Here is a summary of my thoughts on Chesser. As for a timeframe to production, there isn't one yet. The first major milestone will be the maiden JORC resource in Q1 2012. The MD drew a comparison between Kestanelik and the large 4m Oz Pajingo mine in Queensland. Given he is a relatively conservative person I don't think he would make that comparison lightly. As for other stocks for SMSF, check out AJM, which is fast developing into a multi commodity mining house. I'd go and read the thread back a long way as there is plenty of information over there. That is my largest holding in SMSF followed by CHZ.
Chesser Resources: ASX Code CHZ
Chesser Resources flagship project is its Kestanelik Gold Project in North Western Turkey. It is a large epithermal vein system with the potential to turn into a multi-million ounce deposit. In a recent BRR interview, Chesser’s Managing Director, Rick Valenta, drew comparisons with the 4m ounce Pajingo epithermal deposit in North Queensland. He also stated that results to date vindicate management’s belief that the project is “world class”.
Company Facts: Location: Brisbane, Australia Project Location: Turkey Number of Shares: 128.9m Options: 2.1m Market Capitalisation (Fully Diluted): A$79m @ 60 cents Cash: $9.6m (September 30, 2011, sufficient to drill to maiden JORC resource, Q1 2012) 52 Week High / Low: $1.28/$0.40 Managing Director: Rick Valenta
Major Points: * 100% interest in project (2.5% Net Smelter Royalty) * Multi-million ounce resource potential * Fully funded 30,000m drilling program underway (5,000m completed) * Only 10% of veins measuring 22+ kilometres systematically tested to date * Deposit close to surface thereby reducing mining costs * Maiden resource due Q1 2012 and likely to be around 750Koz at a high grade
There have been some excellent assays received from drilling on the project including:
Karakovan Vein (Drilling nearly complete, multiple parallel zones) * 30m @ 4.4g/t Au incl. 10m @ 10.3 g/t Au * 20m @ 5.8g/t Au * 19m @ 3.4 g/t Au * 9m @ 3.9 g/t Au
K1 Vein (Intersected in 12 holes) * 75m @ 2.3g/t Au incl. 5m @ 26.5 g/t Au * 15.8m @ 5.7g/t Au incl. 2.5m @ 26.9 g/t Au K2 Vein (12 locations tested) * 15m @ 6.3 g/t Au incl. 9.3m @ 9.6 g/t Au * 11m @ 8.3g/t Au * 12.8m @ 9.3 g/t Au near intersection with K3 K3 Vein 39 holes completed * 19m @ 10.3 g/t Au * 11.5m @ 13.5 g/t Au * 10.5m @ 8.3 g/t Au * 6.6m @ 11.5 g/t Au * 9m @ 6.3 g/t Au KS Vein (Intersected in 12 holes) * 5.4m @ 15.7 g/t Au incl. 2.8m @ 28.7 g/t Au
The potential of the Kestanelik project is enormous as shown on slides 14 through to 17 of the latest company presentation linked below. This shows comparisons to the Pajingo and Cerro Morro projects. Regular results will be released from the project until the current 30,000m program is completed early in 2012.
