TIDMCGH
RNS Number : 6472W
Chaarat Gold Holdings Ltd
11 November 2014
Chaarat Gold Holdings Limited
("Chaarat" or "the Company")
Updated resource statement for the Chaarat Gold Project
Road Town, Tortola, British Virgin Islands ( 11(th) November
2014).
Chaarat (AIM:CGH), the AIM quoted gold exploration and
development company with assets in the Kyrgyz Republic, is pleased
to provide an updated resource statement for the Chaarat Gold
Project.
Highlights:
-- Total JORC compliant resource increased 15.43% from 5.29
million ounces to 6.1 million ounces at a grade of 3.20 g/t Au*
-- Measured and Indicated portions of the total resource have
increased 33.08% from 3.90 million ounces to 5.19 million
ounces
-- Resource of the Tulkubash Zone which will underpin the first
stage heap leach project calculated to be 13.24 million tonnes at a
grade of 1.71 g/t Au to give a total content of
729 koz
-- Better understanding of the grade distribution in the
refractory segment of the Chaarat Deposit in the Main and Contact
Zones shows high grade core and lower grade envelope
-- The high grade core forms 85.86% of the Main and Contact Zone
resource at 4.61 million ounces with a grade of 3.83 g/t Au and
will enable the Chaarat Project to generate attractive returns even
in a low gold price environment
*using a cut-off grade of 1.0 g/t for the oxide resource
(Tulkubash zone) and 2.0 g/t for the refractory material (Main and
Contact Zones).
During the 2014 season, we undertook about 6,500 metres of
diamond core drilling to better substantiate the resource of the
standalone open pittable heap leachable Tulkubash Project. We also
wished to identify and demonstrate additional strike to the north
which would underpin the possible increase of the future life of
mine.
GeoSystems International, Inc was engaged to develop a
structural model of the Chaarat deposit to support a statistical
assessment of the estimated contained resource. Mr Mario Rossi, a
geo-statistician and principal of the company, has significant
experience, most relevantly for Chaarat, at the Jinfeng gold mine
in China which has many similarities to the ore composition of the
Chaarat Project.
The results of Mr Rossi's work have confirmed the unique
characteristics of the two principal systems within the Chaarat
deposit:
1. The Tulkubash system consists of a multitude of relatively
thin veins hosted in quartzite from which gold can be recovered by
direct leaching due to the low sulphur content of the ore. It is
anticipated that the results of the Definitive Feasibility Study
("DFS") will confirm that the low cost of processing by the heap
leach method will enable us to reduce the Cut-off Grade ("COG") for
this section of the deposit from 1g/t to 0.5g/t and thereby
significantly increase the economically recoverable resource.
2. The mineralisation of the Contact Zone and the Main Zone is
refractory ore which means a stage of oxidation is required before
gold can be extracted by leaching. It has now been established that
the mineralisation consistently demonstrates a higher grade core
and lower grade halo with most of the gold residing in the higher
grade core.
Mr Rossi developed a resource model to estimate the high grade
core of the refractory ore zones and the medium to low grade halo
around them. The estimation of the lower grade halo around the
higher grade cores adds significant ounces and can be used to
estimate dilution when selecting the relevant mining method for
this part of the deposit. The higher grade core contains 4.61
million ounces of gold at a grade of 3.83 g/t, a grade which will
enable Chaarat to continue to generate returns from the deposit
even in much lower gold price environments.
Dekel Golan CEO comments: "Our team, working with Mario Rossi,
summarised the data generated from more than 10 years of
exploration, more than 100,000 metres of drilling and more than 2
kilometres of adits and drives into a robust model underpinning one
of the best undeveloped deposits in the world. It is a difficult
time for our industry. The cost of finding gold is on the rise
whilst the grade of the discoveries has dropped precipitously.
A large heap leachable project with a grade of over 1.7 g/t of
gold as well as silver credits, which requires a relatively low
upfront investment, is a very good way to start production. As I
have previously pointed out the average grade of large discoveries
today is 0.89g/t and the average grade of producing mines is
1.18g/t, significantly lower than that of Chaarat(1) .
As for the more difficult to process ore, often called
refractory, it seems that a significant portion of the ore can be
mined by an open pit method. The anticipated slightly higher cost
of processing and treatment of refractory ore will be offset by the
increased gold content and excellent anticipated recoveries.
We are focusing on the development effort now by completing the
feasibility study and securing finance for the construction of the
project. It is perhaps the right time to thank our dedicated
exploration team for their relentless and eventually successful
work."
(1) Source: Natural Resource Holdings Global 2013 Gold Mines
& Deposit Rankings - Visual Capitalist
Competent Person
Mario Rossi is a Competent Person as defined by JORC and AIM and
has reviewed and approved the relevant technical information
relating to the resource estimates in this release. Mr Rossi
(Fellow AusIMM, Member CIM, Member SME) is Principal
Geostatistician of GeoSystems International, Inc. and has more than
25 years' experience in mining and environmental geostatistics,
mineral resource and reserves estimation, audits, and reviews, and
continued simulation studies of different scales and purposes. He
has worked in over 100 different mining projects at various stages
of development and operations around the world.
Enquiries:
Chaarat Gold Holdings
Limited + 44 23 800 11747
c/o Central Asia Services info@chaarat.com
Limited
Dekel Golan CEO
Linda Naylor FD
Numis Securities Limited +44 (0) 20 7260 1000
John Prior, Paul Gillam
(NOMAD)
James Black (Broker)
NOTES TO EDITORS:
About Chaarat Gold
Chaarat Gold is an exploration and development company operating
in the Kyrgyz Republic with a large, high grade resource - the
Chaarat Gold Project. The Company's key objective is to become a
low cost gold producer generating significant production from the
development of the Chaarat Gold Project. Chaarat is preparing a
Definitive Feasibility Study (DFS) and continuing its active
community engagement programme to optimise the value of the Chaarat
investment proposition.
