2014.
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Forward Program A further phase of drilling is planned contingent on the receipt of additional drill permits from the Turkish General Directorate of Forestry. In addition, a program of detailed rocksaw sampling of all veins is under way, with results expected to be received in time for incorporation in the resource update. Meanwhile, work is continuing on mine, process and tailings design, as well as studies which will contribute to the Kestanelik Environmental Impact Assessment.
Figure 1. Plan view showing location of sections in figures 2-5
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Figure 2. Cross section showing the interpreted geometry of mineralised bodies intersected by drillhole KED-271
Figure 3. Cross section showing the interpreted geometry of mineralised bodies intersected by drillhole KERC-166
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Figure 4. Cross section showing the interpreted geometry of mineralised bodies intersected by drillhole KERC-194
Figure 5. Cross section showing the interpreted geometry of mineralised bodies intersected by drillholes KERC195, KED-264, and KED-264a
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Hole_ID KED-271 KED-272 KED-273 KERC-163 KERC-166 KERC-170 KERC-171 KERC-172 KERC-173 KERC-174 KERC-175 KERC-177 KERC-178 KERC-179 KERC-180 KERC-181 KERC-182 KERC-183 KERC-184 KERC-184A KERC-185 KERC-186 KERC-187 KERC-188 KERC-189 KERC-190 KERC-191 KERC-192 KERC-193 KERC-193A KERC-194 KERC-195 KERC-196 KERC-197 KERC-198 KERC-199 KERC-200 KERC-201 KERC-202 KERC-203 KERC-204 KERC-205 KERC-206 KERC-207 KERC-208 KERC-209
Easting 481601 481746 481747 481197 481097 482284 481744 482198 481741 482300 481744 482379 482453 482306 481703 482281 481962 481704 481703 481705 481377 481705 481708 481349 481351 481329 481661 481441 481660 481661 481415 481328 481325 481656 481656 481438 481611 481641 481481 481611 481606 481606 481482 481604 480972 481495
Northing 4462012 4462101 4462102 4462566 4462547 4462040 4462105 4461977 4462105 4461971 4462098 4461898 4461928 4462068 4462085 4461866 4461993 4462087 4462082 4462078 4462544 4462084 4462080 4462506 4462504 4461983 4462052 4461893 4462058 4462056 4462007 4461985 4461985 4462052 4462054 4461890 4461920 4462137 4462029 4461921 4461927 4461926 4462030 4461927 4462414 4462055
Elevation 303 325 325 306 268 393 325 385 324 388 325 375 382 395 319 375 388 319 319 319 324 318 319 308 308 213 311 231 311 311 225 213 213 311 311 231 305 305 257 305 305 305 257 304 211 273
Azimuth 146 191 168 288 289 0 308 0 259 0 197 0 0 0 299 0 156 302 208 208 40 203 128 17 42 179 112 2 38 38 126 198 216 245 296 354 137 344 183 102 353 333 193 325 316 163
Dip -68 -56 -54 -53 -55 -90 -60 -90 -56 -90 -47 -90 -90 -90 -50 -90 -48 -65 -47 -47 -75 -59 -45 -45 -56 -45 -70 -52 -60 -60 -50 -62 -45 -58 -64 -45 -53 -45 -50 -75 -45 -59 -45 -51 -62 -46
