www.chaarat.com
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.
Chaarat Gold says drill results confirm thickness and mineralisation grade at Contact Zone in Kyrgyzstan
Chaarat Gold Holdings (AIM: CGH) said results from two drives and eight drill holes in the underground section of project area C5300 at the Contact Zone in Kyrgyzstan were encouraging with grades reaching 7 g/t (grammes per tonne) of gold.
The highlights of the drilling included intersections of 8.94 metres at 4.06 g/t gold, 21 metres at 3.72 g/t gold, 18 metres at 3.66 g/t gold, 9 metres at 7 g/t gold, 15.83 metres at 4.03 g/t gold, 6.50 metres at 5.97 g/t gold and 7.84 metres at 5.37 g/t gold.
The Contact Zone, which is one of three parallel zones of gold mineralisation on the Chaarat license area, has been delineated over a strike length of 1,340 metres and is host to a JORC compliant resource of 1.42 Moz (million ounces) grading 4.21 g/t gold, representing approximately 43% of the overall resource of the Chaarat Gold Property of 3.34 Moz at a grade of 4.30 g/t gold. Another mineralisation on the property, the Main Zone, hosts a JORC compliant resource of approximately 1.5 million ounces (Moz) at a grade of 4.31 grams per tonne gold, over a strike length of four kilometres.
The C5300 project area is the northernmost of the three projects along the Contact Zone ore body. The resource for the C5300 project at the end of 2008 has been calculated at 1.01 million ounces at an average grade of 4.27 g/t to a drill defined depth of up to 520m below surface.
The company said the results demonstrated the continuity of the thickness and grade of mineralisation between the C5300 area and the other two projects in the Contact Zone along strike to the south.
"These results are additional evidence of management's view that the Contact Zone represents a large viable mining target and will form part of the revised resource statement, which will be released later this quarter. The C5300 Project Area demonstrates excellent continuity and persistent wide intersections that will allow the company to pursue, with increased confidence, its intention to establish a low cost bulk mining operation on these wide zones of mineralisation,” said chief executive of Chaarat Dekel Golan.
Shares in the company rose 5.2% on the news.
