Encouraging Tulkubash 2021 Drilling Results

RNS Number : 4454S

Chaarat Gold Holdings Ltd

16 November 2021

 

16 November 2021

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Encouraging Tulkubash 2021 Drilling Programme Results

Chaarat Gold (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 announce the completion of the Tulkubash 2021 drilling programme. The Tulkubash project presently hosts JORC compliant Probable Reserves of 571koz Au and Measured, Indicated and Inferred ("M&I,I") Resources of 1,177koz Au .  

The infill drilling programme targeted the Inferred and unclassified areas in the Central Pit and Tulkubash east area. The drill holes intersected consistent oxide gold intercepts as expected. The current Mineral Resource estimate ("MRE") of the Tulkubash deposit is in the process of being updated to include the results of the 2021 exploration programme.

The exploration drilling campaign has also confirmed two previously identified potential zones of gold mineralisation at Karator and Ishakuldy, located 2 kilometres and 6 kilometres to the northeast of the Tulkubash east area respectively.

Highlights of the Drilling Programme

-  4,835 metres of drilling in 33 drill holes completed on time and budget

-  12 of 14 infill drill holes, drilled at Tulkubash Central Pit confirm grade and consistency of expected gold mineralisation based on previous drilling

-  7 of 10 infill drill holes in the Tulkubash east oxide gold area also confirm expected mineralisation

-  Trenching and the initial 5 drill holes at Karator oxide gold zone returned encouraging intercepts in line with expectations from the prior season's exploration programme and area review.

-  All the initial 4 drill holes at Ishakuldy intersected gold mineralisation

-  The new drill holes include¹:

o  Tulkubash Central Pit zone, oxidised: 16.5 metres of 2.04g/t gold, including 6 metres of 4.10g/t gold in DH21T593

o  Tulkubash east area, oxidised: 6 metres of 6.58g/t gold in DH21T611

o  Karator, oxide gold: 60 metres of 1.32g/t gold, including 6 metres of 5.06g/t gold in DH21K601

o  Ishakuldy, new outlined prospect, transitional oxide to sulphide: 12.3 metres of 3.18g/t gold in DH21I608 and 53.6 metres of 0.52g/t gold in DH21I596

Next Steps

-  Tulkubash MRE update planned to be published in early 2022, targeting an upgrade of material in Central Pit and east area from Inferred to Indicated categories

-  At Karator, advancing drill programme towards resource definition drilling over the entire 800 metres strike of the mineralised oxide gold zone over the next few years

-  Continue systematic drilling and trenching over the entire strike of the prospective zone at Ishakuldy

-  Perform a drone based geophysical survey in 2022 over the full 75 km² of the exploration licence aimed at delineation of other prospective zones within the Chaarat exploration permit to further confirm the district wide potential of the region

¹ All drill metres quoted are drilling width, believed to be close to true widths. All drill results are shown in appendix 2.

Dimitar Dimitrov, Senior Vice President Geology of Chaarat, said:

"The confirmation of gold grades in the infill drill holes in the Central Pit and east area is very positive and supports an update of the Resource estimate for the Tulkubash ore body The successfully outlined Karator and Ishakuldy zones are confirmation of the extensive geological potential of Chaarat's licence area and the broader district for further Tulkubash and Kyzyltash style deposits."

The Tulkubash CentralPit and east area Infill Drill Programme

The recently completed infill drill programme consisted of 24 drill holes which were selected with the aim of converting the Tulkubash Inferred Resource and unclassified areasin the Central Pit and east area to IndicatedResources.The drill holes were on 40 by 40 metres spacing.As mentioned above, the results of the 2021 drilling programme will be included in the updated MRE for the Tulkubash project.

Geological maps and sections illustrating the location of the drill holes and Tulkubash mineralized zones are available at https://www.chaarat.com/kyrgyzstan/tulkubash/ .

The Karator Exploration Drill Programme

The recently completed exploration programme included5 drill holes and systematic trenching which resulted in the delineation of an oxide gold zone of Tulkubash style mineralisation.

The trenching results included 50 metres of 1.32g/t gold in TR21T102 and 46 metres of 1.14g/t gold in TR21T604. All 5 drill holes intersected gold, confirming the trenching results.  DH21K601 showed the presence of 60 metres of 1.32g/t gold, including 6 metres of 5.06g/t gold .

The Karator zone is located approximately2kilometres to the northeast of the Tulkubash eastarea and extends along more than 800 metresof strike, with approximately30 to 50 metres true width extending toapproximately 150 metres depth.The deposit is open at strike and at depth.

The zone is interpreted to strike southwest to northeast, dippingsoutheast, following the extensional shear zone developed along or between the major Contact and Irisey reverse faults.

