Chesser Resources flagship project is its Kestanelik Gold...

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$64m @ 50 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

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

Since 90% of the veins on the project remain untested so there is considerable potential for further resource growth in the future.

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. A maiden JORC resource for Kestanelik is expected to be released in Q1, 2012.

http://www.asx.com.au/asxpdf/20111026/pdf/4220xf5lr8bp2d.pdf