TIDMCGH
RNS Number : 3259D
Chaarat Gold Holdings Ltd
19 October 2022
19 October 2022
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Kyzyltash BIOX Metallurgical Test Results
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 Bio-oxidation ("BIOX") first phase metallurgical
test programme performed by SGS Lakefield on its Kyzyltash gold
project. The project has an unconstrained 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 BIOX test results complement the metallurgical test results
for pressure oxidation ("POX") and Albion(TM) processing methods
which were released on 23(rd) August 2022.
Highlights of the BIOX Metallurgical Testing Programme
- Leach recovery for BIOX averaged 84-96% using flotation, BIOX
and carbon in leaching ("CIL").
- This compares favourably to the leach recovery for Albion (TM)
and POX which averaged 80-90%.
The BIOX process oxidises sulphide minerals and exposes gold to
recovery by cyanidation, thereby increasing the achievable gold
recovery. The highest overall recoveries, under the conditions
tested in this programme, were achieved with flotation followed by
BIOX and CIL flowsheet which were up to 6% higher than the
previously reported first stage recoveries from both POX and
Albion(TM) technologies.
The SGS reports on mineralogy and process testing will be
available on the Chaarat web page shortly.
Next Steps
- Further investigation and variability testing will be
performed on all three 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 results from the BIOX test work confirm that the Kyzyltash
ore is recoverable through all three potential processing routes.
It is furthermore encouraging that the BIOX results are
significantly higher compared to the 2016 study results (77% BIOX
sulphide recovery). The economic trade-off study will allow us to
understand the economic impact of these strong results and confirm
the preferred processing route."
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 international 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
programme 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 .
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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