Drilling Extends Tulkubash Mineralisation

RNS Number : 1969S

Chaarat Gold Holdings Ltd

22 June 2018

 

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Chaarat Exploration Drilling Extends Tulkubash Mineralisation

Road Town, Tortola, British Virgin Islands (22 June 2018)

Chaarat (AIM: CGH), the AIM quoted exploration and development company developing the Chaarat Gold Project in the Kyrgyz Republic, is pleased to provide an update on its 2018 exploration drilling programme at its Tulkubash oxide gold project.

Highlights

·     3,750 metres drilled to date from the planned 30,000 metres drilling programme for 2018

·     Gold mineralisation demonstrated to continue over 500 metres along strike north-east of the existing 1 million ounce resource

·     Current drilling indicates that grades appear to increase along strike

·     Significant intercepts include:

o  Section 2520, Hole DH18T356: True width of 9.8 metres at 1.21 grammes per tonne ("g/t") gold  ("Au") from a depth of 101.0 metres

o  Section 2840, Hole DH18T366: True width of 5.4 metres at 4.87 g/t Au from a depth of 21.5 metres

o  Section 3080, Hole DH18T364: True width of 5.2 metres at 1.94 g/t Au from a depth of 39.0 metres

o  Section 3080, Hole DH18T364: True width of 10.4 metres at 1.71 g/t Au from a depth of 109.5 metres

Dorian L. (Dusty) Nicol, Chair of the Company's Technical Committee, commented:

"This current drill programme is designed with the intent to maximize the conversion of new Resources to Reserves and I am very encouraged by the results of our drilling to date, especially considering that we have not yet drilled our highest priority targets.  We have demonstrated that gold mineralisation continues to the north east of the currently defined Resource and the mineralised grade appears to be increasing in this direction.  As we extend drill road construction, we will soon commence drilling our highest priority targets which is an exciting step in the programme. 

"I continue to expect this year's drilling to define a significant increase in the tonnage of the Resource.  If the current trend of increasing grade continues, it is realistic to also expect a concurrent increase in the overall grade of the Tulkubash Resource. 

"With results to date, we have still explored less than three kilometres of a 24 kilometre mineralised trend, further validating our belief that our mineralised system represents an emerging gold district.

"I look forward to continuing to provide periodic updates of drill results from this programme in due course."

In planning the 2018 drill programme, the Company has defined five contiguous segments along strike within the current Tulkubash trend.  These segments comprise approximately five kilometres of the prospective 24 kilometre Tulkubash trend.  The existing one million ounce Tulkubash resource is located in segments I to III.  Segment IV represents the immediate along strike extension of the current resource.  Segment V represents the area with the strongest gold in soil and trench geochemical anomalies and contains the highest priority drill targets.

Drilling to date has focused on testing drill targets in Segment IV, immediately along-strike to the north-east of the current one million ounce Tulkubash resource, and has demonstrated that mineralisation extends at least 500 metres along strike from the current resource boundary.  Mineralised intersects to date in Segment IV are comparable in width to those in Segments II and III (particularly Segment III) of the currently defined Tulkubash orebody, although thinner than those within Segment I.  Results to date are highly encouraging and confirm that mineralisation extends to the northeast of the current resource.  Drilling in Segment IV has intersected multiple zones of gold mineralisation in every drill hole, with mineralisation of generally higher grade than in the currently defined resource.

The following link provides a plan and cross-sections showing the locations of the drill holes as well as tabulations of the drill assay data:

                https://chaarat.sharefile.com/d-sc04fbc1bd834ec09

The gold mineralisation in this zone is strongly oxidised; 124 of 138 cyanide soluble assays received to date are greater than 80% with only one sample less than 60%.  This suggests that this mineralisation would give good recovery by heap leach.  Mineralisation appears to be increasing in both grade and intensity to the northeast (Segment V) and drill rigs are being moved in this direction.  Construction of drill roads continues to expose new alteration and mineralisation along strike from the current resource in both Segments IV and V.  As this newly recognised mineralisation is mapped and sampled, it continues to lead to additional drill targets.  Meanwhile, surface geological mapping and geochemical sampling continues in advance of drill road construction.  This work also continues to disclose new zones of mineralisation and is generating additional drill targets.

Other drilling to date this year is focusing on identifying possible fault offsets of mineralisation and untested footwall targets in Segments I and II that would delineate additional low strip ratio mineralisation within the estimated resource footprint. Drilling in these segments will also provide valuable information on the relative distribution of oxide and sulphide mineralisation, which is expected to have a positive impact on the resource.

Significant intercepts from seven drill holes on five sections are summarised in the table below.  The sections are 80 metres apart.  Significant intercepts are defined as intercepts greater than 10 metres in width above a 0.25 cut off or greater than 3 metres in width at a 0.25 cut off assaying greater than 1.0 g/t gold or a minimum equivalent grade x thickness. 

