Project update

RNS Number : 1492W

Chaarat Gold Holdings Ltd

17 August 2015

 

Chaarat Gold Holdings Limited

("Chaarat" or "the Company")

Project update

Road Town, Tortola, British Virgin Islands (17 August 2015)

Chaarat (AIM - CGH), the AIM quoted exploration and development company with assets in the Kyrgyz Republic, is pleased to provide an update on progress with the development of the Chaarat Gold Project (the Project) and the related Definitive Feasibility Study (DFS). 

·    Work continues towards completion of the DFS  

·    Public hearings process successfully completed - local communities support the Chaarat Project

·    Alluvial gold production underway to sterilise the Chaarat Project area

Definitive Feasibility Study

When your Board last reported on progress with the DFS, we drew your attention to the challenges of the cultural differences and different technical approaches inherent in our decision to use a Chinese engineering company. In fact our attempts to reconcile and co-ordinate Western study practices with Chinese technical approaches as well as interface the work with local Kyrgyz standards has proved even more challenging and time consuming than we anticipated.  

There have been two principal challenges. The first was the large volume of technical Chinese to Russian translation for review by local Kyrgyz institutes. The review process, in order to ensure compliance of the project design with local regulations, is now underway following completion of the translations. The second is the formal and thorough review process which NFC (who have overall responsibility for the DFS) and NERIN (the design institute affiliated to NFC who are carrying out the work on the DFS)  have to complete to comply with Chinese regulatory standards before they can "sign off" the DFS. Review meetings will take place in China over the next few weeks between the senior management of Chaarat and NERIN and NFC to address the second challenge. The Board anticipates issuing a further update to the market on timing to completion of the DFS at the conclusion of these meetings.  

Licence to operate

As part of the process of obtaining our licence to operate, we have been engaging with local communities to explain our plans for developing the Chaarat Project.  We have listened to and discussed the concerns of the local communities and explained the benefits of the development.

In June a visit to the Copler mine in Turkey was organised with the assistance of Alacer Gold Corp. The mine is an open pit heap leach operation similar to that planned for the Chaarat Project.   A delegation of 16 leaders from the Chatkal local communities was able to see for themselves how heap leach production operates. They talked to residents from villages near the mine to understand the local employment opportunities and other benefits of the development which could also be enjoyed at Chaarat.  Just as importantly they could understand the measures taken to ensure any negative impact of the mine on the environment was contained.

Following an extensive campaign the communities of the Chatkal valley conducted a "public hearing" in early July during which they voted on whether to support the development of the Chaarat Project and its permitting. We are very pleased to report that the project was strongly supported by local communities.

This is a significant achievement on the way to full permitting of the Chaarat Project prior to production.

Alluvial gold production

Under Kyrgyz regulations (and in common with mining regulations throughout the world) Chaarat is required to ensure there are no gold deposits in areas where we wish to build infrastructure, a process called sterilisation.   The work is being undertaken by a contractor with production of more than 6 kg of gold to date.

Dekel Golan CEO comments: "I reported in June that the DFS remained on track for delivery imminently. We understand and share the frustration of our shareholders that the DFS is not yet available. We are doing our best to complete the work as soon as possible and certainly do not take for granted the exemplary patience of our supportive shareholders."

Enquiries:  

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

NOTES TO EDITORS:

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 preparing a Definitive Feasibility Study and continuing its 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.

 

END

 

 

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