TIDMCGH
RNS Number : 0682A
Chaarat Gold Holdings Ltd
18 January 2024
18 January 2024
Chaarat Gold Holdings Limited
("Chaarat" or "the Company")
Maiden Mineral Resource Estimate at Karator Prospect:
Potential to Significantly Extend Tulkubash Gold Project Life of
Mine
Chaarat (AIM: CGH), the exploration and development company is
pleased to announce a maiden Mineral Resource Estimate ("MRE") for
its Karator Prospect, located 2km from its most advanced asset, the
1.01Moz resource (M&I and Inferred) Tulkubash Gold Project
("Tulkubash"). In addition, Chaarat has a JORC compliant 5.3 Moz
resource (M&I and Inferred) at Kyzyltash, a high-grade
refractory deposit located beneath Tulkubash.
Highlights
-- Maiden MRE at the Karator Prospect confirmed for 207Koz @
0.96 g/t gold ("Au") of Indicated and Inferred JORC compliant
Resources (Resource), reported with applied cutoff grade of 0.21
ppm Au at Karator.
-- Significant further upside potential demonstrated by
Karator's full immediate, non JORC compliant oxidized Au
mineralization potential (or Mineral Inventory) of approximately
5-10Mt of oxide gold material @ 0.8-0.9 g/t, subject to further
exploration, resource definition and upgrade.
-- Karator is located 2km northeast of Tulkubash, with 1km
traced strike of with between 30-80 metres width, and 150 to 250
metre down dip extension.
-- Potential to significantly extend the Tulkubash Gold Project
Life of Mine ("LOM") from the current 6 years towards the eventual
target of 10-15 years.
-- Tulkubash is expected to produce 95,000oz Au per annum with
all in sustaining costs of between $1,000-$1,100/oz from 2025
(subject to FID occurring by end Q1 2024), through the development
of an open pit operation and simple heap leach processing achieving
average recovery of approximately 75%.
-- Karator ore has demonstrated its consistency with the deeply
oxidised ore encountered at Tulkubash supporting the Company's
strategy to develop Karator as a satellite mine to Tulkubash,
utilising the same mining and processing methodology with modest
additional capex.
-- Next steps will include further systematic step out and
infill drilling, aiming to advance and extend the maiden Resource
with a new MRE update.
-- Karator will also undergo a comprehensive technical
assessment, including field activities covering metallurgical,
geotechnical, and hydrogeological test works, and a further
Feasibility Study (FS) report with confirmed JORC compliant
Reserves.
-- It is envisaged that Karator will become an additional
dimension of Chaarat's gold production strategy as it looks to
unlock the value of its total resource inventory, which exceeds
6Moz across the Tulkubash and Kyzyltash Gold Projects, to become a
mid-tier gold producer.
-- The MRE report is now available on the Chaarat website.
David Mackenzie, Chief Financial Officer, commented:
"Our +1Moz Tulkubash Gold Project is the most advanced in our
portfolio and should move into construction in the first half of
2024, subject to financing. Tulkubash, in isolation, will be a
significant gold operation, producing 95,000 ounces of gold per
annum, and today's news further enhances these already robust
fundamentals.
"By deploying the same simple mining and processing methodology
as envisaged at Tulkubash, developing Karator into a satellite
operation will directly contribute to the economics of the project,
whilst keeping Chaarat largely insulated from technical and
execution risk.
"I look forward to providing further news regarding our
exploration and development plans at Karator, alongside an update
on our financing progress and the final pre-construction
preparations at the main Tulkubash Gold Project as these progress.
These are all key developments as we accelerate our plans to become
a mid-tier gold producer with a global resource inventory of over
6Moz gold."
MAIDEN MINERAL RESOURCE STATEMENT
Karator, JORC compliant Resource, with applied assumption for
Reasonable Prospects for Eventual Economic Extraction (RPEEE) is
summarized in Table 1, below:
CLASS DENSITY (t/m(3)) Mt Au (g/t) Koz
----------------- ---- ---------
INDICATED 2.60 2.5 0.96 77
----------------- ---- --------- ----
INFERRED 2.60 4.2 0.97 130
----------------- ---- --------- ----
TOTAL 2.60 6.7 0.96 207
----------------- ---- --------- ----
Table 1 Karator, JORC compliant Mineral Resource table, cutoff
grade 0.21 ppm Au, 15 January 2024
Notes: The effective date of the reported Resource is January 2024.
