TIDMCGH
RNS Number : 8317W
Chaarat Gold Holdings Ltd
23 August 2022
23 August 2022
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Strong Metallurgical Test Results on Kyzyltash Ore
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 first phase metallurgical test programme
performed by SGS Lakefield on its Kyzyltash gold project. The
project has a current JORC-compliant Measured, Indicated and
Inferred sulphide resource of 5.4 million ounces of gold at 3.8
g/t. Management estimate that the project has the potential to
produce approximately 300koz per annum of gold subject to the
project meeting its feasibility, permitting and development
milestones.
The metallurgical test work has shown similar first stage
recoveries from both pressure oxidation ("POX") and Albion (TM)
technologies. The Albion (TM) process employs ultra-fine grinding
followed by aerated cyanide leaching to extract gold while POX uses
high-pressure and temperature conditions to oxidize refractory
sulphides prior to gold extraction by conventional carbon-in-leach
technology. Bio-oxidation ("BIOX") test work is ongoing with
results expected in Q3 2022. The test work will be analysed in an
economic trade-off study comparing the potential processing
technologies applicable to the ore with the aim of making a final
decision in 2023. Following this, Chaarat will aim to progress
towards an updated feasibility study on the Kyzyltash project.
Highlights of the Metallurgical Testing Programme
- SGS Lakefield performed flotation and oxidative treatment
tests on the representative samples of the 2021 Kyzyltash drilling
programme
- Ore shown to be amenable to froth flotation recovering 87-90%
of gold with a 23-24% mass pull.
- Leach recovery for both Albion (TM) and POX averaged 80-90%
with similar results between the two processes.
Next Steps
- Results on oxidative testwork using BIOX are expected in Q3 2022.
- Further investigation and variability testing will be
performed on all processing options to confirm the first stage
results thereafter.
- Final test results will be used to conduct an economic
trade-off study to determine the preferred processing option. This
study will include an assessment on flotation and full ore
processing options before proceeding with other workstreams
required towards an updated feasibility study.
Mike Fraser, Chief Executive Officer of Chaarat, said:
"The development of the Kyzyltash project is continuing as
planned. These first results of the Kyzyltash metallurgical test
work have provided confirmation that the gold is favourably
recoverable with various technologies. The fact that the results
from the Albion (TM) process were similar to POX is very
encouraging as Albion (TM) could potentially offer a substantially
simpler, lower cost means of processing Kyzyltash ore. Further
testwork to confirm the preferred processing route will enable
Chaarat to proceed with an updated feasibility study with the aim
of unlocking the significant future value that this project can
bring to Chaarat shareholders. Moreover, there exist significant
synergies between Kyzyltash and the construction ready Tulkubash
open pit oxide leach project which lies in the same licence area
and has already proved its merits on a standalone basis. On a
combined basis these two projects have the potential to develop
into a significant long-life gold producing hub with the potential
for further exploration upside."
The Kyzyltash Development Project
Chaarat is developing the Kyzyltash gold deposit in the Kyrgyz
Republic. The deposit hosts a refractory, unconstrained resource of
approximately 5.4 Moz gold at 3.8 g/t. More than 80,000 metr e s of
drilling have been completed to date on the project and the current
resource has been defined over 4 km of strike length within
favourable geology that could extend over more than 12 km of strike
length. In 2016 NFC (China Nonferrous Metal Industry's Foreign
Engineering and Construction Co. Ltd) subsidiary NERIN complete d a
definitive feasibility study to Chinese standards assuming $565
million in capital expenditure for an underground mine and a BIOX
processing facility with ca. 75% recovery leading to an NPV (8) of
$911 million based on a $1,750/oz gold price.
The Kyzyltash sulphide gold deposit is in the same licence area
as the Tulkubash. Kyzyltash represents the next stage of
development for Chaarat in the Kyrgyz Republic which targets to
deliver 500 koz p.a. group production through organic growth.
The Kyzyltash Metallurgical Drilling and Testwork Programme
The 2021 Kyzyltash metallurgical drill programme consisted of 16
twin drill holes totalling 3,508 metres. Drill hole locations were
selected to provide sufficient material of appropriate tonnage and
grade to represent the Main and Contact Zones of the Kyzyltash
deposit. Sampling was conducted using large, PQ diameter core to
ensure enough core was available for subsequent metallurgical
testing.
In order to proceed to an updated feasibility study in
accordance with global standards, no further drilling is required
on the measured and indicated resource whereas management currently
expects ca. 10 km of drilling to be required to upgrade the
existing inferred resources to measured and indicated
categories.
Sampling
The material for testing was collected from the diamond drilling
program in the major minerali s ed areas of the deposit known as
the Main and Contact Zones. A total of 395 m etres of minerali s ed
core yielded 2,300 kg of material for the current program me in
addition to future variability and pilot plant test work. Master
composites for the Main and Contact Zones were prepared for testing
, grading 2.5 g/t Au and 3.6 g/t Au respectively. The material is
considered representative of the potentially minable portion of the
deposit by both SGS and C haarat .
Diagnostic Leaching & Mineralogy
Diagnostic leaching of flotation concentrate indicated maximum
theoretical recoveries of between 75% and 86% based on area within
the deposit. Diagnostic leaching of flotation tails indicated
theoretical maximum recoveries of 90% and 93%, confirming that
processing whole ore rather than concentrate will offer a
significant increase in recovery. The assessment of flotation
versus full ore treatment will be considered during the trade-off
study.
Enquiries
+44 (0)20 7499
Chaarat Gold Holdings Limited 2612
Mike Fraser (Chief Executive Officer) IR@chaarat.com
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
Panmure Gordon (UK) Limited (Joint +44 (0)20 7886
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 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.
"Proven Reserve"
the part of Indicated Measured Resource that
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.
ENDS
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