04:06 Tue 09 Jun 2020
Chaarat Gold Hlgs Ld - Kyzyltash update
("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
The Kyzyltash deposit, situated in the
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 (
Chaarat is pleased to announce the completion of a preliminary metallurgical assessment as prepared by Mr.
· 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:
o Flotation followed by pressure oxidation-cyanide leaching of the concentrates,
o Flotation followed by biological oxidation-cyanide leaching of the concentrates,
o Flotation followed by Albion oxidation-cyanide leaching of the concentrates, and
o 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
"The Kyzyltash resource presents an excellent opportunity for long term, high value gold production for the Company.
"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."
Enquiries |
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+44 (0)20 7499 2612 |
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+44 (0) 20 7260 1000 |
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+44 (0) 20 3470 0470 |
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finnCap Limited |
+44 (0)20 7220 0500 |
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About Chaarat
Chaarat is a gold mining company which owns the Kapan operating mine in
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/.
ENDS
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