Chaarat’s new feasibility study for Tulkubash envisions production running at 94,000 ounces of gold per year, at an all-in sustaining cost of US$819 per ounce.
The mine life is currently set at 5.3 years, but the company is confident that future exploration results will add significantly to the initial mine life ahead of first production.
The plan is for Tulkubash to become a long-term cash generator to sustain the organic growth of Chaarat.
According to the feasibility study it will cost US$110mln to build.
"An almost 40% year-on-year increase in Tulkubash's gold reserves demonstrates the remarkable future growth potential of the Tulkubash project,” said chief executive Artem Volynets.
“To achieve this whilst also reducing the level of capital expenditure required to bring the mine into production again illustrates the quality of this asset.”
In early morning trading, shares in Chaarat Gold were 5.3% higher at 32p.
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