Aegean Metals Group Inc. Provides Update on Exploration Activities at its Ergama and Hot Maden Projects in Turkey
Aug 6 14
Aegean Metals Group Inc. provided the following update on exploration activities at its Ergama and Hot Maden projects in Turkey. Both projects are 100% owned by Aegean, however exploration activities at Ergama and Hot Maden are currently being managed by Joint Venture partners Teck Resources (Teck) and Lidya Madencilik (Lidya), respectively. The Ergama project is located approximately 180 km southwest of Istanbul and 20 km west of the regional centre of Balikesir, Balikesir Province, western Turkey. The Ergama prospect is covered by 2,168 Ha of tenements constituting one operating licence. The project is currently owned 100% by Aegean, however, Teck exercised a one-time back-in right on May 28, 2013, and is now required to invest $1.275 million in exploration at Ergama within 3 years in order to earn-in to a 51% interest in the property. The Ergama project area contains a sequence of Oligocene- to Miocene-age volcanic rocks that unconformably overlies Permian-age "basement" containing metamorphosed carbonates and sediments. The most prominent alteration assemblages are high sulfidation, epithermal style argillic and advanced argillic assemblages, with low temperature chalcedonic "silica caps" commonly developed on hilltops throughout the project area. These "silica caps" were the focus of early exploration programs at Ergama, including Newmont Mining's 2004 shallow RC drill program, but have been determined to contain either no or little gold. Low grade (+/- 1 g/t) Au mineralization at Ergama is commonly associated with quartz veinlets within the underlying argillic and advanced argillic alteration zones. Higher grade gold mineralization (up to 16 g/t Au) typically occurs in narrow, structurally controlled corridors containing veins and breccias, and are more akin to low to intermediate sulfidation mineralization styles. A report outlining exploration work completed on the Ergama property since May, 2013, was recently received from operators Teck. Field activities have included: (i) additional geological mapping on key outcrops, (ii) silt and rock chip sampling (14 samples and 47 samples, respectively), and (iii) a further 14.2 line kilometres of IP geophysics, distributed in 4 E-W trending lines spaced 200 m apart and designed to extend Aegean's existing grid 800 m to the south. Teck is currently the operator of exploration activities at Ergama, and is therefore responsible for the planning, management, and execution of future exploration programs. However, Aegean believes that future work at Ergama will focus primarily on obtaining the forestry (drill) permit required for testing high priority geophysical and geochemical anomalies. In addition, recommendations for further work include the PIMA analysis of alteration/mineralization assemblages, together with the extending of the existing geophysical grid to the southern half of the property. Aegean's Hot Maden project is located approximately 1,050 km east of Istanbul within the Eastern Pontides metallogenic belt. Aegean announced the signing of an Option Agreement with Turkish group Lidya Madencilik on July 2, 2014, in which Lidya has the option to earn-in to a 70% interest in the Hot Maden project in return for a $3 million commitment of combined exploration expenditures and cash payments to Aegean over a 48 month option period. Lidya has initiated field activities at Hot Maden, with field crews having already been mobilized to undertake additional geological mapping and rock chip (channel) sampling. Field activities are expected to further ramp up during August with the main objective of the current work program being to complete understanding of the geology of the main gold-copper targets at Hot Maden and to design a first pass drill program to test their economic potential.
Aegean Metals Group Inc. Auditor Raises 'Going Concern' Doubt
Jul 3 14
Aegean Metals Group Inc. filed its Annual on Jul 03, 2014 for the period ending Mar 31, 2014. In this report its auditor, Davidson & Company, gave an unqualified opinion expressing doubt that the company can continue as a going concern.
Lidya Madencilik Sanayi ve Ticaret A.S. to Acquire 70% Interest in Hot Maden Gold-Copper Prospect of Aegean Metals Group Inc., in Artvin Province, Eastern Turkey
Mar 27 14
Aegean Metals Group Inc. announced that a binding Letter of Intent (‘LOI’) has been signed with Lidya Madencilik Sanayi ve Ticaret A.S., for Lidya to acquire a 70% interest in the company's Hot Maden gold-copper prospect in Artvin Province, Eastern Turkey. The LOI requires that a final definitive agreement be signed within 60 days. In order to obtain a 70% interest in the property, Lidya will be required to incur $3 million of combined exploration expenditures and cash payments to Aegean as per the following schedule. Lidya will commit to a minimum exploration expenditure at Hot Maden of $500,000 in Year 1 of the option agreement, after which time Lidya will receive a 20% interest in the property. Upon the completion of the year 1 commitment, Lidya will then have a 60 day period to decide whether to continue with the earn-in agreement (in which case a $150,000 cash payment will be made to Aegean) or to discontinue with the earn-in. Lidya would then have the right to earn-in to a further 50% interest in the property (for an aggregate total of 70%) by spending an additional $2 million on the property and by making a cash payment to Aegean of $350,000 by the end of Year 4. After completion of the earn-in period a special purpose vehicle or ‘Newco’ will be formed, in which the initial shareholdings will be Lidya 70% /Aegean 30%. An industry standard dilution formula will apply to any party that does not contribute on a pro-rata basis to subsequent expenditures. Lidya will be the operator during the earn-in period.