TIDMCGH
Chaarat Gold Holdings Ltd
("Chaarat" or "the Company")
Resource increases to over four million ounces at Chaarat Gold Project
Road Town, Tortola, British Virgin Islands (9th March 2010).
Chaarat (AIM-CGH), the gold exploration and development company operating in the
Kyrgyz Republic, is pleased to announce a revised estimate of the gold resources
at its 100% owned Chaarat deposit of 4.009 million ounces, based on results from
the 2009 exploration season. Twenty five new core drill holes (5,357 metres) and
four cross-cuts (307 metres) have been incorporated into the Resource database
of the 11 project areas, covering a six kilometre strike length. The resource
was estimated to JORC compliant standards by SRK Consulting (South Africa), an
internationally recognised consulting group, which is independent of Chaarat.
Highlights
* The Indicated and Inferred Resource has increased by 670,000 ounces from
3.339 million ounces in 2009 to 4.009 million ounces at 2.0g/t cut off.
* The resource of Project C5300, where the majority of the 2009 drilling took
place and where an adit was developed, increased by over 35% to 1.345
million ounces and is open in all directions.
Table 1: Summary of Estimated Resources at Chaarat (February 2010)
+------------------+--------------------+--------------------+--------------------+
| At 2.0g/t Cut-off|Indicated Resources | Inferred Resources | Total Resources |
+---------+--------+------+-----+-------+------+-----+-------+------+-----+-------+
| | | Mass |Gold | Gold | Mass |Grade|Content| Mass |Grade|Content|
|Zone |Sub-Zone| |Grade|Content| | | | | | |
| | +------+-----+-------+------+-----+-------+------+-----+-------+
| | | kt | g/t | Koz | kt | g/t | koz | kt | g/t | koz |
+---------+--------+------+-----+-------+------+-----+-------+------+-----+-------+
| | M2400 |2,900 |4.11 | 390 | 800 |3.96 | 106 |3,700 |4.08 | 496 |
| +--------+------+-----+-------+------+-----+-------+------+-----+-------+
| | M3000 |3,800 |4.11 | 504 |1,500 |4.57 | 226 |5,300 |4.24 | 730 |
| +--------+------+-----+-------+------+-----+-------+------+-----+-------+
| | M3400 | | | |1,000 |4.17 | 134 |1,000 |4.17 | 134 |
| +--------+------+-----+-------+------+-----+-------+------+-----+-------+
|Main Zone| M3900 |1,500 |3.76 | 182 | 700 |3.86 | 90 |2,200 |3.79 | 272 |
| +--------+------+-----+-------+------+-----+-------+------+-----+-------+
| | M4400 | | | | 300 |3.86 | 41 | 300 |3.86 | 41 |
| +--------+------+-----+-------+------+-----+-------+------+-----+-------+
| | M5000 | 100 |5.81 | 13 | 400 |5.20 | 59 | 500 |5.32 | 72 |
| +--------+------+-----+-------+------+-----+-------+------+-----+-------+
| | M6000 | 300 |3.88 | 39 | 600 |4.33 | 90 | 900 |4.18 | 129 |
+---------+--------+------+-----+-------+------+-----+-------+------+-----+-------+
|Main Zone Totals |8,600 |4.05 | 1,127 |5,400 |4.28 | 744 |14,000|4.15 | 1,871 |
|/Averages | | | | | | | | | |
+---------+--------+------+-----+-------+------+-----+-------+------+-----+-------+
| | C4000 | 400 |3.33 | 39 | 500 |3.33 | 55 | 900 |3.33 | 94 |
|Contact +--------+------+-----+-------+------+-----+-------+------+-----+-------+
|Zone | C4600 | 900 |3.97 | 116 |1,900 |4.16 | 247 |2,800 |4.10 | 363 |
| +--------+------+-----+-------+------+-----+-------+------+-----+-------+
| | C5300 |6,700 |4.19 | 906 |3,200 |4.24 | 439 |9,900 |4.21 | 1,345 |
+---------+--------+------+-----+-------+------+-----+-------+------+-----+-------+
|Contact Zone |8,000 |4.12 | 1,061 |5,600 |4.13 | 741 |13,600|4.13 | 1,802 |
|Totals /Averages | | | | | | | | | |
+---------+--------+------+-----+-------+------+-----+-------+------+-----+-------+
|Tulkubash| T0700 | | | |2,500 |4.18 | 336 |2,500 |4.18 | 336 |
+---------+--------+------+-----+-------+------+-----+-------+------+-----+-------+
| Grand |16,600|4.09 | 2,188 |13,500|4.20 | 1,821 |30,100|4.14 | 4,009 |
|Totals/Averages | | | | | | | | | |
+------------------+------+-----+-------+------+-----+-------+------+-----+-------+
Dekel Golan CEO comments: "We are delighted with this latest resource estimate
on the wide mineralised zones at the Chaarat deposit. This continues to
demonstrate the significant potential of the deposit which will allow the
Company to pursue a low cost gold mining operation. The significant investment
in the underground development which includes an adit, drifts, drives and
drilling chambers are serving as a platform to turn the C4600 and C5300 projects
into one large mineralised body, which already includes over 1.7 million ounces,
the majority of which are in the indicated category."