Chaarat is planning to continue evaluating the Karator prospect with systematic resource definition drilling in the coming yearsleading to an initial MRE. 

The Ishakuldy Exploration Drill Programme

Ishakuldy is a well-defined exploration target, outlined along approximately 1.5 kilometres strike and approximately 100 metres width. This is based ona f avourable structurally extensional environment in the vicinity of the major Contact fault which is intruded by a sin-mineralised diorite to granodiorite stock/dyke magmatic complex. The programme showed an intensive +0.5 g/t gold soil anomaly over approximately 2 square kilometres. The presence of overlapping high magnetic and high chargeability anomalies with the soil anomaly and mineral outcrops mineralisation are encouraging indications of potential widespread mineralisation.

The trenching results include 28 metres of 2.36g/t gold in TR21T611, including 10 metres of 5.09g/t gold. All 4 drill holes intersected gold confirming the trench results. DH 21I608 showed 12.3 metres of 3.18g/t gold associated with silicified, fractured and partly oxidised conglomerate/sandstones from the base of the Devonian Tulkubash unit, or,from the top of the Ordovician Chaarat unit.

As a result of the 2021 drill testing and trenching, three parallel prospective zones were outlined at Ishakuldy on more than 600 metres strike, open in both directions.

Chaarat will continue to follow thismineralisation along the entire prospective strike targeting both oxide and transitional tosulphide lithologies.

Sampling, Subsampling and Laboratories

A half HQ(occasionally PQ) core was sampled on average intervals of 1 to 2 metresconsidering all clear geological boundaries. FA / ICP 35 analysis were conductedby Stewart Assay and Environmental Laboratories in Kara Balta, Kyrgyzstan. In any 20 regular samples, 1 duplicate, 1 standard (reference material) and 1 blank sample were introduced. SGS laboratory in Russia, city of Chita, is used for external laboratory control.All received QA/QC results were prepared in accordance with JORC code guidelines and are meeting the international industry standards. 

Competent Persons Statement

The information in this announcement that relates to exploration results is based on and fairly represents information and supporting documentation prepared by Dimitar Dimitrov, P. Geo, AIG member and a Competent Person as defined in the 2012 edition of the JORC Code 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' . Mr. Dimitar Dimitrov is a full-time employee of the company. Mr. Dimitrov consents to the publication of this new release dated November 16^th, 2021 by Chaarat. Mr. Dimitrov certified that this news release fairly and accurately represents the information for which he is responsible.

Enquiries
Chaarat Gold Holdings Limited	[phone]
Patrick Henze (VP Corporate Development & IR)	[e-mail]
Canaccord Genuity Limited (NOMAD and Joint Broker)	+ 44 (0)20 7523 8000
Henry Fitzgerald-O'Connor
James Asensio
finnCap Limited (Joint Broker)	[phone]
Christopher Raggett
Panmure Gordon (UK) Limited (Joint Broker)	[phone]
John Prior Hugh Rich

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 the FSU through organic growth and selective M&A.

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/ .

Glossary of Technical Terms

"Central Pit"	Tulkubash deposit area as defined in the bankable feasibility study 2021
"FA / ICP 35"	Fire Assay gold assay method / Inductively Coupled Plasma is a multi-element analytical method for determination of the element content in materials, used to assay silver, base metals etc.
"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
"MRE"	Mineral Resource Estimate
"Mt"	million tonnes
"oz" "PQ Core"	troy ounce (= 31.103477 grammes) Diamond drill core with 122.6mm hole diameter
"O re Reserves"	the part of a Measured and/or Indicated Mineral Resource that can be mined at a profit.  Reserves are subdivided in order of increasing confidence into Probable and Proven categories when reporting under JORC.
"Probable Reserve"	the part of Indicated and in some cases Measured Resource that can be mined at a profit.  It includes diluting materials and allowances for losses that may occur during mining.
"Proven Reserve"	the part of Indicated a nd Measured Resource that can be mined at a profit.  It includes diluting materials and allowances for losses that may occur during mining.
"t"	tonne (= 1 million grammes)
"QA/QC"	Quality assurance and quality control (QA/QC) procedures during exploration ensures the trustworthiness of the data produced. Quality assurance (QA) and quality control (QC) are procedures used in the laboratory to ensure that all analytical measurements made are accurate.

