TIDMCGH
RNS Number : 4080H
Chaarat Gold Holdings Ltd
15 November 2018
15 November 2018
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Chaarat Exploration Drilling Continues to Extend Tulkubash
Mineralisation
Chaarat (AIM: CGH), the AIM quoted exploration and development
company developing the Chaarat Gold Project in the Kyrgyz Republic,
is pleased to provide an update on its 2018 exploration drilling
programme at its Tulkubash oxide gold project. This press release
presents results obtained subsequent to the cutoff of drillhole
data (12 August 2018) used in the Company's last resource update
reported on 4 September 2018.
The following link provides a plan and cross-sections showing
the locations of the drill holes as well as tabulations of the
drill assay data discussed in this press release:
http://www.rns-pdf.londonstockexchange.com/rns/4080H_1-2018-11-14.pdf
Highlights
-- This release reports the results of approximately 9,000
metres of new drilling since the last resource update of 4
September 2018.
-- Gold mineralisation is confirmed to continue further along
strike northeast of the existing 1.5 million ounce resource.
Drilling has extended mineralisation by approximately 1,600 metres
since the beginning of the 2018 season and over 500 metres since
the resource update of 4 September 2018. Drilling since the last
resource update has also added gold mineralisation within the
existing resource footprint.
-- New, shallow mineralisation has been identified within the current pit design.
-- Significant intercepts include:
o Section 3560, Hole DH18T429: True width of 7.0 metres at 3.96
grammes per tonne ("g/t") gold "Au") from a depth of 43.5
metres.
o Section 480, Hole DH18T441: True width of 14.0 metres at 0.83
g/t Au from a depth of 19.5 metres.
o Section 640, Hole DH18T430: True width of 16.8 metres at 1.56
g/t Au from a depth of 54.5 metres.
o Section 640, Hole DH18T460: True width of 18.0 metres at 1.09
g/t Au from a depth of 124.5 metres.
o Section 2520, Hole DH18T414: True width of 10.4 metres at 1.63
g/t Au from a depth of 177.0 metres.
o Section 3240, Hole DH18T428: True width of 23.8 metres at 0.54
g/t Au from a depth of 155.0 metres.
o Section 3800, Hole DH18T444: True width of 14.0 metres at 1.57
g/t Au from a depth of 64.5 metres.
-- Road cuts have exposed new, significant mineralisation in
Segment IV: 32.0 metres at 1.01 g/t Au.
Approximately 19,660 metres has been drilled to date in 2018.
Two drill rigs are currently in operation on site and the program
is expected to wind down by the end of November with approximately
20,500 metres drilled. The Company's ambition to drill 30,000
metres this year will not be realized, due to weather and
logistical issues (drill water shortages). The drill water
shortages were caused by an abnormally dry spring and summer this
year. Steps are being taken to engineer a water delivery system to
preclude reoccurrence of this during future drill campaigns.
Dorian L. (Dusty) Nicol, the Company's Technical Director and
Head of Exploration, commented:
"We continue to be very encouraged by the ongoing results of our
drilling at Tulkubash. Drilling since the interim resource update
in September continues to add oxide gold mineralization. We
continue to focus our drilling on mineral resource addition with
the objective of maximising conversion to reserve and enhancing
Tulkubash project economics. We will be completing a year-end
resource update on the completion of this season's drilling. We
expect to complete the year-end resource update early in January
2019. This will form the basis of an updated reserve estimate and
financial model to be completed by end-February 2019."
Drilling Update
In planning the 2018 drill programme, the Company defined five
along strike segments within the current Tulkubash trend. The
current 1.5 million ounce Tulkubash resource is located in segments
I to IV. Significant additional new resources have been developed
in Segment IV based on this year's drilling. Segment V represents
the area with the strongest gold in soil geochemical anomalies and
favourable structural geology and represents some of Chaarat's
highest priority drill targets. This year's drilling in Segment V
has confirmed that the Tulkubash oxide mineralization continues to
the northeast and represents an attractive target for follow-up
drilling in the 2019 season.
