2019 Tulkubash Exploration and Drilling Programme

RNS Number : 3163K

Chaarat Gold Holdings Ltd

28 August 2019

 

28 August 2019

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

2019 Tulkubash Exploration and Drilling Programme Underway

Chaarat Gold Holdings Ltd (AIM: CGH), the AIM-quoted gold mining company with an operating mine in Armenia and assets at various stages of development in the Kyrgyz Republic, is pleased to provide further drilling results from its ongoing 2019 exploration and drilling programme at its Tulkubash oxide gold development project in the Kyrgyz Republic (the "Tulkubash Project"), which will become the Company's second operating gold mine, scheduled to commence production in 2021. 

Highlights

·    The primary objective of this drilling programme is to identify shallow mineralisation within and near the current pit designs, with the aim of adding new ounces to the resource and upgrade existing ounces to the reserve confidence level. The current year's programme forms part of a staged drilling programme focussed on adding further reserves with the objective of demonstrating a mine life of at least 15 years at the Tulkubash Project.

·    An additional 9078 metres drilled since last exploration update dated 18 June 2019 with a total of 12,078 metres of drilling now completed of a planned 20,000 metres scheduled in 2019.  The most prospective target is still to be drilled.

·    Drilling continues to identify new shallow mineralisation within and adjacent to current pit outlines, including:

o  DH19T503: 10.5 metres @ 2.99 g/t Au starting at the surface;

o  DH19T511 12.0 metres @ 1.58 g/t Au starting at 38.5 metres; 

o  DH19T512: 10.5 metres @ 1.20 g/t Au starting at 6.5 meters; 

o  DH19T481: 28.5 metres @ 0.82 starting at 21.0 metres.

·    Roadcut and outcrop mapping and sampling northeast along strike from the current resource boundary have identified a broad area of > 1 g/t Au in rock chip samples. 

·    This surface mineralization is comparable in grade to that over the Main Pit zone of Tulkubash (1 million ounces Au).

·    One sample, 2 metres of 19.67 g/t Au within 8 metres of 5.12 g/t Au is in a different host rock and may define a new target area.  Drilling is just starting in this area.

·    District-scale exploration continues to identify new gold targets and supports the hypothesis that the 24-km Tulkubash Exploration License is an emerging gold district with the potential to host numerous gold deposits.

To date, 77 holes have been completed totalling 12,078 metres of the 2019 planned 20,000 metre drill programme. Drilling this year has been focused on adding Measured and Indicated Resources, with potential for conversion into reserves as part of a year-end Resource and Reserve Update.  Additionally, the Company has begun drilling on an approximately 3,000 metre programme in the Karator and Ishakuldy areas respectively 1.5 kilometres and 5 kilometres northeast of the current resource limits.  This programme is designed to test drill targets identified along strike and to validate the district-scale potential of Tulkubash.

The following link provides a plan showing the location of 2019 completed and planned drilling at Tulkubash:

https://www.chaarat.com/investors/reports/agm-notices-and-other/

Dorian L. (Dusty) Nicol, the Company's Senior Vice President Exploration, commented:

"We are encouraged by our results to date this year.  District scale exploration this season is providing us with encouraging results. The resource identified to date lies within only 4 kms of the Company's 24 km long exploration licence.

"Having completed a number of drill roads and drill pads, we are now able to transport drilling equipment into our most prospective target area, the potential strike extension to the northeast of our current (2018 year-end) resource boundary, where a broad area of +1 g/t Au mineralization has been identified on surface. This is comparable to the surface rock chip geochemistry over the Tulkubash Main Pit zone. Drill testing of this new target has just started, and we await the results.

"We have commenced the initial drill testing of targets at Karator and Ishakuldy this season. Additional trenching and road cut sampling in these targets continue to identify areas of hydrothermal alteration and anomalous geochemistry which has already identified numerous additional drill targets.  

"Field work is also being integrated with satellite imagery and geochemical data to identify multiple new target areas throughout the Company's exploration license. Our objective remains to continue developing a database of these geological and geochemical data that will allow the application of advanced data handling techniques to optimize ongoing exploration and discovery.  The data base being developed will lend itself to the application of Artificial Intelligence / Machine Learning to identify new drill targets."

Drilling Results

The following table summarizes significant drill results obtained since the 18 June update. Significant intercepts are defined as greater than 10m in width above a 0.25 g/t cut-off or greater than 3m in width at a 0.25 g/t cut-off assaying greater than 1.0 g/t Au. All results are from diamond core holes. The sample intervals are constrained by geology and range from a minimum of 0.4 metres to a maximum of 1.5 metres, generally averaging 1.5 metres in length. Mean grades are calculated at the stated cut-off with no upper cap applied. The maximum length of internal waste in any interval is 3.0 metres. Approximate true width is estimated from cross sectional interpretations.  A table of all drill results this season appears in the Appendix to this press release.