The resource estimate is according the JORC Code (2012)
Applied cutoff grade: 0.21 ppm Au.
The Mineral Resources that are not Mineral reserve do not
demonstrate economic viability.
Numbers may not sum due to rounding.
Grade estimation completed via Ordinary Kriging, within block
model with a parent block size of 5 m x 5 m x 5 m.
Mineral Resources are constrained by manually designed Resource
shell, within the area with denser drilling grid,
in terms to apply Reasonable Prospects for Eventual Economic
Extraction
Enquiries
+44 (0)20 7499
Chaarat Gold Holdings Limited 2612
David Mackenzie (Chief Financial Officer) IR@chaarat.com
Strand Hanson Limited (Nominated + 44 (0)20
Adviser) 7409 3494
Ritchie Balmer / James Spinney / Robert
Collins
Axis Capital Markets Limited (Joint +44 (0)20 3026
Broker) 0449
Ben Tadd / Lewis Jones
Panmure Gordon (UK) Limited (Joint +44 (0)20 7886
Broker) 2500
John Prior / Hugh Rich
About Chaarat
Chaarat is an exploration and development company which owns the
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.
Competent Person- Mineral Resource Estimate
The information in this announcement that relates to the
Tulkubash-Karator Gold Prospect, maiden Mineral Resource Estimation
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' and is a Qualified Person under the AIM
Rules. Mr. Dimitar Dimitrov was former senior VP Exploration of
CGH, but now operates in an independent consultancy capacity.
Sampling and Quality Control
Sampling comprises predominantly diamond core drilling, along
with trenches sampling and channel sampling from the access roads.
The samples are processed and assayed in "Stewart Assay and
Environmental Laboratory" (SAEL), located in Karla Balta,
Kyrgyzstan. Gold is analysed using a 30-gramme fire assay with an
atomic absorption spectroscopy (AAS) finish. The lower detection
limit (LDL) of the gold analysis is 0.05ppm, and the samples below
the LDL were further replaced with half of the LDL - 0.025ppm. No
other element of interest, except Au was considered important. A
Quality Control & Quality Assurance (QAQC) protocol was
employed via Certified Reference Material (SRM), blanks (sterile
material) field duplicates, pulp, and coarse duplicates (internal
SAEL procedures) and external verification from independent
laboratory - SGS Vostok Limited Lab in Chita, Russia. The obtained
results are meeting the industry standards, and the assay database
is considered suitable for Mineral Resource Estimation (MRE).
Resource Modelling Procedures
The Karator's ore wireframes (completed in Micromine (TM))
modelling was done via series of sections, as per step of 40m,
using the drill holes and surface workings. Composite ore intervals
with cut-off grade of 0.2 ppm Au and maximal internal waste of 6m,
were prepared and further used as a base for the ore
interpretation. The lower border of the ore bodies was constrained
by the designed oxidation break, and the upper by topography. The
completed total of 32 field density measurement are not considered
sufficient to be used for variable density interpolation within the
block model, fixed density of 2.60 g /cm3, calculated as an average
from the tested samples was applied. The ultimate grade
interpolation was done via Ordinary Kriging (OK).
Oxidation, recovery
The intense fracturing of the ore zones in Karator (and in
Tulkubash type, too) has allowed better water percolation along the
fine lattice of fractures in the silica matrix leading to extensive
oxidation of the primary sulphide gold mineralization. This process
results in reasonable cyanide solubility of the gold even though
sulphide levels in the host silica matrix may still be high. As
most gold-bearing mineralization occurs in cracks in the host rock
- the degree of oxidation of the fracture surfaces is considered
the primary indicator of leachability.
No up to date comprehensive gold extraction test works were
implemented for Karator. The assumption of between 70 - 75 %
recovery was used which referenced the results from the similar
Tulkubash oxide gold deposit, which has had a wide variety of
detailed metallurgical test works (including bottle roll
extractions). Also, the Karator data has available hot cyanide
solution shake test (leachWELL) data, completed by SAEL as part of
the regular core samples.
As a conclusion it is considered fair to believe that Karator
could achieve recovery of about 70 -75%, in terms of open pit
mining followed by crushing and stacking the ore onto a heap leach
pad, and further leaching via standard cyanide solution
irrigation.
