TIDMCGH
RNS Number : 3777P
Chaarat Gold Holdings Ltd
09 June 2020
09 June 2020
Chaarat Gold Holdings Limited
("Chaarat" or " the Company")
Kyzyltash - Metallurgical study confirms strategic development
plan
Chaarat (AIM:CGH), the AIM-quoted gold mining Company with an
operating mine in Armenia, and assets at various stages of
development in the Kyrgyz Republic, is pleased to announce it has
further defined the key development milestones for the Kyzyltash
Gold Deposit.
The Kyzyltash deposit, situated in the Kyrgyz Republic, was the
first deposit explored by Chaarat and is the second development
phase of the Tulkubash / Kyzyltash gold complex. Kyzyltash is part
of the same license area and geological occurrence as Chaarat's
current construction project, Tulkubash. The license area contains
two gold mineralization zones within the project area divided into
two types, the Tulkubash mineralization, which is oxidized
material, and the Kyzyltash mineralization (the main and contact
zones) which is sulphide-rich, unoxidized refractory material. The
deposit has an estimated 5.4 Moz in JORC compliant Measured,
Indicated and Inferred resources with an average grade of 3.8g/t
("Kyzyltash" or "the Project"). The current resource has been
developed along a strike length of 4 km and favourable geology
extends for over 20 kilometres of strike length. Further potential
for an ore body extension is anticipated down dip based on the
current understanding of the deposit but requires further drill
testing.
The Tulkubash / Kyzyltash phased development is Chaarat's
flagship project and the Company is working towards an update of
Kyzyltash's standalone 2016 feasibility study produced by NERIN
(China) next to the construction of the first phase Tulkubash
development. The 2016 feasibility study valued the Project stand
alone at a net present value of US$309 million based on an 8%
discount rate and an underlying Gold price of US$1,250/oz.
Chaarat is pleased to announce the completion of a preliminary
metallurgical assessment as prepared by Mr. John Marsden of
Metallurgium, a US based metallurgical consulting company. Mr.
Marsden has 40 years of relevant experience and has been involved
in the ore processing of several similar ore deposits (
www.metallurgium.com ).
-- The study concluded that oxidative treatment of the Kyzyltash
sulphide resource will be required prior to conventional cyanide
leaching.
-- The following process routes were recommended for further testing and development:
o Flotation followed by pressure oxidation-cyanide leaching of
the concentrates,
o Flotation followed by biological oxidation-cyanide leaching of
the concentrates,
o Flotation followed by Albion oxidation-cyanide leaching of the
concentrates, and
o Whole ore Albion oxidation-cyanide leaching.
-- The study anticipated potential gold recoveries in the range
of 83-90% depending on the choice of technology and the results of
future metallurgical testing.
Chaarat has defined a drill programme of ca. 3.3 km from 16 PQ
drill holes across the ore body to collect representative samples
for metallurgical testing. Chaarat's technical team will look to
further optimise the drill programme and define funding
requirements within the next months.
The test results are expected to be available in early 2021,
which would enable Chaarat to choose the appropriate technology for
project development. Remaining sections of the 2016 feasibility
study will be assessed in the coming months to initiate any
additional workstreams required to comply with international best
practice.
The preliminary timeline for the key milestones of the project
is assumed to be the following based on the current
understanding:
- Updated feasibility study according to Western standards in 2022
- Project financing in 2023
- Construction in 2024 and 2025
- Production of up to 300koz p.a. is targeted to commence in 2026.
Given that the Tulkubash and Kyzyltash deposits are part of the
same geological formation and within the same license area,
Kyzyltash development will have significant synergies with
Tulkubash using common infrastructure. Additional potential within
the license area (73% undrilled) based on geological trends and
geophysical and geochemical surveys, provides comfort that both
stages of the project will extend significantly beyond the
currently defined resource base.
The company is now in a position to further develop the
Kyzyltash project successfully to production over the coming years.
Board members, members of the technical team and our local equity
partner and construction company have worked at and successfully
developed the producing Cöpler project in Turkey. The Cöpler
project has a similar ore body structure and produces 400koz from a
heap leach and POX plant.
Robert Benbow, Board Member and Chair of the Technical
Committee, commented:
"The Kyzyltash resource presents an excellent opportunity for
long term, high value gold production for the Company. Mr. Marsden
worked with me on developing the highly successful Cöpler Sulfide
Project which is operating its heap leach and POX processing plants
for years now and I am pleased to have him involved in the
Kyzyltash Project. He brings the highest level of gold extraction
knowledge to the Project. Like many deposits in the world today
Kyzyltash will require an oxidizing pre-treatment for optimal gold
recovery and the process selection methodology is the same we used
to optimize Cöpler. I am confident that the final process
technology will provide the best technical and financial
results."
Artem Volynets, Chief Executive Officer, commented:
"The Kyzyltash ore body contains approximately half of Chaarat's
total gold resources, but until now, the Projects' value has not
been properly recognised. We are optimistic that the significant
value of the Kyzyltash deposit can potentially be unlocked with
well-established technology and favourable metallurgical
recoveries. This can create an opportunity for the phased
development of Tulkubash / Kyzyltash to build a world-class, long
life and low-cost production cluster."
Enquiries
Chaarat Gold Holdings Limited +44 (0)20 7499 2612
Artem Volynets (CEO) IR@chaarat.com
Numis Securities Limited +44 (0) 20 7260 1000
John Prior, Paul Gillam
(NOMAD)
James Black (Corporate Broking)
SP Angel Corporate Finance
LLP +44 (0) 20 3470 0470
Ewan Leggat (Joint Broker)
finnCap Limited +44 (0)20 7220 0500
Christopher Raggett (Joint
Broker)
Camille Gochez (Joint Broker)
About Chaarat
Chaarat is a gold mining company which owns the Kapan operating
mine in Armenia as well as Tulkubash and Kyzyltash Gold Projects in
the Kyrgyz Republic. The Company has a clear strategy to build a
leading emerging markets gold company with an initial focus on
Central Asia and the FSU through organic growth and selective
M&A.
Chaarat is engaged in active community engagement programmes 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 by
building relationships based on trust and operating to the best
environmental, social and employment standards. Further information
is available at www.chaarat.com/ .
ENDS
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END
MSCGRGDLDGGDGGC
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June 09, 2020 03:06 ET (07:06 GMT)
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