Appendix 1: JORC_2012_Table 1_Sections_1_2_Chaarat

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	· Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole 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 mineralization that are Material to the Public Report. · In cases where 'industry standard' work has been done this would be relatively simple (e.g. '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 mineralization types (e.g. submarine nodules) may warrant disclosure of detailed information.	· Sampling comprises predominantly diamond core drilling, along with trench channel sampling and chip sampling from the new road cuts · Core was drilled through the full expected mineralization intersection, as normal to the strike as possible · All drilling is diamond core, triple-tube, predominantly at HQ diameter · All trench and road cut sampling was done with ordinary hammer, according to marked sample boundary · The average down-hole sample length is 1.5m and the average trench and road cut sample is 2.0m · The samples were contoured along all major lithological breaks · All sampling practices are meeting the industry standards · Handled XRF instrument was also available, and certain data from core and road cut measurements made through the exploration activities is available as well, although this data is not used for direct mineral assessment
Drilling techniques	· Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. 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.).	· HQ (96mm) was used as a major drilling diameter, PQ at the hole upper level and NQ at the hole deeper zones were also sporadically used, aiming to guarantee best drilling performance · Diamond core drilling was conducted with triple-tube to guarantee better core recovery · The majority of drilling is inclined, SE orientated, aiming to intercept the expected mineralization strike as normal as possible · No orientation was applied in the exploration drilling, although oriented geotechnical drilling campaign was completed in Main Pit area · Five drill rigs (HYDX) were engaged in the 2021 drilling campaign, as between 1 and 4 of them were used for the exploration drilling · Drilling equipment is in good condition, provided and operated by local subcontractor with wide experience in central Asia · All drilling procedures are meeting the industry standards · 33 exploration drill holes with total length of 4834.8m were drilled at 2021 campaign, including: -Tukubash Central Pit and Est Pit areas: 24 drill holes, 2760.3m -Karator area - 5 drill holes, 935.3m -Ishakuldy area- 4 drill holes, 1139.2m
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 logged as percent of the total length, measured directly from the core box observation · Core recovery is improved by using triple - core tube and additive drilling muds · Overall core recovery is approximately 95%, only one hole has recovery below 90% · The average down-hole sample length is 1.5m · The average trench / road cut sample length is 2.0m · All samples were collected along the observed major lithological breaks · There doesn't appear to be a relationship bias between grade and length, or sample weight and recovery · Core samples are cut in two halves, along their long axis, 1/2core is further sent to "Stewart Assay and Environmental Laboratories" in Karla Balta - Kyrgyzstan. · Total of 3826 core samples (3228 regular and 598 QAQC) were taken · Total of 6561 rock chip samples from trenches & road cuts samples were taken as well (5961 regular and 600 QAQC) · All sampling practices are meeting the industry standards
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.	· Drill core logging was done by company's geologists · Road-cuts logging was done by company's geologists · Trench logging was done by sub-contractors, under the supervision of company's geologists · Total length of the logged exploration drill holes is 4834.8m (all) · Total length of the logged exploration trenches and road cuts is 13521.4m · Core logging include lithology, hydrothermal alteration, oxidation stage, degree of fracturing, mineralization, structures, RQD, core recovery. · Additionally approx.1550m of geotechnical drilling / logging (RMR 89) was done in the Main Pit area, which have available regular geological logging as well. Anyway, these holes were not assayed and currently are not considering as a part of the exploration drilling assessment · Each day, the core was transported to the field core storage area for logging. The core trays are wooden, including wooden cover as well, to prevent core losses or extra moving · Core logging is done in laptops, using AGR 4.0 software as a base platform. · Photo documentation is done on wet trays, and data is also incorporated in the database. · At the end of the field season all core is transported at the main core storage facility, in Malovodnoye village, close to Bishkek · Logging procedures are meeting the industry standards, and are suitable for Mineral Resource Estimation
Sub-sampling techniques and sample preparation	· If core, whether cut or sawn and whether quarter, half or all cores 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.	· All intact core samples are cut along the long axis, using core saw, in case of intensively fractured zones, samples are taken with trowel · Half core is packed in labeled polyethylene bags, weighted, and further transported to "Stewart Assay and Environmental Laboratory", located in Karla Balta, Kyrgyzstan · All of the drilled core is sampled, except the top diluvium / alluvium cover · All in situ bedrock, outcropped in trenches and new road cuts were samples as well · Rock density measurements are using field Archimedes' principle, approach with wax. Density sampling is designed as per 1 sample (approx. 10 cm) for each 5 metres of core. In areas of intensively fractured rock this interval is wider due lack of proper material · The collection of geological data meets the industrial standards
