Chaarat Gold Holdings Limited (LON:CGH) has struck more gold its Tulkubash project in the Kyrgyz Republic in the latest round of drilling.
Since the beginning of September, AIM-quoted Chaarat has carried out another 9,000 metres of drilling at Tulkubash, which has an existing resource of 1.5mln ounces of gold.
With the results now in hand, Chaarat confirmed it had identified new, shallow mineralisation within the current pit design.
The drilling also extended the strike by over 500m and added gold mineralisation within the existing resource footprint.
Among the results was a 7.0m intercept grading 3.96 grams per tonne (g/t) of gold (Au) from a depth of 43.5m, as well as a 14.0m intercept at 0.83 g/t Au from 19.5m.
Chaarat added that road cuts have exposed “new, significant mineralisation” in the Segment IV part of the project, with one 32.0m intersection grading 1.01g/t Au.
“We continue to be very encouraged by the ongoing results of our drilling at Tulkubash,” said the head of exploration Dusty Nicol.
“Drilling since the interim resource update in September continues to add oxide gold mineralization. We continue to focus our drilling on mineral resource addition with the objective of maximising conversion to reserve and enhancing Tulkubash project economics.
He added: “We will be completing a year-end resource update on the completion of this season's drilling. We expect to complete the year-end resource update early in January 2019. This will form the basis of an updated reserve estimate and financial model to be completed by end-February 2019.”
By the end of this month (November) when operations are set to wind down, Chaarat expects to have completed another 900m of drilling, taking the total this year to around 20,500.
It had previously hoped to drill 30,000 metres this year, but a very dry spring and summer led to drill water shortages. Chaarat said it is taking steps to engineer a water delivery system to prevent the issue from happening again.
US$10mln funding secured
In a separate announcement, Chaarat confirmed it had secured funding of US$10mln with a previous note holder.
The money will be used to further develop Tulkubash and support the recently announced US$55mln Kapan acquisition.
“This new financing agreement is a clear expression of confidence in Chaarat's management and growth strategy,” said chief executive Artem Volynets.
“The Loan demonstrates our ability to raise capital. It also reflects Chaarat's commitment to finance the company's strategy while managing dilution and cost of capital through a combination of debt, hybrid and equity instruments.”