Stratex International (STI LN)
BUY Current Price: �0.083 Target Price: �0.125
Market Cap (M): �27.87 EV (M): �26.87
Best results so far at Megenta Event Stratex announced the latest results from its current drilling programme at the Megenta hot spring epithermal prospect in the Afar region of Ethiopia.

Hole MG-DD-10 intersected 43.55 m at 0.67 g/t Au from 68 m.

Promising grab samples have also been collected from the Akehil prospect located approximately 9 km from Megenta.

Best results include 57.3 g/t Au and 16 g/t Au.
Comment
We regard the MG-DD-10 hole as possibly the best result so far from the Megenta drilling programme with nearly the longest intercepts at the highest grades.

Best intercepts from the hole (as calculated from the drill intersections table in the RNS) include a 7.25 m stretch grading at 0.79 g/t Au and a 5 m interval at 2.69 g/t Au.

The hole is located on the western edge of the Hyena Zone which has yielded the most promising results such as 44 m at 0.54 g/t Au from hole MG-DD-09 and 0.35 m at 4.74 g/t Au from hole MG-DD-08.
Although the grades for the programme to date have not been as high as we would have hoped, they do prove that there is a significant amount of gold in the system and serve as further proof of the exploration concept. The current scout drilling programme is nearly complete and a decision on whether to plan further drilling will be made shortly.

We believe that the results are encouraging enough to warrant further drilling into the system, targeting the deeper silica alteration and brecciation which would indicate the "boiling zone" and which could prove to be the source of mineralisation.
Recommendation
We retain our Buy recommendation with a target price of 12.5 p per share.
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