Drill Hole	Interval		Thickness (m)	True Thickness (m)	Au (g/t)
	From	To
DH19T500	22.5	25.5	3.0	2.5	3.79
DH19T516	103.5	115.5	12.0	10.8	1.30
incl	112.5	115.5	3.0	2.7	2.56
DH19T481	21.0	49.5	28.5	24.2	0.82
DH19T511	38.5	50.5	12.0	11.1	1.58
incl	40.0	44.5	4.5	4.1	3.50
DH19T514	164.0	171.5	7.5	6.7	1.15
DH19T497	85.5	94.5	9.0	7.8	1.47
DH19T512	6.5	17.0	10.5	9.2	1.20
incl	9.5	15.5	6.0	5.2	1.68
DH19T512	165.5	168.5	3.0	2.7	1.37
DH19T520	25.5	28.5	3.0	2.7	1.43
DH19T509	118.5	121.5	3.0	2.6	0.90
DH19T515	3.0	6.0	3.0	2.7	0.91
DH19T485	81.0	85.5	4.5	4.1	4.90
DH19T485	169.5	172.5	3.0	2.6	7.90
DH19T485	217.0	220.0	3.0	2.6	6.37
DH19T485	242.5	250.0	7.5	6.0	4.50
incl	242.5	245.5	3.0	2.6	6.16
DH19T474	105.0	111.0	6.0	5.1	2.77
DH19T503	0.0	10.5	10.5	9.1	2.99
DH19T475	0.0	7.0	7.0	6.0	1.23
DH19T475	133.5	136.5	3.0	2.6	0.98
DH19T492	91.5	102.0	10.5	9.8	0.50
incl	91.5	94.5	3.0	2.8	0.91

The ongoing results of the 2019 drill program are encouraging. Results from drilling in the northeast portion of the Tulkubash resource continue to return positive results with the identification of additional shallow, high-grade gold lodes extending between the Satellite pit area and the East Pit. This new mineralisation may have the potential to expand and combine the small pits into larger pits.

The following link tabulates the drill results received to date and illustrates the drill hole locations and interpretive cross-sections:

https://www.chaarat.com/investors/reports/agm-notices-and-other/

Shir Canyon Target Area

New drill road construction extending northeast along the Tulkubash Trend has exposed strongly altered and mineralized Tulkubash Quartzites in road cuts.  Rock chip sampling along the new exposures has identified wide zones of continuous gold mineralization, that combined, define a mineralized corridor 100 to 150m in width and at least 550m along strike.  Road construction is continuing along trend and new exposures may provide further positive information in this direction.

This link provides a plan showing the location and results of the road cut sampling:

https://www.chaarat.com/investors/reports/agm-notices-and-other/

One road cut exposed a faulted contact between the Tulkubash Quartzite and a formation of mudstones and fine grained quartzites.  Road cut sampling across this structural contact identified 8.0 metres that averaged 5.12 g/t Au with one 2.0 metre sample assaying 19.67 g/t Au.   This fault zone and rock unit represent an additional new drill target.  Drilling commenced within this target area in late July and assays are pending.

District-Scale Potential

The current resource of 1.6 million ounces Au is located within approximately 4.0 kilometres of a 24-kilometrestrike length of favourable geology. Reconnaissance work to date indicates that the favourable geology along this strike length is associated with multiple occurrences of anomalous gold geochemistry, favourable structural geology (crackle brecciation), and favourable hydrothermal alteration. This supports the likelihood that Tulkubash is an emerging gold district with the potential to host numerous deposits

A programme of geologic mapping combined with a geochemical exploration program continued this season, focussed on mapping favourable alteration and structural preparation along the Tulkubash Trend which extends approximately five kilometres northeast from Shir Canyon to Ishakuldy.  This trend is characterized by widespread gold anomalies associated with favourable brecciation and silicification in the Tulkubash Quartzite.  Two priority drill targets, Ishakuldy and Karator, are being drilled this season.

This link provides a plan showing the location of drill targets and exploration sampling:

https://www.chaarat.com/investors/reports/agm-notices-and-other/

The Ishakuldy Target, 5 kms from the current resource boundary, is defined by intense crackle brecciation in the Tulkubash Quartzite associated with widespread gold anomalies in soil, rock samples, and trenches.  Of note, trench TR121006 returned 26.0m at 2.02 g/t Au and trench TR121007 contained 14.0m of 1.22 g/t Au.  One drill hole has been completed and a second hole is in progress.  Assays are pending.

The Karator Target is 1.5 kms from the current resource boundary and is also defined by favourable geology and geochemistry.  Trench TR18017, along the crest of the Karator Ridge, contained 13.0m of 1.27 g/t Au.  A new drill road was recently constructed onto the ridge and has exposed strong alteration in the road cuts, across Shir Canyon from the Shir Canyon anomalies described above.  Mapping and sampling along the road cuts are currently in progress and drilling is planned this season, continuing into next year.

