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Chaarat Gold prepares for drilling new targets at Chontash copper-gold-silver deposit in Kyrgyzstan

Published: 07:41 12 Jun 2012 BST

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Chaarat Gold Holdings (LON:CGH) has identified seven new targets around the known mineralisation at the Chontash project in Kyrgyzstan, and it is currently building access roads which will allow drilling equipment to be moved to the respective sites.

The group reported on the results of the 2011 exploration season on the property which it acquired in 2010.

The targets were identified by combining previously available information with new geophysical surveys.

A drilling program prioritized some targets for follow up drilling but access was possible only to one target, and the early onset of winter only allowed drilling one hole.

The hole intersected skarn hosted molybdenum mineralisation for a length of 30.5 metres, followed by a 39 metres copper-gold porphyry at a lower level. The hole was planned to reach a depth of 550 metres but drilling stopped at 344 metres due to adverse weather conditions.

Chontash is located in the Akshirak range of mountains which extend along the edge of the main fault in the region, the Talas Fergana. The range hosts a number of mineral deposits; the best known being the Makmal deposit from which almost 1.5 million ounces of gold have been extracted.

The Makmal mine is currently being brought back into production which gives the Chontash project the significant advantage of being close to mining infrastructure, Chaarat said.

Two related targets have been identified at the known Chontash mineralisation: a porphyry intrusive body which has the potential to be developed into a copper-gold-silver deposit and a skarn deposit with molybdenum mineralisation at its periphery which seems to be "enveloping" the intrusive.

Chief executive Dekel Golan said: "Chontash has the potential to become another significant project for the company adding to the already exciting Chaarat project.

“We will continue our methodical and systematic exploration approach by repeating and augmenting certain geophysical works and developing a drilling programme which we believe may identify another major deposit in the Central Asian mountains, adding to the other large porphyry systems hosted in the Central Tien Shan belt.”

Chaarat Gold's main activity is the development of the Chaarat Gold project situated within the Middle Tien Shan mountains, which form part of the Tien Shan gold belt.

A JORC compliant mineral resource of 5.590 million ounces at a grade of 4.08 grams per ton gold has been delineated there.

Chaarat's key objective is to become a low cost gold producer, with initial production from the Tulkubash project targeting increased combined annual production of over 200,000 ounces as the full project comes on stream.

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