Update on Tulkubash Heap Leach Project

RNS Number : 2562K

Chaarat Gold Holdings Ltd

06 July 2017

 

Chaarat Gold Holdings Limited
 

("Chaarat" or the "Company")

Update on Tulkubash Heap Leach Project

Road Town, Tortola, British Virgin Islands (6^th July 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 development of the Tulkubash Heap Leach Project.

Highlights

·     Key project workflows on track

·     Local permitting well advanced

·     Majority of the land required for the project leased for the life of the project

·     Head of Geology appointed to join recently recruited Project Manager

·     Drill program to increase the Tulkubash Project reserve and life of mine on schedule  

Project approvals update

We have made good progress on the approvals process. The terms of our mining licence for the Tulkubash Project requires we submit a document called a Technical Project (TP) by 31 December 2018 to the State Committee of Energy, Industry and Subsoil Use. The TP sets out the detailed plan for development of the deposit and will be submitted with the environmental impact assessment (or OVOS) of the proposed development.

The Company has received a positive expert evaluation on the OVOS, which marks the achievement of a significant milestone in developing the Tulkubash Project and further substantiates the support of the local community in 2015 of the development plans.

The land allocations for all areas required for the deposit's operational and infrastructure facilities must also be secured.  60% of the land required for the project footprint has now been leased by the Company until 2032 being the period of the current licence agreement.

Continued senior recruitment

We are very pleased to announce that Frank Fenne has been recruited as Head of Geology. He brings to the company over 30 years of experience in exploration, project development, and mine operations.  He has managed exploration and development projects in the western U.S., Mexico, and in the Philippines.  As the Vice President of Exploration for Vista Gold Corp., he planned and managed a staged development drilling program in Australia that resulted in 5.5 Moz of gold in reported reserves and added 6.5 Moz of gold in total resources.  As Technical Services Manager at the Kinross Round Mountain Mine in Nevada, he developed plans and managed feasibility studies that resulted in a pit expansion that added five years of mine life and 2.4 million ounces to reserves.

Davron Vakhabov joined the project team in May. He brings over ten years of extensive international contracting and projects management experience which include various project management positions in Alacer Gold Corp's Çöpler Gold Mine. Working with Robert Benbow (Chaarat's COO) he was a member of the original mine construction team before moving to responsibility for all plant and heap leach pad expansion projects. Prior to joining Chaarat, Davron was an area manager responsible for infrastructure at Lydian International's Amulsar Gold Project in Armenia.

Securing key personnel to deliver the project is critical and recruitment continues to strengthen the project team.

Drilling

Drilling to increase the resource base and project reserves is ongoing with 12 rigs on site. 2,000 metres have been drilled thus far from a planned program of 11,000 metres which is due for completion by the end of the season.

Infrastructure

Construction on the site access road has commenced but later than planned due to extended winter weather.  The Company is reviewing options to expedite the road's completion.

Financing

We are continuing to work on the financing options for the Tulkubash Project with Endeavour Financial and site visits are being arranged throughout the summer for interested parties.

Martin Andersson, Chairman comments: "I am pleased to welcome Frank and Davron to the team.  Whilst I do not wish to underestimate the challenges of meeting our ambitious timeline to production, I am encouraged that the project is progressing on schedule and the management team has been further strengthened."

Enquiries:

Chaarat Gold Holdings Limited	+ 44 (0) 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)

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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