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Nov 2012 - Chesser Res

Chesser Resources Limited (CHZ) – Preparing for its Scoping Study at its Kestanelik Gold Project in Western Turkey

  • The recent changes to Chesser's board in the form of Morrice Cordiner (ex-Andean), Rob Reynolds (ex-Alacer, Extorre) and Peter Lester (ex-Citadel, Oxiana and Newcrest), shows that Chesser is moving into the next phase, namely preparing for gold production at its wholly owned Kestanelik gold project, near Lapseki & Çannakale in NW Turkey.
  • Located ~25km NE of Çanakkale in NW Turkey (near Gallipoli and Troy), a maiden inferred JORC resource of 5.9mt @ 2.4g/t for ~ 0.46moz had been delineated by May 2012 at CHZ's Kestanelik low sulphidation epithermal project based on ~25km of drilling. CHZ expects to have completed its 19km 2nd programme and 15km 3rd programme by the end of March 2013, in order to release an upgraded resource in JQ2013.
  • CHZ has concentrated on the western side of its tenement area with part of the current drilling programmes infilling the delineated NE/SW striking Karakovan veins, K lode complex (K1 and K2, with interlinking KA, KM & KS); and K3. Further drilling expected to include the SE extension into K4, Topyurt and Meydan; SW across the creek into the NE/SW striking lodes and old workings (where the ~419g/tAu rock chip was taken); and possibly further east where little work has been done so far.
  • Chesser has established some preliminary scoping study parameters using an engineering group for possible plant sites etc, expected recoveries (~95%), using the excellent infrastructure of a dual carriageway / freeway past the nearest town of Lapseki, connecting to a surfaced road to site, nearby (~20km) coal-fired power station (hence low-cost power), lowish voltage relatively nearby power lines, water availability and possible mining costs. Chesser expects to complete its scoping study by the end of 2013 and start and submit its EIA (CHZ already has a base EIA, which may reduce the application time).
  • Gold Mining in Turkey is becoming increasingly attractive from a tax viewpoint, due to the number of concessions that are resulting in it becoming one of the lowest tax regimes for gold mines in the world as experienced by Alacer's Çopler and Alamos' possible nearby Kirazli mine with an expected PFS tax rate of ~4%. Current corporate tax at 20% is expected to be reduced to 10% to 12% for gold mining for 7 to 8 years at the end of 2012 (it was announced in mid-June 2012 that mining was regarded as strategic and needs to be encouraged to improve the GDP and reduce unemployment). There are also concessions that halve royalties closer to 2.5%, and reimburse the 18%VAT etc.
  • Written by: Keith Goode
  • Thursday, 01 November 2012

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