Investor Presentation - Proactive Investors

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Investor Presentation - Proactive Investors

Investor Presentation

March 2012

Successful Exploration &

Discovery Company Underpinned

by Future Gold Production


Disclaimer

These presentation slides (the “Slides”) do not comprise an admission document, listing particulars or a prospectus relating to Stratex International plc (“the Company”) or any subsidiary

of the Company, do not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or

subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities in the

Company.

The Slides and the accompanying verbal presentation are confidential and the Slides are being supplied to you solely for your information and may not be reproduced or distributed to any

other person or published, in whole or in part, for any purpose. No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying

verbal presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company, Northland Capital

Partners Limited or Renaissance Capital Limited or their respective shareholders, directors, officers or employees or any other person as to the accuracy or completeness of the information

or opinions contained in the Slides and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (including in the case of negligence, but

excluding any liability for fraud). Any decision in connection with the proposed subscription for or purchase of shares in the Company must be made solely on the basis of the information

contained in the Company’s Admission Document dated 22 December 2005 and any other publicly available information relating to the Company. Accordingly, neither the Company nor its

directors makes any representations or warranty in respect of the contents of the Slides.

The Slides contain forward-looking statements, which relate, inter alia, to the Company’s proposed strategy, plans and objectives. Such forward-looking statements involve known and

unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially

different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and the Company accepts no obligation to disseminate any updates or

revisions to such forward-looking statements.

The Slides and their contents are directed only at persons who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial

Promotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other persons having

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distribution may otherwise lawfully be made. Any investment, investment activity or controlled activity to which the Slides relates is available only to such persons and will be engaged in

only with such persons.

Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon the Slides.

The Slides should not be distributed, published, reproduced or otherwise made available in whole or in part by recipients to any other person and, in particular, should not be distributed to

persons with an address in the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada or in any other country outside the United

Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. No securities commission or similar authority in Canada has in any way passed on the merits

of the securities offered hereunder and any representation to the contrary is an offence. No document in relation to the Placing has been, or will be, lodged with, or registered by, The

Australian Securities and Investments Commission, and no registration statement has been, or will be, filed with the Japanese Ministry of Finance in relation to the Placing or the Shares.

Accordingly, subject to certain exceptions, the Shares may not, directly or indirectly, be offered or sold within Canada, Australia, Japan, South Africa or the Republic of Ireland or offered or

sold to a resident of Canada, Australia, Japan, South Africa or the Republic of Ireland.

The Securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or with any securities regulatory authority

of any state or other jurisdiction of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any US Person as that term is defined

in Regulation S under the US Securities Act. The Company has not been registered and will not register under the United States Investment Company Act of 1940, as amended.

The Slides and their contents are confidential and should not unless otherwise agreed in writing by Northland Capital Partners Limited or Renaissance Capital Limited be copied,

distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person.

Northland Capital Partners Limited and Renaissance Capital Limited, which are authorised and regulated by the Financial Services Authority, are advising the Company and no one else in

relation to the proposed placing and admission of placing shares and will not be responsible to anyone other than the Company for providing the protections afforded to customers of

Northland Capital Partners Limited or Renaissance Capital Limited. Any other person should seek their own independent legal, investment and tax advice as they see fit. Neither Northland

Capital Partners Limited nor Renaissance Capital Limited has authorised the contents of, or any part of, the Slides and no representation or warranty, express or implied, is made by as to

any of its contents.

March 2012

2


Overview




AIM-quoted Exploration and Development company focussed on gold and base

metals in East Africa and West Africa, underpinned by a strong exploration portfolio

and two mine development projects in Turkey

Discovered to date:




2.26 Moz Au

7 Moz Ag

186 kt Cu

Major JV and equity partners include: AngloGold Ashanti, Antofagasta, Centamin,

Centerra, Teck, Thani Ashanti

JV investment to date of $13.7 M (with a further min of US$16.2 M [+/- US$20 M]

subject to earn-in)


