Chaarat Gold Holdings Ltd (AIM:CGH) reported strong metallurgical test results on its Kyzyltash gold project in the Kyrgyz Republic.
The metallurgical test work, conducted by SGS Lakefield, showed similar first stage recoveries from both pressure oxidation (POX) and AlbionTM technologies, said the AIM-traded gold producer.
The AlbionTM process employs ultra-fine grinding followed by aerated cyanide leaching to extract gold while POX uses high-pressure and temperature conditions to oxidize refractory sulphides prior to gold extraction by conventional carbon-in-leach technology.
The metallurgical test results, carried out on samples from last year’s drilling programme, showed that the ore was amenable to froth flotation recovering 87-90% of gold with a 23-24% mass pull. Leach recovery for the two processes averaged 80-90%.
“These first results of the Kyzyltash metallurgical test work have provided confirmation that the gold is favourably recoverable with various technologies,” said chief executive Mike Fraser.
“The fact that the results from the AlbionTM process were similar to POX is very encouraging as AlbionTM could potentially offer a substantially simpler, lower cost means of processing Kyzyltash ore.”
Bio-oxidation (BIOX) test work is ongoing with results expected in the third quarter. The company will then compare the potential processing technologies before making a final decision in 2023.
Following this decision, Chaarat said it will look to progress towards an updated feasibility study on the project.
Fraser noted the significant synergies between Kyzyltash and the construction ready Tulkubash open pit oxide leach project, within the same licence area, which has already proved its merits on a standalone basis.
“On a combined basis these two projects have the potential to develop into a significant long-life gold producing hub with the potential for further exploration upside," he said.
Kyzyltash has a current JORC-compliant resource of 5.4 million ounces of gold at 3.8 grammes a tonne. Chaarat’s management estimate that the project has the potential to produce about 300,000 ounces of gold per year subject to the project meeting its feasibility, permitting and development milestones.