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 (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	· All samples are transported to "Stewart Assay and Environmental Laboratory", located in Karla Balta, Kyrgyzstan, for further sample preparation and analysis · Through the sample preparation process, the entire sample is crushed to passing 90% at 2mm. Two pulps are made by pulverizing to 85% passing 0.075 mm. One pulp is return to the company as duplicate, the second one is analyzed, including:  Fire Assay and ICP - 35 elements · The applied QAQC scheme including approx. 15% of the core samples and 10% of the trench and road cut samples. · QAQC including: - 5 types of different reference material (standards) provided by RockLab company, used for different stages of mineralization and oxidation - Blank material, collected from barren sediments located close to the filed camp - Field duplicate samples - quarter core duplicate sample of the parent one (also quarter in this case) · Reference material (standards) analysis shows just a single outlier (+/- 3 X data stdv. as a limit), no failed samples, observed unnatural trends or other room for improvement at all · Approx. 1.3 % (8 samples) of the blanks are showing higher grades (but all below 0.4 ppm) relatively to the expected 0.05 ppm (lower detection limit of the analysis). It is considering that this is due to anomaly in the sediments (sandstones) used for blank material, rather than laboratory issue · Field duplicates are showing equal mean, median and mode and slightly lower (~ 17 %) stdv. relatively to the original sample. The difference is considered to be due to nugget effect · The applied QAQC procedures and the obtained results are meeting the industrial standards
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.	· Approximately 40 pulp duplicates of the 2021 exploration drilling were sent for verification in SGS- Russia / Chita · No twin holes were designed in the current assessment. Anyway 16 (approximately 3500m) metallurgical twin holes were done in the Kyzyltash area. They are not considered as a part of the exploration domain, but indirectly improving the reliability of the old data · All the assay results are received electronically as an excel spreadsheets, and further incorporated in the database by company's database manager · The access of the database is limited, and only authorized employees can make corrections in it · Prior to data interpretation, the lower detection limits of Au (0.05 ppm) are changed to half of the detection limit (0.025ppm)
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 at Gauss Kruger Pulkovo 1942 Zone 12 · The survey is conducted, using Lecia Total Station (centimetre accuracy) · All holes have a downhole survey, taken approx. at 25m interval, using REFLEX EZ SHOT tool · The topographic model is based on satellite data · Roads, drill sites and other topographic details have been added after on-the-ground survey
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.	· Exploration hole collars are in accordance with existing profiles, designed perpendicular to the mineralized zones · Central Pit / East Pit holes are located in several most promising clusters, aiming to infill the existing data, and to upgrade the Resource in this area. The average space of drilling within the mentioned clusters is between 40 and 80m, and it is sufficient for the planned updating · No historical drilling was available in Karator area till 2021 campaign. 2021 drill holes along with certain trenching and road cut sampling successfully confirmed the grade continuity outlined by earlier soil sampling. The drilling is sufficient to open room for further exploration activities aiming to advance the outlined prospective zone. · Similar with Karator, no historical drilling was available in Ishakuldy  area till 2021. The last exploration holes, along with certain trenching and road cut sampling manage to confirm grade continuity in this area as well, and to provide reasonable ground for further activities. The average drilling space is between 80 and 160m · Compositing in 1.5m will be applied in Central Pit / East Pit area, through the process of Resource updating. · Currently no sufficient ground for detailed Resource modeling in Karator and Ishakuldy areas. No Inferred, Measured or Indicated Resource will be reported. Compositing will not be applied
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.	· All the exploration holes were designed in attempt to intercept the expected NE striking of the mineralization as normal as possible, and to avoid any sampling biases. The average bearing of 2021 holes is approximately 150 degrees, with average dip around 50 degrees
Sample security	· The measures taken to ensure sample security.	· The samples are sufficiently secure, with security guards in the entry, on both - field camp and Malovodnoye core shed
Audits or reviews	· The results of any audits or reviews of sampling techniques and data.	· External field audit was not implemented at 2021 exploration campaign

