Chaarat Gold Holdings Ltd (AIM:CGH)'s Kyzyltash project in the Kyrgyz Republic has the potential to underpin a mid-cap precious metal company, according to finnCap, the company’s corporate broker.
The comment came in the wake of an update from the mine developer, one in which it returned strong metallurgical test results from two approaches that could be used to process gold at Kyzyltash.
The deposit is the larger of two gold projects in the country, the other being the 1mln-ounce Tulkubash mine, which will be developed first given the comparatively low capital investment required to get it up and running.
Kyzyltash’s scale at 5.4mln ounces “means it is a potential 250-300,000 ounces per year operation with a 15-year plus mine life, a project large enough to underpin a midcap gold company or be part of a major’s portfolio,” finnCap said in a note to clients.