Chaarat Gold’s (LON:CGH) deadline to submit the development proposal for its gold mine in Kyrgyzstan has been extended by two years.
The Kyrgyz government has approved an extension to December 2018, from December 2016, to the time by which regulatory approvals for the project's development have to be obtained.
Dekel Golan, chief executive, said the junior was following a two-track strategy to develop the gold mine at Chaarat of ‘keeping the door open for an acquirer or joint venture partner while adding value to the Chaarat deposit by developing a realistic profitable option to get into production’.
A feasibility study published in April indicated a net present value (NPV) of US$615mln, an internal rate of return of 25% and all-in-sustaining costs of US$605 pr oz.
Average production would 211,000 oz per year with a heap leach operation at the Tulkubash site likely to be the first stage development.
“The publication of the DFS in early 2016 has provided a benchmark to underpin the value of the Chaarat Project and generated an increase in the level of interest shown by potential industry partners,” Golan added.
Approval for the heap leach was granted last year with the full agreement of local communities, Chaarat said.
The Kyrgyz government has also recently awarded a tender that included the requirement to construct a smelter a short distance from Chaarat.
This open up the possibility of a project based on the refractory ore in the Main and Contact zones, by generating a smeltable concentrate and eliminating the need for an oxidisation plant.
Results for 2015 showed a loss of US$4.6mln (US$13.6mln) with cash at the year-end of US$2.84mln.