Section 2 Reporting of Exploration Results

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 license to operate in the area.	· Chaarat ZAAV CJSC (CZ) is established in Kyrgyz Republic and is wholly - owned subsidiary of Chaarat Gold Holding Ltd (Chaarat). · CZ is developing Tulkubash Gold Project (Project) located in the Sandalash Range of the Alatau Mountains in the Chatkal district of the Jalal Abad region (province) of north-western Kyrgyzstan · The Property is located at latitude 42°1'6.91" N and longitude 71°9'39.04" E and is close to the border with Uzbekistan. The Project site is located approximately 300 km southwest of the capital Bishkek, 60 km northeast of the regional administrative center of Kanysh-Kiya in the Chatkal Valley, and 300 km by road from the nearest railway station in Shamaldy-Say · CZ sole holds two licenses, controlling the Property. · Mining (production) license: #3117AE of 700.03ha, valid to 2032 is covering defined Mineral Resources of SW part of the Property, which comprising Main Pit / Central Pit and East pit areas. The Central Pit / East Pit exploration drilling from 2021 is within this license · Exploration license # 3319AP, valid till October 2023y (including retain option), with area of 6776 ha is covering prospective ground in NE direction. Karator and Ishakuldy drilling from 2021 is within this license. · CZ is obtaining consent of the local state administration and the local governments of Chatkal Region, required to conduct exploration work · As per Kyrgyz Republic legislation, land allocation is granted for subsoil use (e.g. road construction, industrial sites, or other infrastructure facilities) for the term of license validity · CZ bear a full legal responsibility for compliance with environmental requirements under Kyrgyz Republic legislation. CZ is required to obtain relevant environmental permits, make quarterly payments for environmental pollution as per Kyrgyz Laws and submit reports on compliance with environmental requirements
Exploration done by other parties	· Acknowledgment and appraisal of exploration by other parties.	· Initial reconnaissance commences in Soviet era, in regard with identified antimony mineralization. Following the breakup of Soviet Union, Apex Asia in joint venture of Newmont Overseas Ltd complete approx. 1800m drilling and conduct geophysical survey. After 2002 CZ was formed,and acquired what is now known as Chaarat Mining License. Till 2021 CZ mange to confirm the presence of economic Au mineralization in the SW area of the Property and to open room for further exploration in NE direction
Geology	· Deposit type, geological setting and style of mineralization.	· Chaarat Gold Project (Project) is located within Tien Shan Metallogenic Belt, a Hercynian fold and thrust belt, with length more than 2500 km. Tien Shan belt is divided by three tectono-stratigraphic units, each of it divided by a major structural zone, and is thought to represent accretionary prisms, on the margin of proto Eurasian continent. The Project is located in the middle Tien Shan province, build by Ordovician - Carboniferous fragments. Structurally, the terrene is intensively deformed by pre and post mineralization structural activities, dominated by SE and NW verging fore / back thrusts and steep N-NE strike-slip faults. Genetically, the mineralization system could be reference to " Orogenic" and "Intrusion Related" types. It has NE strike and is thought to be closely related with structurally controlled Permian aged magmatism. · Two main host rock / mineralization types can be outlined in the deposit. Oxidized type of gold mineralization, hosted in Devonian silicified sandstones of Tulkubash formation. Representing relatively steep, NE striking lenses, controlled by series of dilatational jogs. The second type of mineralization is unoxidized Au zone, containing refractory gold, hosted in Ordovician flysch complex, dominated by fine-grained black shales, locally appeared in green-schist facies, and with features of comprehensive structural deformations. Both ore types are thought to represent same hydrothermal system, developed in different facies due to difference in the host rock and the stratigraphic position · Central Pit / East Pit (CP_EP) and Karator zones are part of the oxidized mineralization type, Ishakuldy is considered to be part of transitional to unoxidized mineralization type
