REG-Tulkubash Drilling Update

Tue Sep 20, 2011 2:00am EDT

* Reuters is not responsible for the content in this press release.

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Tulkubash drilling update

Road Town, Tortola, British Virgin Islands (20 September 2011)

Chaarat (AIM - CGH), the AIM quoted exploration and development company with assets in the Kyrgyz Republic, is pleased to announce positive results from its ongoing exploration programme in the Tulkubash Project area in north western Kyrgyzstan.

Highlights

  • Tulkubash mineralisation extended along strike in both directions and also at depth. The results reported here are from the Central Section only

  • Drilling at Tulkubash North and South Sections still in progress

  • 76 drill holes (7,422 metres) completed since the last announcement on 26 January 2011

  • Mineralised zone becoming  increasingly predictable and 72 of the holes intersected mineralisation at the predicted depth

  • Close spaced intersection of mineralisation will improve the variography and enable an upgrade of resource category from inferred to indicated

  • Selected results (see Appendix 1 for details of all holes) from the Central Section include:
    • TO751:  32.50m at 2.53 g/t Au from 16.5m
      • Including 8.75m at 5.71 g/t Au from 19.5m
    • TO772:  31.25m at 3.67 g/t Au from 46.50m
      • Including 8.75m at 6.14 g/t Au from 46.50m
    • TO775:  10.00m at 5.54 g/t Au from 34.50m
    • TO779:  25.00m at 3.13 g/t Au from 75m
      • Including 6.25m at 6.71 g/t Au from 97.50m


A map at www.chaarat.com shows the Tulkubash mineralisation.

Dekel Golan, CEO of Chaarat, comments "We are pleased to update the market on the promising results achieved from drilling the Tulkubash project.  We are confident that the scenario should improve further with drilling along strike to the north and south of the project.  The Tulkubash holds great promise for Chaarat and will host our first production."


General Description of
the Tulkubash Zone

The Tulkubash Zone is one of three major mineralisation zones of the Chaarat Project, the others being the Main and Contact Zones. The Tulkubash Zone strikes parallel to the other two zones and extends to the north-east into the Karator and Ishakuldy areas.  The mineralised zones dip at 40-50 degrees to the NW.

Mineralisation in the Tulkubash Zone is hosted in silicified quartzites and mineralised zones exhibiting pervasive silicification and some argillic alteration, together with elevated contents of sulphides at depth of up to 5%-10% of volume. The gold is associated with sulphides, sericitic alteration and minor quartz veinlets although the open-pittable resource is largely oxidised.

The Tulkubash mineralised zone, which includes relatively clean free milling mineralisation, has been delineated, discontinuously, over a strike length of 4 kilometres. During the 2011 season the objective of the exploration programme was to convert the inferred resource of the central part of Tulkubash to indicated resource, which in turn will be converted to mineable reserve. Exploration focussed on a 600 metre section at the southern end of Central Tulkubash to generate an initial open pittable resource which can quickly be developed into a mine. In addition, drilling was undertaken to establish the strike extension of the mineralised zone to the north and south which is boosting confidence in the continuity of the zone. 

The Tulkubash mineralised zone can be divided into three segments namely, TCX (Tulkubash Central Section), TSX (Tulkubash South Section) and TNX (Tulkubash North Section). As work on the TCX has been completed and drilling at TSX and TNX is in progress, this release presents the results of the TCX drill holes only. 

Based on drilling completed in 2010, a JORC compliant (indicated and inferred) resource containing 321,000 oz at a grade of 4.00 g/t Au was delineated in the T0700 Project Areas within the Tulkubash zone up to 330m metres down dip from the surface outcrop. Mineralisation remains open both down dip and along strike in both directions. 

We expect to be able to release further drilling results and an upgraded resource estimate in early 2012.


