Odyssey renews Altintepe drilling (August 11, 2003)

Odyssey Resources (ODX-V) has resumed drilling at the Altintepe gold project in north-central Turkey.

The current work is focused on the Seyliktepe and Karakis areas, where 500-700 metres are planned. The rig will then be moved 1.5 km eastwards to the 2G area in order to test that and other, nearby targets.

In the mid-1990s, Cominco drill-tested most of the known targets at Altintepe, before packing up its gold division and subsequently merging with Teck to form Teck Cominco (TEK-T). Odyssey entered the picture in 2002 and has since sunk five of its own holes — three in 2G, one in the Sinan showing, and another between the two.

Like Seyliktepe and Karakis, all the targets are enclosed by hills and associated with a high-sulphidation, epithermal mineralizing event. Average grades at 2G varied from 0.36 to 2.72 grams per tonne over 32-94 metres, starting from surface (similar to historic results).

Results from Sinan and the other targets were similar, averaging 0.85 gram over 14 metres and 0.34 gram over 12 metres, respectively. Again, mineralization begins at surface.

Gold mineralization is hosted by an altered, silicified and hypogene-oxidized unit of dacite. A sub-volcanic dome field acted as the heat engine, and easterly and northeasterly structures, as the feeders.

Preliminary metallurgical tests suggest that recovery rates in excess of 90% can be expected from 2G oxides. Given their similarities to 2G, the others are expected to yield comparable results.

Based on recent and historic results, resources at 2G are pegged at 4.35 million tonnes grading 1.62 grams per tonne. Also, based on historic results alone, a separate resource of 2.19 million tonnes grading 1.21 grams was attached to the Eastern Ridge zone, which is viewed as a longer-term prospect for a separate milling operation.

To earn a 100% interest in Altintepe, Odyssey must spend US$550,000 by May 2004 and US$1.9 million by the end of the following two years. The company also issued 150,000 shares and 250,000 warrants (priced at 35 each) to Teck Cominco at the time of deal’s closing, in early 2002.

Odyssey is financing the drilling program by using proceeds from a non-brokered private placement. Just under 5.3 million units were issued, with a unit entailing a share and a warrant that can be exercised over the next year, at 25.

Odyssey also issued 388,992 finder’s warrants and paid a finder’s fee of $70,018. These warrants expire in a year but are exercisable at 30 each.