Drill Tracker Weekly: Aldridge Tests Margins of Yenipazar VMS Open-pit Reserve

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Aldridge Minerals (TSX:AGM)

Price: $0.175

Market cap: $18.5 million

Cash estimate: $10.5 million

Project: Yenipazar

Country: Turkey

Ownership: 100 percent

Reserve: 29 MT @ 0.88 g/t Au, 29.4 g/t Ag, 0.3% Cu, 0.95% Pb, 1.40% Zn

Project status: Feasibility optimization

• Aldridge Minerals announced infill drilling results on is 100% owed Yenipazar Volcanogenic Massive Sulphide (VMS) deposit in central Turkey. The Company recently completed an optimization study on the 2013 feasibility study. The next key catalyst is the expected receipt of the EIA late in 2015.

• Grades from the current drilling exceeded those from previous drill and are thus, significantly higher than the current reserve grade. Highlights include 26 metres grading 1.51 g/t Au, 79 g/t Ag, 0.84% Cu, 4.03% Pb and 5.13% Zn from a depth of 183 metres. The current pit design in this area is approximately 150 metres. An additional hole starting at a depth of 131 metres depth returned 3.11 g/t Au, 116 g/t Ag, 0.56% Cu, 5.48% Pb and 4.84% Zn over 14 metres. True thickness is expected to be 60-90% of the core interval.

• Using a $20 per tonne cut-off, the Company has outlined a probable reserve estimate of 29.17 million tonnes grading 0.88 g/t Au, 29.4 g/t Ag, 0.30% Cu, 0.95% Pb and 1.40% Zn. The 2014 optimization study lowered the metal prices used in the resource estimate to $1,250 Au, $20 Ag, $2.90 Cu, $0.95 Pb and $0.90 Zn.

• The results of the economic study for the proposed open pit mine indicate a post-tax NPV (7%) of $307 million and an IRR of 31.2% using an pre-production capex of $230 million with an additional $40 million allocated for sustaining capital and closure costs. The project is designed to produce dore gold through a gravity circuit as well as separate copper, lead and zinc concentrates.

Development history: Aldridge optioned property in 2004 from Anatolia.

Current holes: 26 metres @ 1.51 g/t Au, 79 g/t Ag, 0.84% Cu, 4.03% Pb, 5.13% Zn; 14 metres @ 3.11 g/t 116 g/t Ag, 0.56% Cu, 5.48% Pb, 4.84% Zn

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly 

1. The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns no shares in the companies in this report.
2. Aldridge Minerals Inc. (AGM) is currently covered at Mackie Research Capital Corp. by analyst Barry Allan.

• Mackie Research Capital Corp. has managed or co-managed an offering of securities by the subject issuer.
• Mackie Research Capital Corp. has received compensation for investment banking and related services from the subject issuer.

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.