Shares in Chaarat Gold (LON:CGH) rose by nearly 5% to 43p this morning on news of encouraging results from its underground and surface drilling programme at its 100-held property in Kyrgyzstan. The drilling programme is taking place on the central Chaarat target which hosts three parallel striking mineralisation trends - the Main, the Contact and the Tulkubash zones - for which a JORC compliant resource estimate of 4.009 million ounces at 4.14 g/t of gold has been reported.

One of the underground drill holes was drilled from the newly-constructed drill chamber 4 which is located on the northern extension of the underground workings of the C5300 Project.  The other underground hole was drilled from the southern end of the same project in order to explore the interval between Projects C4600 and C5300. All drill holes are HQ size diamond core holes.

Chief executive Dekel Golan said: "The drilling programme implemented this year is focused on adding the right type of ounces; ounces which fit well into the emerging mining model being developed for the pre-feasibility study, ounces in open pittable locations and strike extensions which may readily translate to a higher mining rate."

Yesterday, Chaarat set out its plans to pull off a share for share acquisition of Kyrex Ltd, a private exploration company with four large licence areas in the north west of the Kyrgyz Republic. The three most prospective assets are Chontash, Mironovskoye and Kyzil Ompul. The proposed acquisition provides an opportunity to add exploration projects to the Chaarat portfolio whilst developing the Chaarat gold project, the company's principal asset, towards production. A prefeasibility study is currently under way at the project and is on track to complete during the third quarter of 2010.



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