Chesser reports Kestanelik maiden resource

THE BOURSE WHISPERER: Chesser Resources has reported a maiden JORC-Code Mineral Resource estimate for the company’s Kestanelik epithermal gold project, located in Turkey.

The Resource estimate comprises an Inferred Resource of 5.9 million tonnes at 2.4 grams per tonne gold for 462,000 ounces of gold at 0.5 grams per tonne gold cutoff.

“We are particularly encouraged by the grade and tenor of this maiden resource as it is based on drilling we have carried out on only 3.5 kilometres of the more than 22 kilometres of veins that we have identified at Kestanelik and also on only eight of the more than 88 veins that we have identified on the property,” Chesser Resources managing director Dr Rick Valenta said in the company’s announcement to the Australian Securities Exchange.

“So more than 90 per cent of the veins remain untested and outside this maiden resource.

“Most of the resource is very shallow and should be mineable by open cut methods.”

Valenta said the company’s scout work had identified the next 5.5km of veins it will drill.

This is where Chesser has previously recorded some encouraging drilling results, including 6m at 46.4 g/t gold.

“There are numerous other strong indications that these veins are similar and warrant systematic drilling,” Valenta continued.

“Drilling is continuing and we would expect to be in a position to announce an increased resource, based on the current and planned follow-up program, in 2013.”


Mineralised zones modelled as part of the resource estimate. Source: Company announcement


The resource is based on mineralised zones which have been defined for the K1, K2, K3, KS, Karakovan (with three subzones) and Karatepe (KT) structures, all of which have been recognised at surface as well as in geophysical surveys and drilling.

Resources from individual high-grade zones from the project, also at a cutoff of 0.5 g/t gold, include:

–    K3 zone – 1,931,000 tonnes at 2.5g/t gold (158,000oz gold);

–    K2 zone – 1,055,000 tonnes at 3.2g/t gold (108,000oz gold);

–    KS zone – 1,132,000 tonnes at 2.5g/t gold (90,000oz gold);

–    K1 zone – 553,000 tonnes at 2.0g/t gold (36,000oz gold); and

–    Karakovan zone – 1,258,000 tonnes at 1.73g/t gold (70,000oz gold).