TIDMCGH
RNS Number : 5250C
Chaarat Gold Holdings Ltd
18 June 2019
18 June 2019
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
2019 Tulkubash Exploration and Drilling Programme Underway
Chaarat (AIM: CGH), the AIM-quoted gold mining company with
assets in the Kyrgyz Republic and Armenia, is pleased to announce
the first tranche of results from its 2019 exploration and drilling
programme at its Tulkubash oxide gold deposit in the Kyrgyz
Republic.
Highlights
-- Over 3,800 metres of drilling completed; minimum of 20,000
metres scheduled to be completed in 2019.
-- Assays received from 16 drill holes. Significant intercepts are tabulated below.
-- 2019 drilling to date has identified new shallow
mineralisation within and adjacent to current pit outlines.
-- Roadcut and outcrop mapping and sampling confirm extensions
of gold mineralisation northeast along strike confirming that
Tulkubash hosts a significant gold system.
-- Based on the increasing evidence that Tulkubash is an
emerging gold district, district-scale exploration is being
accelerated.
2019 Objectives
-- Exceed 2 million ounces of gold in Measured and Indicated
JORC Resource categories (currently 1.6 million ounces), thereby
increasing reserve and extending mine life
-- Improve project economics within currently defined pits by
adding ore within existing pit shells, reducing the strip ratio,
and optimizing metallurgical recovery model
-- Increase understanding of district prospectivity
To date, 26 holes have been completed totalling 3,860 metres of
a total 20,000 metre drilling programme scheduled for 2019. The
drilling is focused on adding Measured and Indicated Resources,
with potential for conversion into reserves as part of a year-end
Resource and Reserve Update.
Of the planned 20,000 metres of drilling this year, the large
majority (c.16,000 metres) will comprise exploration and step-out
drilling from the current resource boundary. Much of this will test
priority targets northeast along strike from the currently defined
resource boundary and in previously undrilled zones adjacent to
current satellite pit shells. Evidence to date suggests that both
gold grade and oxidation state (which is indicative of
metallurgical recovery) are improving along strike to the
northeast. An extensive soil geochemical anomaly in this area, as
well as favourable alteration, indicates that the Tulkubash Trend
continues and indeed strengthens in this direction.
Approximately 2,000 metres of drilling have been allocated to an
infill drilling programme within currently designed pit boundaries
with the objective of converting waste to ore and improving project
economics. A final 2,000 metres is allocated to initial
reconnaissance drilling of high-grade targets up to five kilometres
along strike from the current resource boundary, with the objective
of validating the potential for more distal targets as part of the
district-scale exploration, discussed in more detail below.
This link provides a plan showing the location of 2019 planned
drilling at Tulkubash:
http://www.rns-pdf.londonstockexchange.com/rns/5250C_1-2019-6-17.pdf
Dorian L. (Dusty) Nicol, the Company's Senior Vice President
Exploration, commented:
"We are very excited to have begun the exploration and drilling
season at Tulkubash. Last year's programme discovered 650,000
ounces of gold in Measured and Indicated Resource categories at a
discovery cost of $11.40 per ounce. We have every reason to expect
similar or greater rates of success with this year's programme.
Already drill results received to date have extended hanging wall
mineralization in the Tulkubash Main Pit area and have discovered
new mineralization in the "satellite pits" area northeast of the
Main Pit. Of particular significance here is the 19.5 metres (15.5
metres true thickness) of 2.2 g/t Au in Hole DH19T478. Now that the
drill road and pad construction have extended northeast of the
current resource boundary, we will be able to drill what we
consider to be a highly prospective zone of geochemical anomalies,
crackle breccia, and hydrothermal alteration identified by last
year's mapping.
"Furthermore, we are very pleased to have been able to
accelerate district-scale exploration this season. Field work is
being integrated with satellite imagery and geochemical,
geophysical, structural, and mineralogical alteration haloes around
Tulkubash gold mineralization. Our objective is to continue
developing a database of these geological data that will allow
application of advanced data handling techniques (including
Artificial Intelligence / Machine Learning) to optimize ongoing
exploration and discovery."
Drill Results
The following table summarizes significant drill results
obtained to date. Significant intercepts are defined as intercepts
greater than 10m in width above a 0.25 g/t cut off or greater than
3m in width at a 0.25 g/t cut off assaying greater than 1.0 g/t Au.
