Bati Toroslar is spending up to US$1.38m on exploration at the Hasançelebi and Doğala gold projects in central Turkey.
Hasançelebi, approximately 500 km SE of Ankara, is a high-sulphidation gold project where lithologically-controlled mineralisation has been identified over a strike length of approx. 7 km. Drilling through a joint-venture with Teck Resources Limited demonstrated the potential for low-grade, high-tonnage gold mineralisation extending over a distance of 1 – 2km, and vertical continuity of the system down to 300m. Best results from Phase 1 drilling include 15.35m @ 1.35 g/t Au from 266.20m , 13.80m @ 0.93 g/t Au from 24.40m and 6.90m @ 0.98 g/t Au from 37.60m. The drilling also highlighted the potential for copper mineralisation, with best reported grades of up to 0.38% (and 0.63 g/t Au) over 20.70 m from 206.90m for the Karakaya Tepe zone located near the eastern end of the main Hasançelebi system and believed to be an iron oxide-copper-gold occurrence. During Phase 2 drilling in 2011/12, further drilling (two holes) at Karakaya Tepe returned best intersections of 28.00 m @ 0.30 g/t Au from 61.00m and 40.80m @ 0.69 g/t Au from 292.90m from hole HCD-11.
Doğala, located approximately 225 km to the west of Hasançelebi, is a grass roots exploration project, again prospective for high-sulphidation gold mineralisation. Diamond drilling (two holes) through a joint venture with Centerra Gold Limited identified the occurrence of gold in the system, although no results have been reported.
Under the terms of the exploration agreement, the licences have been transfered to Bati Toroslar, which is now funding up to US$1.38m in exploration at both projects. Oriole will manage the exploration programmes and if a minimum JORC-compliant Indicated or Measured gold resource of 100,000 oz, (with a 0.3 g/t cut off) is defined within the oxide and transition zones at Hasançelebi, Bati Toroslar is required to pay Oriole a further US$500,000. The Company will also receive a 1.5% NSR royalty on any future precious metals production at the licences, and a 5% NSR on any future production of other metals or industrial raw minerals.