Active exploration is progressing between the Ishakuldy and Karator Targets and a continuous zone of crackle breccia has been mapped between the two targets.  Trenching along this zone continues to find ore grade gold mineralization (Trench TR19044 returned 23.0 meters that assayed 2.32 g/t Au).

Reconnaissance mapping and geochemical exploration indicate that the zone of favourable geology associated with Tulkubash gold mineralization extends to the northeast for at least 15 kilometres where the trend intersects a granitic intrusive body.  These intrusive rocks are associated with gold mineralisation that may be related to a shallow porphyry system, which may represent multiple additional exploration targets.  Exploration management believes that these intrusive rocks may have provided the heat source for the Tulkubash mineralization, in which case the intensity of mineralization could be expected to increase approaching this zone. 

This link provides a plan showing the Tulkubash Trend and the prospective intrusive rocks:

https://www.chaarat.com/investors/reports/agm-notices-and-other/

As part of the district-scale exploration at Tulkubash, the Company has also begun satellite image interpretation to develop a better understanding of structural geology and to identify new target areas.  Initial results are encouraging.  This work has already generated targets for ground follow-up.

In order to cost-effectively accelerate district-scale exploration in tandem with the addition of resources and mine life to the Tulkubash oxide gold deposit, the Company continues to implement a staged programme comprising the following steps:

·      Summer 2019: Reconnaissance geologic mapping and geochemical sampling is in progress and has disclosed multiple areas for follow-up.  Reconnaissance mapping and sampling combined with stream sediment exploration geochemistry is being extended into the northeast part of the exploration license.  Initial follow-up of targets generated by satellite image interpretation.

·    Winter 2019/2020: Further remote sensing interpretation taking advantage of "ground truthing" and calibration of this technique during the 2019 field season. Integration of digitized data with geologic (particularly structural) and geochemical data into a layered database. The goal is to develop a database that will allow application of advanced data handling (Artificial Intelligence / Machine Learning) to recognize signatures of mineralisation and optimize drill target identification.

·    Summer 2020: More aggressive field work following up on targets generated by previous work, including drilling where warranted.

Ongoing exploration will continue focusing on adding reserves and mine life to the Tulkubash oxide gold deposit, with the objective of demonstrating a minimum 15-year mine life. In addition, the Company will continue its district-scale exploration with the objective of discovering additional, new gold orebodies and new mines. 

https://www.chaarat.com/investors/reports/agm-notices-and-other/

QA/QC Procedures: Sampling Methodology and Quality Control

All results have been generated from diamond core holes. Samples are shipped to the ALS Global Laboratory in Kara-Balta, Kyrgyz Republic for sample preparation and assay. Gold is analysed using a 30-gramme fire assay with an atomic absorption spectroscopy (AAS) finish. A quality control/quality assurance protocol is employed in the programme which includes standards and blanks in every batch of assays. Check assays are conducted on every 20^th sample by a second independent laboratory.

Competent Person

The Competent Person with overall responsibility for this press release for the Company, and who has reviewed the information contained herein, is Dorian L. (Dusty) Nicol (FAussIMM), the Company's Senior Vice President Exploration. He is a geologist with more than 44 years of experience in the resource industry who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. He has supervised the work which is the subject of this release. Mr. Nicol consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

A JORC Code Table 1 appears as an Appendix to this press release.

Enquiries

Chaarat Gold Holdings Limited Artem Volynets (CEO)	[phone]
	[e-mail]
Numis Securities Limited
John Prior, Paul Gillam (NOMAD)	[phone]
James Black (Corporate Broking)
Tavistock Communications
Charles Vivian Gareth Tredway	[phone] [phone]

About Chaarat

Chaarat is a gold mining company which owns the Kapan operating mine in Armenia as well as Tulkubash and Kyzyltash Gold Projects in the Kyrgyz Republic. The Company has a clear strategy to build a leading emerging markets gold company with an initial focus on Central Asia and the FSU through organic growth and selective M&A.

Chaarat is engaged in active community engagement programmes to optimise the value of the Chaarat investment proposition.

Chaarat aims to create value for its shareholders, employees and communities from its high-quality gold and mineral deposits by building relationships based on trust and operating to the best environmental, social and employment standards. Further information is available at www.chaarat.com.

