Positive drilling results at Chaarat Gold Project

RNS Number : 0553Q

Chaarat Gold Holdings Ltd

07 September 2017

 

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

POSITIVE DRILLING RESULTS AT THE CHAARAT GOLD PROJECT

Road Town, Tortola, British Virgin Islands (7th September 2017)

Chaarat (AIM - CGH), the AIM quoted exploration and development company with assets in the Kyrgyz Republic, is pleased to provide an update on the drilling programme in the Tulkubash Zone of the Chaarat Gold Project.

Highlights

·    Positive drill results including:

·     Section 480: CCH17T07279: True width of 24.5 metres of 1.35g/t Au from a depth of 82 metres

·    Section 1400: CCH17T07293:  True width of 11.4 metres of 2.54 g/t Au from a depth of 264.5 metres

·    Section 1960: CCH17T07305: True width of 18.4 metres of 1.49 g/t Au from a depth of 4.5 metres

·    Section 2240: CCH17&24257: True width of 35.2 metres of 1.05 g/t Au from a depth of 68.5 metres

·    Additional mineralisation identified within the current Tulkubash pit

·    Mineralisation extends from the current Tulkubash pit to connect with other drilled areas (satellite pits) to increase pit length from approximately 1,100 to 2,200 metres

·    Mineralisation open to the northeast with indications of continuity for at least three kilometres   

·    Substantial potential to increase the life of mine of the Tulkubash open pit heap leach project.

·    Drilling program extended to 15,000 meters from 11,000 metres.

Robert Benbow, CEO of Chaarat, commented: "The results reported today continue to demonstrate the untapped potential of the Tulkubash heap leach project. The 2017 drilling program, as highlighted in the sections selected above, has identified oxide mineralisation for another kilometre northeast of the current Tulkubash pit and it is still open in that direction.  We have progressed ahead of schedule and, with the encouraging results to date, are adding 4,000 metres to the drilling program this season bringing the target to 15,000 metres.

We remain confident that the reserve base of the Tulkubash Project can be enlarged to significantly extend the life of mine. Once the mine plan is updated we expect the pre-stripping required before gold production commences to be considerably reduced. A reduction in the pre-stripping and the extension of the life of mine are expected to impact positively on the economics of the Project.  The Feasibility Study for the Tulkubash heap leach Project is due for completion in Q1 2018."

Enquiries:  

Chaarat Gold Holdings Limited	+ 44 20 7499 2612
c/o Central Asia Services Limited	[e-mail]
Robert Benbow   CEO
Linda Naylor FD
Numis Securities Limited	[phone]
John Prior, Paul Gillam (NOMAD)
James Black (Broker)

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 Contact and Main Zones. The Tulkubash Zone is a mineralized shear that contains multiple gold-bearing lodes.  The Tulkubash Zone strikes parallel to the other two zones and has been traced for a distance of 10 kilometres to the Ishakuldy area to the northeast.   The mineralised zones dip at 65-80 degrees to the NW.

Drilling in the Tulkubash Zone

Prior to this year, a total of 299 holes have been drilled in the Tulkubash Deposit. The results of this drilling were reported in the 2014 resource update.

The 2017 Tulkubash drilling program consists of approximately 15,000 metre in-fill and step-out development drilling. The objective of the drilling program is to develop and enlarge the shallow, open pit, heap leachable reserve base of the Project by (i) increasing the mineralisation in the Tulkubash main and satellite pits (ii) upgrading material that is currently classified as an inferred resource at the bottom of the planned pits, and (iii) consolidating material on the periphery of the planned pits as well as drilling to the northeast that could potentially delineate new mineralisation to expand the resource.

Positive results to date have been obtained from within the Tulkubash Zone where the Company has demonstrated strong continuity of mineralisation.  An on-going program of assaying for cyanide soluble gold is continuing to assess the amenability of the ore to processing by conventional heap leaching.

