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Chaarat Gold Hlgs Ld (CGH)


Tuesday 09 June, 2020

Chaarat Gold Hlgs Ld

Kyzyltash update

RNS Number : 3777P
Chaarat Gold Holdings Ltd
09 June 2020

09 June 2020

Chaarat Gold Holdings Limited

("Chaarat" or " the Company")

Kyzyltash - Metallurgical study confirms strategic development plan

Chaarat (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 it has further defined the key development milestones for the Kyzyltash Gold Deposit.


The Kyzyltash deposit, situated in the Kyrgyz Republic, was the first deposit explored by Chaarat and is the second development phase of the Tulkubash / Kyzyltash gold complex. Kyzyltash is part of the same license area and geological occurrence as Chaarat's current construction project, Tulkubash. The license area contains two gold mineralization zones within the project area divided into two types, the Tulkubash mineralization, which is oxidized material, and the Kyzyltash mineralization (the main and contact zones) which is sulphide-rich, unoxidized refractory material. The deposit has an estimated 5.4 Moz in JORC compliant Measured, Indicated and Inferred resources with an average grade of 3.8g/t ("Kyzyltash" or "the Project"). The current resource has been developed along a strike length of 4 km and favourable geology extends for over 20 kilometres of strike length. Further potential for an ore body extension is anticipated down dip based on the current understanding of the deposit but requires further drill testing.

The Tulkubash / Kyzyltash phased development is Chaarat's flagship project and the Company is working towards an update of Kyzyltash's standalone 2016 feasibility study produced by NERIN (China) next to the construction of the first phase Tulkubash development. The 2016 feasibility study valued the Project stand alone at a net present value of US$309 million based on an 8% discount rate and an underlying Gold price of US$1,250/oz.

Chaarat is pleased to announce the completion of a preliminary metallurgical assessment as prepared by Mr. John Marsden of Metallurgium, a US based metallurgical consulting company. Mr. Marsden has 40 years of relevant experience and has been involved in the ore processing of several similar ore deposits ( ).


· The study concluded that oxidative treatment of the Kyzyltash sulphide resource will be required prior to conventional cyanide leaching.

· The following process routes were recommended for further testing and development:

Flotation followed by pressure oxidation-cyanide leaching of the concentrates,

Flotation followed by biological oxidation-cyanide leaching of the concentrates,

Flotation followed by Albion oxidation-cyanide leaching of the concentrates, and

Whole ore Albion oxidation-cyanide leaching.

· The study anticipated potential gold recoveries in the range of 83-90% depending on the choice of technology and the results of future metallurgical testing.

Chaarat has defined a drill programme of ca. 3.3 km from 16 PQ drill holes across the ore body to collect representative samples for metallurgical testing. Chaarat's technical team will look to further optimise the drill programme and define funding requirements within the next months.

The test results are expected to be available in early 2021, which would enable Chaarat to choose the appropriate technology for project development. Remaining sections of the 2016 feasibility study will be assessed in the coming months to initiate any additional workstreams required to comply with international best practice.

The preliminary timeline for the key milestones of the project is assumed to be the following based on the current understanding:

-  Updated feasibility study according to Western standards in 2022

-  Project financing in 2023

-  Construction in 2024 and 2025

-  Production of up to 300koz p.a. is targeted to commence in 2026.

Given that the Tulkubash and Kyzyltash deposits are part of the same geological formation and within the same license area, Kyzyltash development will have significant synergies with Tulkubash using common infrastructure. Additional potential within the license area (73% undrilled) based on geological trends and geophysical and geochemical surveys, provides comfort that both stages of the project will extend significantly beyond the currently defined resource base.

The company is now in a position to further develop the Kyzyltash project successfully to production over the coming years. Board members, members of the technical team and our local equity partner and construction company have worked at and successfully developed the producing Cöpler project in Turkey. The Cöpler project has a similar ore body structure and produces 400koz from a heap leach and POX plant.



Robert Benbow, Board Member and Chair of the Technical Committee, commented:


"The Kyzyltash resource presents an excellent opportunity for long term, high value gold production for the Company. Mr. Marsden worked with me on developing the highly successful Cöpler Sulfide Project which is operating its heap leach and POX processing plants for years now and I am pleased to have him involved in the Kyzyltash Project. He brings the highest level of gold extraction knowledge to the Project. Like many deposits in the world today Kyzyltash will require an oxidizing pre-treatment for optimal gold recovery and the process selection methodology is the same we used to optimize Cöpler. I am confident that the final process technology will provide the best technical and financial results."


Artem Volynets, Chief Executive Officer, commented:

"The Kyzyltash ore body contains approximately half of Chaarat's total gold resources, but until now, the Projects' value has not been properly recognised. We are optimistic that the significant value of the Kyzyltash deposit can potentially be unlocked with well-established technology and favourable metallurgical recoveries. This can create an opportunity for the phased development of Tulkubash / Kyzyltash to build a world-class, long life and low-cost production cluster."







Chaarat Gold Holdings Limited

+44 (0)20 7499 2612

Artem Volynets (CEO)

[email protected]



Numis Securities Limited

+44 (0) 20 7260 1000

John Prior, Paul Gillam (NOMAD)


James Black (Corporate Broking)




SP Angel Corporate Finance LLP

+44 (0) 20 3470 0470

Ewan Leggat (Joint Broker)




finnCap Limited

+44 (0)20 7220 0500

Christopher Raggett (Joint Broker)


Camille Gochez (Joint Broker)





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 Central Asia and the FSU through organic growth and selective M&A.


Chaarat is engaged in active community engagement programmes 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 by building relationships based on trust and operating to the best environmental, social and employment standards. Further information is available at .



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