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.	BHID Az DIP East North RL Depth ZONE DH21I596 136 -55 12685033 4663326 3015 285 ISH DH21I603 316 -45 12685031 4663196 3008 201.4 ISH DH21I608 136 -55 12684760 4663253 3184 300.1 ISH DH21I615 135 -55 12684595 4663190 3148 352.7 ISH DH21K598 135 -45 12682945 4661443 2901 158.9 Karator DH21K601 315 -45 12682610 4660940 2768 251 Karator DH21K604 135 -35 12682668 4661224 2731 180.2 Karator DH21K605 135 -60 12682667 4661225 2731 185 Karator DH21K607 135 -35 12682567 4661110 2667 160.2 Karator DH21T587 140 -55 12680050 4657226 2853 134.6 CP_EP DH21T588 140 -55 12680084 4657241 2855 163.1 CP_EP DH21T589 140 -47 12679982 4657121 2781 80.1 CP_EP DH21T590 140 -50 12680458 4657549 2722 80.7 CP_EP DH21T591 140 -55 12680481 4657579 2725 80 CP_EP DH21T592 135 -55 12680602 4657748 2821 140 CP_EP DH21T593 135 -60 12680894 4658292 3084 175.2 CP_EP DH21T594 136 -70 12681103 4658543 3117 149.8 CP_EP DH21T595 135 -50 12680948 4658294 3063 110.2 CP_EP DH21T597 136 -50 12681105 4658543 3117 71.5 CP_EP DH21T599 135 -60 12680739 4658062 2997 90.5 CP_EP DH21T600 135 -65 12680706 4658090 3021 150.4 CP_EP DH21T602 135 -50 12680771 4658146 3034 150 CP_EP DH21T606 95 -55 12681281 4658537 3037 100.2 CP_EP DH21T609 135 -55 12681179 4658588 3132 80.5 CP_EP DH21T610 135 -50 12681182 4658740 3129 85 CP_EP DH21T611 135 -58 12681146 4658608 3146 150.4 CP_EP DH21T612 135 -60 12681226 4658634 3120 85 CP_EP DH21T613 135 -50 12680097 4657281 2857 130.2 CP_EP DH21T614 135 -65 12680042 4657176 2819 120.4 CP_EP DH21T616 135 -50 12681190 4658682 3139 160 CP_EP DH21T617 135 -60 12681151 4658663 3156 85.1 CP_EP DH21T618 136 -50 12681231 4658755 3140 60.2 CP_EP DH21T619 135 -58 12679996 4657168 2817 127.2 CP_EP
Data aggregation methods	· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. 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.	· Only Central Pit / East Pit holes will be currently incorporated in to block model, aiming to advance the existing Unclassified and Inferred Resources in the area. In this regard different geostatistical approaches including grade population histograms, Q-Q and P-P plots will be implemented for choosing reasonable domains, sample compositing and top cutting grades, prior to data interpolation · Overall, the results from 2021 exploration campaign, have available grade intercepts, with COG of 0.21g/t, accepted for Tulkubash style mineralization, certain rules are applied. For a maximum length of interval below the COG, but included in the calculations, is considered 6.0m. Each interval should start and end with sample >= COG. For top cap grade is considered 20 ppm, weighting averaging (length X grades) techniques are used for mean grades calculations
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 (e.g. 'down hole length, true width not known').	· No historical drilling is available in Karator and Ishakudy areas Nevertheless, based on the surface observation and the experience from the already well explored Main Pit and Kyzyltash areas, which have similar structural and mineralization style with the exploration targets, it is considering that the majority of the exploration holes are intercepting the expected zone close to normal, and significant fluctuations between intercepts and the true width are not expected · Central Pit / East Pit collars are supported by sufficient amount of historical data, aiming to avoid any significant fluctuation between the intercepts and the true width as well · Except some drill intercepts at Karator, true widths are estimated based on az/dip hole orientation and strike/dip of intersected mineralization
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.	· Wide variety of 2D and 3D graphics, maps, plots and wireframes are available, the combination of which is fully sufficient to visual description of the reported data
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 avoiding misleading reporting of Exploration Results.	· No comprehensive reporting will be done for Karator and Ishakuldy areas. All low and high grades and widths are reported · Central Pit and East Pit results will be used for updating the already available Resource model in this SW area (last update 2020)
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.	· Along with the pure exploration activities at 2021 several other technical assessments, were also done including geotechnical and hydrogeological survey in Main Pit (oxidized type of mineralization), based on 13 holes (approx. 1550m) and 16 more metallurgical holes (approx.3500m) in Kyzyltash area (unoxidized mineralization type)
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.	· Magnetic drone-based geophysics in the whole Property area, to define additional exploration targets · Additional drilling and trenching in Karator and Ishakuldy areas, accompanied by metallurgical, geotechnical and hydrogeological surveys, aim to develop comprehensive Mineral Resource Estimation · Additional drilling and trenching in Kyzyltash area, for obtaining more details of the existing Resource and for defining the NE extension of the zone

