Chontash Project: Maiden resource estimate
26 Abril 2011 - 3:00AM
UK Regulatory
TIDMCGH
Chaarat Gold Holdings Limited
("Chaarat" or "the Company")
Chontash Project: Maiden resource estimate
Road Town, Tortola, British Virgin Islands 26 April 2011
Chaarat (AIM-CGH), the AIM quoted exploration and development company with
assets in the Kyrgyz Republic, is pleased to announce the maiden resource
estimate at its 100% owned Chontash Project ("Chontash") which was acquired in
July 2010.
Highlights:
* Maiden resource estimate compiled by Wardell Armstrong International (WAI)
with high grade molybdenum and good copper and gold credits:
o Inferred resource of 3.6Mt of ore at 0.16% molybdenum (Mo) for 5,627
tonnes of Mo, 0.2% copper (Cu) for 7,190t of Cu, 0.045% rare earth elements
(REE) for 1,627t, and 0.112% gold (Au) for 13,000oz
* Possibility of a porphyry copper - gold deposit
* Rare Earth Elements found in carbonate rocks may add to the economic
viability of the project and are to be explored further
The Chontash Project is located in the Akshirak range of mountains, which extend
along the edge of the main fault in the region, the Talas Fergana. The range
hosts a number of mineral deposits, the best known of which is the Makmal
deposit from which almost 1.5 million ounces of gold have been extracted. The
Makmal mine is currently being brought back into production, which will result
in Chontash being close to mining infrastructure.
Chontash is focused on two connected targets: a porphyry intrusive body, which
has the potential to be developed into a Cu-Au-Mo-REE deposit, and a skarn
deposit at its periphery. Skarn is metamorphic rock formed at the contact of an
intrusive body (the porphyry) and carbonate rocks (the existing formation).
15 holes have been drilled at Chontash, delineating a total of 3.6 million
tonnes of three types of different mineralisation: very high grade molybdenum
(Mo) with good copper (Cu) and gold (Au) credits, possibly from different
"sources". In 2011 three holes were drilled to test the continuity of
mineralisation along three critical sections, following a review of available
information. All three drill holes intersected mineralisation.
Targeted drilling of the skarn type mineralisation has delineated 2.852Mt of
mineralisation with a Mo grade of 0.196%, equating to 5,583 tonnes of Mo,
together with credits of 3,715 tonnes Cu and 7,220 ounces Au.
Three drill holes, which penetrated the intrusion below and in the periphery of
the skarn, delineated 380,000 tonnes of porphyry mineralisation with 0.883% Cu
and 0.43g/t of Au. The Company intends to undertake additional geophysical work
in order to further delineate the presumed porphyry target which may have
generated the skarn.
The results of four holes drilled in the intrusive rocks showed that another
phase of mineralisation in the porphyry contains REE at a grade of 0.232%.
Although the grade may not be economic on a standalone basis, this result may
contribute considerably to the attractiveness of Chontash, by adding credit to
the Mo-Cu-Au deposit. During 2011, the Company will work to determine whether
and where it will be able to develop an REE deposit of both commercial grade and
size.
Resource Table
Ore Type Mo Cu Total Total Au
(Inferred Tonnes Mo Metal Cu Metal REE REE Au Metal
Category) (Mt) (%) (t) (%) (t) (%) Metal (g/t) (Oz)
(t)
Skarn mineralisation
2.852 0.196 5,583 0.130 3,715 0.025 727 0.079 7,220
Porphyry mineralisation
0.380 0.006 23 0.883 3,355 0.014 52 0.430 5,256
REE
mineralisation 0.365 0.006 21 0.033 120 0.232 848 0.045 524
Total 3.597 0.156 5,627 0.2 7,190 0.045 1,627 0.112 13,000
Resource estimation by Wardell Armstrong International
Dekel Golan, CEO, commented:
"We believe that in view of the significant porphyry systems in the region, the
Chontash deposit has great potential and we are focused on making progress to
identify this potential.
"Following these very encouraging drilling results, the Company intends to
approach the work on Chontash methodically and systematically. We will
undertake additional geophysical work and develop a drilling programme, which we
hope will result in another major deposit in the Central Asian mountains."
Quantity and Quality of Data
15 drill holes were included in the resource estimate.
The mineralisation remains open both down dip and along strike.
The resource database contains 3,303 assay records from drill-core samples. WAI
has reviewed the umpire assays, results of reference materials and blanks sent
to three laboratories and concluded that the quality and quantity of data are
sufficient to support the Mineral Resource estimates reported herein.
Methodology
The resource for the Chontash Mo-Cu-Au-REE deposit in Kyrgyzstan was estimated
by WAI in April 2011 using industry-standard geological modelling and resource
estimation software and all available exploration data.
The data was used to develop new, three-dimensional, geological wireframe models
for each mineralised zone using boundary definition cut-off grades of 0.03% Mo,
0.3% Cu and 0.05% REE. Once the 3-D geological solids were built, a two-
dimensional estimation was undertaken for the mineralised zones. The data
distribution was insufficient to generate directional variograms.
WAI used ordinary inverse distance for the estimation using a block size of 10m
by 10m by 5m.
All WAI estimates were validated by comparing the global mean statistics of the
sample data with the estimates and a swath analysis exercise, which compared the
composite data with the block estimates within a given swath, validating the
quality of the local estimates.
