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Chaarat’s strategy to become leading mid-tier gold producer now augmented by stated desire for M&A deals

Published: 08:31 10 Apr 2018 BST

gold
The Tulkubash oxide deposit already boasts more than a million ounces of gold

Chaarat Gold Holdings Ltd (LON:CGH) has updated the market on its development strategy with a clear statement of intent. The company plans to become a leading mid-tier gold producer focused in Central Asia and the former Soviet Union.

This will be achieved via the initial development of the Chaarat gold project in Kyrgyzstan but the company's position will be further enhanced by selective M&A in the region.

“The first step in Chaarat's strategy is to take the Chaarat Project into production, by adopting a two phase strategy,” said non-executive chairman Martin Andersson.

“Production will be achieved initially through the development of the Tulkubash oxide ore using open pit mining and a heap leach processing facility in order to generate around US$40-US$60 mln free cash flow per annum. In parallel with this development, the company will carry out an aggressive exploration programme to significantly improve the Tulkubash mine plan ahead of the first gold pour, which is expected in 2020.”

Andersson also outlined the longer-term plans:

“Phase 2 of the Chaarat Project is to develop the Kyzyltash refractory sulphide ore, which has the potential to produce 200,000-300,000 ounces of gold per annum, generating free cash flow of US$150-US$200mln per year,” he said. 

“I remain encouraged by the support expressed for the Chaarat Project at the highest levels of government in the Kyrgyz Republic as evidenced at my recent meeting with the Prime Minister. Additionally, Chaarat will look to pursue selective M&A opportunities in Central Asia and the former Soviet Union as the Company believes it is a region that is ripe for consolidation, and that Chaarat is well positioned to be able to deliver this.”

The company will host an investor conference call on Monday 16 April 2018 at 12:00 BST, during which Robert Benbow, chief executive, and Dorian L. (Dusty) Nicol, chair of the company's Technical Committee, will discuss strategy and answer questions. 

 

Chaarat Gold makes strong progress with Tulkubash open-pit project in the...

Chaarat Gold Holdings Ltd (AIM:CGH) chief financial officer David Mackenzie joined Proactive's Stephen Gunnion with an overview of the company's operations in the Kyrgyz Republic, where it is advancing two significant projects on the same license: Tulkubash and Kyzyltash. Tulkubash, an...

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