Drilling Results and Resource Update
July 07 2011 - 2:02AM
UK Regulatory
TIDMCGH
Chaarat Gold Holdings Limited
("Chaarat" or "the Company")
Drilling and Resource Estimate Update for the Contact Project
Road Town, Tortola, British Virgin Islands (7 July 2011)
Chaarat (AIM-CGH), the gold exploration and development company operating in the
Kyrgyz Republic, is pleased to announce the results of six holes drilled in the
Contact Project of Chaarat. Results from these holes bring the updated estimate
of the gold resource to 4.736Moz grading 4.28g/t across the Chaarat Project,
compared to 4.406Moz grading 4.2g/t announced on 7 February 2011, an increase of
7.5%. The resource within the Contact Project, which forms part of the Chaarat
Project, has risen to 2.331Moz from 2.001Moz in February, an increase of 16.5%.
The Contact Project comprises the two main sections of the Contact Zone (C4600
and C5300). It is proving to be a significant mineralised body, which could
itself support a major mining operation.
HIGHLIGHTS
* 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
* Resource in Contact Project increased by 16.5% to 2.331Moz (at 2g/t cut-
off)
* Proportion of Indicated: Inferred increased significantly to 61.4% : 38.6%
from 52.5% : 47.5%
* Ongoing drilling provides encouragement that mineralisation continues along
strike and down dip
Dekel Golan, CEO, commented:
"During the winter season the Company continued drilling from underground drill
chambers in order to increase and improve the resource of the Contact Project.
The increase in the size of the resource estimate is particularly pleasing as
is the general increase in grade at depth. The Company intends to continue
drilling the Contact Project during the current summer season and increase
drilling underground during the winter season after the drilling in the
Tulkubash zone has been completed.
"We believe the Contact Project has significant unlocked potential which can be
improved with our better understanding of grade distribution and zoning."
Selected results from the Contact Project
Drill hole # From To Intersected True width Grade
m m width m Au g/t
m
UG-29 249.50 273.50 24.00 14.00 3.61
including 254.00 263.00 9.00 5.25 6.8
UG-31 165.00 169.50 4.50 2.75 7.53
UG-416 213.00 226.50 13.50 10.70 6.17
UG-417 375.00 382.50 7.50 5.63 11.06
UG-603 474.00 501.00 27.00 18.90 3.60
including 480.00 498.00 18.00 12.60 4.35
Resource Update
Wardell Armstrong International has compiled an updated resource estimate on the
Chaarat Project, incorporating the results of the further drilling on the
Contact Project at a cut off grade of 2.0 g/t. Details of the resource update
are set out below:
Indicated Grade Inferred Grade Total Average
Koz g/t Koz g/t Koz grade
February 2011 1,050 4.30 951 4.20 2,001 4.25
July 2011 1,431 4.38 900 4.33 2,331 4.36
Change % +36.30 -5.40 +16.50
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:
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 22 years of experience in the resource industry who has sufficient
experience relevant to the style of mineralisation and type of deposit under
consideration.
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.
Detailed drilling results
Intersected
From To width True width
DH No. Project Section m m m m Au g/t
UG-30 CP 4720 27.00 34.50 7.50 5.80 2.54
UG-30 CP 4720 202.50 222.00 19.50 15.08 2.09
including CP 4720 213.00 216.00 3.00 2.32 4.27
UG-30 CP 4720 240.00 243.00 3.00 2.32 2.09
UG-30 CP 4720 258.00 267.00 9.00 6.96 3.20
UG-29 CP 4800 3.00 12.00 9.00 5.25 3.11
UG-29 CP 4800 227.00 230.00 3.00 1.75 2.23
UG-29 CP 4800 249.50 273.50 24.00 14.00 3.61
including CP 4800 254.00 263.00 9.00 5.25 6.80
UG-29 CP 4800 282.50 287.00 4.50 2.50 2.53
UG-31 CP 4800 0.00 3.00 3.00 1.65 2.37
UG-31 CP 4800 15.00 18.00 3.00 1.65 2.51
UG-31 CP 4800 145.00 154.50 9.50 5.50 2.76
UG-31 CP 4800 162.00 169.50 7.50 4.34 4.90
including CP 4800 165.00 169.50 4.50 2.75 7.53
UG-31 CP 4800 177.00 178.50 1.50 1.00 3.51
UG-31 CP 4800 184.50 186.00 1.50 1.00 3.84
UG-31 CP 4800 231.00 232.50 1.50 1.00 16.89
UG-603 CP 4960 78.00 81.00 3.00 2.10 2.22
UG-603 CP 4960 463.50 471.00 7.50 5.25 4.05
including CP 4960 465.00 471.00 6.00 4.20 4.67
UG-603 CP 4960 474.00 501.00 27.00 18.90 3.60
including CP 4960 480.00 498.00 18.00 12.60 4.35
UG-417 CP 5280 262.50 274.50 12.00 9.00 2.85
including CP 5280 264.00 267.00 3.00 2.25 4.14
UG-417 CP 5280 283.50 292.50 9.00 6.75 2.03
UG-417 CP 5280 325.50 331.50 6.00 4.50 2.56
UG-417 CP 5280 334.50 340.50 6.00 4.50 3.18
UG-417 CP 5280 349.50 354.00 4.50 3.40 3.36
UG-417 CP 5280 375.00 382.50 7.50 5.63 11.06
UG-416 CP 5440 213.00 226.50 13.50 10.70 6.17
UG-416 CP 5440 247.50 250.50 3.00 2.38 6.65
Glossary of Technical Terms
"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
"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
"Koz" thousand troy ounces
"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
"oz" troy ounce (= 31.103477 grammes)
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
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