All results are from diamond core holes. The sample intervals are
constrained by geology and range from a minimum of 0.4 metres to a
maximum of 1.5 metres, generally averaging almost 1.5 metres in
length. Mean grades are calculated at the stated cut off with no
upper cap applied. The maximum length of internal waste in any
interval is 3.0 metres. Approximate true width is estimated from
cross sectional interpretations.
Drill Hole Interval Thickness True Au (g/t)
(m) Thickness
(m)
------------ ---------------- ---------- ----------- ---------
From To
------------ ------- ------- ---------- ----------- ---------
DH19T466 114.00 130.50 16.50 9.70 1.49
------- ------- ---------- ----------- ---------
incl 114.00 121.50 7.50 4.40 2.09
------- ------- ---------- ----------- ---------
DH19T466 135.00 144.00 9.00 5.30 3.90
------- ------- ---------- ----------- ---------
DH19T468 66.00 78.00 12.00 8.90 0.91
------- ------- ---------- ----------- ---------
incl 69.00 73.50 4.50 3.00 1.78
------- ------- ---------- ----------- ---------
DH19T473 36.00 39.00 3.00 2.70 1.07
------- ------- ---------- ----------- ---------
DH19T473 60.00 82.50 22.50 20.25 0.94
------- ------- ---------- ----------- ---------
DH19T467 111.00 117.00 6.00 4.50 1.12
------- ------- ---------- ----------- ---------
DH19T470 94.00 112.00 18.00 16.00 0.81
------- ------- ---------- ----------- ---------
DH19T478 27.00 46.50 19.50 15.50 2.20
------- ------- ---------- ----------- ---------
DH19T474 105.00 111.00 6.00 5.10 2.77
------- ------- ---------- ----------- ---------
The initial results of the 2019 drill program are encouraging.
Previous wide spaced drilling in the Tulkubash main pit area
suggested gold mineralization continued northwest of the current
pit design. The first five holes this season were drilled on 80
metre spacing to test for the extension and continuity of this
zone. Four of the holes intersected significant gold mineralization
within the oxide zone that could result in an expansion of the
northwest highwall of the main pit and add to reserves.
Initial results from drilling along the northeast extension of
the Tulkubash Trend have returned positive results with the
identification of shallow high-grade gold lodes extending between
the Satellite pit area and the East Pit. This new mineralisation
may expand and combine the small pits into larger designs with
improved project economics.
The following link tabulates the drill results received to date
and illustrates the drill hole locations and interpretive
cross-sections:
http://www.rns-pdf.londonstockexchange.com/rns/5250C_1-2019-6-17.pdf
District-Scale Exploration
It is becoming increasingly apparent that Tulkubash is an
emerging gold district, with the potential to host a cluster of
gold deposits. The current resource of 1.6 million ounces of gold
discovered to date is located within approximately 4.0 kilometres
of a 24-kilometrestrike length of favourable geology.
Reconnaissance work to date indicates that the favourable geology
along this strike length is associated with multiple occurrences of
anomalous gold geochemistry, favourable structural geology (crackle
brecciation), and favourable hydrothermal alteration.
For example, reconnaissance mapping in 2018 disclosed strong
silicification within the favourable Tulkubash host rocks,
approximately three kilometres from the current resource boundary.
Trenching within these zones returned oxidized gold mineralization
including 13.0 metres of 1.27 g/t Au and 26.0 metres of 2.02 g/t
Au. These trench results occur within a large gold-in-soil
geochemical anomaly and confirm in-situ gold mineralisation within
these anomalies. Initial ground reconnaissance and air photo /
satellite image interpretation is currently identifying multiple
additional targets for follow-up.
Tulkubash gold mineralization occurs within a northeast-trending
structural zone that is characterized by strong silicification and
brecciation. Reconnaissance mapping and geochemical exploration
indicates that this zone extends to the northeast for at least 15
kilometres where the trend intersects a granitic intrusive body.
These intrusive rocks are associated with skarn gold mineralisation
that may be related to a shallow porphyry system, which may
represent additional targets in themselves. Exploration management
believes that these intrusive rocks may have provided the heat
source for the Tulkubash mineralization, in which case the
intensity of mineralization could be expected to increase
approaching this zone.
