Chaarat Gold Holdings Ltd
("Chaarat" or "the Company")
Drilling intersects additional significant mineralisation in the Main Zone
Project Areas at the Chaarat Gold Property, Kyrgyzstan
Road Town, Tortola, British Virgin Islands, 14 January 2010.
Chaarat Gold Holdings Ltd (AIM:CGH)is pleased to announce further positive
drilling results from the ongoing exploration programme on the Main Zone at
its 100% held, 604 sq km, Chaarat Licence Area in western Kyrgyzstan.
The Chaarat License Area comprises three parallel zones of gold
mineralization, namely, the Main Zone, the Contact Zone and the Tulkubash
Zone. The Main Zone is host to a JORC compliant resource of 1,597,000 oz at a
grade of 4.31 g/t Au and has been delineated over a strike length of four
kilometres. It has been further sub-divided into seven project areas for
convenience of exploration. This announcement including a location map at can
be found at www.chaarat.com/press-releases.
Highlights (True widths)
Project M3000 CCH09M3094 21.00m at 3.10 g/t Au
CCH09M3094 22.44m at 5.75 g/t Au
CCH09M3094 15.84m at 7.51 g/t Au
Project M2400 CCH09M2491 6.53m at 4.20 g/t Au
CCH09M2491 3.26m at 4.78 g/t Au
CCH09M2491 2.20m at 6.03 g/t Au
CCH09M2492 15.77m at 2.54 g/t Au
Dekel Golan , CEO of Chaarat, comments "These seven holes, in addition to
the 87 holes already drilled in the Main Zone delineate a system with the
grade, width and strike extension to support a major mining operation. Whilst
only a limited portion of the Main Zone is likely to be mined by open pit
methods, the system lengths may support a significant underground mining rate.
These results will form part of the revised resource statement, which will be
released later this quarter, and further encourage the Company in pursuing,
with increased confidence, its intention to establish a low cost bulk mining
operation".
General Description of the Main Zone
The Main Zone is one of the three major mineralization trends of Chaarat.
Mineralisation in the Main Zone is hosted in a 10-15 metre wide shear zone,
which extends for at least four kilometres on strike, as an anatomising strike
slip fault system, within the Ordovician age Chaarat Formation (siltstones and
sandstones). The mineralised zones dip at 70-80 degrees to the NW. The gold is
associated with sulphides, sericitic alteration and minor quartz veinlets. Of
the seven identified mineralized bodies along the strike, work was focused on
four Project Areas - the M2400, M3000, M3900 and M6000 Project Areas.
Based on drilling completed in 2008, a JORC compliant (indicated and inferred)
resource containing 1,597,000 oz at a grade of 4.31 g/t Au had been delineated
in the Main Zone Project Areas to depths varying between 150 metres to 300m
metres, down the dip from outcrop. The mineralisation remains open down dip
all along the Main Zone. The resources defined in the Main Zone include
almost half of the total resources defined at Chaarat where, to date, most of
the resources are hosted by the Contact Zone.
Only three of the seven bodies were drilled during the 2009 season and the
results are included in this announcement. In total 1811.50 metres were
drilled in the Main Zone during the season.
Project M2400 - Prior to the drilling report herewith it was estimated by SRK
that this project contained 410,000 ounces at a grade 4.37 g/t of Au and
extends to a strike of 600 metres. The mineralization is open down dip and was
previously proven to a depth of 260 metres.
Drilling this year extended the strike of the project from 600m to 680m. The
revised resource report is expected to be released at the end of Q1 this year.
