Drilling Report

RNS Number : 2095O

Chaarat Gold Holdings Ltd

09 October 2012

 



Chaarat Gold Holdings Limited

("Chaarat" or "the Company")

Tulkubash drilling update

Road Town, Tortola, British Virgin Islands (9 October 2012)

Chaarat (AIM-CGH), the gold exploration and development company operating in the Kyrgyz Republic, announces positive results from its ongoing drilling programme in the Tulkubash Zone in the north west of the country. The Tulkubash zone forms part of the Chaarat Gold Project.

Highlights

·    All planned 37 drill holes drilled during 2012 intersected mineralisation

·    Selected drill hole results include:

·    T07149: Section 1000  12.50m at 3.07 g/t Au

·    T07152: Section 1040  16.24m at 2.10 g/t Au

·    T07146: Section 1080    8.75m at 3.77 g/t Au

·    T07136: Section 1120  13.74m at 3.22 g/t Au

·    T07136: Section 1120 10.00m at 3.62 g/t Au

·    T07155: Section 1120    5.00m at 4.81 g/t Au

·    T07134: Section 1200  11.25m at 2.66 g/t Au

·    T07129: Section 1240  14.99m at 3.27 g/t Au

·    T07126: Section 1280    8.75m at 11.08 g/t Au

·    T07148: Section 1320  17.49m at 8.36 g/t Au

·    T07160: Section 1360  12.08m at 3.13 g/t Au

·    T07131: Section 1400    6.25m at 6.16 g/t Au

Dekel Golan, CEO of Chaarat, commented: "These results confirm the potential to substantially increase the size of the open pit at Tulkubash and more than double initial plant throughput to 2,500tpd.  This was first identified on the basis of the 2011 drilling results. These results also endorse an increase in strike length of the deposit and would allow us to reduce the strip ratio during the early years of operation.  On this basis we can investigate additional options for optimizing this part of the Project, whilst these results also give the Company further strategic options in the development of the Chaarat Project as a whole."

Enquiries:  

Chaarat Gold Holdings Limited	[phone]
c/o Central Asia Services Limited
Dekel Golan   CEO	[e-mail]
Linda Naylor  FD	[e-mail]
Numis Securities Limited	[phone]
Alastair Stratton, Stuart Skinner (NOMAD)
James Black (Broker)
Bankside Consultants	[phone]
Simon Rothschild	[e-mail]
Smith's Corporate Advisory	[phone]
Dominic Palmer- Tomkinson	[e-mail]

Further information is available at www.chaarat.com

General description of the Tulkubash Zone

The Tulkubash Zone is one of three 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 discontinuously over 10 kilometres from T0700 in the southwest to the Karator and Ishakuldy areas in the northeast. The mineralised zones dip at 65-75 degrees to the NW.

During 2011 closed spaced drilling was carried out in the open-pittable part of the Tulkubash Central Sections (TCX) over a length of 440 metres from Section 520 to 960 and the bulk of the resource between these sections was confirmed as mineable. The design of the open pit was completed with a production schedule of 1,200tpd. A mining licence has been obtained for Tulkubash, as announced on 27 June 2012. A map and longitudinal projection can be seen at www.chaarat.com.

Also as part of the 2011 campaign, wide spaced drilling was carried out in the Tulkubash Northern Sections (TNX) (Sections 1000 to 1440) to probe the continuity of mineralisation to the north. The effort was successful and the resource of about 130koz was categorised as inferred (in addition to the 214koz Measured and Indicated resource already delineated in the Central Tulkubash target (TCX)).

In 2012, close spaced drilling was carried out in the TNX to convert the inferred resource to the measured and indicated categories which will provide the basis for the mineable reserve. All the 37 drill holes drilled intersected mineralisation. The calculation and categorization of the resource will now be prepared by the Company and its advisers. A map and longitudinal projection can be seen at www.chaarat.com.