Appendix - 2019 Drill hole intercepts (>0.25 g/t Au cut-off)

Drill		Interval		Thickness	True Thickness	Au
Hole	Cross Section	From	To	(m)	(m)	(g/t)
DH19T465	360	0.0	3.0	3.0	2.0	0.32	18-Jun
DH19T466	480	39.0	43.5	4.5	2.8	0.63	18-Jun
DH19T466	480	114.0	130.5	16.5	9.7	1.49	18-June Significant
incl	480	114.0	121.5	7.5	4.4	2.09	18-June Significant
DH19T466	480	135.0	144.0	9.0	5.3	3.90	18-June Significant
DH19T466	480	159.0	163.5	4.5	2.4	0.44	18-Jun
DH19T468	560	31.5	33.0	1.5	1.0	0.35	18-Jun
DH19T468	560	66.0	78.0	12.0	8.9	0.91	18-June Significant
incl	560	69.0	73.5	4.5	3.0	1.78	18-June Significant
DH19T473	560	36.0	39.0	3.0	2.7	1.07	18-June Significant
DH19T473	560	48.0	49.5	1.5	1.4	1.07	18-Jun
DH19T473	560	60.0	82.5	22.5	20.3	0.94	18-June Significant
DH19T473	560	99.0	105.0	6.0	5.2	0.34	18-Jun
DH19T473	560	126.0	129.0	3.0	2.7	0.57	18-Jun
DH19T473	560	141.0	145.5	4.5	3.9	0.67	18-Jun
DH19T473	560	157.5	159.0	1.5	1.4	0.27	18-Jun
DH19T467	720	3.0	4.5	1.5	1.0	0.27	18-Jun
DH19T467	720	66.0	67.5	1.5	1.0	1.47	18-Jun
DH19T467	720	93.0	99.0	6.0	4.5	0.29	18-Jun
DH19T467	720	105.0	106.5	1.5	1.0	0.70	18-Jun
DH19T467	720	111.0	117.0	6.0	4.5	1.12	18-June Significant
DH19T467	720	121.5	123.0	1.5	1.0	0.26	18-Jun
DH19T467	720	156.0	168.0	12.0	9.0	0.30	18-Jun
DH19T467	720	160.5	168.0	7.5	9.0	0.38	18-Jun
DH19T499	1600	110.5	115.0	4.5	3.8	0.29	18-Jun
DH19T499	1600	137.5	139.0	1.5	1.8	0.31	27-August
DH19T500	1700	22.5	25.5	3.0	2.5	3.79	27-August Significant
DH19T477	2880	49.5	51.0	1.5	1.2	0.32	27-August
DH19T477	2880	88.5	90.0	1.5	1.2	0.28	27-August
DH19T477	2880	132.0	133.5	1.5	1.2	0.39	27-August
DH19T477	2880	138.0	139.5	1.5	1.2	0.29	27-August
DH19T477	2880	169.5	171.0	1.5	1.2	0.31	27-August
DH19T477	2880	174.0	175.5	1.5	1.2	0.35	27-August
DH19T477	2880	183.0	184.5	1.5	1.2	0.45	27-August
DH19T477	2880	196.5	201.0	4.5	3.8	0.52	27-August
DH19T493	2920	71.5	74.5	3.0	2.8	0.48	27-August
DH19T493BIS	2920	76.0	79.0	3.0	2.8	0.51	27-August
DH19T476	2960	0.0	1.5	1.5	1.3	0.30	27-August
DH19T476	2960	100.5	105.0	4.5	3.8	0.30	27-August
DH19T476	2960	117.0	118.5	1.5	1.3	0.32	27-August
DH19T476	2960	130.5	132.0	1.5	1.3	0.36	27-August
DH19T498	3040	137.5	140.5	3.0	2.8	0.70	27-August
DH19T470	3600	35.5	37.0	1.5	1.4	0.27	27-August
DH19T470	3600	94.0	112.0	18.0	16.0	0.81	18-June Significant
DH19T470	3600	121.0	127.0	6.0	5.6	0.71	18-June Significant
DH19T472	3600	No mineralized intersection (315 Azimuth hole)					27-August
DH19T516	3600	22.5	25.5	3.0	2.7	0.55	27-August
DH19T516	3600	58.5	60.0	1.5	1.3	0.32	27-August
DH19T516	3600	94.5	96.0	1.5	1.3	0.36	27-August
DH19T516	3600	103.5	115.5	12.0	10.8	1.30	27-August Significant
incl	3600	112.5	115.5	3.0	2.7	2.56	27-August Significant
DH19T516	3600	120.0	121.5	1.5	1.3	3.92	27-August
DH19T516	3600	135.0	136.5	1.5	1.3	0.44	27-August
DH19T469	3680	157.5	159.0	1.5	1.3	0.25	27-August
DH19T480	3760	No mineralized intersection (315 Azimuth hole)					27-August
