TIDMCGH
RNS Number : 6602D
Chaarat Gold Holdings Ltd
01 April 2014
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Updated resource calculation for the Chaarat Gold Project
Road Town, Tortola, British Virgin Islands (1(st) April
2014)
Highlights
-- Total Measured and Indicated JORC resource increased by 20%
to 3.59 million ounces at a grade of 3.3 g/t (@ 2g/t cut off)
-- Measured and Indicated resource of the mostly oxide open
pittable Tulkubash Zone increased 95% to 639,171 ounces @ 2g/t (@
1g/t cut off)
-- Total resource (Measured, Indicated and Inferred) decreased
by 8.1% from 5.76 Moz to 5.29 Moz due to more restrictive
delineation of Inferred category resource*
Chaarat undertook an infill drilling programme in the 2013
season in order to increase the potential reserves to be delineated
as part of the Definitive Feasibility Study (DFS).
Drilling in the shallower, more weathered and therefore more
oxidized layer of the deposit was designed to increase the Measured
and Indicated resource which will be mined by the open pit method.
More material was delineated in the near surface oxide open
pittable sections but at a slightly lower grade than the deeper
material. The grade of the predominantly underground non-oxide
material section of the deposit has been reduced from 4.03 g/t to
3.36 g/t using a 2 g/t cut-off grade. The grade of the shallow
oxide and open pittable section of the deposit is currently 1.97
g/t using 1 g/t cut off. The change of grade was also a result of
the more conservative approach adopted in the construction of the
solid model.
As a result of the additional drilling a larger part of the
resource can be categorised as Measured and Indicated. At the same
time stricter criteria for inclusion of material in the Inferred
category reduced the proportion of Inferred resource from 48% to
27% of the total resource.
It has become apparent that different mining methods will be
used to mine the resource so presenting the resource at a single
cut-off grade could be misleading. In accordance with current best
practice the resource information has therefore been presented at a
range of cut off grades.
Chaarat and its advisers believe that it would be prudent to use
a cut-off grade of 2.0 g/t for areas of the deposit amenable to
bulk underground mining techniques, based on a gold price of
$1,250, and industry average bulk underground mining and mill
processing costs.
A cut-off grade of 1 g/t for the open-pit, oxide portions of the
deposit, due to lower average mining and processing costs, is
considered reasonable.
Portions of the deposit where lower productivity underground
mining techniques would be used are likely to have higher cut-off
grades. A more complete analysis of cut-off grades, costs and
recoveries will be undertaken as part of the DFS. The resource
model is the basis for the mine design which is currently being
prepared by Gustavson.
Dekel Golan CEO of Chaarat commented: "Increasing the Measured
& Indicated resource, which is the basis for the mine reserve
calculation, by 20% to almost 3.6 million ounces is an outstanding
achievement for our team. We are encouraged that the significant
amount of oxide material now delineated may reduce costs of initial
production.
It is worth noting that 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) . This is
perhaps the key strength of Chaarat - the potential, once in
production, to continue to operate profitably even at a low gold
price."
[1] Source: Natural Resource Holdings Global 2013 Gold Mines
& Deposit Rankings - Visual Capitalist
* Based on the considerations above, Chaarat has previously
reported its resource using a cut-off grade of 1.0 g/t for the
predominantly open pit oxide resource and 2.0 g/t for the mainly
underground sulphide material.
For the sake of clarity we have continued to use the same
parameters.
Competent Person
The Competent Person with overall responsibility for this press
release, and who has reviewed the information contained herein, is
Thomas Matthews, MMSA QP, B.S., Geology, who is the Senior Resource
Geologist of Gustavson Associates. He has 19 years of experience in
the resource industry and is a Qualified Person as defined by NI
43-101, and a Competent Person as defined by JORC and AIM. Mr
Matthews consents to the inclusion in the report of the matters
based on this information in the form and context in which it
appears.
Enquiries: Chaarat Gold Holdings + 44 23 800 11747/+ 44
Limited 20 7499 2612
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, Stuart Skinner
(NOMAD)
James Black (Broker)
Further information is available at www.chaarat.com
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 which is
capable of generating low cost gold production - the Chaarat Gold
Project.
The Company's key objective is to become a low cost gold
producer targeting annual production of 200,000 ounces from the
development of the Chaarat Gold Project. Chaarat is fully funded to
complete a Definitive Feasibility Study (DFS) and continue its
active community engagement programme to optimise the value of the
Chaarat investment proposition.
Chaarat has several other promising prospects also located
within the Kyrgyz Republic.