In order to cost-effectively accelerate district-scale
exploration without losing focus on the short-term need to add
resource and mine life to the Tulkubash oxide gold deposit, the
Company is planning a staged programme comprising the following
steps:
-- Summer 2019: Reconnaissance traverses for geologic mapping
and geochemical sampling to prioritize areas for future follow-up.
This work will be supported by the use of drones to visually
inspect terrain in search of alteration, brecciation, and other
potential indicators of mineralisation to identify specific areas
to target. In addition, a remote sensing study using multi-spectral
satellite images is being conducted to identify potential areas of
mineralisation by identifying the spectral signature of known
mineralisation and looking for areas with similar signatures
throughout the Exploration License. Several such targets have
already been identified for follow-up.
-- Winter 2019/2020: Further satellite image interpretation
taking advantage of "ground truthing" and calibration of this
technique during the 2019 field season. Integration of digitized
data with geologic (particularly structural) and geochemical data
into a layered database. The goal is to develop a database that
will allow application of advanced data handling (Artificial
Intelligence / Machine Learning) to recognize signatures of
mineralisation and optimize drill target identification.
-- Summer 2020: More aggressive field work following up on
targets generated by previous work, including drilling where
warranted.
Ongoing exploration will continue focusing on adding reserves
and mine life to the Tulkubash oxide gold deposit, with the
objective of demonstrating a minimum 15-year mine life. In
addition, the Company will continue its district-scale exploration
with the objective of discovering additional, new gold orebodies
and new mines.
http://www.rns-pdf.londonstockexchange.com/rns/5250C_1-2019-6-17.pdf
QA/QC Procedures: Sampling Methodology and Quality Control
All results have been generated from diamond core holes. Samples
are shipped to the ALS Global Laboratory in Kara-Balta, Kyrgyz
Republic for sample preparation and assay. Gold is analysed using a
30-gramme fire assay with an atomic absorption spectroscopy (AAS)
finish. A quality control/quality assurance protocol is employed in
the programme which includes standards and blanks in every batch of
assays. Check assays are conducted on every 20(th) sample by a
second independent laboratory.
Competent Person
The Competent Person with overall responsibility for this press
release for the Company, and who has reviewed the information
contained herein, is Dorian L. (Dusty) Nicol (FAussIMM), the
Company's Senior Vice President Exploration. He is a geologist with
more than 44 years of experience in the resource industry who has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. He has supervised the
work which is the subject of this release. Mr. Nicol consents to
the inclusion in this announcement of the matters based on this
information in the form and context in which it appears.
Enquiries
Chaarat Gold Holdings Limited
Artem Volynets (CEO) +44 (0)20 7499 2612
info@chaarat.com
Numis Securities Limited
John Prior, Paul Gillam (NOMAD) +44 (0) 20 7260 1000
James Black (Corporate Broking)
Powerscourt
Conal Walsh +44 (0)20 7250 1446
Sam Austrums chaarat@powerscourt-group.com
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 www.chaarat.com.
Appendix - 2019 Drill hole intercepts (>0.25 g/t Au
cut-off)
Drill Interval Thickness True Au
Thickness
Hole Cross From To (m) (m) g/t
Section
--------- --------- ------- ---------- ----------- -----
DH19T465 360 0.00 3.00 3.00 2.00 0.32
--------- --------- ------- ---------- ----------- -----
DH19T466 480 39.00 43.50 4.50 2.80 0.63
--------- --------- ------- ---------- ----------- -----
DH19T466 480 114.00 130.50 16.50 9.70 1.49
--------- --------- ------- ---------- ----------- -----
incl 480 114.00 121.50 7.50 4.40 2.09
--------- --------- ------- ---------- ----------- -----
DH19T466 480 135.00 144.00 9.00 5.30 3.90
--------- --------- ------- ---------- ----------- -----
DH19T466 480 159.00 163.50 4.50 2.40 0.44
--------- --------- ------- ---------- ----------- -----
DH19T468 560 31.50 33.00 1.50 1.00 0.35
--------- --------- ------- ---------- ----------- -----
DH19T468 560 66.00 78.00 12.00 8.90 0.91
--------- --------- ------- ---------- ----------- -----