Cutoff Grade Calculation
The applied cutoff grade in Karator Resource reporting is the
same as the used in the most recent Tulkubash project reporting -
0.21 ppm Au (from April 2022). The Karator cutoff grade estimation
with applied Tulkubash economic mining and metallurgical factors,
considering additional transportation costs from Karator to
Tulkubash Heap Leaching pad are shown in the table below. Mining
costs are excluded from the cutoff grade calculation.
Mining N/A $/t ore
Mining N/A $/t waste
------ ----------
Ore transport 1.5 $/t ore
------ ----------
Processing 4.79 $/t ore
------ ----------
G&A 1.25 $/t ore
------ ----------
Total 7.54 $/t ore
------ ----------
Recovery 70 %
------ ----------
Mining Losses 5 %
------ ----------
Price 1,900 $/oz
------ ----------
Refining 9.78 $/oz
------ ----------
Payable 95 %
------ ----------
Diluted COG 0.20 g/t Au
------ ----------
Dilution 5 %
------ ----------
Undiluted COG 0.21 g/t Au
------ ----------
Table 2 Key economic parameters and Karator Cutoff grade
estimation.
Reasonable Prospects of Eventual Economic Extraction (RPEEE)
At the current stage of knowledge, the Reasonable Prospects for
Eventual Economic Extraction (RPEEE) is considering open pit method
of mining and transportation to Tulkubash heap leaching pad,
located of about 15 km driving distance. As there are not yet
completed advanced geotechnical, hydrogeological, or other
engineering and economical studies at Karator, the presented here
RPEEE assumption is considered preliminary, but sufficient for the
current purpose of maiden MRE. The RPEEE assumption for constrained
Resource was calculated via manually designed open pit, constrained
limited to the area of the major drilling, and having slope angles
of between 50-60 degrees.
The current preliminary RPEEE is calculating strip ratio (SR) of
approximately 1:3 ore (t) to waste (t).
Resource Classification
At the current stage of knowledge only Indicated and Inferred
JORC compliant Resource could be reasonably outlined. The Inferred
Resource portion is constrained within the main drilling area (the
plan distance between the holes there is between 60 and 80 meters).
The Indicated Resource are constrained as a portion from the
Inferred, using only the blocks interpolated within the search
ellipsoid with dimensions of 50m*40m*30m; minimum 4 samples from 2
different drillholes (or surface workings). The rest portion
(outside of Indicated and Inferred) of the Resource model is
considered as not JORC compliant Unclassified material.
Glossary of Technical Terms
"Au" The chemical symbol for the element gold.
"Cut-off-grade" Lowest grade of mineralized material considered
economic, used in
the calculation and / or reporting of ore resources.
"g/t" Grammes per tonne, equivalent to parts per million
(ppm).
"Indicated Mineral 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
"Inferred Mineral but are spaced closely enough for continuity
Resource" to be assumed.
That part of a Mineral Resource for which the
tonnage and grade and mineral content can be
estimated with a low level of confidence. It
is inferred from the geological evidence and
has assumed but not verified geological and/or
grade continuity. It is based on information
gathered through the appropriate techniques from
locations such as outcrops, trenches, pits, working
and drill holes which may be limited or of uncertain
quality and reliability.
"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
"Measured Mineral A Measured Mineral Resource has a higher level
Resource" of confidence than that applying to either an
Indicated Mineral Resource or an Inferred Mineral
Resource. A 'Measured Mineral Resource' is that
part of a Mineral Resource for which quantity,
grade (or quality), densities, shape, and physical
characteristics are estimated with confidence
sufficient to allow the application of Modifying
Factors to support detailed mine planning and
final evaluation of the economic viability of
"Metallurgical" the deposit.
"Mineral Inventory" Describing the science concerned with the production,
purification.
and properties of metals and their applications.
Non formal quantification of concentration or
occurrence of solid material of economic interest,
estimated by variety of empirically or theoretically
based procedures. Within the current report the
term Mineral Inventory is considering the immediate
oxide gold mineralization potential, outlined
by the ore wireframing, but with lack of sufficient
confidence to be referenced to JORC compliant
Mineral Resource or Reserve.
"Mineral Resource" Concentration or occurrence of solid material
of economic interest in or on the Earth's crust
in such form, grade (or quality), and quantity
that there are reasonable prospects for eventual
economic extraction. The location, quantity,
grade (or quality), continuity and other geological
characteristics of a Mineral Resource are known,
estimated, or interpreted from specific geological
evidence and knowledge, including sampling. Mineral
Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated
and Measured categories.
