Chaarat Gold

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Chaarat is an exploration and development company operating in the Kyrgyz Republic with its current main activity being the development of the Chaarat Gold Project. The Chaarat Gold Project is situated within the Middle Tien Shan Mountains of Kyrgyzstan which form part of the Tien Shan gold belt. The Company has thus far delineated a JORC compliant mineral resource of 4.009 Moz at a grade of 4.14 g/t gold. 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. 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.

Chaarat Gold’s Chinese investment partner in £2m subscription

Tuesday, July 27, 2010 by Jamie Ashcroft
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Chaarat Gold’s (LON:CGH) Chinese investment partner, China Nonferrous Metals International Mining Co Ltd (CNMIM), has decided to subscribe for new shares worth £2m. Through the transaction, CNMIM will maintain its 19.9% equity stake in the company following the recent £3.85m equity placing and the share-based acquisition of Kryex.

The subscription is subject to certain domestic approvals from the Chinese, which are expected to be granted by 31 October 2010.

The company also announced that all conditions relating to the Kryex deal have now been satisified, and it has now completed the transaction. The deal sees Chaarat issue 54 shares for each Kryex share held. In total the company is issuing 11.9m shares to Kryex shareholders, which represents 9.73% of Chaarat’s issued share capital before the transaction and CNMIM subscription.

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Kryex holds four large license areas in the north west of the Kyrgyz Republic, and its three most prospective assets are Chontash, Mironovskoye and Kyzil Ompul.

A JORC-compliant resource estimate conducted by SRK Consulting Zimbabwe for Chintash classified 3.2 Mt (million tonnes) at a grade of 0.223% Mo (molybdenum) in the Inferred category. Soviet-era drilling results have also indicated some potential for significant copper values.

The Mironovskoye gold-silver-copper deposit was extensively explored during the Soviet era. Work undertaken by Kyrex has indicated that the  resource model may have been based on bismuth cut-offs and a grade of 1.2% Cu, and 1.7g/t gold could be estimated for a similar tonnage. Mironovskoye is easily accessible and infrastructure is in place with the previously operating gold mine of Taldy Bulak only 30 km (kilometres) to the southwest.

Kyzil Ompul is an early stage licence  area in which a number of small gold, copper, molybdenum, lead and uranium deposits have been delineated by Soviet geological teams.

Chaarat’s flagship asset is the 4 Moz (million ounce) Chaarat gold project in Kyrgyzstan.

In mid-May the company reported that findings of the preliminary feasibility study at the Chaarat project indicate the potential of implementing an initial high grade, low-cost, open pit mine within the T0700 project area. The focus of a preliminary feasibility study has been on the Tulkubash zone of the Chaarat project, and in particular area TO700.

This zone currently has resources of 336,000 ounces at a grade of 4.18 g/t (grammes per tonne). The company has thus far delineated a JORC compliant mineral resource of 4.009 Moz at a grade of 4.14 g/t gold. A scoping study demonstrating the economic viability of the Chaarat Gold Project was completed at the end of 2008.


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Additional Information

Market:AIM
Sector:General Mining - Gold
EPIC:CGH
Latest Price: 38.25p  (-1.31% Descending)
52-week High:60.50p
52-week Low:21.75p
Market Cap:51.44M

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