DH19T518	3760	66.0	67.5	1.5	1.4	0.36	27-August
DH19T518	3760	72.0	76.5	4.5	4.1	0.36	27-August
DH19T518	3760	82.5	84.0	1.5	1.4	0.56	27-August
DH19T518	3760	111.0	115.5	4.5	4.1	0.78	27-August
DH19T478	3800	10.5	13.5	3.0	2.3	0.40	18-Jun
DH19T478	3800	19.5	22.5	3.0	2.3	0.49	18-Jun
DH19T478	3800	27.0	46.5	19.5	15.5	2.20	18-June Significant
DH19T481	3800	10.5	15.0	4.5	4.3	0.50	27-August
DH19T481	3800	21.0	49.5	28.5	24.2	0.82	27-August Significant
DH19T481	3800	66.0	67.5	1.5	1.2	0.54	27-August
DH19T481	3800	84.0	85.5	1.5	1.2	1.46	27-August
DH19T481	3800	93.0	94.5	1.5	1.2	0.65	27-August
DH19T481	3800	99.0	100.5	1.5	1.2	0.36	27-August
DH19T481	3800	112.5	114.0	1.5	1.2	0.38	27-August
DH19T481	3800	126.0	127.5	1.5	1.2	0.29	27-August
DH19T481	3800	135.0	136.5	1.5	1.2	0.80	27-August
DH19T481	3800	153.0	154.5	1.5	1.2	0.55	27-August
DH19T511	3800	8.5	17.5	9.0	8.2	0.72	27-August
DH19T511	3800	22.0	28.0	6.0	5.4	0.89	27-August
DH19T511	3800	38.5	50.5	12.0	11.1	1.58	27-August Significant
incl	3800	40.0	44.5	4.5	4.1	3.50	27-August Significant
DH19T511	3800	64.0	68.5	4.5	4.1	0.33	27-August
DH19T511	3800	101.5	103.0	1.5	1.3	2.01	27-August
DH19T511	3800	134.5	136.0	1.5	1.3	0.27	27-August
DH19T511	3800	142.0	143.5	1.5	1.3	0.61	27-August
DH19T511	3800	157.0	158.5	1.5	1.3	0.27	27-August
DH19T511	3800	172.0	173.5	1.5	1.3	0.43	27-August
DH19T514	3880	69.5	71.0	1.5	1.3	0.51	27-August
DH19T479	3880	No mineralized intersection (315 Azimuth hole)					27-August
DH19T506	3880	111.0	112.5	1.5	1.3	0.45	27-August
DH19T506	3880	136.5	138.0	1.5	1.3	0.39	27-August
DH19T506	3880	146.0	153.0	7.0	6.3	0.35	27-August
DH19T506	3880	163.1	164.6	1.5	1.3	0.28	27-August
DH19T506	3880	169.1	172.1	3.0	2.7	0.34	27-August
DH19T506	3880	179.6	185.6	6.0	5.3	0.29	27-August
DH19T506	3880	200.6	202.1	1.5	1.3	0.76	27-August
DH19T514	3880	96.5	98.0	1.5	1.3	0.33	27-August
DH19T514	3880	113.0	116.0	3.0	2.7	0.46	27-August
DH19T514	3880	137.0	140.0	3.0	2.7	0.32	27-August
DH19T514	3880	164.0	171.5	7.5	6.7	1.15	27-August Significant
DH19T497	3960	39.0	40.5	1.5	1.3	0.32	27-August
DH19T497	3960	49.5	52.5	3.0	2.6	0.17	27-August
DH19T497	3960	85.5	94.5	9.0	7.8	1.47	27-August Significant
DH19T512	3960	6.5	17.0	10.5	9.2	1.20	27-August Significant
incl	3960	9.5	15.5	6.0	5.2	1.68	27-August Significant
DH19T512	3960	75.5	80.0	4.5	4.1	0.30	27-August
DH19T512	3960	165.5	168.5	3.0	2.7	1.37	27-August Significant
DH19T520	3960	25.5	28.5	3.0	2.7	1.43	27-August Significant
DH19T484	4040	126.0	130.5	4.5	3.9	0.79	27-August
DH19T484	4040	172.5	174.0	1.5	1.2	1.27	27-August
DH19T495	4040	No mineralized intersection					27-August
DH19T507	4040	45.0	46.5	1.5	1.4	0.28	27-August
DH19T507	4040	154.5	160.5	6.0	5.3	0.36	27-August
DH19T509	4120	7.5	9.0	1.5	1.3	0.41	27-August
DH19T509	4120	25.5	27.0	1.5	1.3	0.62	27-August
DH19T509	4120	105.0	109.5	4.5	3.9	0.47	27-August
DH19T509	4120	118.5	121.5	3.0	2.6	0.90	27-August Significant