Summary of Estimated Resources March 2014
Table 1: Chaarat Deposit Resources by Zone
Total - Measured
& Indicated and
Measured & Indicated Inferred Inferred
Cut-off Tonnes Grade Content Tonnes Grade Content Tonnes Grade Content
g/t g/t koz g/t koz g/t koz
Au (millions) Au Au (millions) Au Au (millions) Au Au
------------ -------- ----------- ------ ------------ ----------- ------ ------------ ----------- ------ ------------
Tulkubash 1.0 10.0 1.98 639 1.9 1.90 116 11.9 1.97 755
------------ -------- ----------- ------ ------------ ----------- ------ ------------ ----------- ------ ------------
Main
& Contact 2.0 30.6 3.31 3,258 11.4 3.49 1,274 42.0 3.36 4,532
Total 40.7 2.98 3,897 13.3 3.26 1,390 53.9 3.05 5,287
------------ -------- ----------- ------ ------------ ----------- ------ ------------ ----------- ------ ------------
Total - Measured
Measured Indicated & Indicated
Cut-off Tonnes Grade Content Tonnes Grade Content Tonnes Grade Content
g/t g/t koz g/t koz g/t koz
Au (millions) Au Au (millions) Au Au (millions) Au Au
----------- -------- ----------- ------ ------------ ----------- ------ ------------ ----------- ------ ------------
Tulkubash 1.0 3.7 2.17 257 6.3 1.87 382 10.0 1.98 639
----------- -------- ----------- ------ ------------ ----------- ------ ------------ ----------- ------ ------------
Main
& Contact 2.0 3.2 3.89 401 27.4 3.24 2,857 30.6 3.31 3,258
Total 6.9 2.97 658 33.8 2.98 3,239 40.7 2.98 3,897
----------- -------- ----------- ------ ------------ ----------- ------ ------------ ----------- ------ ------------
Table 2: Mineralized Material: Tulkubash Section (predominantly
oxide and open pit)
Cut-off Measured & Indicated Inferred Total
g/t Measured & Indicated
Au and Inferred
--------- -------------------------- -------------------------- --------------------------
Tonnes Grade Content Tonnes Grade Content Tonnes Grade Content
(Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz)
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
0.5* 21.4 1.31 901 4.44 1.21 173 25.8 1.29 1073
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
1.0 10.02 1.98 639 1.89 1.9 116 11.9 1.97 755
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
1.5 5.46 2.63 461 1.06 2.44 83 6.5 2.59 544
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
2.0 3.16 3.28 333 0.63 2.89 59 3.8 3.21 392
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
2.5 1.94 3.92 247 0.373 3.35 40 2.3 3.83 288
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
Cut-off Measured Indicated Total
g/t Measured & Indicated
Au
-------- -------------------------- -------------------------- --------------------------
Tonnes Grade Content Tonnes Grade Content Tonnes Grade Content
(Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz)
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
0.5* 7.12 1.47 337 14.28 1.23 564 21.4 1.31 901
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
1.0 3.69 2.17 257 6.33 1.87 382 10.02 1.98 639
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
1.5 2.18 2.82 198 3.27 2.49 262 5.46 2.63 461
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
2.0 1.36 3.49 152 1.80 3.12 181 3.16 3.28 333
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
2.5 0.83 4.27 114 1.13 3.66 133 1.94 3.92 247
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
Table 3: Mineralized Material: Main and Contact Zones combined
(predominantly sulphide and underground)**
Cut-off Measured& Indicated Inferred Total
g/t Measured & Indicated
Au and Inferred
--------- -------------------------- -------------------------- --------------------------
Tonnes Grade Content Tonnes Grade Content Tonnes Grade Content
(Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz)
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
0.5* 116.87 1.657 6,306 50.99 1.59 2,609 167.86 1.65 8,915
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
1.0* 72.27 2.18 5,343 29.74 2.20 2,106 106.00 2.19 7,450
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
1.5* 48.12 2.73 4,230 17.99 2.84 1,642 66.11 2.76 5,872
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
2.0 30.64 3.30 3,258 11.36 3.49 1,274 41.99 3.357 4,532
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
2.5 19.85 3.89 2,484 7.29 4.20 984 27.13 3.976 3,468
--------- ------- ------- -------- ------- ------- -------- ------- ------- --------
Cut-off Measured Indicated Total
g/t Measured & Indicated
Au
-------- -------------------------- -------------------------- --------------------------
Tonnes Grade Content Tonnes Grade Content Tonnes Grade Content
(Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz)
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
0.5* 10.14 1.99 649 106.72 1.65 5,657 116.87 1.657 6,306
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
1.0* 6.98 2.56 573 69.28 2.14 4,770 72.27 2.18 5,343
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
1.5* 4.61 3.23 479 43.51 2.68 3,751 48.12 2.73 4,230
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
2.0 3.20 3.89 401 27.43 3.24 2,857 30.64 3.30 3,258
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
2.5 2.31 4.52 337 17.52 3.81 2,147 19.85 3.89 2,484
-------- ------- ------- -------- ------- ------- -------- ------- ------- --------
* Portions of mineralization at these cut-off grades may not
have reasonable prospects for economic extraction under mining and
process cost assumptions for this zone, depending on oxidation
zonation and mining method, but are included for the sake of
completeness.
** Includes M2400, M3000, M34, M39, M44, M50, M60, Contact
Project and C40 zones from previous resource statements.
Note: Table 1 includes the information presented in Tables 2 and
3.
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.
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.
.
Glossary of Technical Terms
"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
"Mineral a concentration or occurrence of material
Resource" 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
"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
MSCWGUCCWUPCGMG
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