WAI has taken into account the data distribution, grade variability, geological
interpretations, structure of the variograms and the quality of the estimation
in the classification of the Mineral Resource. The entire resource has been
classified as inferred.
Competent Person
The Competent Person with overall responsibility for this press release, and who
has reviewed the information contained herein, is Sunit Patel, M.Sc. (Geology),
FGS, GSSA, who is an employee of Chaarat. Sunit is an exploration geologist
with more than 22 years of experience in the resource industry who has
sufficient experience relevant to the style of mineralisation and type of
deposit under consideration.
Further information about the Company:
Chaarat Gold Holdings Limited +44 (0) 20 7499 2612
c/o Central Asia Services Limited
Dekel Golan dekel@chaarat.com
Linda Naylor linda.naylor@chaarat.com
Westhouse Securities Limited +44 (0) 20 7601 6100
Tim Feather tim.feather@westhousesecurities.com
Richard Baty richard.baty@westhousesecurities.com
Pelham Bell Pottinger +44 (0)20 7861 3232
Lorna Spears lspears@pelhambellpottinger.co.uk
Philippe Polman ppolman@pelhambellpottinger.co.uk
About Chaarat Gold
Chaarat Gold is an exploration and development company operating in the Kyrgyz
Republic. The Company's main activity is the development of the Kiziltash and
Tulkubash projects situated within the Middle Tien Shan Mountains of Kyrgyzstan,
which form part of the Tien Shan gold belt. The Company has delineated a JORC
compliant mineral resource of 4.406Moz at a grade of 4.20g/t gold across both
deposits. The Company is currently in the process of compiling a Pre-
Feasibility study on the Kiziltash project and a Definitive Feasibility Study on
the Tulkubash project. Chaarat's key objective is to become a low cost gold
producer; with initial production from the Tulkubash project in 2012, targeting
increased production of over 200,000 ounces per annum during 2014 from the
Kiziltash project.
www.chaarat.com
Disclaimer
This press release includes forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties and other important
factors beyond Chaarat's control that would cause the actual results,
performance or achievements of Chaarat to be materially different from future
results, performance or achievements expressed or implied by such forward-
looking statements. Such forward-looking statements are based on numerous
assumptions regarding Chaarat's present and future business strategies and the
environment in which Chaarat will operate in the future. Any forward-looking
statements speak only as at the date of this document. Chaarat expressly
disclaims any obligation or undertaking to disseminate any updates or revisions
to any forward-looking statements contained in this document to reflect any
change in Chaarat's expectations with regard to these or any change in events,
conditions or circumstances on which any such statements are based. As a result
of these factors, the events described in the forward-looking statements in this
press release may not occur either partially or at all.
Glossary of Technical Terms
"assay" qualitative or quantitative analysis of a metal or ore to
determine its components
"Au" chemical symbol for gold
"g/t" grammes per tonne, equivalent to parts per million
"Inferred Resource" that part of a Mineral Resource for which tonnage, grade
and mineral content can be estimated with a low level of
confidence. It is inferred from geological evidence and
assumed but not verified geological and/or grade
continuity. It is based on information gathered through
appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes which may be
limited or of uncertain quality and reliability
"Indicated Resource" that part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and
mineral content can be estimated with a reasonable level of
confidence. It is based on exploration, sampling and
testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings
and drill holes. The locations are too widely or
inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to
be assumed
"JORC" The Australasian Joint Ore Reserves Committee Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves, 2004 (the "JORC Code" or "the Code"). The Code
sets out minimum standards, recommendations and guidelines
for Public Reporting in Australasia of Exploration Results,
Mineral Resources and Ore Reserves
"kriging" an inverse distance weighting technique where weights are
selected via the variogram according to the samples'
distance and direction from the point of estimation. The
weights are not only derived from the distance between
samples and the block to be estimated, but also the
distance between the samples themselves. The kriging
estimates are controlled by the variogram parameters which
are interpreted from the data
"Measured Resource" that part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and
mineral content can be estimated with a high level of
confidence. It is based on detailed and reliable
exploration, sampling and testing information gathered
through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes. The
locations are spaced closely enough to confirm geological
and grade continuity
"Mineral Resource" a concentration or occurrence of material of intrinsic
economic interest in or on the Earth's crust in such form,
quality and quantity that there are reasonable prospects
for eventual economic extraction. The location, quantity,
grade, geological characteristics and continuity of a
Mineral Resource are known, estimated or interpreted from
specific geological evidence and knowledge. Mineral
Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and
Measured categories when reporting under JORC
"Mt" million tonnes
"Moz" million troy ounces
"oz" troy ounce (= 31.103477 grammes)
"swath analysis" used to validate a block estimate by comparing a selected
block with a composite of the data in that block
"t" tonne (= 1 million grammes)
"variogram" a method of displaying and modelling the difference in
grade between two samples separated by a distance "h",
called the "lag" distance. It provides the mathematical
model of variability with distance and is used during
kriging
"wireframe" this is created by using triangulation to produce an
isometric projection of, for example, a rock type,
mineralisation envelope or an underground stope. Volumes
can be determined directly of each solid
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Chaarat Gold Holdings Ltd via Thomson Reuters ONE
[HUG#1508564]
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