Chaarat Gold Holdings Ltd: Tulkubash drilling u...

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Tulkubash drilling update

Road Town, Tortola, British Virgin Islands (22 November 2011)

Chaarat (AIM - CGH), the AIM quoted exploration and development company with assets in the Kyrgyz Republic, is pleased to announce positive results from its ongoing drilling programme in the Tulkubash Project which is part of the Chaarat project area  in north western Kyrgyzstan.

Highlights

• Tulkubash mineralisation extended from a previous strike of 360 metres to 920 metres and is still open towards the northeast. The mineralisation was extended by 80 metres towards the southwest and 480 metres towards the northeast.

• Of the 20 holes drilled in the northwest extension (TNX), 19 drill holes intersected mineralisation at the predicted depth*  

• 9 holes drilled in the southeastern extension (TSX) intersected mineralisation approximately where predicted*  

• Selected results include: 

  • TO756:  26.25m at 3.66 g/t Au, including 12.50m at 5.77 g/t Au

  • TO797:  23.75m at 5.46 g/t Au 

  • TO7100:  23.75m at 4.40 g/t Au, including 10.00m at 6.39 g/t Au 

  • TO7111:  10.00m at 6.91 g/t Au 

  • T07114: 11.25m at 2.19 g/t Au 

  • T07117:  6.25m at 8.58 g/t Au 

  • T07121: 11.25m at 8.21 g/t Au 

Dekel Golan, CEO of Chaarat, commented: "We are very encouraged by these results as they demonstrate the significant extension, potential and actual, of  the Tulkubash zone which is the first ore body to be mined by Chaarat. The prospect of extended strike, as well as improved predictability and continuity, which is effectively confirmed by this drilling, will potentially enable Chaarat to increase production from this low cost ore body and further improve its profit potential for the early years of operation.

 "We are confident that the scenario should improve further with drilling along strike, especially to the north east of the zone; drilling which will commence during the spring of next year.  An updated resource and reserve  estimate based on the 2011 drilling will be released early in 2012."

*The results reported here are from the North and South sections of the Tulkubash Zone. The results of the drill holes from the Central section of the Tulkubash were announced on 20^th September, 2011.  A map and longitudinal projection at www.chaarat.com shows the Tulkubash mineralisation.

For further information about the Company please contact:
Chaarat Gold Holdings Limited c/o Central Asia Services Limited Dekel Golan   CEO Linda Naylor  FD	[phone] [e-mail]   [e-mail]
Westhouse Securities Limited	[phone]
Tom Price Richard Baty	[e-mail] [e-mail]
Bankside Consultants	[phone]
Simon Rothschild	[e-mail]

NOTES TO EDITORS:

Further information is available at www.chaarat.com

General Description of the Tulkubash Zone

The Tulkubash Zone is one of three major zones of mineralisation within the Chaarat Gold Project, the others being the Main and Contact Zones. The Tulkubash Zone strikes parallel to the other two zones and extends to the north-east into the Karator and Ishakuldy areas. The mineralised zones dip at 40-50 degrees to the NW.

Mineralisation in the Tulkubash Zone is hosted in silicified quartzites and mineralised zones exhibiting pervasive silicification and some argillic alteration. The gold is associated with sulphides, sericitic alteration and minor quartz veinlets although the open-pittable resource is largely oxidised.

The Tulkubash mineralised zone, which includes relatively clean free milling gold mineralisation, has been delineated, discontinuously, over a strike length of 4 kilometres. During the 2011 season the objective of the exploration programme was to convert the inferred resource of the central part of Tulkubash to indicated resource, which in turn will be converted to mineable reserve. Exploration has focused on a 600 metre section at the southern end of Central Tulkubash, generating an initial open pittable resource which can quickly be developed into a mine. In addition, drilling was undertaken to establish the strike extension of the mineralised zone to the north and south which is boosting confidence in the continuity of the zone.  

The Tulkubash mineralised zone can be divided into three segments namely the Tulkubash Central Section (TCX), the Tulkubash South Section (TSX) and the Tulkubash North Section (TNX). The results of drilling within the TCX were published on 20^th September 2011. This release presents the results of the TSX and TNX drill holes.

Based on drilling completed in 2010, a JORC compliant (indicated and inferred) resource containing 321,000 oz at a grade of 4.00 g/t Au was delineated in a portion of the Tulkubash zone. A revised resource estimate on the Chaarat Gold Project will be announced in early 2012.

Mineralisation remains open both down dip and along strike in both directions.  

About Chaarat Gold

Chaarat Gold is an exploration and development company operating in the Kyrgyz Republic. The Company's main activity is the development of the Kiziltash and Tulkubash projects situated within the Middle Tien Shan Mountains of Kyrgyzstan, which form part of the Tien Shan gold belt. The Company has delineated a JORC compliant mineral resource of 4.736Moz at a grade of 4.28g/t gold across both projects.  Chaarat's key objective is to become a low cost gold producer; with initial production from the Tulkubash project, targeting increased combined annual production of over 200,000 ounces as the Kiziltash project comes on stream.