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 Chaarat Gold Project situated within the Middle Tien Shan Mountains, which form part of the Tien Shan gold belt. A JORC compliant mineral resource of 5.59Moz at a grade of 4.08g/t gold has been delineated at the Chaarat Gold Project. 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 full project comes on stream.

In addition to the Chaarat Gold Project, the Company has initiated an exploration programme at Chontash, located in the Akshirak range of mountains of the Kyrgyz Republic. A maiden resource for Chontash was compiled by Wardell Armstrong International and announced in April 2011.

Geology of the Tulkubash

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.

QA/QC Procedures: Sampling Methodology and Quality Control

All samples are sent to a laboratory in the Kyrgyz Republic, Alex Stewart, accredited by the UK Accreditation Service, for sample preparation and assays. Genalysis, Australia, a NATA ISO/IEC 17025 accredited laboratory for analysis is being used for QA/QC check of the analyses of Alex Stewart. 20% check samples in form of 2 Standards, 1 Blank and 1 Duplicate in a batch of 20 samples are being used for quality checks of the Alex Stewart assays.

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. Sunit is an exploration geologist with more than 24 years of experience in the resource industry who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration.

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: The results of the drilled holes are presented below:

DH No.	Section	From	To	Intersected width (m)	True width (m)	Au g/t
		(m)	(m)
T07138	1000	105.00	108.00	3.00	2.50	2.64
T07138	1000	169.50	183.00	13.50	11.25	2.23
incl	1000	169.50	174.00	4.50	3.75	1.83
incl	1000	175.50	178.50	3.00	2.50	4.38
T07149	1000	94.00	100.00	6.00	5.00	2.10
T07149	1000	107.50	109.00	1.50	1.25	3.10
T07149	1000	131.50	146.50	15.00	12.50	3.07
T07149	1000	149.50	151.00	1.50	1.25	1.26
T07149	1000	190.00	194.50	4.50	3.75	1.29
T07149	1000	205.00	206.50	1.50	1.25	1.14
T07156	1000	69.00	72.00	3.00	2.50	2.91
T07156	1000	114.00	120.00	6.00	5.00	2.95
T07144	1040	195.50	198.50	3.00	2.50	1.10
T07144	1040	228.50	236.00	7.50	6.25	2.06
T07152	1040	154.50	174.00	19.50	16.24	2.10
T07158	1040	87.00	90.00	3.00	2.50	1.17
T07158	1040	106.50	108.00	1.50	1.25	1.10
T07158	1040	115.00	123.00	8.00	6.66	2.02
T07158	1040	148.00	150.00	2.00	1.67	1.59
T07158	1040	156.00	159.00	3.00	2.50	1.05
T07161	1040	66.00	67.50	1.50	1.25	1.10
T07161	1040	90.00	93.00	3.00	2.50	1.63
T07133BIS	1080	54.50	56.00	1.50	1.25	8.35
T07133BIS	1080	75.50	78.50	3.00	2.50	1.18
T07133BIS	1080	97.50	109.50	12.00	10.00	1.54
T07133BIS	1080	114.50	116.00	1.50	1.25	1.08
T07137BIS	1080	97.50	103.50	6.00	5.00	1.56
T07146	1080	123.00	127.50	4.50	3.75	1.52
T07146	1080	168.00	178.50	10.50	8.75	3.77
