TIDMCGH
RNS Number : 7226O
Chaarat Gold Holdings Ltd
12 October 2021
12 October 2021
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
High Grade Gold Intercepts in Kyzyltash Drill Programme
Chaarat Gold (AIM: CGH), the AIM-quoted gold mining Company with
an operating mine in Armenia, and assets at various stages of
development in the Kyrgyz Republic, is pleased to announce the
completion of the Kyzyltash 2021 drilling programme. The drilling
intersected significant high grade gold intercepts within the
current JORC compliant measured, indicated and inferred
("M,I&I") sulphide resource of 5.4 million ounces at 3.8 g/t.
The drill core will be used to determine the appropriate processing
route for the sulphide ore. Once funded, designed, and constructed,
the asset will target approximately 300koz of annual
production.
Highlights of the Drill Programme
- All necessary drill core for metallurgical testwork obtained
- Completion of 3,508 metres of drilling
- Twinned holes confirmed mineralisation in the Contact Zone
("CZ") and Main Zone ("MZ") of the Kyzyltash deposit
- All 16 drill holes successfully intersected expected
mineralization returning similar results as the original drill
holes
- Confirmation drill holes include(1) :
o Contact Zone: 44 metres of 5.75 g/t gold, followed by 32.6
metres of 6.01 g/t gold, including 4.6 metres of 19.50 g/t gold,
compared to 31.5 metres of 4.36g/t gold in the original hole
o Main Zone: 24.5 metres of 5.70 g/t gold, including 5.3 metres
of 10.12 g/t gold, compared to 34.5 metres at 5.04g/t gold in the
original hole
Next Steps
- The process of selecting two representative composite samples
is currently underway, with shipment to SGS Lakefield planned for
November 2021
- Results from the SGS Lakefield testwork are expected in H1
2022. This information will be used to determine the preferred
flowsheet and engineering solution during the feasibility study
update for the Kyzyltash project.
(1) All drill metres quoted are drilling width. True widths are
estimated in the attached intercept table below
Dimitar Dimitrov, Senior Vice President Geology of Chaarat,
said:
"The development and exploration of Tulkubash and Kyzyltash
projects is continuing on multiple fronts. Completion of the
Kyzyltash metallurgical drilling has provided solid confirmation
regarding the previously defined JORC-compliant resource. The core
collected will enable us to determine the appropriate processing
option to unlock the significant value of this project. I am very
glad to see the recent confirmation of the high-grade nature of the
most significant ore bodies at Contact and Main zones of the
Kyzyltash gold deposit."
The Kyzyltash Metallurgical Drill Programme
The recently completed Kyzyltash metallurgical drill programme
consisted of 16 twin drill holes totalling 3,508 met re s. The
programme was performed over a period of three months and drill
hole locations were selected to provide sufficient quantity of
grade and spatially representative material for two composite
samples from the CZ and MZ of the Kyzyltash deposit. Drilling was
conducted using large PQ diameter drill tube to ensure a sufficient
quantity of core for the subsequent metallurgical testing .
The ore collected will now be sent to SGS Lakefield in Canada to
carry out metallurgical testwork on the selected composite samples.
Process testing will be carried out on pressure oxidation ("POX"),
bio-oxidation ("BIOX") and Albion processes to help determine the
most suitable pre-leach oxidation processing route for the
project.
It is expected that the results of the SGS testwork and analysis
will be completed in H1 2022.
The Kyzyltash sulphide ore bodies are in the same license area
as the Tulkubash project where preliminary construction activities
have progressed. Kyzyltash represents the next stage of development
in the Kyrgyz Republic through organic growth to a targeted 500 koz
p.a. group production by 2026.
Geology maps and sections illustrating the location of the drill
holes and Kyzyltash mineralized zones are available at
https://www.chaarat.com/kyrgyzstan/kyzyltash/ .
Sampling, subsampling and Laboratories
A quarter PQ core was sampled on average intervals of two metres
, taking into account all clear geological boundaries. FA / ICP 35
analysis were conducted by Stewart Assay and Environmental
Laboratories in Kara Balta, Kyrgyzstan. In any 20 regular samples,
1 duplicate, 1 standard (reference material) and 1 blank sample
were introduced. SGS laboratory in Russia, city of Chita, is used
for external laboratory control. The core boxes are stored in dry
metal containers to reduce supergene alteration. The individual
metallurgical samples to be packed in labeled plastic bags and laid
in plastic barrels prior shipment to SGS. All received QA/QC
results were prepared in accordance with JORC code guidelines and
are meeting the international industry standards.
Competent Person's Statement
The information in this announcement that relates to exploration
results is based on and fairly represents information and
supporting documentation prepared by Dimitar Dimitrov, P. Geo, AIG
member and a Competent Person as defined in the 2012 edition of the
JORC Code 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves' . Mr. Dimitar Dimitrov is a
full-time employee of the company. Mr. Dimitrov consents to the
publication of this new release dated 12 October 2021 by Chaarat.
Mr. Dimitrov certified that this news release fairly and accurately
represents the information for which he is responsible.