Appendix 2: Gold intercept table from the 2021 infill and exploration drilling at Tulkubash Oxide Gold Project Deposit and new exploration prospects Karator and Ishakuldy. The table generated using Tulkubash COG 0.21g/t cut-off grade and allowing 6 metres internal dilution. Where possible true widths are estimated.

	Hole	East, m	North, m	Elev, m	Az	Dip	Dept, m	From, m	Drill width, m	Au, g/t	Interpreted
											True width, m
T u l k u b a s h  C e n t r a l  P i t	DH21T587	12680049,91	4657225,666	2853,452	140	-55	134,6	84,0	4,5	1,70	4,5
	and							100,5	3,0	1,25	3,0
	and							111,0	3,0	0,48	3,0
	DH21T588	12680084,44	4657240,535	2854,777	140	-55	163,1	67,5	3,0	1,46	2,8
	and							81,0	15,0	0,52	12,5
	and							108,0	3,0	1,08	2,8
	DH21T589	12679981,77	4657120,88	2781,138	140	-47	80,1	52,5	4,5	4,85	4,5
	including							54,0	1,5	11,91	1,5
	DH21T590	12680457,97	4657549,03	2722,01	140	-50	80,7	36,0	4,5	3,20	3,6
	including							37,5	1,5	8,04	1,2
	DH21T591	12680481,42	4657579,25	2725,068	140	-55	80,0	21,0	13,5	0,57	10,5
	DH21T592	12680601,85	4657748,128	2820,656	135	-55	140,0	no significant intercepts
	DH21T593	12680893,76	4658292,118	3084	135	-60	175,2	60,0	10,5	0,37	8,4
	and							84,0	7,5	0,52	6,0
	and							103,5	16,5	2,04	13,2
	including							109,5	6,0	4,10	4,8
	DH21T595	12680947,89	4658294,395	3063,11	135	-50	110,2	9,0	4,5	0,35	3,6
	and							67,5	3,0	0,45	2,8
	DH21T599	12680738,95	4658062,009	2997,36	135	-60	90,5	no significant intercepts
	DH21T600	12680706,42	4658090,035	3020,845	135	-65	150,4	82,9	15,0	1,44	15,0
	including							91,9	1,5	4,00	1,5
	DH21T602	12680770,9	4658145,67	3033,75	135	-50	150,0	70,6	21,9	0,45	21,9
	and							103,0	7,5	0,55	7,5
	DH21T613	12680096,67	4657280,656	2856,884	135	-50	130,2	93,0	3,0	0,306	2,7
	and							105,0	3,0	0,583	2,7
	DH21T614	12680041,7	4657175,543	2818,992	135	-65	120,4	45,9	5,3	1,94	5,3
	including							46,8	2,9	3,017	2,9
	and							72,2	4,5	0,44	4,5
	and							106,7	6,0	0,33	6,0
	DH21T619	12679996,22	4657167,505	2816,575	135	-58	127,2	55,7	3,0	0,46	3,0
	and							87,2	11,6	0,83	11,6
	including							87,2	1,1	5,45	1,1
T u l k u b a s h  e a s t area	DH21T594	12681103,45	4658543,28	3116,99	136	-70	149,8	114,0	3,0	1,17	2,6
	DH21T597	12681104,95	4658542,645	3116,967	136	-50	71,5	no significant intercepts
	DH21T606	12681280,62	4658536,825	3036,603	95	-55	100,2	51,0	22,8	0,45	18,2
	DH21T609	12681179,18	4658587,5	3132,117	135	-55	80,5	73,5	6,0	0,99	4,8
	DH21T610	12681181,98	4658739,918	3129,259	135	-50	85,0	no significant intercepts
	DH21T611	12681145,6	4658607,7	3145,99	135	-58	150,4	130,6	6,0	6,58	4,8
	including							132,1	4,5	8,40	3,6
	DH21T612	12681225,84	4658633,969	3119,845	135	-60	85,0	18,4	1,5	2,96	1,2
	DH21T616	12681190,2	4658681,715	3139,476	135	-50	160,0	12,5	7,5	1,14	6,0
	DH21T617	12681150,6	4658662,533	3156,208	135	-60	85,1	43,3	5,5	2,09	4,4
	including							43,3	4,0	2,64	3,2
	DH21T618	12681230,57	4658755,278	3139,59	136	-50	60,2	no significant intercepts
K a r a t o r	DH21K598	12682944,84	4661442,501	2900,712	135	-45	158,9	128,2	25,5	0,88	*
	including							134,2	3,0	3,29	*
	DH21K601	12682609,69	4660940,015	2767,835	315	-45	251,0	9,9	6,0	1,05	6,0
	and							63,9	60,0	1,32	60,0
	including							68,4	3,0	2,14	3,0
	including							83,4	6,0	5,06	6,0
	DH21K604	12682668,21	4661224,256	2731,091	135	-35	180,2	30,0	3,0	0,69	*
	and							49,5	6,0	0,60	*
	and							130,0	3,0	0,64	*
	and							141,5	6,0	1,07	4,5
	and							155,0	16,5	0,89	12,4
	DH21K605	12682667,15	4661225,425	2730,892	135	-60	185,0	53,0	25,0	0,91	18,0
	and							90,9	7,7	0,44	5,5
	DH21K607	12682566,59	4661110,331	2666,559	135	-35	160,2	105,0	26,5	0,38	*
I s h a k u l d y	DH21I596	12685032,7	4663326,49	3015,103	136	-55	285,0	83,7	12,1	0,28	9,1
	and							125,7	6,0	1,67	4,8
	including							125,7	1,5	5,66	1,2
	and							231,4	53,6	0,52	48,2
	DH21I603	12685030,93	4663196,361	3007,725	316	-45	201,4	172,5	4,5	1,14	*
	and							198,0	3,4	0,49	*
	DH21I608	12684759,96	4663252,664	3184,031	136	-55	300,1	0,0	3,0	0,46	2,2
	and							79,6	24,0	0,58	18,0
	and							129,1	3,0	0,59	2,7
	and							253,5	12,3	3,18	11,1
	DH21I615	12684594,87	4663189,876	3147,648	135	-55	352,7	19,9	7,1	0,50	5,3
	and							40,5	3,0	0,52	2,3
	and							78,0	3,0	0,52	2,3
	and							135,5	9,3	0,34	7,0
	and							205,6	12,7	0,28	10,8
	and							249,6	2,7	2,15	2,3
	and							279,6	9,4	1,13	8,4
	*	No sufficient data to estimate, or interpret true width

Appendix 3: Gold intercept table from the 2021 trenching at Tulkubash Oxide Gold Deposit and new exploration prospects Karator and Ishakuldy. The table generated using Tulkubash COG 0.21g/t cut-off grade and allowing 6 metres internal dilution. The trench widths are close to true widths.