DH19T509	4120	172.5	174.0	1.5	1.3	1.39	27-August
DH19T515	4120	3.0	6.0	3.0	2.7	0.91	27-August Significant
DH19T515	4120	43.5	48.0	4.5	4.0	0.68	27-August
DH19T515	4120	57.0	58.5	1.5	1.3	0.60	27-August
DH19T485	4200	3.0	4.5	1.5	1.3	0.24	27-August
DH19T485	4200	18.0	19.5	1.5	1.3	1.02	27-August
DH19T485	4200	70.5	72.0	1.5	1.3	0.31	27-August
DH19T485	4200	81.0	85.5	4.5	4.1	4.90	27-August Significant
DH19T485	4200	159.0	165.0	6.0	5.2	0.36	27-August
DH19T485	4200	169.5	172.5	3.0	2.6	7.90	27-August Significant
DH19T485	4200	178.0	179.5	1.5	1.3	0.52	27-August
DH19T485	4200	211.0	212.5	1.5	1.3	0.31	27-August
DH19T485	4200	217.0	220.0	3.0	2.6	6.37	27-August Significant
DH19T485	4200	242.5	250.0	7.5	6.0	4.50	27-August Significant
incl	4200	242.5	245.5	3.0	2.6	6.16	27-August Significant
incl	4200	247.7	250.0	2.3	1.9	7.33	27-August
DH19T510	4200	7.5	9.0	1.5	1.3	0.88	27-August
DH19T510	4200	75.0	76.5	1.5	1.3	0.29	27-August
DH19T510	4200	105.0	112.5	7.5	6.7	0.87	27-August
DH19T510	4200	214.1	215.6	1.5	1.3	0.66	27-August
DH19T487	4200	7.0	13.0	6.0	8.2	0.57	27-August
DH19T487	4200	17.5	20.5	3.0	2.4	0.71	27-August
DH19T487	4200	28.0	29.5	1.5	1.3	0.73	27-August
DH19T487	4200	74.5	80.5	6.0	5.2	0.33	27-August
DH19T487	4200	94.0	95.5	1.5	1.3	0.47	27-August
DH19T494	4200	62.5	64.0	1.5	1.3	0.52	27-August
DH19T494	4200	98.5	106.0	7.5	6.5	0.47	27-August
DH19T494	4200	160.0	161.5	1.5	1.3	0.26	27-August
DH19T494	4200	194.5	196.0	1.5	1.3	0.74	27-August
DH19T488	4200	No mineralized intersection (Lower Structure)					27-August
DH19T474	4280	0.0	6.0	6.0	5.3	0.65	18-Jun
DH19T474	4280	33.0	36.0	3.0	2.7	0.58	18-Jun
DH19T474	4280	105.0	111.0	6.0	5.1	2.77	27-August Significant
DH19T503	4280	0.0	10.5	10.5	9.1	2.99	27-August Significant
DH19T503	4280	45.0	46.5	1.5	1.4	0.58	27-August
DH19T503	4280	126.0	127.5	1.5	1.4	1.06	27-August
DH19T503	4280	139.5	141.0	1.5	1.4	0.48	27-August
DH19T508	4280	30.0	31.5	1.5	1.4	0.71	27-August
DH19T513	4280	55.5	57.0	1.5	1.4	0.25	27-August
DH19T513	4280	78.0	79.5	1.5	1.4	0.28	27-August
DH19T475	4360	0.0	7.0	7.0	6.0	1.23	27-August Significant
DH19T475	4360	133.5	136.5	3.0	2.6	0.98	27-August Significant
DH19T491	4360	55.5	57.0	1.5	1.4	0.21	27-August
DH19T490	4440	No mineralized intersection (Upper Structure)					27-August
DH19T496	4440	195.0	196.5	1.5	1.3	0.31	27-August
DC19T077	4440	206.0	208.0	2.0	1.5	0.54	27-August
DH19T505	4520	66.0	67.5	1.5	1.3	0.58	27-August
DH19T492	4600	60.0	61.5	1.5	1.4	0.57	27-August
DH19T492	4600	91.5	102.0	10.5	9.8	0.50	27-August Significant
incl	4600	91.5	94.5	3.0	2.8	0.91	27-August Significant
DH19T492	4600	140.5	145.0	4.5	4.0	0.59	27-August
DH19T492	4600	167.5	169.0	1.5	1.4	1.12	27-August
DH19T492	4600	200.5	202.0	1.5	1.4	1.10	27-August
DH19T504	4600	64.5	67.5	3.0	2.7	0.38	27-August
DH19T504	4600	109.5	111.0	1.5	1.3	0.46	27-August
DH19T483	4680	9.0	10.5	1.5	1.3	0.40	27-August
DH19T483	4680	22.5	25.5	3.0	2.6	0.38	27-August

