Chaarat Gold is an exploration and development company operating in the Kyrgyz Republic. The Company’s main activity is the development of the Kiziltash and Tulkubash projects situated within the Middle Tien Shan Mountains of Kyrgyzstan, which form part of the Tien Shan gold belt. The Company has delineated a JORC compliant mineral resource of 4.406Moz at a grade of 4.20g/t gold across both projects. Chaarat's key objective is to become a low cost gold producer; with initial production from the Tulkubash project, targeting annual production of over 200,000 ounces per annum as the Kiziltash project comes on stream.
05/12/11
Kyrgyzstan is already a significant exporter of gold thanks to the country’s Kumtor mine, which after 16 years in operation has produced several million ounces of gold. Chaarat believes it has an opportunity to duplicate that success
07/02/11
The junior gold company unveiled a £51 million funding that will fast-track the first gold pour to 2012. It will initially start open-pit mining from the Tulkubash open pit later this year. This lower-cost operation will help fund a massive underground development that will access over 4 million ounces of contained gold. We caught up with Mark Heyhoe of Westhouse Securities to get his take on this compelling central Asian gold story.
02/11/10
Chaarat Gold will split its 4 million ounce gold project in the Kyrgyz Republic, to bring the Tulkubash open pit into production quicker, with first gold expected as early as Q4 2011. Meanwhile the company is still progressing the Main Project's underground development, with a drilling programme being readied to facilitate a definitive feasibility study.
17/08/10
We get a progress report from boss Dekel Golan and find him in an up-beat and confident mood about the potential of Chaarat's mine in Kyrgyzstan.
09/03/10
Shares rose more than 10 percent in reaction to the good news from the Chaarat deposit in the Kyrgyz Republic, where evaluation of recent drilling added 670,000oz to the total resource.
22/12/11
Chaarat Gold issues share options to directors07/12/11
Chaarat Gold’s Tulkubash project on target to start production in 201322/11/11
UPDATE: Chaarat upbeat over Tulkubash extension drilling22/11/11
Chaarat upbeat over Tulkubash extension drilling24/10/11
Chaarat Gold chairman Palmer-Tomkinson buys company shares
21/09/2011
20/09/2011
26/11/2009
Chaarat Gold Holdings Ltd is a gold exploration and development company which is listed on London’s Alternative Investment Market (AIM:CGH).
The Company has a 100% interest in the 604 square kilometre exploration licence in the western part of the Kyrgyz Republic, which covers an area of extensive gold mineralisation, within the Tien Shan Gold Belt. In 2010, the Company announced a resource update at its Chaarat Gold Project, delineating a JORC compliant mineral resource of 4 Moz at a grade of 4.14 g/t gold. The resource increase was the result of a 5,357 metre drilling programme across a six kilometre strike length.
A scoping study demonstrating the economic viability of the Chaarat Gold Project was completed at the end of 2008. The Company is currently in the process of compiling a pre-feasibility study which is on track for completion Q3 2010. Chaarat's objective is to become a low cost gold producer targeting an initial production of over 200,000 ounces per annum by early 2013.
Extensive prospecting has only been conducted on one of the three known clusters of gold occurrences within an area of approximately 48km2, referred to as the Chaarat Gold Project, which hosts many highly prospective gold occurrences. The two other prospective clusters which have been identified in the Licence area, Minteke and Kashkasu will be explored as soon as practical.
For more information about Kiziltash please click here.
Tulkubash
Project Geology
The Chaarat license area hosts two types of mineralisation the Chaarat refractory mineralisation hosted in the Main and Contact Zones and the primarily free-milling mineralisation of the Tulkubash zone.
The whole area of the Chaarat deposit was subject to a pre-feasibility study which is being completed now by SNC Lavalin from South Africa. However it was identified that it may be possible to “ring-fence” the Tulkubash free milling project and fast-track it to production. Whilst the Company intends to develop the full project, the board of Chaarat decided that it makes sense to fast-track the Tulkubash project. SNC Lavalin was mandated with producing a definitive feasibility study which is currently being prepared.
The preliminary assumption is that the Tulkubash project can process 700-1,000 tonnes per day of ore and that based on that, a production rate of 30,000-50,000 ounces per year may be possible.