Geology of the Tulkubash Zone

Gold mineralisation occurs within the Tulkubash Formation, a thickly bedded massive quartzite.  The gold occurs in quartzite breccias, quartz stockwork zones, and intensely silicified quartz flooded zones that form multiple parallel lodes that trend northeast and dip 60 to 80 degrees to the northwest.   The individual gold-bearing lodes combine to form a mineralized zone that varies from 110 to 250 metres wide that has been developed over a strike length of 2,160 metres.  Mineralisation is open to the northeast along strike and down dip below the limits of the current drilling (±150 metres).  The gold is very fine grained and is associated with minor pyrite and stibnite.  The Tulkubash Zone is strongly oxidized and contains free milling ore.

Further update

Chaarat will provide a further update on the Feasibility Study for the Tulkubash heap leach project, which will be available in the first quarter of 2018, in its half year results statement to 30 June 2017 which will be released shortly.

 

Appendix 1: The table below includes the results from holes drilled and assayed (only gold grades are included).

Significant intercepts from 49 drill holes are summarised in the table below.  Significant intercepts are defined as intercepts greater than 10m in width above a 0.25 cut off or greater than 3m in width at a 0.25 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 metre 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 metre. Approximate true width is estimated from cross sectional interpretations.

		Drilling			Approx.
Drill		Interval		Width	true width wwidthThickness	Au
Hole	Section	From	To	(m)	(m)	g/t
CCH17T07304	440	54.00	81.00	27.00	20.3	0.97
	440	87.00	97.50	10.50	7.9	0.95
CCH17T07279	480	4.0	10.0	6.0	4.0	1.52
	480	82.0	121.0	39.0	24.5	1.35
including	480	82.0	91.0	9.0	5.7	2.75
CCH17T07303	480	3.0	7.5	4.5	3.0	2.11
	480	82.5	94.5	12.0	6.3	2.57
	480	102.0	112.5	10.5	5.7	1.05
	480	121.5	126.0	4.5	3.0	2.60
CCH17T07229	520	7.0	16.0	9.0	7.4	1.88
	520	98.5	142.0	43.5	31.5	1.17
CCH17T07274	520	106.5	117.0	10.5	9.2	4.60
	520	144.0	157.5	13.5	11.5	0.35
	520	174.0	177.0	3.0	2.3	2.05
CCH17T07269	800	81.5	105.4	23.9	23.9	0.48
CCH17T07261	840	55.50	78.00	22.50	18.50	0.62
including	840	64.50	67.5	3.0	1.5	2.02
	840	84.0	103.5	19.4	14.5	0.94
including	840	94.50	103.5	9.0	4.50	1.76
CCH17T07252	880	15.0	39.0	24.0	7.1	0.43
including	880	36.0	39.0	3.0	2.8	1.20
CCH17T07271	880	67.0	76.0	9.0	7.2	1.04
CCH17T07260	920	21.5	45.5	24.0	19.5	0.67
including	920	29.0	41.0	12.0	9.8	1.03
	920	63.5	83.0	19.5	17.5	0.44
	920	107.0	115.0	8.0	6.7	1.24
CCH17T07281	920	22.5	55.5	33.0	33.0	0.52
including	920	22.5	25.5	3.0	3.0	1.33
CCH17T07250	1040	21.5	32.0	10.5	8.5	0.36
CCH17T07239	1120	15.0	18.0	3.0	3.0	1.30
CCH17T07232	1200	27.0	37.5	10.5	5.6	0.55
including	1200	27.0	34.5	7.5	4.8	0.69
CCH17T07277	1200	58.5	75.0	16.5	10.9	0.63
CCH17T07241	1240	70.50	82.50	12.0	7.1	0.44
CCH17T07243	1320	121.5	127.5	6.0	5.6	1.21
CCH17T07293	1400	12.5	24.5	12.0	11.5	0.38
	1400	41.0	53.0	12.0	10.8	0.76
	1400	237.5	258.5	21.0	16.5	0.44
	1400	264.5	282.5	18.0	14.3	2.06