Dekel Golan
Chief Executive Officer

For further information about the Company please contact:
Chaarat Gold Holdings Limited
c/o Central Asia Services Limited
Dekel Golan   CEO
Linda Naylor  FD
+44 (0) 20 7499 2612
dekel@chaarat.com
linda.naylor@chaarat.com


Westhouse Securities Limited

+44 (0) 20 7601 6100
Tim Feather
Richard Baty
 tim.feather@westhousesecurities.com
 richard.baty@westhousesecurities.com

Bankside Consultants

+44 (0) 20 7367 8888
Simon Rothschild  simon.rothschild@bankside.com

 

Note to Editors:

About Chaarat Gold

Chaarat Gold is an exploration and development company operating in the Kyrgyz Republic. The Company's main activity is the development of the Kiziltash and Tulkubash projects situated within the Middle Tien Shan Mountains of Kyrgyzstan, which form part of the Tien Shan gold belt. The Company has delineated a JORC compliant mineral resource of 4.736Moz at a grade of 4.28g/t gold across both projects.  Chaarat's key objective is to become a low cost gold producer; with initial production from the Tulkubash project, targeting increased production of over 200,000 ounces per annum as the Kiziltash project comes on stream.

Further information is available at www.chaarat.com


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 to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and he was supervisor to the work subject of this release.  Mr Patel consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.


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.