"Ore Reserves" Represents the economically mineable part of
a Measured and/or Indicated Mineral Resource.
It includes diluting materials and allowances
for losses, which may occur when the material
is mined or extracted and is defined by studies
at Pre-Feasibility or Feasibility level as appropriate
that include application of Modifying Factors.
Such studies demonstrate that, at the time of
reporting, extraction could reasonably be justified.
" Probable Ore Represents the economically mineable part of
Reserve" an Indicated, and in some circumstances, a Measured
Mineral Resource. The confidence in the Modifying
Factors applying to a Probable Ore Reserve is
lower than that applying to a Proved Ore Reserve.
" Proved Ore Represents the highest confidence category of
Reserve" reserve estimate and implies a high degree of
confidence in geological and grade continuity,
and the consideration of the Modifying Factors.
"Recovery"
Proportion of valuable material obtained in the
processing of an ore, stated as a percentage
of the material recovered compared with the total
material present.
APPIX 1: JORC Code, 2012 Edition - Table 1 (Sections: 1 &
3)
Section 1 Sampling Techniques and Data
Sampling
techniques * Nature and quality of sampling (eg cut channels, * Sampling comprises predominantly diamond core
random chips, or specific specialised industry drilling, along with trenches sampling and channel
standard measurement tools appropriate to the sampling from the access roads.
minerals under investigation, such as downhole gamma
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad * Core was drilled through the full expected
meaning of sampling. mineralization intersection, as normal to the
mineralization strike, as it is possible, considering
the geological knowledge and the terrain conditions.
* Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used. * The core samples are predominantly HQ, occasionally
PQ diameter.
* Aspects of the determination of mineralization that
are Material to the Public Report. * The trenching and road cutting sampling were done via
ordinary hammer, along marked intervals.
* In cases where 'industry standard' work has been done
this would be relatively simple (eg 'reverse * The average down-hole sample length is about 1.5m and
circulation drilling was used to obtain 1 m samples the average trench and road cut sample is about 2.0m
from which 3 kg was pulverised to produce a 30 g
charge for fire assay'). In other cases more
explanation may be required, such as where there is * The samples are taking in to account all major
coarse gold that has inherent sampling problems. lithological breaks.
Unusual commodities or mineralization types (eg
submarine nodules) may warrant disclosure of detailed
information.
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * Diamond core wireline drilling
hammer, rotary air blast, auger, Bangka, sonic, etc)
and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or * HQ drilling diameter was used as a major drilling
other type, whether core is oriented and if so, by diameter, spare PQ diameter was used as well aiming
what method, etc). to guarantee best drilling performance. The drilling
was occasionally conducted via triple-tube aiming to
advance the core recovery.
* Most of the drilling is inclined, targeting the
expected mineralization strike as normal as possible.
* No drilling orientation was applied.
* Drilling equipment is in good condition, provided and
operated by local subcontractor with wide experience
in central Asia.
Drill sample
recovery * Method of recording and assessing core and chip * The core recovery is logged as percent of the total
sample recoveries and results assessed. length, measured directly from the core box.
* Measures taken to maximise sample recovery and ensure * The core recovery is improved by using triple - core
representative nature of the samples. tube and additive drilling muds, when needed.
* Whether a relationship exists between sample recovery * The overall core recovery is above 9 0 %
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material. * There doesn't appear to be a relationship bias
between the grade, the sample length or sample weight
and the recovery.
Logging
* Whether core and chip samples have been geologically * Drill core logging was done by company's geologists,
and geotechnically logged to a level of detail to or subcontractor company but under the supervising of
support appropriate Mineral Resource estimation, senior company's geologists.
mining studies and metallurgical studies.
* Road-cuts logging was done by company's geologists.
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc) photography.
* Trench logging was done by sub-contractors, under the
supervision of company's geologists.
* The total length and percentage of the relevant
intersections logged.
* The total length of the logged drill holes is about
2540m.
* The total length of the logged surface workings is
about 4640m.
* The samples from the logged drill holes used for the
grade interpolation are about 62 % of the total,
relatively with 38 % for the samples from the surface
workings.