| | | | | |
| | |Drilled| | True |
| |Drilled From| To | Length | width |
Hole ID |Section| (metres) |(metres|(metres)|(metres|Au(g/t)
-----------+-------+------------+-------+--------+-------+--------
CCH09M2491| 2040 | 64.50 | 73.50 | 9.00 | 6.53 | 4.20
-----------+-------+------------+-------+--------+-------+--------
CCH09M2491| 2040 | 82.50 | 88.50 | 6.00 | 4.35 | 2.98
-----------+-------+------------+-------+--------+-------+--------
Including | 2040 | 84.00 | 88.50 | 4.50 | 3.26 | 3.57
-----------+-------+------------+-------+--------+-------+--------
CCH09M2491| 2040 | 107.30 |109.50 | 2.20 | 1.56 | 3.10
-----------+-------+------------+-------+--------+-------+--------
CCH09M2491| 2040 | 114.00 |118.50 | 4.50 | 3.26 | 4.78
-----------+-------+------------+-------+--------+-------+--------
Including | 2040 | 114.00 |117.00 | 3.00 | 2.20 | 6.03
-----------+-------+------------+-------+--------+-------+--------
CCH09M2491| 2040 | 187.80 |193.80 | 6.00 | 4.35 | 2.20
-----------+-------+------------+-------+--------+-------+--------
CCH09M2491| 2040 | 202.80 |205.80 | 3.00 | 2.20 | 4.91
-----------+-------+------------+-------+--------+-------+--------
CCH09M2491| 2040 | 220.50 |223.50 | 3.00 | 2.20 | 3.74
-----------+-------+------------+-------+--------+-------+--------
CCH09M2492| 1960 | 174.00 |193.50 | 19.50 | 15.77 | 2.54
-----------+-------+------------+-------+--------+-------+--------
Including | 1960 | 178.50 |183.00 | 4.50 | 3.64 | 3.78
-----------+-------+------------+-------+--------+-------+--------
Including | 1960 | 188.70 |193.50 | 4.80 | 3.88 | 3.41
-----------+-------+------------+-------+--------+-------+--------
CCH09M2493| 1960 | 92.00 | 95.00 | 3.00 | 2.70 | 2.83
-----------+-------+------------+-------+--------+-------+--------
CCH09M2493| 1960 | 210.50 |216.50 | 6.00 | 5.40 | 2.78
-----------+-------+------------+-------+--------+-------+--------
CCH09M2493| 1960 | 233.00 |234.50 | 1.50 | 1.35 | 4.33
-----------+-------+------------+-------+--------+-------+--------
CCH09M2493| 1960 | 254.20 |258.80 | 4.60 | 4.14 | 2.42
| | | | | |
Project M3000 - Prior to the drilling report herewith it was estimated by SRK
that this project contained 580,000 ounces at a grade of 4.43 g/t of gold and
extends to a strike of 350 metres. The mineralization is open down dip and was
defined by drilling to the depth of 300 metres.
+----------+-------+------------+-----------+-----------+-----------+--------+
| | |Drilled From|Drilled To | Length |True width | |
|Hole ID |Section| (metres) | (metres) | (metres) | (metres) |Au (g/t)|
+----------+-------+------------+-----------+-----------+-----------+--------+
|CCH09M3094| 3160 | 173.00 | 175.00 | 2.00 | 1.32 | 2.54 |
+----------+-------+------------+-----------+-----------+-----------+--------+
|CCH09M3094| 3160 | 186.00 | 218.00 | 32.00 | 21.00 | 3.10 |
+----------+-------+------------+-----------+-----------+-----------+--------+
|Including | 3160 | 186.00 | 190.00 | 4.00 | 2.64 | 7.90 |
+----------+-------+------------+-----------+-----------+-----------+--------+
|CCH09M3094| 3160 | 226.00 | 260.00 | 34.00 | 22.44 | 5.75 |
+----------+-------+------------+-----------+-----------+-----------+--------+
|Including | 3160 | 226.00 | 250.00 | 24.00 | 15.84 | 7.51 |
+----------+-------+------------+-----------+-----------+-----------+--------+
|CCH09M3094| 3160 | 269.50 | 274.00 | 4.50 | 2.97 | 2.36 |
+----------+-------+------------+-----------+-----------+-----------+--------+
|CCH09M3095| 3240 | 144.00 | 150.00 | 6.00 | 4.00 | 2.35 |
+----------+-------+------------+-----------+-----------+-----------+--------+
|CCH09M3095| 3240 | 157.50 | 163.50 | 6.00 | 4.00 | 2.65 |
+----------+-------+------------+-----------+-----------+-----------+--------+
|CCH09M3096| 3240 | 178.50 | 187.50 | 9.00 | 6.18 | 3.42 |
+----------+-------+------------+-----------+-----------+-----------+--------+
|CCH09M3096| 3240 | 204.00 | 205.50 | 1.50 | 1.03 | 4.42 |
+----------+-------+------------+-----------+-----------+-----------+--------+
|CCH09M3096| 3240 | 208.50 | 211.50 | 3.00 | 2.06 | 2.32 |
+----------+-------+------------+-----------+-----------+-----------+--------+
|CCH09M3096| 3240 | 250.50 | 255.00 | 4.50 | 3.09 | 3.26 |
+----------+-------+------------+-----------+-----------+-----------+--------+
M6000 Project: Prior to the drilling report herewith it was estimated by SRK
that this project contains 110,000 ounces of Au at a grade of 5.07 g/t along a
strike of 400 metres. The mineralization remains open down dip and has been
confirmed by drilling to the depth of 200 metres.