Quantity and Quality of Data
This resource estimate is compiled from all core drill holes completed on 11
project areas at Chaarat to date and supersedes the resource update announced on
30 March 2009.
The 191 holes included in the Resource estimate were drilled on the three
sub-parallel zones of mineralisation at Chaarat, the Main, the Contact and the
Tulkubash Zones, which are characterised by mineralisation up to 37 metres wide
and dipping at 55 to 70 degrees to the northwest.
The deepest drill intersections on the C5300, C4600 and C4000 Project Areas are
499 metres, 358 metres and 351 metres respectively. On the other eight project
areas, included in the Resource estimate, drilling is limited to depths of
between 82 to 290 metres.
On all project areas, the mineralisation remains open down dip, and on the
majority, also open along strike. Underground drilling will continue from the
adit on the C5300 Project Area with the aim of increasing the Resource in the
coming year, as well as converting the existing Inferred Resources to the
Indicated category.
The Resource database contains 49,359 gold assay records from surface, adit and
drill-core samples. SRK has reviewed 3,727 umpire assays, 1,202 results of
reference materials and 2,031 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 Resources for the Main and Contact Zones at the Chaarat gold deposit in
Kyrgyzstan were estimated by SRK in February 2010 using industry-standard
geological modelling and Resource estimation software.
The revised 2010 estimation has used all available exploration data from
previous (2004 to 2009) exploration campaigns, including assays from drill
holes, bulldozer-cuts, trenches and underground.
The data was used to develop new, three-dimensional, geological wireframe models
for each mineralised zone using a boundary definition cut-off grade of 2g/t Au.
Once the 3-D geological solids were built, a two-dimensional estimation was
undertaken for the mineralised zones. The data distribution for the Contact
Zone was sufficient to generate directional variograms along the major and
semi-major directions. Omni-directional variograms were generated for the Main
and Tulkubash Zones.
SRK used ordinary kriging for the estimation of all sub-zones within the Main
and Contact Zones using a block size of 20m by 20m by 10m.
All SRK 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.
SRK 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 classification of the Resource was based initially on the number of
intercepts through each discrete wireframe unit: those with a single intercept
have been classified as Inferred. The results of the swath analysis were used to
determine which wireframe units (or parts thereof) gave reasonable confidence in
the continuity of the grades: these were classified as Indicated.
The recent infill-drilling has demonstrated the depth and width continuity of
the geological boundaries of the Main and Contact Zones and has resulted in an
increase in the volume of the mineralisation compared with the previous Resource
estimates.
As the Chaarat mine is likely to be a combined open pit and underground
operation, the Company has used a 2g/t cut off rate for the purpose of this
resource announcement. Table 2 sets out the resource in all three areas
applicable to different levels of cut off.