Appendix 1
Drilling results

Hole ID Section Drilled
From
(metres)
Drilled
To
(metres)
Length
(metres)
True width
(metres)
Au (g/t)
T0701 880 105.00 108.00 3.00 2.50 1.02
T0701 880 151.50 153.00 1.50 1.25 2.15
T0702 840 105.00 117.00 12.00 10.00 1.25
T0703 960 151.50 165.00 13.50 11.25 2.10
including 960 153.00 156.00 3.00 2.50 3.82
T0704 880 54.00 57.00 3.00 2.50 2.34
T0704 880 87.00 90.00 3.00 2.50 1.07
T0705 920 27.00 30.00 3.00 2.50 3.44
T0705 920 48.00 49.50 1.50 1.25 2.07
T0705 920 91.50 94.50 3.00 2.50 2.07
T0705 920 103.50 109.50 6.00 5.00 2.16
T0706 720 150.00 157.50 7.50 6.25 1.67
including 720 151.50 154.50 3.00 2.50 2.72
T0706 720 103.50 106.50 3.00 2.50 2.65
T0707 720 46.50 52.50 6.00 5.00 1.66
T0707 720 124.50 126.00 1.50 1.25 1.03
T0708 640 34.50 45.00 10.50 8.75 1.33
T0708 640 48.00 55.50 7.50 6.25 1.75
T0708 640 98.00 99.50 1.50 1.25 1.09
T0709 760 36.00 37.50 1.50 1.25 1.54
T0709 760 64.50 66.00 1.50 1.25 1.14
T0711 800 24.00 25.50 1.50 1.25 1.66
T0711 800 70.50 73.50 3.00 2.50 3.17
T0711 800 87.00 90.00 3.00 2.50 1.24
T0712 640 79.50 82.50 3.00 2.50 1.36
T0712 640 84.00 91.50 7.50 6.25 2.12
T0712 640 103.50 109.50 6.00 5.00 1.95
including 640 103.50 106.50 3.00 2.50 2.74
T0713 800 No intersection 
T0714 800 31.00 32.50 1.50 1.25 1.10
T0714 800 34.00 37.00 3.00 2.50 1.66
T0714 800 46.00 50.50 4.50 3.75 1.48
T0714 800 63.00 66.00 3.00 2.50 4.71
T0714 800 74.50 77.50 3.00 2.50 1.41
T0714 800 82.00 83.50 1.50 1.25 9.28
T0715 840 63.00 66.00 3.00 2.50 5.72
T0715 840 81.00 85.50 4.50 3.75 2.29
T0717 880 49.00 52.00 3.00 2.50 2.94
T0717 880 175.00 176.50 1.50 1.25 1.50
T0717 880 179.50 188.50 9.00 7.50 1.10
T0718 800 No intersection 
T0719 720 61.50 64.50 3.00 2.50 1.50
T0719 720 81.00 100.50 19.50 16.25 2.09
including 720 84.00 88.50 4.50 3.75 4.36
T0720 800 24.00 35.30 11.30 9.42 1.91
including 800 27.00 30.00 3.00 2.50 4.48
including 800 34.00 35.50 1.50 1.25 5.07
T0720 800 47.00 48.50 1.50 1.25 2.50
T0720 800 54.50 60.50 6.00 5.00 1.32
T0720 800 72.50 74.00 1.50 1.25 1.11
T0721 840 48.00 51.00 3.00 2.50 1.11
T0721 840 82.50 91.50 9.00 7.50 1.01
T0722 840 19.50 21.00 1.50 1.25 1.09
T0723 760 24.00 27.00 3.00 2.50 1.60
T0723 760 30.00 33.00 3.00 2.50 3.67
T0723 760 61.50 64.50 3.00 2.50 1.19
T0723 760 72.00 75.00 3.00 2.50 1.70
T0723 760 76.50 81.00 4.50 3.75 2.20
T0724 880 83.50 100.00 16.50 13.75 1.57
T0724 880 103.00 106.00 3.00 2.50 1.09
T0725 960 0.00 1.50 1.50 1.25 1.34
T0725 960 36.00 37.50 1.50 1.25 1.72
T0725 960 45.00 46.50 1.50 1.25 1.23
T0725 960 55.50 64.50 9.00 7.50 1.31
T0726 680 31.50 33.00 1.50 1.25 1.01
T0726 680 45.00 46.50 1.50 1.25 1.04
T0726 680 54.00 55.50 1.50 1.25 1.04
T0726 680 63.00 73.50 10.50 8.75 1.55
including 680 72.00 73.50 1.50 1.25 4.06
T0726 680 76.50 79.50 3.00 2.50 2.22
T0726 680 123.00 126.00 3.00 2.50 1.00
T0726 680 136.50 138.00 1.50 1.25 1.01
T0726 680 141.00 144.00 3.00 2.50 1.00
T0727 960 58.50 60.00 1.50 1.25 1.26
T0727 960 66.00 72.00 6.00 5.00 1.20
T0728 920 15.00 16.50 1.50 1.25 1.37
T0728 920 31.50 34.50 3.00 2.50 1.37