Chaarat aims to create value for its shareholders, employees and
communities from its high quality gold and mineral deposits in the
Kyrgyz Republic by building relationships based on trust and
operating to the best environmental, social and employment
standards.
Summary of Estimated Resources October 2014
COG Tonnes Au grade Content
g/t (kt) (g/t) (koz)
Au
---------------------- ----- ------- --------- --------
Measured
---------------------- ----- ------- --------- --------
Tulkubash 1.0 7,646 1.90 466
---------------------- ----- ------- --------- --------
Main and Contact 2.0 6,629 3.15 671
---------------------- ----- ------- --------- --------
Indicated
---------------------- ----- ------- --------- --------
Tulkubash 1.0 3,224 1.77 184
---------------------- ----- ------- --------- --------
Main and Contact 2.0 32,794 3.67 3,864
---------------------- ----- ------- --------- --------
Measured & Indicated 50,293 3.21 5,185
---------------------- ----- ------- --------- --------
Tulkubash 1.0 2,384 1.81 79
---------------------- ----- ------- --------- --------
Main and Contact 2.0 6,611 3.92 832
---------------------- ----- ------- --------- --------
Inferred 8,995 3.15 911
---------------------- ----- ------- --------- --------
Total 59,288 3.20 6,096
---------------------- ----- ------- --------- --------
Tulkubash Tonnes Au grade Content
COG 1.0 g/t (kt) (g/t) (koz)
Au
---------------------- ------- --------- --------
Measured 7,646 1.89 466
---------------------- ------- --------- --------
Indicated 3,224 1.77 184
---------------------- ------- --------- --------
Measured & Indicated 10,870 1.86 650
---------------------- ------- --------- --------
Inferred 2,384 1.81 79
---------------------- ------- --------- --------
Total 13,254 1.71 729
---------------------- ------- --------- --------
Main and Contact Tonnes Au grade Content
Zones (kt) (g/t) (koz)
COG 2.0 g/t
Au
---------------------- ------- --------- --------
Measured 6,629 3.15 671
---------------------- ------- --------- --------
Indicated 32,794 3.67 3,864
---------------------- ------- --------- --------
Measured & Indicated 39,423 3.58 4,535
---------------------- ------- --------- --------
Inferred 6,611 3.92 832
---------------------- ------- --------- --------
Total 46,034 3.63 5,367
---------------------- ------- --------- --------
Analysis of the high grade core and lower grade halo within the
Main and Contact Zones is presented in the following tables:
Higher Grade Tonnes Au grade Au ounces
core (koz)
COG 2.0g/t
---------------------- ------- --------- ----------
Measured 2,671 3.43 295
---------------------- ------- --------- ----------
Indicated 28,663 3.82 3,524
---------------------- ------- --------- ----------
Measured & Indicated 31,334 3.79 3,819
---------------------- ------- --------- ----------
Inferred 6,082 4.04 789
---------------------- ------- --------- ----------
Total 37,416 3.83 4,608
---------------------- ------- --------- ----------
Lower Grade Tonnes Au Au ounces
halo grade (koz)
COG 2.0 g/t
---------------------- ------- ------- ----------
Measured 3,957 2.96 376
---------------------- ------- ------- ----------
Indicated 4,132 2.56 340
---------------------- ------- ------- ----------
Measured & Indicated 8,089 2.75 716
---------------------- ------- ------- ----------
Inferred 529 2.53 43
---------------------- ------- ------- ----------
Total 8,618 2.74 759
---------------------- ------- ------- ----------
The tables for the Main and Contact Zones summarise the results
from M24, M30, M34, M39, M44, M50, M60, Contact Project and C40
zones as described in previous resource updates.
Quantity and grade are estimates and are rounded to reflect the
fact that the resource estimate is an approximation. Mineral
resources are not ore reserves and do not have demonstrated
economic viability. There is no certainty that all or any part of
the mineral resource will be converted to reserves. Quantities may
not add or multiply due to rounding.
Glossary of Technical Terms "Ag" chemical symbol for silver
"Au" chemical symbol for gold
"cut-off" the lowest grade value that is included
in a resource statement. It must comply
with JORC requirement 19: "reasonable
prospects for eventual economic extraction"
the lowest grade, or quality, of mineralised
material that qualifies as economically
mineable and available in a given
deposit. It may be defined on the
basis of economic evaluation, or on
physical or chemical attributes that
define an acceptable product specification
"g/t" grammes per tonne, equivalent to parts
per million
"Inferred that part of a Mineral Resource for
Resource" 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 that part of a Mineral Resource for
Resource" 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 2012 (the "JORC Code" or
"koz" "the Code"). The Code sets out minimum
standards, recommendations and guidelines
for Public Reporting in Australasia
of Exploration Results, Mineral Resources
and Ore Reserves
thousand troy ounces of gold
"Measured that part of a Mineral Resource for
Resource" 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
"Mt" million tonnes
"oz" troy ounce (= 31.103477 grammes)
"Reserve" the economically mineable part of
a Measured and/or Indicated Mineral
Resource
"t" tonne (= 1 million grammes)
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBLBDBUUBBGSG
Chaarat Gold (LSE:CGH)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Chaarat Gold (LSE:CGH)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024
