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21/09/2011

Chaarat Gold CEO says there's lots of potential for shareholders in the stock

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Additional Information
Market: AIM
Sector: General Mining - Gold
EPIC: CGH
Latest Price: 32.63p  (-0.37% Descending)
52-week High: 56.00p
52-week Low: 20.00p
Market Cap: 81.73M
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Chaarat Gold
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.

Full Chaarat Gold profile here
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UPDATE: Chaarat upbeat over Tulkubash extension drilling

22nd Nov 2011, 3:04 pm by Philip Whiterow Dekel Golan, chief executive, said the group was “very encouraged” by the results as they demonstrated the significant extension, potential and actual, of the Tulkubash zone

---Adds broker comments and share price ---

Chaarat Gold (LON:CGH) has reported a positive result from its ongoing drilling programme in the Tulkubash Project in north western Kyrgyzstan.

The Kyrgyz - focused gold group said its Tulkubash mineralisation had extended from a previous strike of 360 metres to 920 metres and is still open towards the northeast.

Dekel Golan, chief executive, said the group was “very encouraged” by the results as they demonstrated the significant extension, potential and actual, of the Tulkubash zone.

“The prospect of extended strike, as well as improved predictability and continuity, which is effectively confirmed by this drilling, will potentially enable Chaarat to increase production from this low cost ore body and further improve its profit potential for the early years of operation,” he added.

Chaarat said that 19 out of 20 holes drilled in the north west extension and 9 holes in the south eastern extension intersected mineralisation at the predicted depth. The range of results included 6.25m at 8.58 g/t gold and 11.25m at 8.21 g/t gold at the top end to 11.25m at 2.19 g/t gold.

Mr Golan added: “We are confident that the scenario should improve further with drilling along strike, especially to the north east of the zone; drilling which will commence during the spring of next year.  An updated resource and reserve estimate based on the 2011 drilling will be released early in 2012."

A previous resource estimate based on 2010 drilling showed indicated and inferred resources of 321,000 ounces at a grade of 4.00 g/t in a portion of the Tulkubash zone. The Tulkubash Zone is one of three major zones of mineralisation within the Chaarat Gold Project.

Following the update, analyst Yuen Low of broker Shore Capital, highlighted that an updated resource and reserve estimate was expected in early 2012.

"The extended strike should have a positive impact on project economics. Although too early to quantify, we expect a positive impact on the share price," he said.

As at 2.52 pm, the firm's shares were up 2.88 per cent, to trade at 26.75 pence.

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