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Strike Resources June Quarter Report
Hi Newsrelease, |
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Strike Resources Limited (ASX: SRK, �Strike� or �the Company�) is pleased to present the Quarterly Report for the period ended 30 June 2013.
Overview
- At Apurimac, Strike's flagship project, work during the quarter centred on continuing efforts aimed at reaching agreement with the local community for continued access to key areas of Apurimac.
- The Company�s core focus going forward is to validate Apurimac�s high grade magnetite exploration target* of at least 500 million tonnes (Mt) of iron ore (including current resources) at a grade of 56 � 58% iron (Fe) to support the establishment of a 15 � 20 Mtpa iron ore operation.
- At the Cuervo Resources Inc. (�Cuervo�) operated Cerro Ccopane Project in Peru, updated studies conducted during the quarter have seen total JORC mineral resources at the project more than double to 395.6 Mt at an average grade of 43.8% iron.
- Strike has advanced C$5.25m to Cuervo to fund exploration at Cerro Ccopane, secured against the Company holding the Peruvian concession. As a result of the loan, Strike also has the right to acquire up to 31.5% of Cuervo via the exercise of warrants.
- Strike is continuing discussions with Cuervo, in light of Cuervo's very low cash reserves and Strike's position as a secured creditor.
- As at 30 June 2013, the Company�s cash balance stood at $14.3 million. The Company estimates that the current capital base is sufficient to support significant exploration and development activities in Peru over the next 18-24 months.
Strike Resources Managing Director, Mr William Johnson, said that working with the local communities at Apurimac remains a priority.
"Apurimac is Strike's flagship project, and reaching an agreement with the local community is an important factor in our future success, as we seek to expand the resource base beyond 500 million tonnes," Mr Johnson said.
"As such, the challenge of reaching an agreement with the community has been our primary focus on the ground in Peru over the past quarter.
"We've also seen a significant increase in resources at Cerro Ccopane and we will be carefully monitoring Cuervo's financial health, In light of the potential synergies between Cerro Ccopane and our 100% owned Cusco project,' Mr Johnson said.
Download the full ASX announcement on the Strike Resources website. |
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