Chaarat Gold’s deadline to submit the development proposal for its Chaarat Gold Project in the Kyrgyz Republic has been extended by two years to December 2018.

The Kyrgyz government has approved an extension to the time by which regulatory approvals for the project’s development have to be obtained.

The company’s chief executive Dekel Golan says it is following a two-track strategy to develop the project - keeping the door open for an acquirer or joint venture partner while adding value to the Chaarat deposit by developing a realistic profitable option to get into production.

A feasibility study published in April indicated a net present value (NPV) of US$615 million, an internal rate of return of 25% and all-in-sustaining costs of US$605 per ounce. Average annual production would 211,000 ounces with a heap leach operation at the Tulkubash site likely to be the first stage development.

“The publication of the DFS in early 2016 has provided a benchmark to underpin the value of the Chaarat project and generated an increase in the level of interest shown by potential industry partners,” Dekel Golan says.

Approval for the heap leach was granted last year with the full agreement of local communities. The Kyrgyz government has also recently awarded a tender that included the requirement to construct a smelter a short distance from Chaarat.

This opens up the possibility of a project based on the refractory ore in the Main and Contact zones, by generating a smeltable concentrate and eliminating the need for an oxidisation plant.

Chaarat Gold is an AIM-listed exploration and development company operating in the Kyrgyz Republic with a large, high grade, JORC-compliant resource of 6.1 million ounces @ 3.20 grams/tonne gold, which is capable of generating low-cost gold production.

The company’s key objective is to become a low cost gold producer from development of the Chaarat Gold Project. Chaarat is working on the optimisation of its definitive feasibility study and reviewing a number of development options, to establish the best way to maximise the value of the Chaarat investment proposition, whilst continuing its active community engagement program.

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