The definitive feasibility study for Chaarat Gold’s flagship project in the Kyrgyz Republic is on schedule and almost complete. The study for the Chaarat Gold Project is being undertaken by Chinese firm NERIN.
Chaarat expects to build the operation in two stages, ultimately producing 250,000 ounces of gold a year. The first stage will focus on the easy-to-process oxide component of the resource.
Chaarat’s CEO Dekel Golan said in the company’s annual report: “NERIN is nearing completion of the feasibility study, which will assist in underpinning the value of the deposit.”
The company decided to use NERIN for the study because of the location near to China and the potential Chinese financing options. “We identified China as the primary source for both machinery and finance and therefore we agreed it would be logical to use a Chinese company to prepare the feasibility study for the Chaarat project,” he said.
The CEO said the study had already indicated that Chaarat would not need to construct a tunnel in the early stages of the project. This would contribute significantly to NPV as well as reducing the upfront capital cost and project risk.
The annual report also reveals that additional drilling has increased the resource to 6.1 million JORC-compliant ounces.
Dekel Golan added that with the company’s focus being on the Chaarat project, it did not have the funds to progress its projects at Chontash, Mironovskoye and Kyzil Ompul. Chaarat Gold is hoping to find buyers for all three.
In an earlier statement the CEO said he has been assured that the mine was financeable in China. “The People’s Republic last year mapped out its development strategy, which encourages its major corporations to expand their sphere of influence along the old Silk Road from China to Europe.
“With Kyrgyzstan sitting on the northwest border with China and gold one of its favoured commodities, the Chaarat project should attract interest. I think it is fair to say that we are being assured that the project is financeable in China.
“Chinese entities seem interested in financing this sort of project. But nothing is assured at this stage.”