The project will be built so as to not to interfere with the construction of the larger scale project. It is important to note that most of the investment in the Tulkubash project will be used later by the larger Chaarat project, hence the capital cost will be allocated accordingly.
There is no power on site and the power lines in Chatkal are not adequate. The company plans to build a power line to the property. Having said that, the Tulkubash project, which is not going to require a lot of power, will initially be powered by generators.
For more information about Tulkubash please click here.
Minteke
Minteke Area is underlain by sedimentary formations of Sandalash suite of the Cambrian- Ordovician age, composed by interlayers of shales, siltstones, sandstones and limestones. Intrusive rocks are represented by dioritic boss like body of 2x3 km. size and by dykes of diorite porphyries and granodiorite-porphyries. Faulting is of north-west strike to sublatitudinal, with few faults of north-east strike.
North – west trending faults have near-vertical dips of 75-80 degrees to north-east, while the dip of north-eastern trending faults is shallower at 40-70 degrees to south-east. The Faults are well-manifested by zones of crushing, iron-staining, bleaching and silicification. Thickness of the zones ranges from 1 m. to 10 m. Visual on strike extension is from 10-250 m.
In the 2008 field season, prospecting work was accomplished by 30 km of geological traverses, with sampling, geological-geochemical profiles at zones of silicification and iron-staining. In total 30 km. of traverses and 113 chip samples were accomplished.
Sampling in Minteke took place during the Soviet period, when some Au anomalies were first defined. Additional sampling was done by Newmont and Chaarat Gold in 2006. Sampling in 2008 was focused on altered areas defined in satellite photos. As a result, a NW-SE trending zone (transverse to the Chaarat NE-SW trending zone) was defined. Highly anomalous samples (Au up to 3.4 ppm) from a zone 2-3meters wide were taken over a strike length of more than 2.5km, open ended on both sides.
Sulfide mineralization - pyrite, cahlcopyrite and sometimes stibnite is rarely met in zones of silicification, iron-staining and bleaching. Secondary minerals such as limonite, malachite and sometimes azurite are widespread.
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Minteke area – Geology. Green – Cambro Ordovician Chaarat formation, Pink – Permian intrusives. Gold anomalies defined by red triangles (Newmont 2000) and circles (Chaarat, 2006, 2008).
Tayalmish
The attractive features of this area is the presence of highly significant stream sediment Au result (>300ppb) down stream from possible extension of the Contact Zone between Tulkubash (Orange color in Figure 2) and Chaarat rocks (Green color in Figure 2) and the presence of an intrusive (Pink) associated with widespread alteration (stippled red in Figure 2). While few traverses in 2006 failed to demonstrate mineralizaton, another attempt was made by Chaarat during 2008 to understand the mineralisation.
The area is underlain by interlayered siltstones, sandstones, limestones, siliceous shales and cherts of the Chaarat and Karator formations. Complex of small intrusions of diorites, diorite porphyrites, granodiorite porphyries, rhyolite porphyries is present. Dykes thickness is 3-30 m.; strike extension is 200-2000 m. Hornfelsing and chilled margins are observed along the contacts with sedimentary formations.
Steeply dipping (60-70 degrees due North) faulting of north-western and east-west directions (strike azimuth of 250-290 degrees), is wide spread. Faulting is accompanied by cataclastic zones with thickness of 5-15 m. along which iron staining, bleaching and silicification are observed. There are quartz veins, lenses of 0.3 to 3 m. thickness and strike length of 5-50 m. Ore mineralization (pyrite, chalcopyrite, molybdenite and galena) encountered during prospecting is mostly confined to zones of silicification, quartz veins and to lesser extent to zones of bleaching and iron-staining.
This zone is at least 2 km long and remains open ended on both sides. It is associated with large mineralized intrusive in the Chaarat footwall which locally carries economical grades of Mo (>1% Mo) and anomalous W (up to 0.05%). Mineralization is of Au-Ag-As, just as in Chaarat. Gold mineralization reaches 5 g/t in outcrops, usually near the contact of the diorite with sandstones. The width of the zone is about 1-2m, but trenching into buried wall rocks could increase it substantially. A new zone with Cu grades >1% and Ag grades>100 g/t has been identified 4km to the NW, within the Tulkubash formation. Pyrite, chalcopyrite, galena, and copper green (malachite and azurite) are noted within silicifed and iron stained sandstones.