Depth 236 220 212.4 140 80 30 70 20 65 40 171 50 40 60 127 40 77 135 145 61 91 160 50 85 80 100 50 150 60 25 90 115 100 72 75 135 157 50 133 130 111 170 133 135 90 150
Table 1 – Location information for newly reported holes
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Hole From To Interval Gold Silver Gold m-g Zone KERC-163 8.00 28.00 20.00 0.66 0.53 13.20 KK2 INCLUDING 20.00 24.00 4.00 1.02 0.60 4.08 KERC-166 9.00 11.00 2.00 1.66 1.90 3.32 KERC-166 35.00 53.00 18.00 1.89 1.59 33.98 KK3 INCLUDING 36.00 40.00 4.00 4.80 3.35 19.20 INCLUDING 38.00 39.00 1.00 9.80 4.30 9.80 KERC-170 14.00 15.00 1.00 0.56 0.60 0.56 SED-BX KERC-170 22.00 23.00 1.00 0.53 0.30 0.53 NSI KERC-171 K2K1 KERC-172 0.00 13.00 13.00 0.57 0.36 7.42 SED-BX INCLUDING 0.00 1.00 1.00 1.27 0.60 1.27 INCLUDING 4.00 5.00 1.00 1.32 0.40 1.32 NSI KERC-173 K2K1 KERC-174 0.00 31.00 31.00 1.02 0.85 31.65 SED-BX INCLUDING 6.00 7.00 1.00 4.55 2.20 4.55 INCLUDING 12.00 14.00 2.00 2.44 0.45 4.87 KERC-175 98.00 116.00 18.00 1.39 0.42 24.98 K3HW INCLUDING 109.00 110.00 1.00 15.95 3.50 15.95 K3HW KERC-177 11.00 19.00 8.00 1.07 0.49 8.54 SED-BX INCLUDING 12.00 14.00 2.00 2.66 1.05 5.32 NSI KERC-178 SED-BX KERC-179 19.00 20.00 1.00 10.20 4.60 10.20 SED-BX KERC-179 35.00 37.00 2.00 0.70 2.10 1.40 INCLUDING 35.00 36.00 1.00 1.01 2.50 1.01 KERC-180 52.00 68.00 16.00 1.40 0.49 22.38 K1 KERC-180 80.00 84.00 4.00 0.90 0.38 3.61 KERC-180 109.00 127.00 18.00 1.05 2.56 18.88 K1FW INCLUDING 121.00 127.00 6.00 2.10 2.73 12.58 K1FW KERC-181 0.00 2.00 2.00 0.72 0.45 1.43 SED-BX INCLUDING 0.00 1.00 1.00 1.22 0.60 1.22 NSI KERC-182 KS KERC-183 52.00 53.00 1.00 1.08 1.70 1.08 K2K1 KERC-183 87.00 106.00 19.00 0.43 3.26 8.09 KA KERC-184A 0.00 61.00 61.00 0.50 0.43 30.20 K2K1 INCLUDING 4.00 5.00 1.00 2.36 0.70 2.36 KERC-184* 0.00 23.00 23.00 0.68 0.36 15.73 K2K1 INCLUDING 18.00 19.00 1.00 6.55 2.70 6.55 KERC-184* 39.00 54.00 15.00 0.58 0.33 8.69 INCLUDING 43.00 45.00 2.00 1.47 0.60 2.95 KERC-184* 57.00 68.00 11.00 0.98 0.39 10.76 K2M INCLUDING 60.00 62.00 2.00 3.58 0.65 7.16 KERC-184* 70.00 75.00 5.00 0.88 0.64 4.38 KERC-184* 93.00 136.00 43.00 0.42 1.36 18.10 INCLUDING 107.00 109.00 2.00 2.50 0.80 5.00 KERC-185 11.00 13.00 2.00 2.96 2.90 5.91 KK1 KERC-186 30.00 91.00 61.00 0.53 0.19 32.51 INCLUDING 46.00 48.00 2.00 3.04 0.25 6.09 K2M INCLUDING 64.00 67.00 3.00 1.65 0.87 4.94 INCLUDING 66.00 67.00 1.00 2.78 1.60 2.78 KERC-187 32.00 37.00 5.00 0.82 0.82 4.08 K2K1 KERC-188 17.00 20.00 3.00 0.76 1.23 2.28 KK1 KERC-189 29.00 33.00 4.00 1.54 1.55 6.18 KK1 INCLUDING 31.00 32.00 1.00 3.80 2.80 3.80 KERC-190 35.00 57.00 22.00 1.51 1.31 33.22 K1FW INCLUDING 46.00 52.00 6.00 4.26 3.13 25.54 INCLUDING 49.00 51.00 2.00 8.58 4.70 17.15 KERC-190 74.00 99.00 25.00 2.00 2.51 50.08 K2M INCLUDING 76.00 79.00 3.00 9.10 8.00 27.30 *KERC-184 - No Sample intervals between 36-39m, 54-57m and 68-70m Table 2 Composite results for newly reported holes. True widths are interpreted to be 45% to 85% of reported widths. Continued on next page