# Pink highlighted rows - significant intercepts reported earlier

# Yellow highlighted rows - significant intercepts (current release)

Glossary of Technical Terms

"Au"	chemical symbol for gold
"Breccia"	A rock composed of fragments of rocks cemented by a finer-grained matrix
"Crackle Breccia"	A breccia in which the fragments have not been rotated with respect to one another
"cut off"	the lowest grade value that is included in a resource statement.  It must comply with JORC requirement 19: "reasonable prospects for eventual economic extraction" the lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit. It may be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification
"g/t"	grammes per tonne, equivalent to parts per million
"Inferred Resource"	that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability
"Indicated Resource"	that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed
"Intrusive Rock"	A rock formed from cooling magma that cooled below the surface of the earth. As opposed to a volcanic rock which cools from magma on the surface.
"JORC"	The Australasian Joint Ore Reserves Committee Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 (the "JORC Code" or "the Code"). The Code sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves
"koz"	thousand troy ounces of gold
"Measured Resource"	that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity
"Mineral Resource"	a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories when reporting under JORC
"Mt"	million tonnes
"oz"	troy ounce (= 31.103477 grammes)
"Porphyry"	A large mineral deposit (often gold-copper) that forms in the final stages of cooling of certain intrusive rocks
"Reserve"	the economically mineable part of a Measured and/or Indicated Mineral Resource
"Silicification"	The addition of silica to a rock as part of the ore forming process
"Skarn"	A usually high-grade mineral deposit (often gold-copper) that forms when certain intrusive rocks are emplaced into limestones, which react chemically with the magma
"t"	tonne (= 1 million grammes)