Tayalmish – Minteke area. Tayalmish area at upper part. Green – Chaarat formation, Orange – Tulkubash formation. Pink – granitic intrusive. Pale blue – glaciers. Red stipples – alteration. Red circles – Au, Green triangles – Mo, Turquoise squares – Cu, Blue triangles – Ag.
Kashkasu
This area is underlain by Cambro – Ordovician siltstones greywackes and cherts of the Sandalash group (Chaarat and Karator formations), Devonian sandstones of the Tulkubash formation and late Paleozoic granitic pluton. The contact between the Devonian and the Ordovician formation in a moderate to steeply dipping thrust, known as the Contact Zone, which is an important control on mineralization in Chaarat, 10km to the east.
Soviet reports on significant gold mineralization (10meters, >12 g/t) prompted prospecting in 2004, 2005 and 2008. It has not been possible as yet in spite of some effort made to repeat those results. Alteration is diffuse and sporadic, consisting of sericitization, argilitization and silicification, with minor Fe oxides following oxidation of pyrite.
For information regarding all of Chaarat Gold's projects please click here.
Christopher David Palmer-Tomkinson (Non-Executive Chairman)
Christopher graduated from Oxford University with a degree in jurisprudence and joined Cazenove in 1963. He served as a partner from 1972 until 2001 and as managing director of international corporate finance until May 2002. He was responsible at various times for Cazenove’s African and Australian business which enabled him to focus on the resource sector. Christopher is also a former director of Highland Gold Mining Limited. He is the Chairman of Chaarat's Renumeration Committee and a member of the Audit Committee.
Luo Tao (Non-Executive Deputy Chairman)
Luo Tao is the Chairman of China Nonferrous Metals Int’l Mining Co. Ltd (CNMIM), and President of China Nonferrous Metal Mining (Group) Co. Ltd, the parent company of CNMIM. He is the Deputy Chairman of Chaarat and sits on the remuneration committee. Luo Tao is a senior economist with over 30 years experience in the nonferrous metals industry in China, and was a Vice Director of Beijing General Research Institute for Nonferrous Metals. He was also the Chairman of Committee of Supervisors and Vice President of Aluminium Corporation of China Ltd (CHALCO), a company listed on the New York Stock Exchange and Hong Kong Stock Exchange.
Dekel Golan (Chief Executive Officer)
Dekel Golan is a graduate of Tel Aviv University. Formerly president of Apex Asia LDC, a subsidiary of Apex Silver Mines Limited, he has extensive experience in promoting and developing businesses both in emerging economies as well as the developed world. Dekel was the founder and Executive Chairman of APC Limited, a coffee and tea producer in Africa. In addition, he has advised a number of international and Israeli companies on business development. Prior to those activities Dekel was Vice President of Business Development of Supersol, the largest retail operator in Israel and worked at Dead Sea Bromine Group, the world’s largest bromine producer.
Alexander Novak (Executive Director)
Alex Novak is a graduate of the Kazakh Polytechnic Institute (M.Sc). Alex has assisted several companies investing in Kyrgyzstan in various aspects of finance, administration and representation vis a vis the local authorities since 2000. He has more than 25 years experience in all aspects of business management in Central Asia including negotiations with governmental institutions, contractors, preparation of development plans, monitoring of operations and public relations.
He was instrumental in drafting and signing investment agreements between the government of the Kyrgyz Republic and two extraction companies, Textonic and Kumushtak, a subsidiary of Apex Silver Mines Limited. From 1992 to 1995, Alex was a founding partner and a director of Maya Elev Diamond Limited, a diamond processing plant in Russia. From 1978 through to 1990, Alex held several positions at numerous construction companies in Kazakhstan, including Director of KazStroiMontajAvtomatika.