* Core logging is including lithology, hydrothermal
alteration, oxidation stage, degree of fracturing,
mineralization, structures, RQD, core recovery.
* Each day, the core was transported to the field core
storage area for logging. The core trays are wooden,
including wooden cover as well, to prevent core
losses or extra moving.
* Core logging is done in laptops, using AGR 4.0
software as a database platform.
* Photo documentation is done on wet trays, and data is
also incorporated in the database.
* At the end of the field season all core is
transported at the main core storage facility, in
Malovodnoye village, located close to the Kyrgyzstan
capital - Bishkek.
* Logging procedures meeting sufficient
representativeness, and are considered suitable for
Mineral Resource Estimation
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * All intact core samples are sawn along the long axis,
and sample half or all core taken. using core saw, in case of intensively fractured
preparation zones, samples are taken with trowel.
* If non-core, whether riffled, tube sampled, rotary
split, etc and whether sampled wet or dry. * Half core is packed in labelled polyethylene bags,
weighted, and further transported to "Stewart Assay
and Environmental Laboratory", located in Karla Balta,
* For all sample types, the nature, quality and Kyrgyzstan
appropriateness of the sample preparation technique.
* All the drilled core is sampled, except the initial
* Quality control procedures adopted for all diluvium / alluvium zones.
sub-sampling stages to maximise representivity of
samples.
* The bedrock exposures, outcropped in trenches and new
road cuts were selectively sampled as well, using
* Measures taken to ensure that the sampling is ordinary hammer, and taking in to account the
representative of the in situ material collected, lithological and alteration breaks
including for instance results for field
duplicate/second-half sampling.
* Whether sample sizes are appropriate to the grain
size of the material being sampled.
Quality
of assay * The nature, quality and appropriateness of the * All samples are transported to "Stewart Assay and
data and assaying and laboratory procedures used and whether Environmental Laboratory", located in Karla Balta,
laboratory the technique is considered partial or total. Kyrgyzstan, for further sample preparation and
tests analysis.
* For geophysical tools, spectrometers, handheld XRF
instruments, etc, the parameters used in determining * Through the sample preparation process, the entire
the analysis including instrument make and model, sample is crushed to passing 90% at 2mm. Two pulps
reading times, calibrations factors applied and their are made by pulverizing to 85% passing 0.075 mm. One
derivation, etc. pulp is return to the company as duplicate, the
second one is analysed, including: Fire Assay and ICP
- 35 elements.
* Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy (ie * The applied Quality Assurance and Quality Control
lack of bias) and precision have been established. (QAQC) scheme is including about 15% of the core
samples and 10% of the trench and road cut samples.
* QAQC sampling is including:
- several types of certified reference material
provided by RockLabs (TM)
- Blank material, collected from barren sediments
located close to the filed camp
- Pulp and coarse duplicates, tested internally
by the laboratory
- Field duplicates for the drill core
- Verification from independent laboratory
- SGS Vostok Limited (Chita, Russia)
* The applied QAQC procedures and the obtained results
are meeting the industrial standards and are
confirming the representativeness of the available
results.
Verification
of sampling * The verification of significant intersections by * SGS Vostok Limited Russia laboratory was used for
and assaying either independent or alternative company personnel. external verification of sample portion (48 samples)
* The use of twinned holes. * No twin holes were designed in the current
assessment.
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and * All the assay results are received electronically as
electronic) protocols. an excel spreadsheets, and further incorporated in
the database by company's database manager.
* Discuss any adjustment to assay data.
* The access of the database is limited, and only
authorized employees can make corrections in it.
* Prior to data interpretation, the lower detection
limits of Au (0.05 ppm) are changed to half of the
detection limit (0.025ppm)
Location
of data * Accuracy and quality of surveys used to locate drill * All collar locations and surface workings are
points holes (collar and down-hole surveys), trenches, mine reported at Gauss Kruger Pulkovo 1942 Zone 12
workings and other locations used in Mineral Resource coordinates.
estimation.
* The survey is conducted, using Lecia Total Station
* Specification of the grid system used. (centimetre accuracy)
* Quality and adequacy of topographic control. * All holes have a downhole survey, taken approximately
at 25m interval, using REFLEX EZ SHOT tool.
* The topographic model is based on satellite data.
* Roads and drill sites have been added after
on-the-ground survey
Data spacing
and * Data spacing for reporting of Exploration Results. * Exploration holes collars are in accordance with
distribution existing profiles designed perpendicular to the
mineralized zones.
