This was the first deposit explored by Chaarat and is the second development phase of the Tulkubash/Kyzyltash gold complex.
Kyzyltash is part of the same license area and geological occurrence as Chaarat's current construction project, Tulkubash. The license area contains two gold mineralization zones within the project area divided into two types, the Tulkubash mineralization, which is oxidized material, and the Kyzyltash mineralization which is sulphide-rich, unoxidized refractory material.
The deposit has an estimated 5.4mln ounces in JORC compliant resources with an average grade of 3.8 grams per tonne.
The current resource has been developed along a strike length of four kilometres and favourable geology extends for over 20 kilometres of strike length. Further potential for an ore body extension is anticipated down dip based on the current understanding of the deposit but requires further drill testing.
The Tulkubash/Kyzyltash phased development is Chaarat's flagship project and the company is working towards an update of Kyzyltash's standalone 2016 feasibility study produced by NERIN (China) next to the construction of the first phase Tulkubash development.
The 2016 feasibility study valued the project on a stand alone basis at a net present value of US$309mln based on an 8% discount rate and an underlying gold price of US$1,250 per ounce.
Chaarat has now completed a preliminary metallurgical assessment, prepared by John Marsden of Metallurgium, a US-based metallurgical consulting company. Marsden has 40 years of relevant experience and has been involved in the ore processing of several similar deposits.
The study concluded that oxidative treatment of the Kyzyltash sulphide resource will be required prior to conventional cyanide leaching.
It also anticipates potential gold recoveries in the range of between 83% and 90%, depending on the choice of technology and the results of future metallurgical testing.
Chaarat will now undertake drilling at Kyzyltash to provide samples for further testing.
The test results are expected to be available in early 2021, which would enable Chaarat to choose the appropriate technology for project development.
On this basis an updated feasibility study is now expected in 2022, with financing in 2023 and construction in the following two years. Construction of around 300,000 ounces per year is expected thereafter.