Positive cash flow possible by mid/late-2013

3


Risk Management Strategy


Clear focus on discovering and exploiting mineral wealth



Multiple plays increase odds of success

Continuous monitoring and reviewing of investment strategies


JV partners ensure risk is shared and/or eliminated


Value created with minimal cash exposure



Growing reputation enables negotiation of increasingly better partnerships and potential

rewards

Production agreements with local companies realise value from smaller projects


Cash-flow

4


Creating Value

Asset

Total Stratex

spend (£)

Cost-effective discovery

Total partner

spend (£)

Total Au (oz)

Stratex retained

Au (oz)

Öksüt 509,424 2,063,273 1,047,872 523,936 (50%)

314,361 (30%)

Muratdere 631,628 - 204,300* 204,300 (100%)

61,290 (30%)

Altıntepe 850,854 333,333 593,100** 593,100 (100%)

266,895 (45%)

Stratex cost per

retained oz (£)

0.97

1.62

3.09

10.31

1.43

3.19

TOTAL 1 st earn-in 1,321,336 1.50

2 nd earn-in 642,546 3.10

** Resource at Altıntepe includes 3.18 Moz Ag (not included)

** Resource at Muratdere includes 186 kt Cu, 3.9 Moz Ag and 6,390 t Mo (not included)

5


Our Interests

+ Two exploration

projects*

+ Six exploration and

two development

projects

+ Eight exploration

projects

Rift

Resources

* Portfolio in important West African

region recently acquired via Silvrex Ltd

+ 49.5% passive

holding in new

industrial minerals

company

6


East Africa Operations

Shehagne

Blackrock

- Afar Project,

incl Megenta


Under-explored with major gold and

base metal potential

Mining-friendly regime in Ethiopia –

Corporate tax 30%; royalties 5-8%; tax

free importation; transparent code

exploration thro’ to mining;

government 5% free-carried interest



Growing mining interest – BHP Billiton,

Centamin, Nyota Minerals, Allana

Potash, MidRoc, Tigray Resources,

Ethiopian Potash Corp

Stratex first-mover advantage in

discovering new gold province in Afar

Depression of Ethiopia

7


30 km

Blackrock


100%-owned licence - 299 sq km over four extensive areas of low -sulphidation mineralisation

>30 km veining identified including five substantial vein systems outcropping at Black Water Zone –


Stanley, Nesbitt, Oasis, Theodore and Baker


5,000 m drill programme currently underway

Black Water Zone – aerial photograph

E

BAKER

THEODORE

?

?

OASIS

38.3 g/t Au

60.4 g/t Au

NESBITT

34.6 g/t Au

Potential blind extensions under wadi gravels

250 m

STANLEY

8


Black Water drilling to date

250 m

2,552 m of 5,000 m programme drilled to date over 14

holes. Best results include:

Baker

18.7 g/t Au

Hole Length (m) Au (g/t)

BW-DD-001 0.70 0.48

BW-DD-002 2.41 0.29

BW-DD-003 4.65 0.51

including 1.45 0.67

BW-DD-009 0.95 0.81

BW-DD-16

Oasis

34.8 g/t Au

Nesbitt


Veins thicken significantly to the north, e.g. 5.35 m

vein in BW-DD-8 at 99.75 m depth – awaiting results

6.1m @ 1.0 g/t Au


‘Blind’ quartz vein zone identified at 84 m under

gravels in BW-DD-16 – over 2,000 m of blind veins

interpreted for Black Water alone

7.8 & 5.0 g/t Au

60.1 g/t Au


Future drilling to test high grade outcrops on other

structures, including Baker, Oasis and Stanley

Stanley

38.3 g/t Au

1.2m @ 5.7 g/t Au

9


Afar Project




First 11 licences acquired in Afar district, incl.