Linda Naylor (Finance Director)
Linda is a graduate of the London School of Economics and a Fellow of the Institute of Chartered Accountants in England & Wales. A former partner in Grant Thornton UK LLP, her experience gained over more than twenty years included working as a nominated adviser in the Capital Markets team from 1996 and as an audit partner specialising in the natural resource sector.
Dr Robert Weinberg MA, DPhil, FGS, FIMMM (Non-Executive Director)
Rob Weinberg gained his doctorate in geology from Oxford University in 1973 and has more than 35 years of international mining industry experience. He is an independent mining research analyst and consultant. He is a Fellow of the Geological Society of London and also a Fellow of the Institute of Materials, Minerals and Mining.
Chairman of the Audit Committee of Chaarat, he brings a wealth of marketing and investment banking experience to the Company having held executive positions that include being Managing Director, Institutional Investment at the World Gold Council. Previously he was a Director of the Investment Banking Division of Deutsche Bank in London after having been head of the global mining research team at SG Warburg Securities and head of the mining team at James Capel & Co. He was formerly Marketing Manager of the Gold and Uranium Division of Anglo American Corporation of South Africa Ltd.
Rob is currently an independent non-executive Director of Kasbah Resources Ltd listed on the ASX, Medusa Mining Ltd which is listed on the ASX, LSE and TSX and AIM listed Solomon Gold plc and Metallon Corporation Plc, a private company.
David Tang (Non-Executive Director)
David Tang is President of CNMIM. In the early 1990’s, David pioneered the trading system for the first nonferrous metals future commodity exchange in China and worked for several years in Canada in the investment management and consulting industry, before returning to China to take up office at CNMIM. He also holds a Master of Science degree and is a member of Chaarat's Audit Committee.
Company Secretary
Linda Naylor
c/o Central Asia Services Limited
6 Conduit Street
London W1S 2XE
Tel: +44 (0) 20 7499 2612
Fax: +44 (0) 5601 264 433
Registered Office
Palm Grove House
PO Box 438
Road Town, Tortola
British Virgin Islands, VG1110
Company Number
1420336
Nominated Adviser and Broker
Westhouse Securities Limited
One Angel Court
London, EC2R 7HJ
Solicitors to the Company as to English law
Maclay Murray & Spens
One London Wall
London, EC2Y 5AB
Solicitors to the Company as to Kyrgyz law
Kalikova & Associates
71 Erkindik Boulevard, Bishkek
720040
Kyrgyz Republic
Solicitors to the Company as to BVI law
Equity Trust (BVI) Limited
PO Box 438
Road Town, Tortola
British Virgin Islands
Auditors
PKF UK LLP
Farringdon Place
20 Farringdon Road
EC1M 3AP
Investor Relations
Smith`s Corporate Advisory Limited
20 Northdown Street
London
N1 9BG
Tel: +44 (20) 7239 0140
Financial Public Relations
Bankside Consultants Limited
1 Frederick's Place
London EC2R 8AE
Tel: +44 (0)20 7367 8888
Principal Bankers
Royal Bank of Scotland International
Royal Bank Place
1 Glategny Esplanade
St Peter Port
Guernsey
Registrars
Capita Registrars (Guernsey) Limited
2nd Floor, No 1 Le Truchot
St Peter Port
Guernsey
Depositary
Capita IRG Trustees Limited
The Registry
34 Beckenham Road
Beckenham
Kent, BR3 4TU
Chaarat Gold Holdings Limited
PO Box 438
Palm Grove House
Road Town
TORTOLA
British Virgin Islands
Postal address only:
c/o Central Asia Services Limited
6 Conduit Street
London W1S 2XE
Tel: +44 (0) 20 7499 2612
Fax: +44 (0) 5601 264 433
Email: info@chaarat.com
Media Enquiries:
Simon Rothschild
Bankside Consultants Limited
1 Frederick's Place
London EC2R 8AE
DD: +44 (0)20 7367 8871
Tel: +44 (0)20 7367 8888
Mob: +44 (0)77 0316 7065
Fax: +44 (0)20 7367 8899
Email: simon.rothschild@bankside.com
Share Capital:
Shares Held %
Not in public hands 36,944,113 14.76%
Total shares in issue 250,324,368
(Updated from Chaarat's website on 17.08.11)
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