Overview Ergama Project

The Ergama Project area is covered by the exploration license No. 2192881 (2,169 Ha) held by Teck Resources Limited (“Teck”), which is surrounded by tenements belonging to and actively explored by Tuprag Madencilik (Eldorado Gold Corp in Turkey).

Teck has exercised its back-in option at the Ergama project and is required to incur $1.275 million USD over the next 3 years, in order to earn its back-in right of 51% interest.

• Concession: 2,169 Ha, 100% owned
• Location: Edge of Kazdag mountain range, Balikesir Province, Western Turkey
• Closest city: 33km from the capital city of Balikesir, this has a population of 265,000. The economic base of the area includes agricultural and industrial
• Deposit Type: high sulfidation epithermal style gold deposit within a large area of propylitic and argillic alteration
• Average Elevation:  591 masl
• Infrastructure: Accessible by the Balikesir-Edremit dual-carriageway highway
• Strike length of mineralized zone:  still to be tested; identified silica cap covers 1.5 km in diameter
• Closest Mining Projects/Mines:
  • 85 km SE metres from Alamos’ Agi Dagi Project
  • 75 km SE from Teck/Pilot Gold’s Halilaga Gold Project
• Weather:  long, hot and dry summers with cool and rainy winters

• Mineralization:

  The Ergama Project area consists of a complex Late Oligocene volcanic structure developed on a slightly metamorphosed basement of Permian age. The argillic zones developed in the area are associated with the gold (Au) anomalies in the rocks up to the level of 0.03-0.04 g/t with barium (Ba), arsenic (As), antimony (Sb), and lead (Pb) support. Higher grades up to 2 g/t Au are associated with tectonic controlled brecciation and silicification. This is normally represented by fine sugary and drusy quartz veinlets and thin breccia zones composed by vein quartz fragments in gossanous matrix.

1988-1992: The Ergama Project was originally identified by surface sampling and reconnaissance mapping by Eurogold Madencilik (“Eurogold”) / Normandy Mining (“Normandy”). This exploration continued through to 1992.
2002-2004: Normandy was taken over by Newmont Mining Corporation (“Newmont”) in February 2002. Newmont carried out further surface sampling, geological mapping and eight reverse circulation drill holes in 2004.
2011: AMG signed an option agreement with Teck for the property.

Historical Work:
The historical rock sampling returned up to 1.68 g/t Au and 17.3 g/t Ag values. The highest grades were observed in epithermal quartz veins and brecciated argillic altered volcanic and sediment rocks with quartz veinlets.

The soil sampling by Eurogold identified a significant anomaly in the north-west part of the property with individual values of up to 2.57 g/t Au. Newmont repeated two of the soil sampling lines, which confirmed the original Eurogold results.

A total of four trenches were excavated by Newmont within the area of the Eurogold soil anomaly. The results included 2.4 m @ 1.52 g/t Au in trench TR-03 and 21.7 m @ 0.84 g/t Au in trench TR–04.

Eight reverse circulation percussion drill holes (ERRC-01 to ERRC-08) were completed in March 2004. The drilling identified similar mineralization to that identified on surface. The assay results include intercepts of:
      2 m @ 1.85 g/t Au 44 metres downhole in ERRC-007
      2 m @ 1.36 g/t Au 8 metres downhole in ERRC-05
      4 m @ 1.17 g/t Au 83 metres downhole in ERRC-06

Wider low grade intercepts were indentified, with:
      22 m @ 0.44 g/t Au starting from 3 m in ERRC-07
      37 m @ 0.34 g/t Au starting from 15 m (including 3 m @ 1.07 g/t Au from 32 m) in ERRC-06

Current Work Programs:

Aegean’s interpretation of historical work:

• Previous drilling and trenching seems to have been mostly in the upper “siliceous cap” portion of an epithermal gold system. According to the Buchanan model (1981) – see Figure Below, the upper siliceous cap generally contains very little gold mineralization.

  Buchanan Model (1981):
  

• As the model indicates, the main zone of gold mineralization is often more than 200 metres below the surface of a hydrothermal system.
• Historical drilling at Ergama, for the most part, did not penetrate the silica cap to depths most favourable to intercept the predicated main gold zone. Deeper drilling will be needed to test the theory that the best gold mineralization is beneath the “silica cap”.
• To date, a major structure has not been identifited at Ergama and additional trenching may help to locate a structure within the “silica cap”. Current mapping indicates the “silica cap” measures over 1.5 km in diameter on the surface, although additional geological mapping is needed to confirm this.

Aegean’s Work Program from Q4 2012-Q1 2013:

• Geological and geophysical studies
• IP survey is currently underway and will be followed by a ground magnetics survey. These surveys are aimed at: delineating structures, potential epithermal near-surface targets, as well as potential deep porphyry-style mineralization. The detail magnetic survey should help to map the structures in the area.  The IP survey will hopefully define the location of the silica caps and the sulphide mineralization. If the lines are orientated in the right direction they could also help map the structures below the oxide zones.
• IP anomalies identified close to surface and at depth indicates high chargeability and low resistivity still to be tested

  

• Rock sampling by Aegean returned results up to 16.5 g/t Au

  
  Rock Sample from Ergama

Option with Teck:

• Teck has exercised its back-in option at the Ergama project and is required to incur $1.275 million USD over the next 3 years, in order to earn its back-in right of 51% interest.

• NI 43-101 Technical Report