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Hole From To Interval Gold Silver Gold m-g Zone KERC-191 28.00 35.00 7.00 2.05 1.06 14.32 K2M INCLUDING 30.00 31.00 1.00 11.65 6.30 11.65 KERC-192 0.00 7.00 7.00 0.73 0.88 5.12 K2M KERC-193^ 2.00 14.00 12.00 0.52 0.40 6.26 INCLUDING 10.00 14.00 4.00 1.09 0.45 4.36 KERC-193^ 27.00 36.00 9.00 0.70 0.42 6.33 K2K1 INCLUDING 27.00 28.00 1.00 3.35 1.30 3.35 KERC-193^ 39.00 59.00 20.00 0.45 0.35 9.02 INCLUDING 48.00 49.00 1.00 1.42 0.60 1.42 KERC-194 0.00 18.00 18.00 1.39 1.20 24.97 K1FW INCLUDING 0.00 4.00 4.00 3.96 3.90 15.84 INCLUDING 0.00 2.00 2.00 6.08 5.40 12.16 KERC-195 23.00 37.00 14.00 1.17 1.09 16.34 INCLUDING 31.00 36.00 5.00 2.45 2.02 12.23 K2M INCLUDING 31.00 32.00 1.00 7.13 5.90 7.13 KERC-195 45.00 54.00 9.00 1.08 2.03 9.71 INCLUDING 47.00 49.00 2.00 2.72 6.15 5.43 KERC-196 48.00 57.00 9.00 0.82 1.01 7.40 K2M INCLUDING 52.00 56.00 4.00 1.40 1.45 5.58 NSI KERC-197 K2M NSI KERC-198 K2K1 KERC-199 0.00 10.00 10.00 0.62 2.30 6.19 K2M KERC-199 62.00 65.00 3.00 2.00 0.63 5.99 INCLUDING 64.00 65.00 1.00 4.38 1.30 4.38 KERC-200* 112.00 113.00 1.00 3.61 1.90 3.61 K3HW KERC-200* 138.00 157.00 19.00 0.53 2.05 10.03 INCLUDING 142.00 144.00 2.00 1.52 2.30 3.03 KERC-201 10.00 37.00 27.00 0.72 0.68 19.44 K1 INCLUDING 28.00 37.00 9.00 1.18 1.14 10.63 KERC-202 0.00 2.00 2.00 1.84 1.05 3.69 INCLUDING 1.00 2.00 1.00 3.27 1.90 3.27 KERC-202 17.00 20.00 3.00 1.26 0.50 3.79 K1 INCLUDING 18.00 20.00 2.00 1.80 0.65 3.59 KERC-202 61.00 65.00 4.00 2.07 1.13 8.30 INCLUDING 64.00 65.00 1.00 7.60 3.30 7.60 KERC-203 6.00 7.00 1.00 1.07 0.70 1.07 K3HW KERC-203 50.00 51.00 1.00 1.66 0.10 1.66 NSI KERC-204 K2M NSI KERC-205* K2M KERC-206 7.00 14.00 7.00 1.14 1.00 7.97 INCLUDING 9.00 11.00 2.00 2.88 2.75 5.75 K2K1 KERC-206 57.00 66.00 9.00 0.84 0.44 7.59 INCLUDING 60.00 62.00 2.00 2.03 1.20 4.06 KERC-206 68.00 69.00 1.00 1.16 0.40 1.16 NSI KERC-207 K2M KERC 208 86.00 90.00 4.00 1.22 0.85 4.86 KK3 KERC-209 21.00 22.00 1.00 2.76 2.80 2.76 KERC-209 28.00 30.00 2.00 1.92 1.90 3.84 K1 KERC-209 32.00 40.00 8.00 1.54 1.25 12.32 INCLUDING 34.00 37.00 3.00 3.09 2.47 9.27 KED -271 16.30 52.10 35.80 1.11 1.98 39.56 K2M INCLUDING 17.60 22.10 4.50 3.65 4.70 16.42 INCLUDING 19.10 20.60 1.50 8.72 5.00 13.08 KED -271 154.50 169.40 14.90 0.79 1.04 11.77 K3HW INCLUDING 160.50 162.00 1.50 5.28 3.40 7.92 KED-272 201.00 205.00 4.00 1.45 1.10 5.80 K3HW INCLUDING 203.00 205.00 2.00 2.65 1.40 5.30 KED -273 19.30 30.20 10.90 0.37 0.14 4.07 K3HW INCLUDING 24.40 27.60 3.20 0.54 0.25 1.73 ^KERC-193 - No Sample intervals between 14-17m, 18-19m and 20-27m Table 2 continued. Composite results for newly reported RC holes. True widths are interpreted to be 45% to 85% of reported widths.