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral Resource * The average space of drilling is between 60 and 80m,
and Ore Reserve estimation procedure(s) and with surface workings located between it. This is
classifications applied. considered sufficient for maiden Mineral Resource
Estimation (MRE) and confirming of JORC compliant
Inferred and Indicated Mineral Resources, constrained
* Whether sample compositing has been applied. within the most intense sampling zones.
* The Inferred Resource portion is constrained within
the main drilling area manually, including only the
bodies intercepted by drill holes.
* Within the Inferred portion additionally was selected
indicated portion, using only the blocks interpolated
within the "Run1": search ellipse, with dimensions of
50m*40m*30m; minimum 4 samples from 2 different
drillholes (or surface workings)
* No historical drilling is available in Karator area
prior 2021 year.
* Sample compositing of 1.5m is applied within the
process or Mineral Resource Estimate
Orientation
of data * Whether the orientation of sampling achieves unbiased * All the holes were designed in attempt to intercept
in relation sampling of possible structures and the extent to the expected northeastern striking mineralization as
to which this is known, considering the deposit type. normal as possible, and to avoid sampling biases.
geological
structure
* If the relationship between the drilling orientation * The mineralization strike is northeastern direction,
and the orientation of key mineralised structures is and the drill bearing is within two major directions
considered to have introduced a sampling bias, this - southeastern and northwestern.
should be assessed and reported if material.
Sample
security * The measures taken to ensure sample security. * The samples are sufficiently secure, with security
guards in the entry, on both - field camp and
Malovodnoye core shed
Audits * No external field audit was implemented
or reviews * The results of any audits or reviews of sampling
techniques and data.
============= ============================================================ ===============================================================
Section 3 Estimation and Reporting of Mineral Resources
Database
integrity * Measures taken to ensure that data has not been * The field data is compiled on the site and after that
corrupted by, for example, transcription or keying combined, verified, and stored in AGR(TM) 4.0
errors, between its initial collection and its use database platform
for Mineral Resource estimation purposes.
* Data verification is done one time on the field,
* Data validation procedures used. second time in the within to AGR(TM) 4.0 verification
process, and third time prior the Resource Modelling
Site visits
* Comment on any site visits undertaken by the * Last two field visits by Competent Person (CP) were
Competent Person and the outcome of those visits. done in September 2021 and January 2024, both times
by Mr. Dimitar Dimitrov
* If no site visits have been undertaken indicate why
this is the case. * Mr. 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', is former SVP Exploration of Chaarat, and
currently independent consultant.
Geological
interpretation * Confidence in (or conversely, the uncertainty of ) * Mineralization and associated hydrothermal alteration,
the geological interpretation of the mineral deposit. developed along a system of regional structural
deformations, is genetically associated with Permian
magmatism.
* Nature of the data used and of any assumptions made.
* Karator mineralization zones are presented by series
* The effect, if any, of alternative interpretations on of dilatational jogs, hosted in silicified
Mineral Resource estimation. sandstones.
* The use of geology in guiding and controlling Mineral * No clear hard contacts can be outlined between
Resource estimation. Karator mineralization and host rock. The transition
between wase and ore is gradual, within relatively
short interval (usually within 1-2 m)
* The factors affecting continuity both of grade and
geology.
* The ore interpretation is based on gold distribution
and logged geology, using the database from the
drilling and surface workings.
* Overall, there is a moderate level of confidence in
the geological continuity, although detailed drilling
is required to advance the interpretation of the
different mineralization lenses.
* The wireframing process is using composites (0.2 ppm
cut - off grades, and 6m maximal internal waste)
Dimensions
* The extent and variability of the Mineral Resource * The Mineral Resource extends approx. 1000m along
expressed as length (along strike or otherwise), plan strike, with plan width between 100 and 250m, depth
width, and depth below surface to the upper and lower below surface of approx. 200m
limits of the Mineral Resource.
Estimation
and modelling * The nature and appropriateness of the estimation * The 2024 Maiden Mineral Resource Estimate (MRE) was
techniques technique(s) applied and key assumptions, including supervised and confirmed by Dimitar Dimitrov (CP).
treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of
extrapolation from data points. If a computer * The data processing and modelling was completed by
assisted estimation method was chosen include a Nikolay Pushev - senior geologist of Ridge Consulting
description of computer software and parameters used. company.
