Chaarat Gold Holdings Ltd (LON:CGH) has significantly increased the resource estimate at the Tulkubash deposit, part of the Charaat Gold Project in the Kyrgyz Republic in Central Asia.
The last estimate suggested there were just over 800,000 ounces of gold at Tulkubash, but today’s update puts that figure closer to 1mln oz.
READ: Chaarat sees 3km of mineralisation at Tulkubash
To be precise, the updated estimate identifies a combined Measured and Indicated resource of 35.24mln tonnes at 0.86 grams per tonne, containing 971,000oz of gold, as well as an Inferred resource of 3.78mln tonnes at 0.68 g/t, containing 83,000oz of gold.
In its 2017 drill programme, Chaarat drilled 60% more metres than it had originally expected and said on Wednesday that is has the cash in place to carry out another “extensive drilling programme” this year.
This new round of drilling, it is hoped, will further identify the “full potential” of the Tulkubash oxide resource.
Resource update ‘highlights success of 2017 drill programme’
“This robust resource update, which significantly increases the tonnes and gold of the oxide resource, underpins our strategic plan to unlock value for our stakeholders, as well as highlighting the success of the 2017 drilling programme,” said chief executive Robert Benbow.
“These results demonstrate that we are on track with our strategy to develop the Chaarat deposit in stages: initially targeting the Tulkubash oxides; followed by the very substantial higher-grade refractory Kyzyltash resource within our mine license area.”
Benbow added: “Our better understanding of the geometry of the ore bodies obtained as part of our resource update has further added to our confidence that the oxide resource can be significantly extended along strike.”
Chaarat shares were unchanged at 21.7p on Wednesday morning.