Enquiries
+44 (0)20 7499
Chaarat Gold Holdings Limited 2612
Patrick Henze (VP Corporate Development info@chaarat.com
& IR)
Canaccord Genuity Limited (NOMAD and + 44 (0)20 7523
Joint Broker) 8000
Henry Fitzgerald-O'Connor
James Asensio
+44 (0)20 7220
finnCap Limited (Joint Broker) 0500
Christopher Raggett
+44 (0)20 7886
Panmure Gordon (UK) Limited (Joint Broker) 2500
John Prior
Hugh Rich
About Chaarat
Chaarat is a gold mining company which owns the Kapan operating
mine in Armenia as well as Tulkubash and Kyzyltash Gold Projects in
the Kyrgyz Republic. The Company has a clear strategy to build a
leading emerging markets gold company with an initial focus on the
FSU through organic growth and selective M&A.
Chaarat aims to create value for its shareholders, employees and
communities from its high-quality gold and mineral deposits 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
"g/t" grammes per tonne, equivalent to parts per million
"FA / ICP 35" Fire Assay gold assay method / Inductively Coupled
Plasma is a multi-element analytical method for
determination of the element content in materials,
used to assay silver, base metals etc.
"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 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
a concentration or occurrence of material of
"Mineral Resource" 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)
"PQ Core" Diamond drill core with 122.6mm hole diameter
"Probable Reserve" the part of Indicated and in some cases Measured
Resource that can be mined at a profit. It includes
diluting materials and allowances for losses
that may occur during mining.
the part of Indicated Measured Resource that
"Proven Reserve" can be mined at a profit. It includes diluting
materials and allowances for losses that may
occur during mining.
"Reserve" the part of a Measured and/or Indicated Mineral
Resource that can be mined at a profit. Reserves
are subdivided in order of increasing confidence
into Probable and Proven categories when reporting
under JORC.
"t" tonne (= 1 million grammes)
"QA/QC" Quality assurance and quality control (QA/QC)
procedures during exploration ensures the trustworthiness
of the data produced.
Quality assurance (QA) and quality control (QC)
are procedures used in the laboratory to ensure
that all analytical measurements made are accurate.
Appendix 1: Significant gold intercept table from the 2021
metallurgical drilling at Kyzyltash Gold Project. The table
generated using 1g/t cut-off grade and allowing 2 metres internal
dilution.
Hole East East m Az Dip , From, Intersect, Au, , Ag, Estimated
Elev, Depth, m m g/t g/t
m m
true
width, m
h ,
C o
n t
a c
t Z
o n
e MD21C001 12682128.33 4659005.62 2606 310.0 -70 304.5 62.0 10.0 2.21 9.96 6.5
and 210.5 43.9 3.77 26.79 17.1
MD21C002 12682172.92 4659079.3 2581 310.0 -70 364.6 52.0 12.0 2.13 15.12 5.8
266.0 44.0 5.75 16.86 17.2
276.0 6.0 12.03 46.77 2.3
332.0 32.6 6.01 23.41 12.7
360.0 4.6 19.50 1.80 1.8
MD21C003 12681645.23 4658523.6 2819 320.0 -75 344.8 224.0 22.0 4.96 41.99 10.1
252.0 22.0 5.05 7.93 10.1
268.0 4.0 15.24 10.55 1.8
MD21C004 12681420.9 4658068.56 2761 310.0 -35 263.2 176.0 14.0 4.69 43.66 5.6
MD21C005 12681757.11 4658674.73 2833 135.2 -60 205.7 161.2 13.6 2.13 32.98 11.2
M a
I n
Z o
n e MD21M00 6 12682505.33 4658350.92 2256 283.5 -45 201.1 104.3 10.0 3.32 0.60 5.1
===
180.3 10.0 2.72 0.70 5.1
MD21M007 12682133.68 4657913.26 2339 135.6 -70 150.6 120.4 5.8 2.88 4.30 2.2
MD21M008 12679887.56 4656417.32 2491 315.8 -75 129.5 53.1 6.0 2.19 0.50 2.4
78.0 11.3 3.41 0.50 4.5
MD21M009 12681768.43 4657689.23 2436 314.6 -60 242.1 56.4 8.0 2.63 9.85 3.2
87.6 4.7 2.79 9.37 1.9
97.8 4.0 2.90 8.65 1.6
150.6 8.0 2.27 2.12 3.2
MD21M010 12680442.14 4656940.32 2549 0.0 -90 135.5 72.0 10.0 3.99 0.70 5.6
no significant
MD21M011 12680470.11 4656867.26 2502 315.4 -30 80.8 intercepts
MD21M012 12681193.79 4657351.37 2447 315.9 -35 252.0 100.7 12.4 5.85 2.13 9.8
MD21M013 12680872.72 4657129.97 2445 134.9 -60 129.4 64.7 24.5 5.70 5.11 11.2
80.9 5.3 10.12 6.19 2.4
MD21M014 12681030.89 4657261.49 2485 135.0 -60 162.0 83.9 10.4 4.95 3.73 6.2
85.9 2.0 10.60 4.80 1.2
MD21M015 12680435.6 4656754.76 2470 335.2 -45 342.0 10.0 4.0 2.97 1.6
134.3 4.9 3.09 2.0
MD21M016 12681116.4 4657133.16 2364 315.1 -40 200.0 43.2 2.0 12.80 1.4
119.2 4.3 5.19 3.0
128.8 5.0 1.97 3.5
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