Megenta

Thani Ashanti earning-in to initial 51% through

US$3 M exploration funding over 2 years

3,000 m drill programme has confirmed Megenta

as part of new 3 km gold system –

MG-DD-12 – 3.25 m @ 4.49 g/t Au incl. 0.70

m @ 19.5 g/t

MG–DD-10 - 43.20m @ 0.67 g/t Au incl. 2.9

m @ 3.56 g/t Au

MG-DD- 09 - 44.30 m @ 0.54 g/t Au incl. 2.1

m @ 1.67 g/t Au

Follow-up drilling programme anticipated in 2012

Banded quartz vein in drill core

10


Deseado Massif Comparison


Cerro Vanguardia

>6.0 M oz Au

Source: Mariana Resources


Cerro Negro*

3.1 M oz Au

Expanded to 5.1 M oz Au

Distance Megenta to Blackrock


Manatial Espejo

1.2 M oz Au equiv.


Mina Martha

22 M oz Ag equiv.


San Jose

1.99 M oz Au equiv.


Las Calandrias



Cerro Moro

2.4 M oz Au equiv.

(131,000 m drilled+)

Cap Oeste


Geological Setting:

Rifting – same as Afar

Bimodal rhyolites & basalts - Afar

Rhyolite domes – defined in Afar

** Goldcorp acquired Cerro Negro for C$3.6 Billion = c.$1,000/oz **

11


Additional East African Assets

Ethiopia & Djibouti

ARABIAN-NUBIAN

SHIELD

Prospective for gold

and base metal

deposits

AFAR

DEPRESSION

Potential for

bonanza gold

grades

0 250 km

0 250 km

After Corti, 2009

Further drill-advanced project in Arabian Nubian Shield - Shehagne

Five further early-stage exploration projects

12


West Africa

200 km

West Africa Licences




Dalafin licence covers 636 sq km in prospective Birimian Kédougou-Kenieba gold belt

Four early-stage exploration licences over 1,985 sq km in Mauritania

Nine million-plus oz deposits discovered to date in Kédougou-Kenieba gold belt

13


Turkish Operations

6 early and mid-stage exploration

prospects – drilling programmes

anticipated at 4 projects in 2012

2 resource development projects with

first gold pour anticipated 2013

Muratdere

Inlice

Altıntepe

Ӧksüt

Altunhisar

Hasançelebi

New copper exploration initiative with

Antofagasta Minerals

14


+1Moz Gold Discovery– Öksüt, Turkey


High-sulphidation gold discovery in central

Turkey, currently being funded by a Canadian

major JV partner Centerra B.V:




50% vested interest for US$3 M

Opted to earn additional 20% for a further

US$3 M

Stratex interest of 50% free carried for

next US$3 M expenditure over next 2

years

758,144 oz Au



Total resource 1,047,872 oz gold, incl.

probable heap-leachable resource of 0.56 Moz

oxide gold + 0.40 Moz sulphide gold

Scope for further resource upgrade with drilling

programme planned by Centerra in Q2 2012

289,729 oz Au

(Cross-section of Ortaçam North Zone in Appendix)

* rock-chip sampling result prior to drilling

15


Turkish Development Assets

NTF – HEP dam

construction

Development Assets:


Inlice Project:




Stratex 45% interest, JV with NTF 55%, $2 M to take to feasibility

study (completed)

JORC Reserve: 59.6 Koz Au: Resource 69 Koz Au (oxide) plus

164 Koz Au (sulphide)

Production targeted 2013 – provisionally 15,000-20,000 oz per

annum


Altintepe Project:

Stratex 100%, with Bahar Mining completing feasibility for 55%


and carrying all pre–production costs

In-house JORC Resource: 491 Koz Au (oxide + transition), 101 Koz

Au (sulphide), 2.37 Moz Ag (oxide), 813 Koz Ag (sulphide)

Production provisionally targeted for 2013 – 30,000 oz per annum -

subject to feasibility

16


Additional Turkish Assets

Muratdere porphyry copper-gold-molybdenum project, 250 km west of Ankara –

186,000 t Cu + 204,296 oz Au + 3.9 Moz Ag + 6,390 t Mo + 17.6 t Re identified

Turkish investor DD for $1.7 M for 51%; + $0.5M & complete feasibility for 70%

Due-diligence to be completed April 2012

Hasançelebi gold project, 500 km SE of Ankara –

Teck funding exploration to US$2 M for 51% interest

Review of 2011 exploration data on-going

Altunhisar gold project, 260 km SE of Ankara –

Centerra funding exploration to US$1.5 M for 51% interest

Drilling anticipated 2012

Antofagasta strategic alliance to explore for copper deposits –

Antofagasta funding initial US$1 million for 16 month target-generation and exploration

programme

Target prioritisation and possible licence acquisitions in 2012

17


Valuation Drivers 2012

Turkey

Öksüt - on-going drilling to increase resource base, funded by Centerra (US$3 M to earn 70%)