Table 2: Grade Tonnage Data: Contact, Main and Tulkubash Zones at Chaarat (at
February 2010)
+------------------+-------------+----------------+---------------+
| Cut-off (g/t Au) | Tonnage (T) | Grade (g/t Au) | Content (koz) |
+------------------+-------------+----------------+---------------+
| 1.8 | 30,141,459 | 4.14 | 4,009 |
+------------------+-------------+----------------+---------------+
| 2 | 30,141,081 | 4.14 | 4,009 |
+------------------+-------------+----------------+---------------+
| 2.2 | 30,129,579 | 4.14 | 4,008 |
+------------------+-------------+----------------+---------------+
| 2.4 | 29,997,284 | 4.15 | 3,998 |
+------------------+-------------+----------------+---------------+
| 2.6 | 29,408,026 | 4.18 | 3,951 |
+------------------+-------------+----------------+---------------+
| 2.8 | 28,786,691 | 4.21 | 3,897 |
+------------------+-------------+----------------+---------------+
| 3 | 27,674,104 | 4.26 | 3,793 |
+------------------+-------------+----------------+---------------+
| 3.2 | 25,815,593 | 4.35 | 3,608 |
+------------------+-------------+----------------+---------------+
| 3.4 | 23,554,660 | 4.45 | 3,368 |
+------------------+-------------+----------------+---------------+
| 3.6 | 20,993,256 | 4.56 | 3,079 |
+------------------+-------------+----------------+---------------+
| 3.8 | 18,402,767 | 4.68 | 2,771 |
+------------------+-------------+----------------+---------------+
| 4 | 15,840,145 | 4.81 | 2,449 |
+------------------+-------------+----------------+---------------+
Competent Person
Shaun Crisp Pr.Sci.Nat, Senior Resource Geologist, an employee of SRK Consulting
compiled the report entitled "Update of the Mineral Resource estimates for
Chaarat Gold Project, Kyrgyzstan" dated February 2010 from which this
information has been extracted.
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. Mr. Patel is an exploration
geologist with 22 years of experience in the resource industry who has
sufficient experience relevant to the style of mineralisation and type of
deposit under consideration.
Chaarat
Chaarat is an exploration and development company operating in the Kyrgyz
Republic with its current main activity being the development of the Chaarat
Gold Project. The Chaarat Gold Project is situated within the Middle Tien Shan
Mountains of Kyrgyzstan which form part of the Tien Shan gold belt. The Company
has thus far delineated a JORC compliant mineral resource of 4.009 Moz at a
grade of 4.14 g/t gold. A scoping study demonstrating the economic viability of
the Chaarat Gold Project was completed at the end of 2008. The Company is
currently in the process of compiling a pre-feasibility study. Chaarat's
objective is to become a low cost gold producer targeting an initial production
of over 200,000 ounces per annum by early 2013.
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.
Enquiries
Chaarat Gold Holdings Ltd
c/o Central Asia Services Ltd +44 (0) 20 7499 2612
Dekel Golan dekel@chaarat.com <mailto:dekel@chaarat.com>
Linda Naylor linda.naylor@chaarat.com
<mailto:linda.naylor@chaarat.com>
Westhouse Securities Limited +44 (0) 20 7601 6100
Tim Feather tim.feather@westhousesecurities.com
<mailto:tim.feather@westhousesecurities.com>
Richard Baty richard.baty@westhousesecurities.com
<mailto:richard.baty@westhousesecurities.com>
Mirabaud Securities LLP +44 (0) 20 7321 2508
Rory Scott rory.scott@mirabaud.com
<mailto:rory.scott@mirabaud.com>
Smith's Corporate Advisory +44 (0) 20 7239 0140
Dominic Palmer-Tomkinson tomkinson@smiths-ca.com
<mailto:tomkinson@smiths-ca.com>
Conduit PR +44 (0) 20 7429 6603
Jos Simson jos@conduitpr.com <mailto:jos@conduitpr.com>
Emily Fenton emily@conduitpr.com
Glossary of Technical Terms
"assay" qualitative or quantitative analysis of a metal or ore to
determine its components
"Au" chemical symbol for gold
"cut-off grade" 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 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
"Moz" million troy ounces
"ordinary kriging" commonly used type of kriging which assumes a constant
but unknown grade
"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.
[HUG#1391884]
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