T0728 920 43.50 45.00 1.50 1.25 1.16
T0728 920 88.50 93.00 4.50 3.75 1.01
T0728 920 91.50 93.00 1.50 1.25 1.29
T0729 760 21.00 22.50 1.50 1.25 2.17
T0729 760 37.50 40.50 3.00 2.50 1.01
T0730 960 40.50 42.00 1.50 1.25 3.70
T0730 960 48.00 62.50 14.50 12.08 1.27
T0730 960 73.00 76.00 3.00 2.50 1.40
T0730 960 83.50 86.50 3.00 2.50 1.55
T0731 920 9.00 12.00 3.00 2.50 1.14
T0731 920 69.00 70.50 1.50 1.25 1.79
T0731 920 84.00 96.00 12.00 10.00 1.96
T0731 920 103.50 112.40 8.90 7.42 1.07
T0732 680 13.50 15.00 1.50 1.25 1.39
T0732 680 21.00 31.50 10.50 8.75 1.48
including 680 22.50 27.00 4.50 3.75 2.32
T0732 680 43.50 73.50 30.00 25.00 2.58
including 680 49.50 54.00 4.50 3.75 4.32
including 680 64.50 72.00 7.50 6.25 4.50
T0736 720 4.50 9.00 4.50 3.75 1.09
T0736 720 19.50 24.00 4.50 3.75 2.33
T0733 600 28.50 60.00 31.50 26.25 2.15
including 600 28.50 34.50 6.00 5.00 4.35
including 600 28.50 42.00 13.50 11.25 3.51
T0733 600 76.50 79.50 3.00 2.50 1.39
T0734 840 37.50 40.50 3.00 2.50 1.70
T0734 840 73.50 84.00 10.50 8.75 1.18
T0734 840 88.50 94.50 6.00 5.00 2.52
T0737 960 66.00 85.50 19.50 16.25 3.28
T0737 960 88.50 90.00 1.50 1.25 2.42
T0737 960 126.00 127.50 1.50 1.25 1.07
T0738 600 6.00 9.00 3.00 2.50 1.26
T0738 600 19.50 21.00 1.50 1.25 2.93
T0738 600 87.00 88.50 1.50 1.25 2.91
T0739 640 18.00 21.00 3.00 2.50 1.65
T0739 640 36.00 61.40 25.40 21.17 3.20
including 640 46.50 61.40 14.90 12.42 4.16
T0740 760 No intersection.
T0741 920 106.5 121.5 15.00 12.50 1.91
including 920 108 112.5 4.50 3.75 3.70
T0742 880 45.00 48.00 3.00 2.50 3.31
T0742 880 61.50 67.50 6.00 5.00 1.00
T0742 880 70.50 81.00 10.50 8.75 1.63
T0743 600 1.50 4.50 3.00 2.50 1.15
T0743 600 7.50 10.50 3.00 2.50 1.00
T0743 600 13.50 18.00 4.50 3.75 2.02
T0743 600 24.00 25.50 1.50 1.25 2.17
T0743 600 138.00 139.50 1.50 1.25 1.11
T0743 600 154.50 159.00 4.50 3.75 1.00
T0743 600 165.00 180.00 15.00 12.50 1.00
T0743 600 184.50 187.50 3.00 2.50 1.84
T0743 600 199.50 202.50 3.00 2.50 1.00
T0743 600 205.50 211.00 5.50 4.58 1.02
T0744 880 18.00 22.50 4.50 3.75 1.42
T0744 880 47.00 48.50 1.50 1.25 2.28
T0745 840 22.50 24.00 1.50 1.25 1.46
T0745 840 60.00 61.50 1.50 1.25 1.24
T0745 840 78.00 79.50 1.50 1.25 1.00
T0749 920 4.50 7.50 3.00 2.50 1.27
T0749 920 16.50 18.00 1.50 1.25 1.78
T0749 920 22.50 24.00 1.50 1.25 1.16
T0749 920 27.00 30.00 3.00 2.50 1.11
T0749 920 31.50 39.00 7.50 6.25 1.05
T0750 920 25.50 28.50 3.00 2.50 1.66
T0751 640 16.50 55.50 39.00 32.50 2.53
including 640 19.50 30.00 10.50 8.75 5.71
T0751 640 60.00 61.50 1.50 1.25 3.01
T0751 640 85.50 88.50 3.00 2.50 1.19
T0751 640 93.00 94.50 1.50 1.25 1.18
T0752 640 3.00 6.00 3.00 2.50 1.07
T0752 640 43.50 45.00 1.50 1.25 1.43
T0754 960 55.50 57.00 1.50 1.25 1.30
T0754 960 63.00 84.00 21.00 17.50 1.38
T0754 960 102.00 105.00 3.00 2.50 1.00
T0754 960 109.00 112.00 3.00 2.50 1.24
T0754 960 139.50 142.50 3.00 2.50 1.39
T0754 960 151.50 156.00 4.50 3.75 1.00
T0755 960 39.00 61.50 22.50 18.75 2.53
T0755 960 151.50 156.00 4.50 3.75 1.00
T0757 840 36.00 39.00 3.00 2.50 1.24
T0757 840 54.00 55.50 1.50 1.25 1.39