Altıntepe – accelerated development (partner on site and funding to production)

Inlice – complete EIS, financing, development, production mid-2013 (45% Stratex)

Muratdere - post-due-diligence, partner to pay US$1.7 M (51 %) & complete feasibility (70 %)

Ethiopia




On-going drilling to identify bonanza zones at Blackrock

Thani Ashanti funding second-phase exploration & drill programme at Megenta to test system at depth

(US$3 M to earn 51%)

Identification and acquisition of new mineralised systems in Afar

West Africa


Focused exploration for discovery in Senegal & Mauritania

18


Conclusion




Focused exploration and development business

Experienced management team

Clear strategy to minimise risk and extract maximum potential

rewards





Multiple plays

Major JV partners

Local production agreements

First-mover advantage in Afar (Ethiopia/Djibouti)


Tangible success





Two gold-development projects in Turkey

Significant +1M oz Öksüt gold discovery in Turkey

New gold district discovery in Afar – incl. Blackrock

Acquisition of West African portfolio

19


Corporate Data

Share Data AIM-Listed (STI)

19 th March 2012

Shares in issue

Fully diluted shares

Share price

363.15 M

384.19 M

8.38 p

52 High 10.63 p

52 Low 6.63 p

Market cap.

Cash Position

(as at end Feb)

£29.39 M

£1.70 M

Key Shareholders

ANGLOGOLD ASHANTI 11.51 %

TECK RESOURCES LIMITED 9.84 %

FOREST NOMINEES 7.12 %

GRAHAM N J 6.22 %

RICHMOND CAPITAL LLP 5.00 %

DIRECTORS 6.07 %

ANTOFAGASTA 2.85 %

THANI ASHANTI 2.20 %

Nomad – Grant Thornton

Broker – Northland Capital

Co-broker – Fox-Davies Capital

20


Appendices

21


Management

Christopher Hall

Non- Executive

Chairman

Christopher Hall has over 39 years of wide ranging experience in the mining sector. He is currently the in-house mining

adviser to Grant Thornton LLP, principally assisting the Capital Markets team with clients listed on London Stock Exchange

and the AIM market. Christopher joined Stratex in February 2008 as Non-Executive Director.

Bob Foster

Chief Executive Officer

Thirty-seven years of experience as a professional economic geologist in exploration, mining, and applied academic posts

and has particular expertise in the genesis and exploration of gold deposits, having worked in Europe, Central Asia, North

and South America and throughout Africa.

Perry Ashwood

Chief Financial Officer

Perry qualified as a Chartered Accountant in 1971, training with Spain Brothers & Co. and KPMG. During his 40-year

professional career he has worked in senior management with British Oxygen Ltd, Rank Xerox Ltd, and Intermec

International Inc. before becoming an independent consultant in 2000.

David J. Hall

Executive Director

(East Africa)

David has 30 years of experience in the exploration sector and has worked on and assessed exploration projects and

mines in over 50 countries including Turkey, where he worked for four and half years. He also worked as Consultant

Geologist for Minorco South America, where he subsequently became Exploration Manager for AngloGold in 1999.

John Cole-Baker

Executive Director

(West Africa)

Bahri Yildiz

General Manager, Turkey

With over 40 years of experience, John has been involved in infrastructure and mining development projects, at various

levels up to Project Director, as well as restructuring projects in Africa, Europe, the Former Soviet Union, the Middle East,

and the Indian sub-continent. Since the 1990’s he has also been Director of a number of consultancy companies and is

currently an advisor to UNCTAD.

A Turkish national with a career spanning 30 years dedicated to mineral exploration and mining geology throughout Turkey.

Bahri commenced his career in1980 with the government's General Directorate of Mineral Research and Exploration. More

recently he was Exploration Manager Turkey for Dardanel Madencilik, the Turkish subsidiary of major Canadian mining

company Inco Ltd before joining Stratex in 2005.