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	·    Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. ·    Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. ·    Aspects of the determination of mineralisation that are Material to the Public Report. ·    In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	·    All drilling was undertaken by standard and triple tube core barrel diamond core drilling, with all sampling in accordance with industry standard techniques. ·    Diamond core is cut in half using a core saw, creating half core samples typically 1.5 m in length. ·    Road cut samples are collected using continuous random rock chips in 2.0m lengths along road cut exposures. ·    Trench samples are collected from carefully cut channels in either 1.0 or 2.0 m lengths. ·    Duplicate samples are created from coarse rejects and from pulps. ·    Sample preparation is undertaken at ALS Global (Kara Balta) followed by 30 g charge fire assay with an AA fininsh.  Mulit-element analysis is conducted using ICP-AES after aqua regia digestion.  Total Sulphur is determined using a LECO analyzer.
Drilling techniques	·    Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	·    In total, 77,954 m of sampling across 560 drillholes and channels has been completed across the Tulkubash deposit. ·    Diamond drillholes are predominantly HQ size using standard and triple tube holes reducing to NQ diameter where ground conditions are poorer. ·    Holes are drilled using contractor drill rigs.
Drill sample recovery	·    Method of recording and assessing core and chip sample recoveries and results assessed. ·    Measures taken to maximise sample recovery and ensure representative nature of the samples. ·    Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	·    Core recovery is measured and recorded by Chaarat geologists, with an average recovery of +95%. ·    In areas of highly fractured rock triple-tube core drilling has been utilized.
Logging	·    Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. ·    Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. ·    The total length and percentage of the relevant intersections logged.	·    Historically, core was logged geologically and geotechnically by company geologist into standard hard copy logging sheets and transcribed into Microsoft Excel®.  Since 2018, core is logged digitally using AGR4 software. ·    Logging is performed at nominal 1.5 m intervals, reducing to shorter lengths when required. ·    Logging does cross mineralised boundaries due to the mineralisation style being fracture controlled in a brittle unit containing few obvious contacts. ·    The core is photographed wet with photographs stored within the database. ·    All drillholes up to the 18th August 2019 have been logged. ·    Logging is to a standard suitable for the support of a Mineral Resource Estimate.
Sub-sampling techniques and sample preparation	·    If core, whether cut or sawn and whether quarter, half or all core taken. ·    If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. ·    For all sample types, the nature, quality and appropriateness of the sample preparation technique. ·    Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. ·    Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. ·    Whether sample sizes are appropriate to the grain size of the material being sampled.	·    Competent core samples are split on site using a core saw, while highly fractured material is sampled with a trowel. ·    Half core samples are placed in labelled polyethylene sample bags and weighed. ·    All current samples are transported to ALS Global (Kara Balta) for sample preparation and analysis, where crushing, milling, homogenization and sample splitting was completed in accordance with company standards. ·    Duplicate sample for QA/QC were taken every 20 samples from crushed rejects and duplicate pulps.
Quality of assay data and laboratory tests	·    The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. ·    For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. ·    Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	·    Samples collected from 2007 to 2013 were prepared and assayed at the IRC Laboratory in Kara Balta. All samples are analyses for gold by aqua regia digestion followed by atomic absorption. Sample returning grades higher than 0.3 g/t Au were sent to ALS Global (Kara Balta) for re-testing by 30 g fire assay. ·    The 2014 sample preparation took place at the IRC Laboratory in Kara Balta, with analysis taking place at ALS Global (Kara Balta). ·    From 2017 all sample preparation and analysis are undertaken at the ALS Global laboratory in Kara Balta. Referee check samples are sent to SGS Vostok for analysis. ·    Assay quality control was achieved by the use of duplicates, blanks and standard reference material (SRM). ·    The QA/QC programme and results are in line with industry best practice and the resultant dataset is suitable for Resource estimation.
Verification of sampling and assaying	·    The verification of significant intersections by either independent or alternative company personnel. ·    The use of twinned holes. ·    Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. ·    Discuss any adjustment to assay data.	·    Below detection limit assay results have been replaced with values of half detection limit (0.025 g/t Au) and absent values have been replaced with 0.0001 g/t Au.
Location of data points	·    Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. ·    Specification of the grid system used. ·    Quality and adequacy of topographic control.	·    All collar locations are reported in Gauss Kruger Pulkovo 1942 Zone 12 with their locations recorded using a Leica Total Station (centimeter accuracy) ·    Downhole surveys were recorded with Reflex "EZ-shot" electronic single-shot equipment. ·    A Total Station survey along roads, ridges, valleys and traverses has produced a contoured topography across the Tulkubash Resource area.   ·    Regional topography data is derived from satellite data.
Data spacing and distribution	·    Data spacing for reporting of Exploration Results. ·    Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. ·    Whether sample compositing has been applied.	·    The current data spacing, nominally fans on 80m fences, with significant areas on strike at 40m or less, is sufficient to establish grade continuity and provides sufficient support for Measured and Indicated classifications.
Orientation of data in relation to geological structure	·    Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. ·    If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	·    Surface drilling is inclined, attempting to cut the mineralization at a close to normal angle to the strike orientation as possible. ·    Underground drilling is orientated normal to the strike of the structure. ·    The holes were designed to provide intercepts perpendicular to the mineralization as possible. ·    The drilling dip ranges from 35 to 90o, striking generally between 125 and 147o. ·
Sample security	·    The measures taken to ensure sample security.	·    Labelled samples are transported to and from the laboratory by company personal or contractors, employing a full chain of custody documentation procedure. ·    Reject pulps and coarse rejects are returned to Chaarat and stored along with drill core at their locked and secure core storage facility in Bishkek.
Audits or reviews	·    The results of any audits or reviews of sampling techniques and data.	·    Chaarat's competent person visited the project during the current drilling campaign and reviewed the protocols and procedures adopted by Chaarat's company geologists. ·    Chaarat has completed an analysis of the QA/QC data. The data is deemed appropriate for Resource estimation.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	·    Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. ·    The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	·    two licenses controlling the Property: a mining (or production) license of 700.03 ha covering the defined Mineral Resources, and an exploration license of 6,776 ha covering prospective ground along trend to the northeast Point No. X Y 1 126 77 600 46 55 400 2 126 79 000 46 56 900 3 126 79 264 46 56 711 4 126 82 604 46 60 152 5 126 83 150 46 59 556 6 126 82 728 46 59 261 7 126 82 757 46 58 554 8 126 79 776 46 55 887 9 126 79 487 46 56 116 10 126 78 500 46 54 800 ·    There are no known impediments to obtaining further necessary licences to operate
Exploration done by other parties	·    Acknowledgment and appraisal of exploration by other parties.	·    No other appraisal or exploration is being done by other parties
Geology	·    Deposit type, geological setting and style of mineralisation.	·    Tulkubash Formation consists of medium- to fine-grained quartzites and medium- to coarse-grained arkosic sandstones mineralized in fractures by crackle brecciation and is oxidized and can be processed by conventional heap-leach processes
Drill hole Information	·    A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. ·    If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	·    As reported in Press Release
Data aggregation methods	·    In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. ·    Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. ·    The assumptions used for any reporting of metal equivalent values should be clearly stated.	·    Mineralised intercepts are defined as being above a cut-off grade for potentially economic mineralization of 0.25 g/t Au. ·    Samples are composited prior to mineral Resource estimate to 1.5m (mean sample length). The samples are assessed for a top-cap at this stage, and any outliers are reduced to the capping value.
Relationship between mineralisation widths and intercept lengths	·    These relationships are particularly important in the reporting of Exploration Results. ·    If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. ·    If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').	·    Intercepts are designed to be as close to normal to the mineralization as possible. ·    The drill hole angle in relation to the mineralization is not certain. ·    All mineralized intercepts reported as apparent thicknesses based on cross sectional interpretation.
Diagrams	·    Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	·    As reported in Press Release
Balanced reporting	·    Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	·    As reported in Press Release
Other substantive exploration data	·    Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	·    No other substantive exploration data relevant to this Press Release has been compelted
Further work	·    The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). ·    Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	·    11,280m of a planned 20,000m field season exploration campaign has been completed.  Further exploration focusing on strike extension and some infill of existing Resource is targeted.

 

 

END

 

 

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