Tulkubash gold deposit construction update

RNS Number : 3248B

Chaarat Gold Holdings Ltd

20 September 2018

 

20 September 2018

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Tulkubash gold deposit construction update

Chaarat (AIM: CGH), the AIM quoted exploration and development company developing the Chaarat Gold Project in the Kyrgyz Republic, is pleased to announce an update on construction activities at the company's Tulkubash oxide gold deposit in the Kyrgyz Republic.

A notice to proceed was issued to Turkish mining contractor Çiftay Inşaat on August 31, 2018 and the contractor has now begun deploying equipment to Tulkubash. Ҫiftay's initial operations will focus on:

·     Construction of a temporary 50-person camp for the initial construction forces;

·     Partial construction of a permanent camp initially housing 200 persons (the camp will be expanded to 360 persons next year);

·     Establishing a temporary maintenance shop;

·     Construction of a 5km haul road between the mine and the process facilities;

·     Construction of the Kumbel pass-to-site portion of the access road; and

·     Initial clearing and grubbing of the heap leach pad area

These advance activities are expected to lead to full scale construction of the Tulkubash Heap Leach Project in the second quarter of 2019.  Basic engineering for the process plant is complete and detailed engineering is in progress. The heap leach facility design is being finalized and the application for Kyrgyz regulatory approval of the design is being compiled. Key positions for the construction team are being filled to execute the Integrated Team delivery approach, whereby Chaarat project management will be supplemented with strategic engineering support from outside the Company to form the project delivery team.  The remainder of construction activities for the Tulkubash Heap Leach Project is estimated to cost US$130 million.

This summer's activities have resulted in the completion of the Access Road from the Chatkal valley to the top of Kumbel Pass, the haul road bridge over the Sandalash River, and the communications infrastructure which will serve the mine during construction and production.  Chaarat has invested more than US$50 million on engineering and infrastructure projects for the Tulkubash and Kyzyltash deposits to date.

Robert Benbow, Chief Operating Officer, said: "We are excited to announce the mobilization of the mining/earthworks contractor to the Tulkubash mine site.  This represents a major step in constructing the Tulkubash mine and is a key component of the Company's growth strategy.  We expect to build on this great start by commencing full scale construction works in the second quarter of 2019 with first gold expected near the end of 2020."

Enquiries

Chaarat Gold Holdings Limited      

Martin Andersson (Chairman)	[phone]
Artem Volynets (CEO)	[e-mail]
Numis Securities Limited
John Prior, Paul Gillam (NOMAD)	[phone]
James Black (Corporate Broking)
BMO Capital Markets Limited
Jeffrey Couch, Thomas Rider (Joint Broker)	[phone]
Powerscourt
Conal Walsh	[phone]
Matthew Attwood	[e-mail]
Isabelle Saber

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. 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 

 

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