Drilling in the second half of this year has focused on
developing resources in Segment I and Segment IV that could have
the potential to add reserves to the project. Drilling in Segment I
is targeting oxide mineralization on the footwall and hanging wall
of the main pit that has the potential to expand the pit
design.
Drilling in Segment IV is targeting extensions of the Satellite
Pits that may result in connecting these small pits to add reserves
and enhance the project economics. It is also expected that a new
pit ("Northeast Pit") may be designed as a result of resource /
reserve growth toward the northeast.
Drilling in Segment V continues to add strike length to the
mineralisation, which has now been extended at least 1,600 metres
along strike from the Feasibility Study resource boundary. Recently
completed geologic mapping combined with the drill results are
highly encouraging and confirm that mineralisation extends to the
northeast of the current resource.
The gold mineralisation in this Segment IV is strongly oxidised.
This can be gauged by the percentage of contained gold determined
to be easily recovered by cyanide solution (cyanide soluble assay).
In this batch of samples, 1331 of 1744 cyanide soluble assays
received to date are greater than 80 per cent of contained gold
with only 188 samples less than 60 per cent. This suggests that a
significant amount of this mineralisation would be recoverable by
heap leach.
Significant intercepts from eighteen drill holes on sixteen
sections are summarised in the table below. The sections are in
general 80 metres apart. Significant intercepts are defined as
intercepts greater than 10 metres in width above a 0.25g/t gold cut
off or greater than 3.0 metres in width at a 0.25g/t gold cut off
assaying greater than 1.0 g/t gold or a minimum equivalent grade x
thickness.
Drill Interval Thickness True Au
Hole (m) Thickness g/t
(m)
Cross From To
Section
--------- ------- -------
DH18T420 400 102.00 117.00 15.00 14.00 0.47
--------- ------- ------- ---------- ----------- -----
DH18T441 480 7.50 13.50 6.00 5.60 7.60
--------- ------- ------- ---------- ----------- -----
DH18T441 480 19.50 34.50 15.00 14.00 0.83
--------- ------- ------- ---------- ----------- -----
incl 480 30.00 33.00 3.00 2.80 2.21
--------- ------- ------- ---------- ----------- -----
DH18T441 480 48.00 52.50 4.50 4.25 1.46
--------- ------- ------- ---------- ----------- -----
DH18T430 640 54.50 72.50 18.00 16.80 1.56
--------- ------- ------- ---------- ----------- -----
DH18T430 640 141.50 152.00 10.50 9.80 0.58
--------- ------- ------- ---------- ----------- -----
DH18T430 640 195.50 221.00 25.50 23.80 1.32
--------- ------- ------- ---------- ----------- -----
DH18T460 640 124.50 147.00 22.50 18.00 1.09
--------- ------- ------- ---------- ----------- -----
DH18T414 2520 177.00 189.00 12.00 10.40 1.63
--------- ------- ------- ---------- ----------- -----
incl 2520 177.00 181.50 4.50 3.90 2.86
--------- ------- ------- ---------- ----------- -----
DH18T417 2680 63.00 69.00 6.00 5.60 1.32
--------- ------- ------- ---------- ----------- -----
incl 2680 66.00 69.00 3.00 2.80 2.00
--------- ------- ------- ---------- ----------- -----
DH18T409 2760 46.50 52.50 6.00 5.60 1.29
--------- ------- ------- ---------- ----------- -----
DH18T409 2760 61.50 76.50 15.00 12.60 0.28
--------- ------- ------- ---------- ----------- -----
DH18T425 2840 52.00 62.50 10.50 9.80 0.68
--------- ------- ------- ---------- ----------- -----
DH18T411 2920 122.00 125.00 3.00 2.80 1.21
--------- ------- ------- ---------- ----------- -----
DH18T383 3000 126.00 130.50 4.50 4.25 3.22
--------- ------- ------- ---------- ----------- -----
DH18T428 3240 155.00 180.50 25.50 23.80 0.54
--------- ------- ------- ---------- ----------- -----
DH18T422 3280 54.00 57.00 3.00 2.80 1.11
--------- ------- ------- ---------- ----------- -----
DH18T437 3320 139.50 150.00 10.50 9.50 0.46
--------- ------- ------- ---------- ----------- -----
DH18T415 3400 198.00 207.00 9.00 8.40 1.00
--------- ------- ------- ---------- ----------- -----
