Operational update
19 Julho 2011 - 3:00AM
UK Regulatory
TIDMCGH
Chaarat Gold Holdings Limited
("Chaarat" or "the Company")
Operational update
Road Town, Tortola, British Virgin Islands (19 July 2011)
Chaarat (AIM-CGH), the gold exploration and development company operating in the
Kyrgyz Republic, is pleased to report that:
* Contracts for the major infrastructure projects for road and power have been
signed
* Construction of the upgraded and expanded camps at site has begun
* Drilling continues with up to eleven rigs in operation and more to be
contracted
* Total JORC compliant resource across the Chaarat Project, compiled by
Wardell Armstrong International, now stands at 4.736Moz, an increase of
7.5% from the announcement on 7 February 2011
* Operational team at Chaarat continues to develop: Benoit de Galbert, Chief
Operating Officer, is currently on leave from the Company and Chief
Executive, Dekel Golan, is leading the operational team at Chaarat
The move to production of the Chaarat Project involves continuing exploration,
development of the infrastructure elements of the project and the construction
of a first stage processing plant to commence gold production from the open-pit
free milling section of the deposit. All activities to achieve production are
progressing well.
Chaarat is now shifting its exploration focus to developing certain areas of
higher grade ore in the Main and Contact sections of the deposit so as to
delineate a high grade (above 5 g/t) reserve base for the early stage of
underground mining.
Infrastructure development is progressing aggressively. The required permits
for the upgrade of the access road from an exploration grade road to one capable
of facilitating the movement of large scale mining equipment have been received
and contracts with two contractors (each executing half of the work) have been
signed. The contractors have already started their mobilisation and works are
to start shortly.
The power line to site has been designed and the relevant permits for its
construction have been received. A contract with a major Kazakh company has
been signed and the works are to start in the near future. The contract
includes the construction of a power line from the Chatkal valley to site, a
backup generating station, distribution network and all the relevant sub-
stations and other required equipment. An alternative electricity supply option
has also been proposed to Chaarat which, if found to be workable, would reduce
significantly the required investment and complexity of the second part of the
power line.
The design of the Chaarat site requires separate camps for the processing and
mining parts of the operation. Contracts to build both camps have been signed
and the first phase of both camps is due to be completed this year in order to
provide accommodation for the first workers on site early next year.
Chaarat has been engaged in a major recruitment drive with many new professional
operatives joining the Company, which has created a competent and strong team.
For the last seven weeks, Benoit de Galbert, COO, has been on leave. The
Company does not believe that his absence has slowed progress to production. In
his absence Chief Executive Dekel Golan, assisted by Alexander Novak and Linda
Naylor, has taken primary responsibility for operational matters.
An engineering company (SNC-Lavalin) has been selected to prepare the Front End
Engineering Design (FEED) for the project. Discussions with potential suppliers
of the processing units have commenced with a view to issuing initial tender
documents by the end of August.
The process of applying for a mining permit is a multi stage process which
requires, among other things, a "public hearing", which gives the local
communities an opportunity to air their views about a proposed project. The
public hearing in respect of the Chaarat Project has taken place and the Project
was warmly welcomed by the population. The local community recognises the
importance of Chaarat and other mining projects in providing employment and
other opportunities to the population of the relatively remote Chatkal valley.
A development fund has been established by the local community to ensure that
the financial support provided by locally operating companies will be managed
transparently and efficiently. The initial focus of cooperation between the
mining industry and the Chatkal community is on upgrading the local roads which
will benefit both parties.
Dekel Golan, CEO, commented: "The Company continues to make pleasing progress at
Chaarat as we move towards production. The commissioning of major
infrastructure works is now underway whilst the operational management team has
been strengthened."
Further information about the Company:
Chaarat Gold Holdings Limited +44 (0) 20 7499 2612
c/o Central Asia Services Limited
Dekel Golan - CEO
dekel@chaarat.com
Linda Naylor - Finance Director linda.naylor@chaarat.com
Westhouse Securities Limited +44 (0) 20 7601 6100
Tim Feather
tim.feather@westhousesecurities.com
Richard Baty
richard.baty@westhousesecurities.com
Bankside Consultants +44 (0) 20 7367 8888
Simon Rothschild simon.rothschild@bankside.com
Note to Editors:
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
Project (comprising the Contact Project and the Main Zone) and the Tulkubash
project 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 4.736Moz at a grade of 4.28g/t gold across both projects.
Chaarat's key objective is to become a low cost gold producer; with initial
production from the Tulkubash project, targeting annual production of over
200,000 ounces per annum as the Kiziltash Project comes on stream.
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.
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#1531805]
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