Chaarat Gold Holdings Ltd (LON:CGH) has significantly increased the resource estimate for its Tulkubash oxide gold deposit in the Kyrgyz Republic.
The AIM-quoted firm has been carrying out an intensive drill campaign at the project this year, drilling just over 10,500 metres since the end of January.
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With the new data in hand, Chaarat now believes there are 1.41mln ounces (oz) of gold underfoot at Tulkubash – 46% more than it previously thought.
Being in the measured and indicated resources category, the explorer is fairly confident that the gold is in the ground. The next step will be to undertake more drilling, with the aim of moving those resources into reserves – the amount of gold it thinks it can, and is worthwhile, getting out.
The plan is to drill another 20,000 metres between now and the end of October, at which point, Chaarat will release a new reserve update. Using that data, a new resource update will be published early in 2019.
As well as the resource upgrade, the average grade has also been increased by 57%; from 0.86 grams per tonne gold (g/t Au) to 1.35 g/t Au.
Chaarat, which has also extended the strike length by just over a kilometre to 3.2km, said the latest round of drilling has enhanced its knowledge of the deposit.
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“We are very excited by this interim resource update for Tulkubash,” said technical director and head of exploration Dusty Nicol.
“Results continue to validate our belief that Tulkubash will not only continue to grow into a world-class gold deposit, but indeed is the beginning of an emerging new gold district.”
He added: “We are of the opinion that the significant increases in tonnage, grade, and contained ounces will have a positive effect on the new reserve estimate that the company will complete in October.”
Shares were unchanged at 24.2p early on Tuesday.