	Trenches	East, m	North, m	Elev, m	Length, m	Az	From, m	To, m	Trench width, m	Au, g/t
T u l k u b a s h  C e n t r a l  P i t	TR21T066	12680693	4657954	2980	545,0	169,0	8,0	16,0	8,0	5,61
	including						10,0	14,0	4,0	10,34
	and						526,0	534,0	8,0	0,518
	TR21T067	12680915	4658248	3068	365,0	154,7	44,0	78,0	34,0	0,58
	and						160,0	164,0	4,0	0,45
	TR21T070	12680041	4657280	2896	458,0	102,2	157,0	165,0	8,0	1,56
	including						163,0	165,0	2,0	4,77
	and						175,0	180,5	5,5	0,64
	and						249,0	253,0	4,0	0,79
	and						279,0	285,0	6,0	0,90
	and						356,0	360,0	4,0	0,44
T u l k u b a s h  east area	TR21T083	12681556	4658810	3006	100,0	111,5	no significant intercepts
	TR21T086	12681354	4658728	3111	84,0	134,6	no significant intercepts
	TR21T087	12681488	4658542	2932	41,0	135,1	no significant intercepts
	TR21T088	12681190	4658561	3115	144,0	145,0	52,0	64,0	12,0	0,32
K a r a t o r	TR21T074	12683182	4661441	3012	82,0	242,2	12,0	20,0	8,0	0,46
	and						28,0	32,0	4,0	0,95
	and						44,0	64,0	20,0	0,77
	TR21T075	12682923	4661429	2900	214,0	254,3	no significant intercepts
	TR21T077	12683004	4661273	2916	171,0	289,0	2,0	6,0	4,0	0,28
	and						74,0	102,0	28,0	1,68
	including						94,0	100,0	6,0	3,09
	TR21T078	12682909	4661091	2914	275,0	314,2	178,0	190,0	12,0	1,06
	and						200,0	220,0	20,0	0,64
	and						234,0	254,0	20,0	1,45
	including						238,0	240,0	2,0	4,89
	TR21T100	12682514	4660886	2717	132,5	235,1	54,0	58,0	4,0	1,41
	and						68,0	70,0	2,0	1,68
	TR21T101	12682643	4660883	2742	143,0	241,3	48,0	62,0	14	3,61
	and						133,0	143,0	10	0,32
	TR21T102	12682573	4660951	2756	127,0	276,4	61,0	65,0	4,0	2,89
	and						81,0	127,0	46,0	1,15
	including						85,0	91,0	6,0	4,02
	TR21T103	12682715	4660971	2823	82,0	307,88	52,0	58,0	6,0	0,98
	TR21T104	12682636	4661034	2747	99,0	301,22	8,0	58,0	50,0	1,32
	including						18,0	20,0	2,0	6,00
	including						40,0	42,0	2,0	9,89
I s h a k u l d y	TR21T093	12683696	4662589	3401	383,0	179,8	0,0	4,0	4,0	0,25
	and						189,0	195,0	6,0	0,67
	and						335,0	239,0	4,0	0,49
	TR21T094	12683710	4662692	3409	416,0	103,3	61,0	67,0	6,0	1,06
	and						77,0	81,0	4,0	0,56
	and						122,0	146,0	24,0	0,45
	TR21T096	12683950	4662898	3365	459,5	98,2	259,0	263,0	4,0	0,89
	and						275,0	279,0	4,0	0,56
	and						297,0	301,0	4,0	1,53
	and						409,0	413,0	4,0	1,23
	TR21T107	12684957	4663138	3071	176,0	132,0	48,0	54,0	6,0	0,32
	and						98,6	122,0	23,4	0,34
	and						142,0	150,0	8,0	1,38
	TR21T108	12685065	4663330	3001	100,0	126,8	52,0	62,0	10,0	0,39
	and						78,0	98,0	20,0	0,41
	TR21T109	12685186	4663320	2915	206,0	89,5	30,0	32,0	2,0	2,86
	and						84,0	104,0	20,0	0,40
	TR21T110	12685092	4663015	2984	435,0	140,4	no significant intercepts
	TR21T111	12684787	4663244	3187	330,0	168,2	8,0	26,0	18,0	0,68
	and						38,0	66,0	28,0	2,36
	including						50,0	60,0	10,0	5,09
	and						96,0	102,0	6,0	0,82

ENDS

 

END

 

 

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