Chaarat Increases Gold Reserves at Tulkubash by 39 Percent

Chaarat Gold (LSE:CGH) rose close to 4 percent on Tuesday (June 4) after publishing an updated feasibility study showing that gold reserves at its Tulkubash asset have increased by 39 percent. 

The updated feasibility study on the oxide gold project, which is located in Kyrgyzstan, has boosted reserves to 22.2 million tonnes for a total of 358,000 ounces of gold.

“An almost 40 percent year-on-year increase in Tulkubash’s gold reserves demonstrates the remarkable future growth potential of the Tulkubash project. To achieve this whilst also reducing the level of capital expenditure required to bring the mine into production again illustrates the quality of this asset,” said CEO Artem Volynets.

The London-based company estimated that, as per the updated feasibility study, Tulkubash will produce an average of 94,000 ounces of gold per year at an average cash operating cost of US$678 per ounce and an all-in sustaining cost of US$819 per ounce.

Chaarat also noted that there has been a reduction in capital requirements, which have moved from US$132 million down to US$110 million.

Tulkubash is open along strike to the northeast, and a 2019 drilling program is focused on extending mineralization along strike with the goal of further enhancing project economics.

Exploration at the asset up to the beginning of this year has defined 1,657,000 ounces of gold through approximately 78,000 meters of drilling. Last year’s exploration program added more than 650,000 ounces of gold to the measured and indicated resource.

Looking ahead, Chaarat said that construction at Tulkubash is ongoing and that first gold remains on schedule for 2021.

“The project team’s highly successful optimization of the project improves the value of the project and decreases the risks associated with its delivery,” noted Volynets. “We plan to immediately advance the project development and are confident that our 2019 drilling program will deliver similar results, further adding to the mine life of the project.”

As of 11:04 a.m. EDT on Tuesday, Chaarat was trading at GBX 30.40.

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.