incl 560 69.00 73.50 4.50 3.00 1.78
--------- --------- ------- ---------- ----------- -----
DH19T473 560 36.00 39.00 3.00 2.70 1.07
--------- --------- ------- ---------- ----------- -----
DH19T473 560 48.00 49.50 1.50 1.36 1.07
--------- --------- ------- ---------- ----------- -----
DH19T473 560 60.00 82.50 22.50 20.25 0.94
--------- --------- ------- ---------- ----------- -----
DH19T473 560 99.00 105.00 6.00 0.00 0.34
--------- --------- ------- ---------- ----------- -----
DH19T473 560 126.00 129.00 3.00 0.00 0.57
--------- --------- ------- ---------- ----------- -----
DH19T473 560 141.00 145.50 4.50 0.00 0.67
--------- --------- ------- ---------- ----------- -----
DH19T473 560 157.50 159.00 1.50 0.00 0.27
--------- --------- ------- ---------- ----------- -----
DH19T467 720 3.00 4.50 1.50 1.00 0.27
--------- --------- ------- ---------- ----------- -----
DH19T467 720 66.00 67.50 1.50 1.00 1.47
--------- --------- ------- ---------- ----------- -----
DH19T467 720 93.00 99.00 6.00 4.50 0.29
--------- --------- ------- ---------- ----------- -----
DH19T467 720 105.00 106.50 1.50 1.00 0.70
--------- --------- ------- ---------- ----------- -----
DH19T467 720 111.00 117.00 6.00 4.50 1.12
--------- --------- ------- ---------- ----------- -----
DH19T467 720 121.50 123.00 1.50 1.00 0.26
--------- --------- ------- ---------- ----------- -----
DH19T467 720 156.00 168.00 12.00 9.00 0.30
--------- --------- ------- ---------- ----------- -----
DH19T467 720 160.50 168.00 7.50 9.00 0.38
--------- --------- ------- ---------- ----------- -----
DH19T470 3600 35.50 37.00 1.50 1.40 0.27
--------- --------- ------- ---------- ----------- -----
DH19T470 3600 94.00 112.00 18.00 16.00 0.81
--------- --------- ------- ---------- ----------- -----
DH19T470 3600 121.00 127.00 6.00 5.60 0.71
--------- --------- ------- ---------- ----------- -----
DH19T478 3800 10.50 13.50 3.00 2.30 0.40
--------- --------- ------- ---------- ----------- -----
DH19T478 3800 19.50 22.50 3.00 2.30 0.49
--------- --------- ------- ---------- ----------- -----
DH19T478 3800 27.00 46.50 19.50 15.50 2.20
--------- --------- ------- ---------- ----------- -----
DH19T474 4280 0.00 6.00 6.00 5.25 0.65
--------- --------- ------- ---------- ----------- -----
DH19T474 4280 33.00 36.00 3.00 2.65 0.58
--------- --------- ------- ---------- ----------- -----
DH19T474 4280 105.00 111.00 6.00 5.10 2.77
--------- --------- ------- ---------- ----------- -----
DH19T475 4360 133.50 136.50 3.00 2.60 0.98
--------- --------- ------- ---------- ----------- -----
# Bold rows - significant intercepts
Glossary of Technical Terms
"Au" chemical symbol for gold
"Breccia" A rock composed of fragments of rocks cemented
by a finer-grained matrix
"Crackle Breccia" A breccia in which the fragments have not been
rotated with respect to one another
"cut off" the lowest grade value that is included in a
resource statement. It must comply with JORC
requirement 19: "reasonable prospects for eventual
economic extraction" the lowest grade, or quality,
of mineralised material that qualifies as economically
mineable and available in a given deposit. It
may be defined on the basis of economic evaluation,
or on physical or chemical attributes that define
an acceptable product specification
"g/t" grammes per tonne, equivalent to parts per million
"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 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
but are spaced closely enough for continuity
to be assumed
"Intrusive A rock formed from cooling magma that cooled
Rock" below the surface of the earth. As opposed to
a volcanic rock which cools from magma on the
surface.
"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
"Mineral Resource" a concentration or occurrence of material of
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)
"Porphyry" A large mineral deposit (often gold-copper) that
forms in the final stages of cooling of certain
intrusive rocks
"Reserve" the economically mineable part of a Measured
and/or Indicated Mineral Resource
"Silicification" The addition of silica to a rock as part of the
ore forming process
"Skarn" A usually high-grade mineral deposit (often gold-copper)
that forms when certain intrusive rocks are emplaced
into limestones, which react chemically with
the magma
"t" tonne (= 1 million grammes)
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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