Competent Person
The Competent Person with overall responsibility for this press release, and who has reviewed the information contained herein, is Sunit Patel, M.Sc (Geology), FGS, GSSA, who is an employee of Chaarat Gold.  Sunit is an exploration geologist with 22 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 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and he was supervisor to the work subject of this release.  Mr Patel consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Disclaimer
This press release includes forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond Chaarat's control that would cause the actual results, performance or achievements of Chaarat to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Chaarat's present and future business strategies and the environment in which Chaarat will operate in the future. Any forward-looking statements speak only as at the date of this document.  Chaarat expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this document to reflect any change in Chaarat's expectations with regard to these or any change in events, conditions or circumstances on which any such statements are based. As a result of these factors, the events described in the forward-looking statements in this press release may not occur either partially or at all.

Appendix 1.  Drilling results

Tulkubash Northern Extension (TNX) Drill holes

DH No.	Project	Section		From	To	Intersected width	True width	Au g/t
T07113	T0700	1000		7.50	12.00	4.50	3.75	1.11
T07113	T0700	1000		55.50	58.50	3.00	2.50	1.02
T07113	T0700	1000		64.50	67.50	3.00	2.50	1.34
T07113	T0700	1000		73.50	75.00	1.50	1.25	1.12
T07113	T0700	1000		87.00	90.00	3.00	2.50	1.97
T07113	T0700	1000		112.50	114.00	1.50	1.25	1.65
T07116	T0700	1000		3.00	9.00	6.00	5.00	3.15
T07116	T0700	1000		12.00	21.00	9.00	7.50	1.26
T0735	T0700	1000		12.00	18.00	6.00	5.00	1.00
T0735	T0700	1000		108.00	129.00	21.00	17.50	1.07
T0781	T0700	1000		37.50	39.00	1.50	1.25	1.57
T0781	T0700	1000		43.50	48.00	4.50	3.75	1.00
T0781	T0700	1000		78.00	79.50	1.50	1.25	9.77
T0781	T0700	1000		93.00	96.00	3.00	2.50	1.52
T0781	T0700	1000		99.00	106.50	7.50	6.25	1.56
T0781	T0700	1000	incl	105.00	106.50	1.50	1.25	4.24
T0793	T0700	1000		7.50	18.00	10.50	8.75	1.00
T0793	T0700	1000		105.00	108.00	3.00	2.50	1.06
T0793	T0700	1000		114.00	117.00	3.00	2.50	1.15
T0793	T0700	1000		133.00	142.50	9.50	7.92	1.01
T0793	T0700	1000		148.50	162.00	13.50	11.25	1.23
DC0706	T0700	1040		15.00	18.00	3.00	2.50	2.42
DC0706	T0700	1040		19.00	28.00	9.00	7.5	2.11
DC0706	T0700	1040		53.50	58.00	4.50	3.75	2.01
T07102	T0700	1040		0.00	3.00	3.00	2.50	2.72
T07102	T0700	1040		69.00	82.50	13.50	11.25	2.12
T07102	T0700	1040	incl	69.00	76.50	7.50	6.25	2.67
T07102	T0700	1040		87.00	88.50	1.50	1.25	1.48
T07102	T0700	1040		106.50	108.00	1.50	1.25	1.13
T07110	T0700	1040		34.50	39.00	4.50	3.75	1.01
T07110	T0700	1040		88.50	99.00	10.50	8.75	1.12
T07110	T0700	1040	incl	88.50	91.50	3.00	2.5	2.28
T07101	T0700	1160		13.50	16.50	3.00	2.50	1.08
T07101	T0700	1160		84.00	90.00	6.00	5.00	1.05
T07105	T0700	1160		4.50	6.00	1.50	1.25	1.59
T07105	T0700	1160		16.50	18.00	1.50	1.25	2.91
T07108	T0700	1160		30.00	34.50	4.50	3.75	1.42
T07108	T0700	1160		40.50	49.50	9.00	7.50	1.02
T07108	T0700	1160		90.00	102.00	12.00	10.00	2.12
T07108	T0700	1160		111.00	115.50	4.50	3.75	1.86
T07111	T0700	1200		15.00	27.00	12.00	10.00	6.91
T07111	T0700	1200		39.00	40.50	1.50	1.25	1.73
T07111	T0700	1200		46.50	49.50	3.00	2.50	1.09
T0756	T0700	1200		51.00	82.50	31.50	26.25	3.66
T0756	T0700	1200	incl	55.50	70.50	15.00	12.50	5.77
T0756	T0700	1200	incl	55.50	66.00	10.50	8.75	6.23
T0756	T0700	1200		108.00	121.50	13.50	11.25	2.85
T0756	T0700	1200	incl	108.00	117.00	9.00	7.50	3.86
T0792	T0700	1200		10.50	12.00	1.50	1.25	1.31
T0792	T0700	1200		25.50	40.50	15.00	12.50	1.90
T0792	T0700	1200		57.00	61.50	4.50	3.75	3.56
T07114	T0700	1240		55.50	61.50	6.00	5.00	3.26
T07114	T0700	1240		63.00	76.50	13.50	11.25	2.19
T07114	T0700	1240		81.00	84.00	3.00	2.50	5.82
T07114	T0700	1240		142.00	145.50	3.50	2.92	1.02
T07119	T0700	1240		16.50	24.00	7.50	6.25	2.59
T07119	T0700	1240		43.50	51.00	7.50	6.25	2.39
T07119	T0700	1240		69.00	72.00	3.00	2.50	1.09
T0797	T0700	1240		22.50	27.00	4.50	3.75	2.37
T0797	T0700	1240		34.50	63.00	28.50	23.75	5.46
T0797	T0700	1240		94.50	105.00	10.50	8.75	3.14
T0797	T0700	1240	incl	100.50	105.00	4.50	3.75	5.56
T07117	T0700	1280		45.00	48.00	3.00	2.50	1.06
T07117	T0700	1280		75.00	78.00	3.00	2.50	1.39
T07117	T0700	1280		100.50	108.00	7.50	6.25	8.58
T07117	T0700	1280		120.00	129.00	9.00	7.50	2.30
T07121	T0700	1400		17.00	30.50	13.50	11.25	8.21
T07121	T0700	1400		57.50	59.00	1.50	1.25	1.61
T0769	T0700	1440		15.00	19.50	4.50	3.75	1.63
T0769	T0700	1440		27.00	31.50	4.50	3.75	1.38
T0769	T0700	1440		57.00	58.50	1.50	1.25	1.31
T0769	T0700	1440		135.00	138.00	3.00	2.50	1.78
T0769	T0700	1440		145.50	148.50	3.00	2.50	3.28