* The availability of check estimates, previous * The MRE is using both drill hole data and surface
estimates and/or mine production records and whether workings data for both ore interpretation and grade
the Mineral Resource estimate takes appropriate interpolation.
account of such data.
* Micromine (TM) Software (under the license of
* The assumptions made regarding recovery of Chaarat) was used for data processing, wireframing
by-products. the resource modelling.
* Estimation of deleterious elements or other non-grade * The Mineral Resource was estimated into block model,
variables of economic significance (e.g. sulphur for using ordinary kriging for Au. No other element of
acid mine drainage characterisation). interest was considered, except Au.
* In the case of block model interpolation, the block * Block model with parent block size of 5*5*5 (1m
size in relation to the average sample spacing and minimum sub-selling) was generated within the ore
the search employed. wireframe.
* Any assumptions behind modelling of selective mining * Grade estimates was done by 1.5m composite sampling.
units.
* Top cuts determination of 8 ppm Au was used,
* Any assumptions about correlation between variables. achieving coefficient of variation about 1.5.
* Description of how the geological interpretation was * The variogram models were designed in Micromine (TM)
used to control the resource estimates.
* Block model was verified statistically and visually,
* Discussion of basis for using or not using grade including swath plots (using as references the sample
cutting or capping. composites and simple IDW interpolation) and section
by section review accordingly.
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and * The grade distribution within the block model is
use of reconciliation dta if available. sufficiently corelating with the composite data.
* No estimation of deleterious elements was made.
* The Reasonable Prospects of Eventual Economic
Extraction (RPEEE) assumption was calculated via
manually designed open pit, constrained within the
area of the major drilling, and having slope angles
of between 50-60 degrees.
* The January 2024 constrained Mineral Resource is:
CLASS DENSITY (t/m(3)) Mt Au (g/t) Koz
INDICATED 2.60 2.5 0.96 77
INFERRED 2.60 4.2 0.97 130
----------------- ---- --------- ----
TOTAL 2.60 6.7 0.96 207
----------------- ---- --------- ----
Moisture
* Whether the tonnages are estimated on a dry basis or * All Mineral Resource is estimated and reported on a
with natural moisture, and the method of dry basis
determination of the moisture content.
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * Mineral Resources have been reported at cut-off grade
parameters applied. of 0.21 ppm Au
* The applied cutoff grade in Karator Resource
reporting is the same as the used in most recent
Tulkubash project reporting - 0.21 ppm Au (from April
2022).
* The Karator cutoff grade estimation with applied
economic mining and metallurgical factors is shown in
the table below.
Mining $/t ore
Mining $/t waste
------ ----------
Ore transport 1.5 $/t ore
------ ----------
Processing 4.79 $/t ore
------ ----------
G&A 1.25 $/t ore
------ ----------
Total 7.54 $/t ore
------ ----------
Recovery 70 %
------ ----------
Mining Losses 5 %
------ ----------
Price 1,900 $/oz
------ ----------
Refining 9.78 $/oz
------ ----------
Payable 95 %
------ ----------
Diluted COG 0.20 g/t Au
------ ----------
Dilution 5 %
------ ----------
Undiluted COG 0.21 g/t Au
------ ----------
Mining factors
or assumptions * Assumptions made regarding possible mining methods, * The RPEEE assumption for constrained Resource was
minimum mining dimensions and internal (or, if calculated via manually designed open pit, limited to
applicable, external) mining dilution. It is always the area of the major drilling, and having slope
necessary as part of the process of determining angles of between 50-60 degrees. Just for an example
reasonable prospects for eventual economic extraction main Tulkubash area is designed with: Bench face
to consider potential mining methods, but the angle: 66deg and 75deg; Inter-ramp angle: 51deg and
assumptions made regarding mining methods and 58deg.
parameters when estimating Mineral Resources may not
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis * No comprehensive gold extraction test works were
of the mining assumptions made. implemented for Karator up to date. Reliable
assumption of between 70 - 75 % recovery shall be
referenced to the results from the similar Tulkubash
oxide gold deposit, which currently is having wide
variety of detailed metallurgical test works
(including bottle roll extractions)
* Along with that, the Karator data have available hot
cyanide solution shake test (leachWELL) data,
completed by SAEL for the part of the regular core
samples.
