Name and Location
Kestanelik gold project, Turkey.

Client
Chesser Resources.

Project Description
A scoping study completed on the Kestanelik project, in north-west Turkey, has concluded that the project will generate strong financial returns.

The project has a Joint Ore Reserves Committee-compliant resource of 5.929-million tons, with an average grade of 2.42 g/t gold and 1.84 g/t silver.

The scoping study contemplates the development of two openpits – one in the north-west of the project tenements to access veins in the Karazone area and a second larger pit in the central K-zone area.

Mining is suited to conventional drill, blast and haul methods.

An estimated 40% of the resource identified to date is situated within 20 m of the surface, with an average grade of about 3 g/t gold, enabling immediate access to high-grade ore.

The scoping study estimates the processing of 850 000 t/y of ore at an average grade of about 2.5 g/t gold and 1.9 g/t silver, producing an average of 67 000 oz/y of gold in the first four years of production.

Life-of-mine production averages 63 000 oz/y of gold and 38 000 oz/y of silver.

Value
$88-million.

Duration
Following the receipt of the necessary permits to begin mining, construction is expected to start in early 2015, with production expected in early 2016.

Latest Developments
A full prefeasibility is expected to start in the June 2013 quarter.

Key Contracts and Suppliers
Dama Engineering (scoping study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Chesser Resources, tel +61 7 3844 0613, fax +61 7 3844 0154 or
email info@chesserresources.com.au.