The total JORC-compliant resource at Chaarat Gold Holdings’ Chaarat Gold Project in the Kyrgyz Republic has increased by 15% from 6.1 million ounces to 7.04 million ounces. The resource has been updated to reflect the results of the mine plan included in the feasibility study prepared by NERIN.
The study has improved the profile of the deposit in both the principal mineralized systems within the Chaarat deposit – the Tulkubash Zone and the Main and Contact Zones.
The Tulkubash system consists of a multitude of relatively thin veins hosted in quartzite from which gold can be recovered by direct leaching due to the low sulphur content of the ore.
The feasibility study confirmed that due to the low cost of processing using the heap leach method, the appropriate cut-off grade for this section of the deposit should be 0.5 grams/tonne (g/t). Although the grade of the resource has slightly reduced from 1.71 g/t to 1.35g/t, the economically recoverable resource has increased by 26% from 650,000 ounces to 819,000 ounces.
The economics of the project will benefit from a larger recoverable resource with a lower strip ratio. This development is of significance since it is likely that the first stage development of the Chaarat project will be a heap leach project.
The mineralisation of the Contact Zone and the Main Zone is refractory ore which means a stage of oxidation is required before gold can be extracted by leaching. The study has established that it is economic to mine the Main and Contact Zones by a combination of open pit and underground methods.
The mine plan established a cut-off grade of 1.0 g/t for the open pit refractory ore and 1.8 g/t for the underground refractory ore. The anticipated higher cost of processing and treatment of refractory ore will be offset by the increased gold content and excellent anticipated recoveries.
This has made a minimal impact on the quantity of economic resource in these zones but it has established the optimal mining method.
Chaarat’s CEO Dekel Golan CEO said, “In line with our twin track strategy we are continuing to move towards project development as well as talking to potential acquirers and partners. In that context the increase of the Tulkubash resource underpins a significant development opportunity.”