TIDMCGH
RNS Number : 9987L
Chaarat Gold Holdings Ltd
02 January 2019
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
Not for release, publication or distribution to United States
newswire services or for release, publication or dissemination in
the United States and does not constitute an offer of the
securities herein.
This press release does not constitute an offer to sell, or a
solicitation of an offer to buy, securities in the United States or
any other jurisdiction. Any securities described in this press
release have not been, and will not be, registered under the US
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent registration except in transactions
exempt from, or not subject to, registration under the US
Securities Act and applicable US state securities laws. There is no
public offering of the securities in the United States
expected.
2 January 2019
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Significant Increase in Resource at Tulkubash gold deposit
-- Tulkubash Measured and Indicated (M&I) Mineral Resource
now over 1.6 million ounces of gold, a 15% increase since the
September 2018 interim resource update
-- Continuity of mineralization demonstrated
-- Results continue to suggest emergence of a significant new gold district
Chaarat (AIM: CGH), the AIM quoted exploration and development
company developing the Chaarat Gold Project in the Kyrgyz Republic,
is pleased to announce a Joint Ore Reserves Committee ("JORC")
compliant Mineral Resource update for its Tulkubash oxide gold
deposit in the Kyrgyz Republic.
This resource update is based on the simplified and robust
geologic model that was used for the mid-September interim resource
update (see the Company's press release dated 4 September 2018).
This 2018 year-end resource update includes results from the latest
48 diamond drill holes, comprising approximately 9,370 metres,
drilled since the September resource update. An updated reserve
estimate and financial model for the Tulkubash deposit based on the
year-end resource model are being prepared and should be completed
by end-February 2019. Drilling since the September 2018 update has
focused on infill drilling within the current strike length with
the objective of improving the quality of the resource in terms of
continuity and reserve conversion.
Highlights:
-- The overall contained ounces of gold in the Measured and
Indicated Resource ("M&I") has increased by 210,000 ounces to
1,624,000 ounces, a 15% increase.
-- Discovery costs in 2018 were approximately $11.40 /ounce of
M&I resource, and 33 ounces of gold per metre drilled.
-- There has been a 15% increase in metal within the same
drilled strike length of 3,200m due to discovery of new
mineralization and extension of known gold lodes within the
existing footprint. Mineralization remains open along strike and
the remainder of the 24-kilometre strike length of prospective
geology remains undrilled.
-- The average grade of the Tulkubash deposit has decreased by
0.15 grammes per tonne (g/t) gold (Au), to 1.2 g/t Au, relative to
the September 2018 update, due to the inclusion of some lower grade
resource in the northeast strike extension. This decrease in grade
is compensated by an increase in tonnage and continuity of
mineralization.
-- The current M&I Resource comprises an additional 653,000
ounces of gold compared to the resource that was the basis of the
2018 Feasibility Study (see the Company's press release dated 30
April 2018), comprising 971,000 ounces of gold. This represents a
67% increase.
-- Infill drilling has further enhanced Chaarat's knowledge of
the deposit geology, mineralisation, and grade distribution. This
new information should contribute to more efficient and
cost-effective future exploration.
-- Chaarat now has a better understanding of the distribution of
oxide mineralisation within the Tulkubash deposit. This knowledge,
combined with the results of Chaarat's recently completed
metallurgical test programme, has permitted modelling which should
enable recoveries to be forecast more accurately.
-- Chaarat now has a better understanding of the local
variability and controls on mineralisation within the mineable
resource, which should provide an excellent basis for short-term
mine planning.
Dorian L. (Dusty) Nicol, the Company's Technical Director and
Head of Exploration, commented:
"We are very excited by this year-end resource update for
Tulkubash. Discovery costs per ounce and ounces discovered per
metre drilled are outstanding and continue to validate our belief
that Tulkubash will continue to grow into a world-class gold
deposit. Indeed, we believe this is the beginning of an emerging
new gold district. The mineralisation remains open along strike and
we have drilled only a small portion of the prospective
24-kilometre trend of favourable geology and surface gold
occurrences.
"We are further encouraged by the continuing increase in the
M&I Resource within the current strike length. The addition of
new mineralisation and demonstration of continuity of
mineralisation as well as the updated metallurgical recovery model
will be incorporated in the ongoing reserve and financial model
updates."
Resource Summary
Table 1: Tulkubash Deposit Resource Summary (0.30 g/t Au
cut-off)
Classification Resource
================ -----------------------------------------------
Tonnes Grade Contained Metal
Au (g/t) Au (troy oz)
================ ============ ========== =====================
Measured 5,660,000 1.35 246,000
---------------- ------------ ---------- ---------------------
Indicated 36,300,000 1.18 1,378,000
---------------- ------------ ---------- ---------------------
Measured
and Indicated 42,000,000 1.20 1,624,000
================ ============ ========== =====================
Inferred 2,330,000 0.46 33,000
---------------- ------------ ---------- ---------------------
Total 44,330,000 1.16 1,657,000
================ ============ ========== =====================
Notes:
Numbers are rounded in accordance with disclosure guidelines and
may not sum accurately.