Franco Maranzana

General Manager,

Djibouti

A professional economic geologist for over 50 years, Franco has worked in over 100 countries for governments,

international organizations, multinationals and as a consultant, mainly in mineral exploration, country potential assessment,

negotiations and also on natural risks and themes of international cooperation.

22


Key Events

2006:




2007:



2008:


IPO £1.87 M @ 5 p; (Teck founder)

Inlice discovered

£1.175 M @ 7.5 p; institutional placing

£7 M @ 9 p; institutional placing

Altintepe acquisition

Öksüt gold discovery

2009:



2010:



Centerra JV on Öksüt

Expansion into Ethiopia & first epithermal gold discovery in Afar rift valley

£1.3 M @ 3.5 p; institutional placing

JV with gold-major Thani Ashanti on ‘Afar Project’

2011:

Blackrock discovery - camp established and drilling starts

AngloGold in for £3 M @ 7.72 p at company-level – at premium

2012:

Öksüt resource exceeds 1 Moz

23


Blackrock

Nesbitt structure

Oasis structure

Theodore structure

1 2 3 4 5

Individual veins over 50 m.

MAJOR DISCOVERY

Outcropping

Deeper in system than Megenta

Critical boiling zone textures

Silica-replaced bladed calcite

5,000 metres drill programme

currently underway

24


Low-sulphidation systems - hitting the shoots

Extorre’s Cerro Moro Project - Zoe Discovery: projected long section

NB: BONANZA-GRADE

SHOOTS EASILY

MISSED


Shehagne - Centamin JV

Trench


Channel chip sampling has identified large, low grade gold

target – potentially bulk-mineable



84 metres grading 1.04 g/t Au including 28 m grading 1.86 g/t Au

104 metres grading 0.77 g/t Au including 11 m grading 4.39 g/t Au

Pre-drilling projection:


SEA vested at 60% following £350,000 expenditure

26


Öksüt, Turkey– Statistics

* rock-chip sampling result prior to drilling

27


Öksüt – Ortaçam North



Best intersection to date: ODD-55: 268.00 m @ 2.34 g/t Au

Open to North, East and at depth

28


Near-Term Production in Turkey

NTF – HEP dam

construction

Inlice Project

JORC reserve 59,600 oz Au @ 2.36 g/t N/A

JORC resource

69,324 oz Au @ 2.29 g/t in oxide;

164,000 oz Au @ 1.78 g/t in

sulphide

Altıntepe Project

491,426 oz Au (oxide + transition);

101,695 oz Au (sulphide);

2.37 M oz Ag (oxide);

812,819 oz Ag (sulphide)

Stripping ratio 0.76t waste to 1t ore N/A

Cash operating

costs

NPV (10)

After-tax IRR

Targeted

production

US$ 412

US$ 6.3 M (@ US$1,100 oz Au);

US$ 14.6 M (@ US$1,400 oz Au);

37% @ US$1,100 oz Au;

48% @ US$1,200/oz Au

N/A

N/A

N/A

2013 2013

Stratex interest 45% 100% (45%)

JV partner,

funding

NTF - US$ 2M feasibility study

(completed)

EIS approval awaited

Bahar Mining completing feasibility

for 55% and carrying all preproduction

costs

29


Rift Resources




Stratex 49.5% passive holding in new industrial minerals company

Stratex licence in highly prospective potash area sold to

Rift Resources plc, as non-core business

£250k raised to explore the licence and add to portfolio

30


Contacts

Christopher Hall

Non-Executive Chairman

christopher.hall@stratexplc.com

Stratex International plc

180 Piccadilly

London

W1J 9HF

Tel: +44 (0)23 8065 1649

Fax: +44 (0)23 8062 0022

info@stratexplc.com

www.stratexinternational.com

Bob Foster

CEO

bob.foster@stratexplc.com

Perry Ashwood

CFO and Company Secretary

perry.ashwood@stratexplc.com

David Hall

Executive Director (East Africa)

david.hall@stratexplc.com

John Cole-Baker

Executive Director (West Africa)

john.cole-baker@stratexplc.com

Claire Bay

Corporate Geologist

claire.bay@stratexplc.com

31

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