Continued drilling success and results of Scoping Study confirm the
development potential of the Kestanelik gold project
HIGHLIGHTS
Kestanelik
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Target of 15,000 metres of drilling for the current drilling program achieved on time and within
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budget during the March quarter.
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Excellent results received from both outside and within the boundaries of the maiden JORC compliant resource declared in May 2012, demonstrating potential for resource upgrade including:
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Diamond drilling at the new 300 metre-long A3C zone returned intercepts of:
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1.4m @ 10.2 g/t Au
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1.4m @ 3.6 g/t Au
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1.1m @ 29.5g/t Au in the KS vein from a zone at the margin of the maiden JORC resource
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Step out drilling on the Karakovan 3 (KK3) zone outside the area of the existing resource included:
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3.2m @ 3.66g/t Au
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4.6m @ 6.42g/t Au, including 1.5m @ 19g/t Au
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2.9m @ 5.03g/t Au
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15.5m @ 10.2 g/t au, including 6.5m @ 18.6 g/t au
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5.5m @ 3.6 g/t au
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Step out drilling on the Karakovan 1 (KK1) zone outside the area of the existing resource included:
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3.5m @ 2.91g/t Au
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Further zones of near-surface gold mineralisation outside the maiden JORC resource at the junction area at the eastern end of K3, KS, K4 and Topyurt veins including:
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20.8m @ 1.73g/t Au from surface
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13m @ 1.5g/t Au from surface
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Continued exploration success and a preliminary Scoping Study support the commencement of a pre-feasibility study for the Kestanelik project in the June quarter of 2013.
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Chesser Resources Managing Director Dr Rick Valenta said that the March quarter delivered significant milestones in the development of the Company's flagship Kestanelik Project.
"Continued drilling success during the March quarter has confirmed the mineralized zones at Kestanelik extend significantly beyond those included in the existing resource. The drilling program has continued to add to our confidence that the resource update, which remains on schedule to be released by the end of the June quarter, will show a significant increase in the Mineral Resource at Kestanelik.
The expected increase in the resource, the Scoping Study announced during the March quarter and Turkey's established reputation as a stable, low cost mining jurisdiction all support the Company's decision to commence a pre-feasibility study for the Kestanelik Project in the June Quarter," he said.
FOCUS OF ACTIVITIES FOR JUNE QUARTER 2013
Kestanelik
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Completion of the current 15,000 metre drilling program and demobilization of drill rigs. The program was completed in April 2013 with a total of 16,000 metres drilled. Drilling results for all holes drilled during the program are expected to be released by mid-May.
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Release of an updated JORC Compliant Resource incorporating the results of the recently completed drill program by the end of June 2013.
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Commence the pre-feasibility study for the Kestanelik Project.
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Continue to progress the environmental base-line studies, community consultation work, preparatory work for planned scoping study in 2013, and other permitting requirements. Karaayi
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Planning of future programs to build on recent positive results from surface sampling program.
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Assessment of strategic options for the Karaayi Project.
Sisorta
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Undertaking a detailed assessment of the exploration activities conducted by the previous option holder.
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Assessment of strategic options for the Sisorta Project.
Catak
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Preparation for 2013 field program to start in the June quarter of 2013.
EXPLORATION
KESTANELIK Gold
(Chesser 100%)
The Kestanelik property consists of a series of more than 88 epithermal quartz vein zones of up to 28 metres true thickness, with a total strike length of more than 30 kilometres. The major proportion of these veins is still untested by drilling. More than 30 kilometres of veins are covered by a postmineralised sequence of sediments, volcanics and alluvium. Mineralisation on the property is typical of low-sulphidation epithermal vein systems, examples of which include Vera Nancy/Pajingo in Queensland (Evolution Mining) and the Eureka Vein, which is part of the Cerro Negro Project in Argentina (Goldcorp).
The topography at Kestanelik is steep in places and a substantial vertical relief exists between the top of the mineralisation in the Karazone and K-zones and the lower limits of the current JORC resource. This vertical relief is expected to assist in the development of an open-pit mine. Chesser owns a 100% interest in the Kestanelik property. 15,000 metre drill program A 15,000 metre drilling program began in October with four Diamond drill rigs on site from early November. In February 2013 an RC rig was mobilised to supplement the four Diamond drill rigs.
The aim of this program is:
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Systematic step out drilling of high-grade zones identified on the eastern side of the porphyry intrusive body new zones with already-demonstrated high-grade intercepts (approximately 70 percent of the drill meterage);
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To extend existing high-grade zones on the veins comprising the maiden resource which remain open along strike and at depth (approximately 20 percent); and
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To test a small number of the higher priority scout drill targets on the property (approximately 10 percent).
A JORC resource update is planned for completion by the end of the June quarter of calendar 2013 based on approximately 61,000 metres of drilling.
Results of 15,000 metre Drill Program
As at the end of the March Quarter a total of 15,718 metres had been drilled during the current drilling program, surpassing the targeted 15,000 metres on time and within budget. Assay results for 25 holes were released in the Company's ASX Release dated 25 January 2013 and assay results for a further 34 holes were released in the Company's ASX Release dated 18 March 2013. The results of all assays for the 15,000 metre program released up to 31 March 2013 are summarised in Appendix One.
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