T07154	1080	78.00	88.50	10.50	8.75	1.93
incl	1080	84.00	88.50	4.50	3.75	3.40
T07154	1080	127.50	132.00	4.50	3.75	1.75
T07136	1120	76.50	93.00	16.50	13.74	3.22
T07136	1120	111.00	123.00	12.00	10.00	3.62
T07136	1120	169.50	193.50	24.00	19.99	1.67
T07142	1120	58.50	79.00	20.50	17.08	3.25
T07142	1120	81.00	85.50	4.50	3.75	1.27
T07142	1120	141.00	144.00	3.00	2.50	2.65
T07150	1120	31.50	46.50	15.00	12.50	2.35
T07150	1120	84.00	94.50	10.50	8.75	1.76
T07155	1120	18.00	19.50	1.50	1.25	1.03
T07155	1120	27.00	33.00	6.00	5.00	4.81
T07155	1120	67.50	75.00	7.50	6.25	1.90
T07155	1120	81.00	84.00	3.00	2.50	1.06
T07132BIS	1160	30.00	37.50	7.50	6.25	1.76
T07132BIS	1160	73.50	76.50	3.00	2.50	1.12
T07132BIS	1160	96.00	97.50	1.50	1.25	7.25
T07143	1160	111.00	115.50	4.50	3.75	4.23
T07143	1160	169.50	177.00	7.50	6.25	1.37
T07147	1160	51.00	61.50	10.50	8.75	2.22
T07147	1160	78.00	79.50	1.50	1.25	1.22
T07147	1160	82.50	87.00	4.50	3.75	2.15
T07147	1160	90.00	91.50	1.50	1.25	3.03
T07147	1160	93.00	96.00	3.00	2.50	1.12
T07147	1160	100.50	108.00	7.50	6.25	1.52
T07147	1160	133.50	135.00	1.50	1.25	2.43
Т07139	1160	54.00	57.00	3.00	2.50	1.36
Т07139	1160	136.50	142.50	6.00	5.00	2.36
Т07139	1160	168.00	172.50	4.50	3.75	1.65
T07134	1200	61.50	64.50	3.00	2.50	2.09
T07134	1200	93.00	94.50	1.50	1.25	1.34
T07134	1200	102.00	105.00	3.00	2.50	1.78
T07134	1200	135.00	148.50	13.50	11.25	2.66
T07134	1200	157.50	160.50	3.00	2.50	1.32
T07134	1200	163.50	169.50	6.00	5.00	1.83
Т07140	1200	156.00	169.50	13.50	11.25	1.76
T07125	1240	18.00	21.00	3.00	2.50	3.46
T07125	1240	106.50	111.00	4.50	3.75	1.53
T07125	1240	127.50	132.00	4.50	3.75	1.20
T07125	1240	217.50	223.50	6.00	5.00	1.21
T07129	1240	78.00	84.00	6.00	5.00	1.24
T07129	1240	94.50	112.50	18.00	14.99	3.27
T07129	1240	147.00	151.50	4.50	3.75	2.50
T07145	1240	141.00	147.00	6.00	5.00	1.71
T07145	1240	180.00	186.00	6.00	5.00	1.41
T07126	1280	64.50	75.00	10.50	8.75	11.08
T07126	1280	133.50	139.50	6.00	5.00	2.45
T07151	1280	93.00	102.00	9.00	7.50	1.89
T07157	1280	45.00	54.00	9.00	7.50	1.43
T07157	1280	57.00	58.50	1.50	1.25	1.76
T07157	1280	82.50	90.00	7.50	6.25	2.55
T07130	1320	80.50	88.00	7.50	6.25	2.03
T07135	1320	90.00	100.50	10.50	8.75	1.41
T07135	1320	136.50	145.50	9.00	7.50	1.79
T07141	1320	106.50	114.00	7.50	6.25	1.65
T07148	1320	30.50	51.50	21.00	17.49	8.36
T07148	1320	87.50	89.00	1.50	1.25	1.36
T07148	1320	92.00	95.00	3.00	2.50	1.22
T07153	1360	40.50	57.00	16.50	13.74	4.26
T07153	1360	63.00	64.50	1.50	1.25	1.71
T07159	1360	90.50	93.50	3.00	2.50	1.88
T07159	1360	125.00	128.00	3.00	2.50	2.95
T07160	1360	100.00	109.50	9.50	7.91	1.68
T07160	1360	121.50	136.00	14.50	12.08	3.13
T07127	1400	163.50	168.40	4.90	4.08	1.68
T07128	1400	105.00	126.00	21.00	17.49	2.06
T07131	1400	85.50	93.00	7.50	6.25	6.16

 

END

 

 

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