		Drilling			Approx.
Drill		Interval		Width	true width	Au
Hole	Section	From	To	(m)	(m)	g/t
DH18T356	2520	74.00	78.50	4.50	4.40	2.18
DH18T356	2520	101.00	111.50	10.50	9.80	1.21
incl	2520	101.00	102.50	1.50	1.40	5.59
incl	2520	108.50	110.00	1.50	1.40	1.62
DH18T359	2600	106.50	121.50	15.00	13.00	0.61
incl	2600	114.00	115.50	1.50	1.30	1.71
incl	2600	118.50	121.50	3.00	2.60	1.67
incl	2600	118.50	120.00	1.50	1.30	3.06
DH18T360	2680	33.00	36.00	3.00	2.40	1.60
incl	2680	34.50	36.00	1.50	1.20	3.08
DH18T360	2680	51.00	54.00	3.00	2.40	2.32
incl	2680	51.00	52.50	1.50	1.20	4.13
DH18T360	2680	69.00	72.00	3.00	2.40	2.20
incl	2680	69.00	70.50	1.50	1.50	4.34
DH18T366	2840	21.50	27.50	6.00	5.40	4.87
incl	2840	23.00	24.50	1.50	1.35	14.30
DH18T366	2840	98.00	120.50	22.50	19.50	0.42
DH18T369	3080	30.00	51.00	21.00	18.20	0.55
incl	3080	33.00	36.00	3.00	2.60	1.20
incl	3080	39.00	42.00	3.00	2.60	1.07
incl	3080	43.50	45.00	1.50	1.30	1.04
DH18T369	3080	79.50	94.50	15.00	13.00	0.70
incl	3080	79.50	81.00	1.50	1.30	2.17
incl	3080	93.00	94.50	1.50	1.30	1.13
DH18T364	3080	39.00	45.00	6.00	5.20	1.94
incl	3080	40.50	43.50	3.00	2.60	3.32
DH18T364	3080	109.50	121.50	12.00	10.40	1.71
incl	3080	112.50	117.00	4.50	3.90	3.82
incl	3080	114.00	115.50	1.50	1.30	6.61
DH18T367	3080	116.00	119.00	3.00	2.50	1.10

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 near 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.

Three additional holes in Segment IV (DH18T363 on Section 2520, DH18T362 on Section 2760, and DH18T365 on Section 3080) intersected gold mineralisation however, they were  below the threshold to be considered significant.  Nonetheless, they indicate extension of the gold-bearing system, which like all such gold mineralised systems tends to pinch and swell along the controlling structure(s).

An updated Resource Estimate will be prepared after completion of this year's planned drilling program; this updated estimated is expected to be completed in Q1 of 2019.  If results warrant, an interim Resource Estimate may be prepared early in Q4 of 2018.

QA/QC Procedures: Sampling Methodology and Quality Control

Samples are shipped to the ALS Global Laboratory in Kara-Balta, Kyrgyz Republic for sample preparation and assay.  Commercial standards and blanks are submitted routinely with each batch of samples.  Gold is analysed using a 30-gram fire assay with an atomic absorption spectroscopy (AAS) finish.  A quality control/quality assurance protocol is employed in the program which includes standards and blanks in every batch of assays and high-grade assays are not capped.  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, and who has reviewed the information contained herein, is Dorian L. (Dusty) Nicol (FAussIMM), who is Non-Executive Director of Chaarat and Chair of the Company's Technical Committee.  He is a geologist with more than 40 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 the report of the matters based on this information in the form and context in which it appears.

Enquiries

Chaarat Gold Holdings Limited                                                                   [phone]

Martin Andersson - Chairman                                                                      [e-mail]

Linda Naylor - Company Secretary

Numis Securities Limited                                                                              [phone]

John Prior, Paul Gillam (NOMAD)

James Black (Corporate Broking)

BMO Capital Markets Limited                                                                     [phone]

Jeffrey Couch, Neil Haycock,
Thomas Rider (Joint Broker)

Blytheweigh (Financial PR)                                                                          [phone]

Tim Blythe

Camilla Horsfall

About Chaarat Gold

Chaarat Gold is an exploration and development company operating in the Kyrgyz Republic with a large, high grade resource - the Chaarat Gold Project. The Company's key objective is to become a low-cost gold producer generating significant production from the development of the Chaarat Gold Project. Chaarat is engaged in an active community engagement programme 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 in the Kyrgyz Republic by building relationships based on trust and operating to the best environmental, social and employment standards.

Further information is available at www.chaarat.com 

Glossary of Technical Terms

"Au"	chemical symbol for gold
"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
"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)
"Reserve"	the economically mineable part of a Measured and/or Indicated Mineral Resource
"t"	tonne (= 1 million grammes)

 

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