* As a conclusion it is considered fair to believe that
Karator could achieve recovery of about 70 -75%, in
terms of open pit mining followed by crushing and
stacking the ore onto a heap leach pad, and further
leaching via standard cyanide solution irrigation.
Metallurgical
factors or * The basis for assumptions or predictions regarding * The intense fracturing of the ore zones in Karator
assumptions metallurgical amenability. It is always necessary as (and in Tulkubash type, too) has allowed better water
part of the process of determining reasonable percolation along the fine lattice of fractures in
prospects for eventual economic extraction to the silica matrix leading to extensive oxidation of
consider potential metallurgical methods, but the the primary sulphide gold mineralization. This
assumptions regarding metallurgical treatment process results in reasonable cyanide solubility of
processes and parameters made when reporting Mineral the gold even though sulphide levels in the host
Resources may not always be rigorous. Where this is silica matrix may still be high.
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
* As most gold-bearing mineralization occurs in cracks
in the host rock - the degree of oxidation of the
fracture surfaces is considered the primary indicator
of leachability.
Environmental
factors or * Assumptions made regarding possible waste and process * There are not considered to be any environmental
assumptions residue disposal options. It is always necessary as factors likely to affect the assumption that the
part of the process of determining reasonable deposit has reasonable prospects for eventual
prospects for eventual economic extraction to economic extraction.
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
Bulk density
* Whether assumed or determined. If assumed, the basis * Dry bulk density is measured using paraffin -coated
for the assumptions. If determined, the method used, immersion (Archimedes) method to evaluate the
whether wet or dry, the frequency of the measurements specific gravity (SG)
,
the nature, size and representativeness of the
samples. * The completed total of 32 field density measurement
are not consider sufficient to be used for variable
interpolation within the block model, fixed density
* The bulk density for bulk material must have been of 2.60 g /cm3, calculated as an average from the
measured by methods that adequately account for void tested samples was applied. It is considered
spaces (vugs, porosity, etc), moisture and representative and is similar with the Tulkubash
differences between rock and alteration zones within deposit results, which was expected.
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
Classification
* The basis for the classification of the Mineral * Classification of Mineral Resources is based upon a
Resources into varying confidence categories. review of geological continuity, quality of
supporting data, spatial grade continuity and quality
of a block model.
* Whether appropriate account has been taken of all
relevant factors (ie relative confidence in
tonnage/grade estimations, reliability of input data, * The Inferred Resource portion is constrained within
confidence in continuity of geology and metal values, the main drilling area manually, including only the
quality, quantity and distribution of the data). bodies intercepted by drill holes (the plan distance
between the holes there is between 60 and 80 meters,
along with surface workings between it)
* Whether the result appropriately reflects the
Competent Person's view of the deposit.
* Within the Inferred portion additionally was selected
indicated portion, using only the blocks interpolated
within the "Run1": search ellipse with dimensions of
50m*40m*30m; minimum 4 samples from 2 different
drillholes (or surface workings)
Audits or * No other external reviews have been made
reviews * The results of any audits or reviews of Mineral
Resource estimates.
Discussion
of relative * Where appropriate a statement of the relative * The Karator Mineral Resource is considered
accuracy/ accuracy and confidence level in the Mineral Resource appropriate representation of the Tulkubash oxide
confidence estimate using an approach or procedure deemed gold style of mineralization, and it is adequate to
appropriate by the Competent Person. For example, the the available data.
application of statistical or geostatistical
procedures to quantify the relative accuracy of the
resource within stated confidence limits, or, if such * It is considered that the current drill hole spacing
an approach is not deemed appropriate, a qualitative is sufficient to demonstrate geological continuity of
discussion of the factors that could affect the the mineralization but requires addition infill
relative accuracy and confidence of the estimate. drilling to increase the confidence.
* The statement should specify whether it relates to * Accuracy of the Mineral Resource is sufficient to
global or local estimates, and, if local, state the confirm the economic potential of the deposit.
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures * The Mineral Resource estimation methodology is deemed
used. appropriate, based upon validation of the model,
using visual, statistical, and graphical checks. Any
alternative methods are likely to yield only minor
* These statements of relative accuracy and confidence changes to global Mineral Resource
of the estimate should be compared with production
data, where available.
* The designed mineralization bodies and estimated
average grades are considered representative
interpretation of the available technical data
================= ============================================================ =====================================================================================
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