including	1400	264.5	278.0	13.5	11.4	2.54
CCH17T07296	1440	1.0	38.5	37.5	21.7	0.81
including	1440	25.0	38.5	13.5	7.0	1.40
CCH17T07297	1440	144.5	155.0	10.5	6.8	0.53
CCH17T07276	1480	33.0	57.0	24.0	20.3	0.79
including	1480	52.5	57.0	4.5	4.5	2.16
	1480	120.0	126.0	6.0	6.0	1.17
	1480	175.5	184.5	9.0	9.0	1.11
CCH17T07295	1520	25.50	33.00	7.50	6.20	1.72
	1520	37.50	49.50	12.00	9.30	1.35
CCH17T07291	1560	30.0	33.0	3.0	2.2	3.50
	1560	193.5	201.0	7.5	6.1	1.06
CCH17T07264	1680	97.5	112.5	15.0	11.5	0.61
CCH17T07268	1720	168.0	174.0	6.0	4.3	1.22
including	1720	169.5	174.0	4.5	3.3	1.48
CCH17T07255	1760	130.0	137.5	7.5	6.4	1.26
CCH17T07284	1760	129.0	139.5	10.5	8.0	0.45
	1760	150.0	163.5	13.5	10.7	0.67
CCH17T07245	1800	12.5	48.5	36.0	28.9	0.37
including	1800	36.5	39.5	3.0	1.5	1.04
CCH17T07249	1840	6.0	21.0	15.0	15.0	0.33
CCH17T07244	1880	38.5	44.5	6.0	5.5	1.44
	1880	94.0	106.0	12.0	8.0	1.09
CCH17T07263	1880	31.5	42.0	10.5	8.6	0.46
CCH17T07258	1920	46.5	58.5	12.0	9.0	0.48
CCH17T07286	1920	18.0	22.5	4.5	4.5	2.54
CCH17T07288	1960	60.5	71.0	10.5	8.6	2.76
including	1960	66.5	71.0	4.5	3.9	5.91
CCH17T07305	1960	4.5	24.0	22.5	18.4	1.49
	1960	36.0	46.5	10.5	8.1	1.00
CCH17T07270	2040	73.5	93.0	19.5	15.0	0.41
CCH17T07256	2040	112.5	124.5	12.0	7.6	0.34
CCH17T07287	2040	32.5	43.0	10.5	10.5	0.61
CCH17T24234	2080	108.0	113.8	5.8	3.0	2.81
CCH17T07282	2160	58.5	76.5	18.0	18.0	0.99
including	2160	64.5	69.0	4.5	4.5	1.46
	2160	124.5	142.5	18.0	18.0	0.39
CCH17T07272	2200	40.5	52.5	12.0	9.8	0.85
CCH17T07300	2200	48.0	69.0	21.0	18.0	0.67
	2200	84.0	96.0	12.0	10.0	0.37
CCH17T24257	2240	68.5	115.0	46.5	35.2	1.05
including	2240	95.5	115.0	19.5	14.5	1.82
CCH17T07265	2240	75.5	89.0	13.5	13.5	1.12
CCH17T24254	2280	96.0	139.2	43.2	27.0	0.95
CCH17T24259	2320	41.0	65.0	24.0	14.2	0.87
including	2320	45.5	57.5	12.0	8.5	1.55
	2320	72.5	80.0	7.5	6.0	0.77
CCH17T07283	2320	44.0	56.0	12.0	12.0	0.73
including	2320	48.5	54.5	6.0	6.0	1.10
CCH17T07278	2400	19.5	25.5	6.0	5.3	2.07
CCH17T07301	2400	111.0	141.0	30.0	16.5	0.98

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.  Cyanide soluble gold is analysed using a using a 24 hour (60°C starting temperature) cyanide leach. 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. 

Representative composites have been selected and shipped to McClelland Laboratories, Inc. for metallurgical testwork to support the Feasibility Study for the Tulkubash heap leach Project.

Competent Person

The Competent Person with overall responsibility for this press release, and who has reviewed the information contained herein, is Frank Fenne, P.G., who is an employee of Chaarat. Frank is a mining geologist with more than 47 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' and he was supervisor to the work which is the subject of this release. Mr Fenne consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

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" "koz"	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 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)

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

 

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