T0757 840 81.00 88.50 7.50 6.25 1.00
T0758 600 1.50 27.00 25.50 21.25 2.03
including 600 3.00 9.00 6.00 5.00 2.47
including 600 15.00 24.00 9.00 7.50 3.02
T0758 600 49.50 55.50 6.00 5.00 3.35
T0758 600 61.50 63.00 1.50 1.25 1.00
T0758 600 87.00 88.50 1.50 1.25 1.13
T0758 600 96.00 120.00 24.00 20.00 1.54
including 600 97.50 106.50 9.00 7.50 2.36
T0758 600 126.00 129.00 3.00 2.50 1.02
T0758 600 141.00 148.50 7.50 6.25 2.91
T0761 920 108.00 112.50 4.50 3.75 1.65
T0761 920 139.50 142.50 3.00 2.50 1.45
T0762 640 4.50 6.00 1.50 1.25 1.18
T0762 640 43.50 45.00 1.50 1.25 6.38
T0762 640 72.00 96.00 24.00 20.00 2.12
including 640 81.00 88.50 7.50 6.25 3.06
T0762 640 102.00 106.00 4.00 3.33 3.69
T0763 900 0.00 4.50 4.50 3.75 1.28
T0763 900 36.00 37.50 1.50 1.25 1.82
T0763 900 45.00 46.50 1.50 1.25 2.42
T0763 900 52.50 54.00 1.50 1.25 1.26
T0763 900 118.50 120.00 1.50 1.25 1.74
T0764 600 22.50 25.50 3.00 2.50 1.40
T0765 720 84.00 102.00 18.00 15.00 2.28
T0765 720 108.00 112.50 4.50 3.75 2.88
T0766 620 36.00 39.00 3.00 2.50 1.34
T0766 620 64.50 106.50 42.00 35.00 2.21
including 620 73.50 84.00 10.50 8.75 3.77
T0767 840 28.50 33.00 4.50 3.75 1.03
T0767 840 46.50 48.00 1.50 1.25 1.87
T0767 840 64.50 67.50 3.00 2.50 1.46
T0767 840 73.50 78.00 4.50 3.75 1.00
T0767 840 84.00 90.00 6.00 5.00 1.38
T0768 900 36.00 37.50 1.50 1.25 2.57
T0768 900 40.50 45.00 4.50 3.75 2.94
T0768 900 55.50 57.00 1.50 1.25 2.08
T0770 720 96.00 99.00 3.00 2.50 1.61
T0771 620 No intersection 
T0772 620 46.50 84.00 37.50 31.25 3.67
including 620 46.50 57.00 10.50 8.75 6.14
including 620 70.50 76.50 6.00 5.00 4.37
T0772 620 88.50 93.00 4.50 3.75 1.86
T0773 720 3.00 9.00 6.00 5.00 1.12
T0773 720 46.50 48.00 1.50 1.25 1.73
T0773 720 55.50 57.00 1.50 1.25 1.28
T0773 720 60.00 63.00 3.00 2.50 2.88
T0773 720 69.00 70.50 1.50 1.25 6.55
T0774 760 49.50 51.00 1.50 1.25 1.27
T0774 760 57.00 58.50 1.50 1.25 1.53
T0775 900 34.50 46.50 12.00 10.00 5.54
T0776 720 5.50 7.00 1.50 1.25 1.95
T0776 720 10.00 13.00 3.00 2.50 1.35
T0776 720 76.00 91.00 15.00 12.50 1.12
T0777 620 24.00 27.00 3.00 2.50 1.49
T0777 620 40.50 43.50 3.00 2.50 1.31
T0778 900 43.50 45.00 1.50 1.25 1.10
T0778 900 54.00 55.50 1.50 1.25 1.31
T0779 900 75.00 105.00 30.00 25.00 3.13
including 900 82.50 88.50 6.00 5.00 3.75
including 900 97.50 105.00 7.50 6.25 6.71
T0780 620 31.50 54.00 22.50 18.75 4.04
T0780 620 75.00 79.50 4.50 3.75 1.23
T0782 620 24.00 25.50 1.50 1.25 1.11
T0782 620 30.00 31.50 1.50 1.25 1.03
T0783 760 0.00 15.00 15.00 12.50 1.11
T0784 900 95.50 119.50 24.00 20.00 1.24
T0785 900 49.00 50.50 1.50 1.25 2.12
T0785 900 61.00 65.50 4.50 3.75 1.47
T0785 900 92.50 107.50 15.00 12.50 2.21
T0786 760 15.00 21.00 6.00 5.00 1.22
T0786 760 24.00 25.50 1.50 1.25 1.15
T0786 760 49.50 51.00 1.50 1.25 1.52
T0786 760 70.50 87.00 16.50 13.75 1.02
T0788 900 21.00 22.50 1.50 1.25 2.28
T0791 900 25.50 30.00 4.50 3.75 1.06

 




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Source: Chaarat Gold Holdings Ltd via Thomson Reuters ONE

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