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About Chesser Resources Limited
Chesser is an Australian-based ASX-listed exploration company (ASX: CHZ), exploring for gold and base metals in Turkey. The Company is currently conducting an aggressive, but focused, exploration program on its Kestanelik epithermal gold project. The Company’s flagship project, Kestanelik, is situated in western Turkey, some 10 kilometres southeast of the Dardanelles, and enjoys good access together with excellent infrastructure. It hosts low sulphidation epithermal quartz veining with identified high-grade gold mineralisation and bonanza grades. Kestanelik has an indicated resource of 183,000 ounces of gold at a grade of 3.53 g/t Au, and total resource of 703,000 ounces of gold at 2.15 g/t Au, 65% of which lies within 50 metres of the surface at an average grade of 2.54 g/t Au. The Company has declared a 303,000 oz gold resource (91,000 oz Indicated and 212,000 oz Inferred) on its Sisorta project in north-eastern Turkey. The Board and management of Chesser, backed by the Company’s major shareholders, are committed to unlocking value from this highly prospective portfolio of projects and the Company is committed to advancing its existing portfolio while continuing to seek new advanced opportunities.
Company Directors & Management
Company Information
Top Shareholders
Rob Reynolds Rick Valenta Simon O’Loughlin Simon Taylor Peter Lester Morrice Cordiner
Chairman Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director
Management Macquarie MEC Acorn Capital Baker Steel Institutions – 30% Top 40 ≈ 62%
Stephen Kelly Nigel Ricketts Cem Yuceer
CFO/Company Secretary Project Director Kestanelik Exploration Manager
ABN: 14 118 619 042 Address: 96 Stephens Road South Brisbane Qld 4101 Australia Telephone: +61 7 3844 0613 Contact: [email protected] Chesser Website: www.chesserresources.com.au
The exploration data and results contained in this report are based on information reviewed by Dr Rick Valenta, a Fellow of the Australian Institute of Mining and Metallurgy. He is Managing Director of the Company and has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Dr Valenta has consented to the inclusion in this release of the matters based on his information in the form and context in which it appears. The information in this report that relates to Kestanelik in-situ Mineral Resources is based on information compiled by Mr. Ian Taylor of Mining Associates Ltd. Mr. Taylor is the competent person for the Kestanelik resource estimate and takes overall responsibility for it. He is a of the Australian Institute of Geoscientists and a Chartered Professional of the Australasian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a "Competent Person" as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr. Taylor consents to the inclusion of such information in this Report in the form and context in which it appears. The information in this report that relates to Sisorta in-situ Mineral Resources is based on information compiled by Mr. Gary Giroux of Giroux Consultants Ltd. Mr. Giroux is the competent person for the Sisorta resource estimate and takes overall responsibility for it. He is a Member in good standing of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (a "Recognised Overseas Professional Organisation" under the JORC code) and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a "Competent Person" as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code) and has the appropriate relevant qualifications, experience and independence to qualify as a "Qualified Person" under National Instrument 43-101 "Standards of Disclosure for Mineral Projects" (NI 43-101). Mr. Giroux consents to the inclusion of such information in this Report in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
For further details please contact: Rick Valenta Tel: (+61 7) 3844 0613 Further information is available at: www.chesserresources.com.au Page 9
Table 1. Kestanelik Mineral Resource estimate reported including low grade halo (>0.5g/t gold cut off)
Indicated Inferred Total
Kestanelik Mineral Resource – August 2013 Grade Ounces Tonnes Au (g/t) Ag (g/t) Au Oz Ag Oz 1,609,000 3.53 2.6 183,000 135,000 8,584,000 1.89 1.8 521,000 493,000 10,193,000 2.15 1.9 703,400 628,900
Full details of the Kestanelik Mineral Resource estimate are provided in the Company’s ASX released dated 12 August 2013.
Appendix One The following sections are provided to ensure compliance with the JORC (2012) requirements for the reporting of new drill results for the Kestanelik deposit. Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling techniques
Drilling techniques
Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple. Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
The Kestanelik deposit has been sampled by a mixture of diamond and RC drill holes, with a nominal drill spacing ranging from 25m by 25m to 50m by 50m. HQ / NQ core is cut in half using a diamond saw (100% of core recovered) and half of the core is submitted for analysis. All RC drilling was sampled on 1m intervals. Maximum HQ / NQ sample interval is 2.5m & minimum sample interval 0.5m (note: 1m of half HQ will weigh between 3 to 4kg) (0.3% of samples are less than 0.5m). Zones of mineralisation defined by epithermal veining and brecciation, plus or minus sulphides or iron oxides after sulphides, are sampled separately. Based on the gold grain size (100mm over a given interval.