Tulkubash South Extension (TSX) Drill holes

DH No.	Project	Section		From	To	Intersected width	True width	Au g/t
T07103	T0700	520		16.50	22.50	6.00	5.00	1.04
T07103	T0700	520		46.50	49.50	3.00	2.50	1.01
T07103	T0700	520		60.00	64.50	4.50	3.75	1.40
T07103	T0700	520		94.50	96.00	1.50	1.25	2.59
T07107bis	T0700	520		49.50	52.50	3.00	2.5	1.80
T07107bis	T0700	520		111.00	133.50	22.50	18.75	2.16
T07107bis	T0700	520	incl	123.00	132.00	9.00	7.5	3.13
T07107bis	T0700	520		162.00	163.50	1.50	1.25	3.00
T0716	T0700	520		78.50	80.00	1.50	1.25	1.62
T0716	T0700	520		96.50	98.00	1.50	1.25	4.31
T0748	T0700	520		7.50	9.00	1.50	1.25	1.47
T0748	T0700	520		51.00	52.50	1.50	1.25	1.25
T0748	T0700	520		69.00	70.50	1.50	1.25	1.00
T0753	T0700	520		31.50	33.00	1.50	1.25	1.06
T0795	T0700	520		6.00	7.50	1.50	1.25	1.09
T0795	T0700	520		30.00	33.00	3.00	2.50	1.00
T0795	T0700	520		51.00	57.00	6.00	5.00	1.00
T0795	T0700	520		66.00	67.50	1.50	1.25	1.24
T0795	T0700	520		87.00	93.00	6.00	5.00	1.03
T0795	T0700	520		109.50	112.50	3.00	2.50	2.06
T07100	T0700	560		15.00	16.50	1.50	1.25	1.47
T07100	T0700	560		67.50	78.00	10.50	8.75	2.00
T07100	T0700	560		84.00	88.50	4.50	3.75	1.58
T07100	T0700	560		99.00	106.50	7.50	6.25	2.42
T07100	T0700	560		114.00	117.00	3.00	2.50	2.58
T07100	T0700	560		127.50	129.00	1.50	1.25	1.45
T07100	T0700	560		148.50	177.00	28.50	23.75	4.40
T07100	T0700	560	incl	156.00	168.00	12.00	10.00	6.39
T07106	T0700	560		12.00	13.50	1.50	1.25	1.28
T07106	T0700	560		51.00	52.50	1.50	1.25	2.43
T07106	T0700	560		58.50	87.00	28.50	23.75	1.55
T07106	T0700	560	incl	63.00	67.50	4.50	3.75	3.33
T07106	T0700	560	incl	75.00	79.50	4.50	3.75	3.23
T07106	T0700	560		142.50	154.50	12.00	10.00	2.61
T07106	T0700	560	incl	145.50	150.00	4.50	3.75	5.06
T0796	T0700	560		22.50	37.50	15.00	12.50	1.52
T0796	T0700	560		133.50	141.00	7.50	6.25	5.29
T0796	T0700	560		147.00	156.00	9.00	7.50	3.56
T0796	T0700	560		159.00	165.00	6.00	5.00	2.00
T0796	T0700	560		168.00	172.50	4.50	3.75	2.21
T0796	T0700	560		177.00	189.00	12.00	10.00	3.51

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The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Chaarat Gold Holdings Ltd via Thomson Reuters ONE

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