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Chaarat Gold has increased confidence for low cost bulk mining operation in Kyrgyzstan

Kyrgyzstan operating mineral explorer Chaarat Gold (AIM: CGH) said its ongoing drilling on the Main Zone project has intersected further significant gold mineralisation. The results of the latest seven drill holes are "encouraging", and the group is pursuing its plan to establish the low cost bulk mining operation with increased confidence. A revised resource statement for the project is expected later this quarter.

"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," CEO Dekel Golan said, “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”.

The Main Zone is one of three parallel zones of gold mineralization on the company’s wholly owned Chaarat Licence Area in western Kyrgyzstan. The Main Zone currently hosts a JORC compliant resource of approximately 1.5 million ounces (Moz) at a grade of 4.31 grams per tonne gold, over strike length of four kilometres. Seven exploration project areas have been sub-divided across the Main Zone. Chaarat Gold’s 2009 drilling season covered three of the seven project areas, drilling a total of 1,811 metres. The latest drilling results are taken from work conducted on the M3000, M2400 and M6000 project areas.

Mineralization is open down dip on the M3000 area, defined by drilling to the depth of 300 metres.

Three holes were drilled with exploration hole CCH09M3094 providing the highlight, containing three intersections with true lengths ranging between 15.84 metres and 22.44 metres and gold mineralisation grading between 3.1 grams per tonne and 7.51 grams per tonne. Pre-drill estimates, provided by independent consultants SRK, suggested that M300 contains 580,000 ounces grading 4.43 grams per tonne gold over a strike length of 350 metres.

The M2400 mineralization is open down dip and was previously proven to a depth of 260 metres. Three holes were drilled on the project area. Hole CCH09M2491 highlighted three intersections ranging between 2.2 metres and 6.53 metres, containing gold grades between 4.2 grams per tonne and 6.03 grams per tonne. Also among the notable results on M2400, CCH09M2492 intersected 2.54 grams per tonne gold across 15.77 metres. This year’s drilling extended the strike of M2400 from 600m to 680m.

The SKR pre-drilling report estimated 110,000 ounces of gold grading 5.07 grams per tonne on the M6000 project area, along a strike length of 400 metres. The latest results cover just one exploration hole on the area, returning 2.58 grams per tonne across a length of 3 metres.

Disclosure: The author holds no positions in the company