Core is sawn in half and one half (50%) is submitted for analysis. Bulk 1m RC samples are transported from site to the warehouse in Lapseki (local town) where they are split using a ‘Gilson’ splitter. 30% of the sample (~8kg) is submitted to ALS – Global labs in Izmir for preparation. Wet RC samples are sent to the lab for drying, and then riffle splitting down to 1kg. The 50% sampling of the HQ core is considered appropriate for the mineralisation type; however PQ core is planned for more rigorous metallurgical testwork. The 30% split of the RC samples is considered to be representative. A 10 - 12% portion of the sample would be adequate (as long as the riffle splitting is done properly), which is between 2.5 – 3kg. The ALS prep on the sample split includes, weighing, drying, crushing (80% passing 2mm), split to 1kg, pulverising (80% passing 75micron) using an LM2 grinding vessel (see http://www.impautomation.com/Products/Products-by-Product-Type). Approximately 200g of pulverised material is flown to the ALS Global lab in Vancouver Canada: A 50g split is taken for fire assay with AAS finish (Au-AA24) and a 1g sample is taken for aqua regia digest and then ICP-AES finish for 35 elements (ICP-41). A blank sample, a standard sample and a duplicate sample are randomly inserted approximately every 20 samples that are submitted. For RC drilling the duplicate is collected from the riffle splitter at the time of sampling. For diamond drilling samples a duplicate is made from rejects returned from the laboratory and resubmitted under a different number. It has been suggested that ¼ core would be better as a duplicate (McLean, 2012). The analysis for gold is by 50g fire assay with an AAS finish which is considered a ‘total’ technique. A 30g charge is probably sufficient, but 50g is more representative. ALS–Global have their own rigorous ‘in lab’ QAQC procedures and
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Criteria
JORC Code explanation
Verification of sampling and assaying
model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
Commentary are ISO 17025 accredited for precious metal and base metal analyses.
Samples have been re-submitted to other labs to check the main laboratory for accuracy.
Some strongly anomalous holes have been twinned and / or resubmitted for assay, however this has not been done for every anomalous hole. It is more likely that an anomalous RC hole will be twinned by a diamond hole. The early drill holes were logged on paper and then ‘key punched’ into a computer; KERC001 – 118 and KED001 to 170. From KED171 the logging was entered directly into a computer (‘Logchief’ software), typed in by the geologist with verification conducted via ‘Datashed’. The sampling is written down in a notebook and then ‘key punched’ into the computer (also part of Datashed).
Location of data points
Data spacing and distribution
Orientation of data in relation to geological structure
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control.
At the completion of the drill hole the collar was surveyed using a Trimble R6 which gives 0.25m horizontal and 0.5m vertical accuracy (http://trl.trimble.com/docushare/dsweb/)
The coordinates used are coordinate system ED50 / UTM Zone 35/ Central Meridian 27 The Kestanelik project has a digital terrain model (DTM) which has been constructed using Quickbird data, processed by Arcasoy Consulting, Turkey. The main Kestanelik zone, from Karakovan to the central area was surveyed by surveyors, who created 1 to 10m spaced contours. Ortho-rectification was completed by recent Quickbird image, with 59 field markers (white crosses).
Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied.
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised
The drill hole spacing is in vertical and horizontal fans, not on an even grid, due to the steep terrain and limitation of permitted drill sites. However, in most cases there are drill intercepts along strike and down dip of 20 to 35m on the dominant veins. The mineralized domains for Kestanelik have demonstrated sufficient continuity in both geology and grade to support the definition of Mineral Resources and Reserves, and the classifications applied under the 2012 JORC Code.
The drilling has been targeted to intersect mineralised veins at a steep angle, although some oblique holes have been drilled due to the locations of permitted drill sites. However, this has been taken into account in such a way as to eliminate sampling bias. No significant sample bias based on drill hole orientation is noted
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Criteria
JORC Code explanation
Sample security
Audits reviews
or
structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The measures taken to ensure sample security.
The results of any audits or reviews of sampling techniques and data.
Commentary
The chain of custody is managed by Chesser. The core / RC samples are transported directly to the yard at Lapseki where the RC retain samples and all the core (half core) is in a secured facility (fenced with 24 hr guards).
An independent audit of the Kestanelik project was conducted by consultant Neil McLean of Geodiscovery in 2012, and Mining Associates also conducted a review as part of their site visit in 2013.
Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary Mineral tenement and land tenure status
Exploration done by other parties
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. Acknowledgment and appraisal of exploration by other parties.
Chesser Resources, through its 100% owned Turkish Subsidiary, has vested 100% ownership in the Kestanelik tenements.
Geology
Drill hole Information
The Kestanelik property is located on Operating licences: 58380 & 58467, which are held in the name of Batı Anadolu Madencilik Sanayi ve Ticaret A.Ş., a wholly-owned Turkish subsidiary of Chesser Resources Ltd. A 2.5% Net Smelter Return Royalty is payable to the group from whom Chesser originally optioned the property.
Tuprag (the 100% owned Turkish subsidary of Eldorado) was the previous owner of the Kestanelik tenements and they conducted mapping, rockchip sampling and shallow RC drilling. Tuprag intersected some high grade gold intercepts but due to some poor results at depth in Karakovan and Kara Tepe areas they decided that the system was deeply eroded and the exposure was below the high grade gold zone. There are historical workings of unknown age with open stopes and inclined shafts and drives in and around the mineralised quartz veins. The workings do not exceed a depth of ~20m.
Deposit type, geological setting and style of mineralisation.
The gold deposit type is low sulphidation epithermal vein
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above
system hosted within a package of mica schists of reported pre-Permian age in proximity to the western contact of a hornblende dacite porphyry stock of probable Oligocene or Miocene age. Serpentinised ultramafic rock occurs within the schist package along the eastern side of the stock. Refer to table 1
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Criteria
JORC Code explanation
Commentary
sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cutoff grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.
These relationships are particularly important in the reporting of Exploration Results.
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
Diagrams
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
See figures 1 and 2
Balanced reporting
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
Every drillhole completed on the property has been reported, regardless of whether it has returned high or low grades. Higher grade drillholes are reported with significant detail, while lower grade drillholes generally have fewer reported intercepts. Holes with no economically significant intercepts are reported as such in each release of results, with the label “No Significant Intercept”.
Data aggregation methods
Relationship between mineralisatio n widths and intercept lengths
In all previous ASX press releases the assays are given ‘uncut’ unless otherwise stated & weighted averaging of results is used: in which the average grade is the sum of the products of length and grade for each sample in the interval, divided by the total length of the interval. A nominal cutoff of 0.2g/t is used for identification of potentially significant intercepts for reporting purposes, though a 0,5g/t cutoff has been used in resource modelling. Most of the reported intercepts are shown in sufficient detail, including gold maxima and subintervals, to allow the reader to make an assessment of the balance of high and low grades in the intercept. Informing Samples have been composited to two metre lengths honouring the geological boundaries and adjusted where necessary to ensure that no residual sample lengths have been excluded (best fit). Metal equivalents are not used.
Mineralised structures at Kestanelik are variable in orientation, and therefore drill orientations have been adjusted from place to place in order to allow intersection angles as close as possible to true widths. Exploration results have been reported as an interval with ‘from’ and ‘to’ stated in tables of significant economic intercepts. Tables clearly indicate that true widths will generally be narrower than those reported. An estimate of true width can be made based on the known strike of mineralised quartz veins or quartz breccias, although it should be noted that these features are not absolutely planar and anastomosing does occur, with variable strike and dip.
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Criteria
JORC Code explanation
Commentary
Other substantive exploration data
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
Further work
The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale stepout drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
Geophysical survey results and surface geochemistry results have been reported. All samples are measured for bulk density, which at 3 3 Kestanelik ranges from 2.1 g/cm to 2.85 g/cm . Multi element assaying is conducted routinely on all samples for a suite of potentially deleterious elements including Arsenic, Sulphur, Zinc and Magnesium. Some geotechnical study has been undertaken on the project, with the aim of determining rock strength and planning pit wall angles. Metallurgical testing has been carried out on bulk samples of drillcore and RC chips. Tests of the ground water have been made.
Future drilling will continue to test known mineralisation along strike and down dip at close spacing (20 x 40m approx) and will also target untested zones of potential mineralisation (based on surface geochemistry, geology or resistive targets from IP).
Section 3 Estimation and Reporting of Mineral Resources (Criteria listed in section 1, and where relevant in section 2, also apply to this section.) Section 3 does not pertain to this report.
Section 4 Estimation and Reporting of Ore Reserves (Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.) Section 4 does not pertain to this report.
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