Only one hole was drilled in this Project this year.
+-------------+-------+-----------+-----------+-----------+----------+-------+
| | | Drilled | | | | |
| | | From |Drilled To | Length |True width|Au |
|Hole ID |Section| (metres) | (metres) | (metres) | (metres) |(g/t) |
+-------------+-------+-----------+-----------+-----------+----------+-------+
|CCH09M6093bis| 6200 | 89.50 | 92.50 | 3.00 | 2.20 | 2.58 |
+-------------+-------+-----------+-----------+-----------+----------+-------+
QA/QC Procedures: Sampling Methodology and Quality Control
All samples are sent to a laboratory in Kyrgyzstan, Alex Stewart, accredited
by the UK Accreditation Service, for sample preparation and assays. Genalysis,
Australia, a NATA ISO/IEC 17025 accredited laboratory for analysis is being
used for QA/QC check of the analyses of Alex Stewart. 20% check samples in
form of 2 Standards, 1 Blank and 1 Duplicate in a batch of 20 samples are
being used for quality checks of the Alex Stewart assays.
Competent Person
The Competent Person with overall responsibility for this press release, and
who has reviewed the information contained herein, is Sunit Patel, M.Sc
(Geology), FGS, GSSA, who is an employee of Chaarat Gold. Mr. Patel is an
exploration geologist with 22 years of experience in the resource industry who
has sufficient experience relevant to the style of mineralisation and type of
deposit under consideration and was supervisor to the work subject of this
release.
Chaarat Gold Holdings
Chaarat Gold Holdings is an exploration company operating in the Kyrgyz
Republic with its current main activity being the development of the Chaarat
Gold Project. The Project is situated within the Middle Tien Shan Mountains of
Kyrgyzstan which form part of the Tien Shan gold belt. The Company has
delineated thus far a JORC compliant Mineral Resource of 3.34Moz at a grade of
4.30 g/t gold. A scoping study demonstrating the economic viability of the
project was completed at the end of 2008. The Company is currently in the
process of compiling a pre-feasibility study. Following the continuous
exploration works undertaken during 2009 the Company expects to announce an
updated Resource Report in the first quarter of 2010. Chaarat's objective is
to become a low cost gold producer targeting an initial production of over
200,000 ounces per annum by late 2012.
Disclaimer
This press release includes forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties and other important
factors beyond Chaarat's control that would cause the actual results,
performance or achievements of Chaarat to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding Chaarat's present and future business
strategies and the environment in which Chaarat will operate in the future.
Any forward-looking statements speak only as at the date of this document.
Chaarat expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements contained in this
document to reflect any change in Chaarat's expectations with regard to these
or any change in events, conditions or circumstances on which any such
statements are based. As a result of these factors, the events described in
the forward-looking statements in this press release may not occur either
partially or at all.
Enquiries
Chaarat Gold Holdings Ltd
c/o Central Asia Services Ltd +44 (0) 20 7499 2612
Dekel Golan dekel@chaarat.com <mailto:dekel@chaarat.com>
Linda Naylor linda.naylor@chaarat.com
<mailto:linda.naylor@chaarat.com>
Canaccord Adams Limited +44 (0) 20 7050 6500
Mike Jones
Smith's Corporate Advisory +44 (0) 20 7239 0140
Dominic Palmer-Tomkinson tomkinson@smiths-ca.com
<mailto:tomkinson@smiths-ca.com>
Conduit PR +44 (0) 20 7429 6603
Jos Simson jos@conduitpr.com <mailto:jos@conduitpr.com>
[HUG#1373259]