Updated resource statement

RNS Number : 0023C

Chaarat Gold Holdings Ltd

23 June 2016

 

Chaarat Gold Holdings Limited

("Chaarat" or "the Company")

Updated resource statement for the Chaarat Gold Project

Road Town, Tortola, British Virgin Islands (23 June 2016)

Chaarat (AIM: CGH), the AIM quoted gold exploration and development company with assets in the Kyrgyz Republic, is pleased to provide an updated resource statement for the Chaarat Gold Project.

Highlights:

·      Total JORC compliant resource increased 15% from 6.1 million ounces to 7.04 million ounces

·      Resource cut-off grade based on the Feasibility Study (FS) prepared by NERIN

·      First stage of development likely to be heap leach project in the Tulkubash Zone

·      Tulkubash Zone resource increases 26% to 912 koz of which 90% is in the Measured and Indicated category

The Chaarat resource statement has been updated to reflect the results of the mine plan included in the Feasibility Study (FS) prepared by NERIN.  This has improved the profile of the deposit in both the principal mineralized systems within the Chaarat deposit.

Tulkubash Zone

The Tulkubash system consists of a multitude of relatively thin veins hosted in quartzite from which gold can be recovered by direct leaching due to the low sulphur content of the ore.  The FS confirmed that due to the low cost of processing using the heap leach method, the appropriate cut-off grade (COG) for this section of the deposit should be 0.5 g/t.  Although the grade of the resource has slightly reduced from 1.71 g/t to 1.35g/t, the economically recoverable resource has increased by 26% from 650k ounces to 819k ounces.   

The economics of the project will benefit from a larger recoverable resource with a lower strip ratio.  This development is of significance since it is likely that the first stage development of the Chaarat Project will be a heap leach project. 

Main and Contact Zones

The mineralisation of the Contact Zone and the Main Zone is refractory ore which means a stage of oxidation is required before gold can be extracted by leaching. 

The FS has established that it is economic to mine the Main and Contact Zones by a combination of open pit and underground methods.  The mine plan established a cut-off grade of 1.0g/t for the open pit refractory ore and 1.8 g/t for the underground refractory ore.  The anticipated higher cost of processing and treatment of refractory ore will be offset by the increased gold content and excellent anticipated recoveries.

This has made a minimal impact on the quantity of economic resource in these Zones but it has established the optimal mining method.

Dekel Golan CEO commented: "In line with our twin track strategy we are continuing to move towards project development as well as talking to potential acquirers and partners.  In that context the increase of the Tulkubash resource (and reserves which the FS estimated at 523k ounces (non JORC)) underpins a significant development opportunity."

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)

Summary of Estimated Resources June 2016

Tulkubash open pit  heap leach COG 0.5 g/t Au	Tonnes (kt)	Au grade (g/t)	Content (koz)
Measured	12,902	1.41	583
Indicated	5,911	1.24	236
Measured & Indicated	18,813	1.35	819
Inferred	2,124	1.36	93
Total	20,937	1.35	912

Main and Contact zones open pit refractory COG 1.0 g/t Au	Tonnes (kt)	Au grade (g/t)	Content (koz)
Measured	9,172	2.13	630
Indicated	15,361	2.54	1,253
Measured & Indicated	24,533	2.39	1,883
Inferred	2,478	2.26	180
Total	27,011	2.38	2,063

Main and Contact zones underground refractory COG 1.8 g/t Au	Tonnes (kt)	Au grade (g/t)	Content (koz)
Measured	3,215	3.05	315
Indicated	25,844	3.63	3,013
Measured & Indicated	29,059	3.56	3,328
Inferred	6,068	3.79	740
Total	35,127	3.60	4,068

Total for all zones	Tonnes (kt)	Au grade (g/t)	Content (koz)
Total Measured and Indicated	72,405	2.59	6,030
Inferred	10,670	2.95	1,013
Total	83,075		7,043

Quantity and grade are estimates and are rounded to reflect the fact that the resource estimate is an approximation.  Mineral resources are not ore reserves and do not have demonstrated economic viability.  There is no certainty that all or any part of the mineral resource will be converted to reserves.  Quantities may not add or multiply due to rounding.

Glossary of Technical Terms "Ag" "Au" chemical symbol for silver 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
"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)

Competent Person

The Competent Person, who has reviewed the resource and reserve information contained herein, is Sunit Patel, M.Sc. (Geology), FGS, GSSA. Sunit is an exploration geologist with more than 27 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 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Patel consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

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.

 

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