DH18T415 3400 214.50 228.00 13.50 12.60 0.48
--------- ------- ------- ---------- ----------- -----
DH18T415 3400 238.50 267.00 28.50 25.60 0.59
--------- ------- ------- ---------- ----------- -----
DH18T415 3400 274.50 300.00 25.50 23.50 0.41
--------- ------- ------- ---------- ----------- -----
DH18T439 3480 81.00 84.00 3.00 2.70 3.04
--------- ------- ------- ---------- ----------- -----
DH18T439 3480 124.50 136.50 12.00 10.80 0.52
--------- ------- ------- ---------- ----------- -----
DH18T429 3560 43.50 51.00 7.50 7.00 3.96
--------- ------- ------- ---------- ----------- -----
incl 3560 43.50 49.50 6.00 5.60 4.81
--------- ------- ------- ---------- ----------- -----
DH18T421 3680 51.00 61.50 10.50 9.80 0.30
--------- ------- ------- ---------- ----------- -----
DH18T426 3680 49.50 61.50 12.00 11.20 0.30
--------- ------- ------- ---------- ----------- -----
DH18T447 3680 63.50 75.50 12.00 11.20 0.74
--------- ------- ------- ---------- ----------- -----
DH18T444 3800 64.50 79.50 15.00 14.00 1.57
--------- ------- ------- ---------- ----------- -----
All results are from diamond core holes. The sample intervals
are constrained by geology and range from a minimum of 0.4 metres
to a maximum of 1.5 metres, generally averaging near 1.5 metres in
length. Mean grades are calculated at the stated cut-off with no
upper cap applied. The maximum length of internal waste in any
interval is 3.0 metres. Approximate true width is estimated from
cross sectional interpretations.
Additional holes in Segment IV and Segment-V intersected gold
mineralisation, but are below the threshold to be considered
significant. Nonetheless, they indicate extension of the
gold-bearing system, which like all such gold mineralised systems
tends to pinch and swell along the controlling structure(s).
QA/QC Procedures: Sampling Methodology and Quality Control
Samples are shipped to the ALS Global Laboratory in Kara-Balta,
Kyrgyz Republic for sample preparation and assay. Gold is analysed
using a 30-gramme fire assay with an atomic absorption spectroscopy
(AAS) finish. A quality control/quality assurance protocol is
employed in the programme which includes standards and blanks in
every batch of assays. Check assays are conducted on every 20(th)
sample by a second independent laboratory.
Competent Person
The Competent Person with overall responsibility for this press
release, and who has reviewed the information contained herein, is
Dorian L. (Dusty) Nicol (FAussIMM), the Company's Technical
Director and Head of Exploration. He is a geologist with more than
40 years of experience in the resource industry who has sufficient
experience relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. He has supervised the
work which is the subject of this release. Mr. Nicol 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 Limited
Martin Andersson (Chairman) +44 (0)20 7499 2612
Artem Volynets (CEO) info@chaarat.com
Numis Securities Limited
John Prior, Paul Gillam (NOMAD) +44 (0) 20 7260 1000
James Black (Corporate Broking)
Powerscourt
Conal Walsh +44 (0)20 7250 1446
Matthew Attwood chaarat@powerscourt-group.com
Isabelle Saber
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.
On 30 October 2018, Chaarat announced that it had entered into a
binding sale and purchase agreement to acquire the Kapan mine in
Armenia from Polymetal, for a consideration of US$55 million,
subject to adjustments.
Chaarat is engaged in an 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.
Further information is available at www.chaarat.com
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 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 that part of a Mineral Resource for which tonnage,
Resource" 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 "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 of gold
"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
"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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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