Chesser Resources to sell Karaayi gold project in Turkey

5 September 2013 (Last Updated September 5th, 2013 18:30)

Chesser Resources has agreed to sell the Karaayi gold project in north-western Turkey to Orta Truva Madencilik Sanayi Ve Ticaret and Pilot Gold.

Chesser Resources has agreed to sell the Karaayi gold project in north-western Turkey to Orta Truva Madencilik Sanayi Ve Ticaret and Pilot Gold.

As per the deal, Chesser will receive $300,000 and 1.25 million shares as consideration for the sale.

The 20km² Karaayi property is situated to the south-west of the TV Tower project and, after completion of the acquisition, Orta Truva will become operator at Karaayi.

Orta Truva is planning to launch surface exploration work and a drill program on the property later in 2013.

Pilot Gold president and CEO Matt Lennox-King said the acquisition will add 1,956ha of land to the TV Tower project.

"We are very excited to begin exploration on Karaayi, with a focus on extending the footprint of known mineralised zones from TV Tower's Kayali target," Lennox-King said.

Pilot Gold said the property is contiguous with the Kayali oxide gold target and features gold-in-soil anomalies in the TV Tower district.

Drilling works carried out at Karaayi by previous operators, including Chesser, have intersected near-surface, oxidised, high-sulphidation style gold mineralisation, which is on strike to the west of the known oxidised gold mineralised zone at Kayali.

Chesser's exploration till date has identified the presence of supergene copper and porphyry style copper-gold mineralisation on the Karaayi property.

The TV Tower project is a joint venture between Pilot Gold, which has a 40% stake, and a Turkish subsidiary of Teck, which holds the remaining 60% stake.

Situated on the Biga Peninsula in north-west Turkey, TV Tower features 71km² and a large number of targets ranging from high and low-sulphidation epithermal gold-silver to porphyry gold-copper.

Energy Technology forum on LinkedIn