The effective date of the Mineral Resource Estimate is 31
December 2018. Chaarat has adopted the definition of Mineral
Resources as outlined within the JORC code (2012) in order to
classify the Resources. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. The estimate
of mineral resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing, or
other relevant issues.
Infill drilling the resource further defines the continuous
higher-grade lodes and has added a further 9.3mt to the resource
model, which modelled the higher-grade zones as more strike
continuous structures but included surrounding lower-grade
mineralisation in the estimate for strike continuity. The decrease
in overall grade of M&I Resource for continuity has added
tonnage, leading to the increase in contained ounces of gold within
the same strike length. Reserves will be calculated on the sum of
M&I Resource. Measured classification has been given to those
resources within the main pit which exhibit excellent slope of
regression between block and sample variance. Indicated
classification has been given to those resources which have a high
degree of geological continuity and reasonable estimation
performance.
Resource Estimation Assumptions and Methods
Key Assumptions used to estimate the Mineral Resources are:
-- The Mineral Resource has been estimated using 25.0 metre
("m") x 25.0 m x 10.0 m (x, y, z) blocks, with minimum sub-block
dimensions of 2.5 m x 2.5 m x 2.5 m (x, y, z).
-- The estimate was constrained to the mineralised zone using
wireframe solid models. The wireframes were sub-domained to isolate
the strongly mineralised main zone from the gold mineralisation in
the main structural corridor.
-- Grade estimates were based on 3.0 m composited assay
data.
-- The interpolation of the metal grades was undertaken using
ordinary kriging.
-- A cut-off grade of 0.30 g/t gold has been applied to report
Resources.
Quality Assurance/Quality Control Procedures: Sampling
Methodology and Quality Control
All results are from diamond core holes. 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.
Geological Modelling Procedures
Sampling data was used to construct two wireframes representing
the mineralised structures at Tulkubash in Leapfrog Geo 4.2. The
wireframes were exported and estimated by ordinary kriging in
Datamine Studio RM. Variography and exploratory data analysis was
completed under Snowden's Supervisor.
Competent Person
The updated Mineral Resource estimate was prepared by Mr. Joe
Hirst, B.Sc., M.Sc. European Geologist (EurGeol) and Chartered
Geologist (CGeol). Mr. Hirst is Senior Resource Geologist at
Chaarat and is a "Competent Person" as such term is defined by the
JORC code. Mr. Hirst has reviewed the technical and scientific
information in this press release relating to the Mineral Resource
estimates and has approved the use of the information contained
herein.
The Competent Person with overall responsibility for this press
release for the Company, and who has reviewed the information
contained herein, is Dorian L. (Dusty) Nicol (FAussIMM), the
Company's Senior Vice President, 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 (Executive
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
Isabelle Saber chaarat@powerscourt-group.com
Sam Austrums
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 (the "Kapan Acquisition"). On 14 December
2018, the Company issued the Readmission Document relating to the
Kapan Acquisition.
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
NOTICE
This announcement includes statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "envisages",
"estimates", "anticipates", "projects", "expects", "intends",
"may", "will", "could", "seeks" or "should" or, in each case, their
negative or other variations or comparable terminology, or by
discussions of strategy plans, objectives, goals, future events or
intentions. These forward-looking statements include statements
regarding the Company's and the Directors' current intentions,
beliefs or expectations concerning, amongst other things,
investment strategy, financing strategy, performance, results of
operations, financial condition, liquidity, prospects, growth,
strategies and the industry in which the Group (which, where used
in this announcement, shall have the meaning given to that term in
the Readmission Document) will operate.
By their nature, forward-looking statements involve risks
(including unknown risks) and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future. Forward-looking statements are not an assurance of future
performance. The Company's actual performance, results of
operations, financial condition, liquidity and dividend policy and
the development of the business sector in which the Group will
operate, may differ materially from those suggested by the
forward-looking statements contained in this announcement. In
addition, even if the Company's performance, results of operations,
financial condition, liquidity and dividend policy and the
development of the industry in which the Group will operate, are
consistent with the forward-looking statements contained in this
document, those results or developments may not be indicative of
results or developments in subsequent periods.
Any forward-looking statements in this announcement reflect the
Company's and the Directors' current view with respect to future
events and are subject to risks relating to future events and other
risks, uncertainties and assumptions relating to the matters
referred to above. Other than in accordance with the Company's
obligations under the AIM Rules for Companies, the Company does not
undertake to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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)
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END
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