REG - Chaarat Gold Hlgs Ld - Maiden MRE at Karator Prospect
18/01/2024 07:00
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RNS Number : 0682A Chaarat Gold Holdings Ltd 18 January 2024
18 January 2024
Chaarat Gold Holdings Limited
("Chaarat" or "the Company")
Maiden Mineral Resource Estimate at Karator Prospect:
Potential to Significantly Extend Tulkubash Gold Project Life of Mine
Chaarat (AIM: CGH), the exploration and development company is pleased to
announce a maiden Mineral Resource Estimate ("MRE") for its Karator Prospect,
located 2km from its most advanced asset, the 1.01Moz resource (M&I and
Inferred) Tulkubash Gold Project ("Tulkubash"). In addition, Chaarat has a
JORC compliant 5.3 Moz resource (M&I and Inferred) at Kyzyltash, a
high-grade refractory deposit located beneath Tulkubash.
Highlights
· Maiden MRE at the Karator Prospect confirmed for 207Koz @ 0.96
g/t gold ("Au") of Indicated and Inferred JORC compliant Resources (Resource),
reported with applied cutoff grade of 0.21 ppm Au at Karator.
· Significant further upside potential demonstrated by Karator's
full immediate, non JORC compliant oxidized Au mineralization potential (or
Mineral Inventory) of approximately 5-10Mt of oxide gold material @ 0.8-0.9
g/t, subject to further exploration, resource definition and upgrade.
· Karator is located 2km northeast of Tulkubash, with 1km traced
strike of with between 30-80 metres width, and 150 to 250 metre down dip
extension.
· Potential to significantly extend the Tulkubash Gold Project Life
of Mine ("LOM") from the current 6 years towards the eventual target of 10-15
years.
· Tulkubash is expected to produce 95,000oz Au per annum with all
in sustaining costs of between $1,000-$1,100/oz from 2025 (subject to FID
occurring by end Q1 2024), through the development of an open pit operation
and simple heap leach processing achieving average recovery of approximately
75%.
· Karator ore has demonstrated its consistency with the deeply
oxidised ore encountered at Tulkubash supporting the Company's strategy to
develop Karator as a satellite mine to Tulkubash, utilising the same mining
and processing methodology with modest additional capex.
· Next steps will include further systematic step out and infill
drilling, aiming to advance and extend the maiden Resource with a new MRE
update.
· Karator will also undergo a comprehensive technical assessment,
including field activities covering metallurgical, geotechnical, and
hydrogeological test works, and a further Feasibility Study (FS) report with
confirmed JORC compliant Reserves.
· It is envisaged that Karator will become an additional dimension
of Chaarat's gold production strategy as it looks to unlock the value of its
total resource inventory, which exceeds 6Moz across the Tulkubash and
Kyzyltash Gold Projects, to become a mid-tier gold producer.
· The MRE report is now available on the Chaarat website.
David Mackenzie, Chief Financial Officer, commented:
"Our +1Moz Tulkubash Gold Project is the most advanced in our portfolio and
should move into construction in the first half of 2024, subject to
financing. Tulkubash, in isolation, will be a significant gold operation,
producing 95,000 ounces of gold per annum, and today's news further enhances
these already robust fundamentals.
"By deploying the same simple mining and processing methodology as envisaged
at Tulkubash, developing Karator into a satellite operation will directly
contribute to the economics of the project, whilst keeping Chaarat largely
insulated from technical and execution risk.
"I look forward to providing further news regarding our exploration and
development plans at Karator, alongside an update on our financing progress
and the final pre-construction preparations at the main Tulkubash Gold Project
as these progress. These are all key developments as we accelerate our plans
to become a mid-tier gold producer with a global resource inventory of over
6Moz gold."
MAIDEN MINERAL RESOURCE STATEMENT
Karator, JORC compliant Resource, with applied assumption for Reasonable
Prospects for Eventual Economic Extraction (RPEEE) is summarized in Table 1,
below:
CLASS DENSITY (t/m³) Mt Au (g/t) Koz
INDICATED 2.60 2.5 0.96 77
INFERRED 2.60 4.2 0.97 130
TOTAL 2.60 6.7 0.96 207
Table 1 Karator, JORC compliant Mineral Resource table, cutoff grade 0.21 ppm
Au, 15 January 2024
Notes: The effective date of the reported Resource is January 2024.
The resource estimate is according the JORC Code (2012)
Applied cutoff grade: 0.21 ppm Au.
The Mineral Resources that are not Mineral reserve do
not demonstrate economic viability.
Numbers may not sum due to rounding.
Grade estimation completed via Ordinary Kriging, within block model with a
parent block size of 5 m x 5 m x 5 m.
Mineral Resources are constrained by manually designed Resource shell, within
the area with denser drilling grid,
in terms to apply Reasonable Prospects for Eventual Economic Extraction
Enquiries
Chaarat Gold Holdings Limited +44 (0)20 7499 2612
David Mackenzie (Chief Financial Officer) IR@chaarat.com (mailto:IR@chaarat.com)
Strand Hanson Limited (Nominated Adviser) +44 (0)20 7409 3494
Ritchie Balmer / James Spinney / Robert Collins
Axis Capital Markets Limited (Joint Broker) +44 (0)20 3026 0449
Ben Tadd / Lewis Jones
Panmure Gordon (UK) Limited (Joint Broker) +44 (0)20 7886 2500
John Prior / Hugh Rich
About Chaarat
Chaarat is an exploration and development company which owns the Tulkubash and
Kyzyltash Gold Projects in the Kyrgyz Republic. The Company has a clear
strategy to build a leading emerging markets gold company through organic
growth and selective M&A.
Chaarat aims to create value for its shareholders, employees and communities
from its high-quality gold and mineral deposits by building relationships
based on trust and operating to the best environmental, social and employment
standards.
Competent Person- Mineral Resource Estimate
The information in this announcement that relates to the Tulkubash-Karator
Gold Prospect, maiden Mineral Resource Estimation is based on and fairly
represents information and supporting documentation prepared by Dimitar
Dimitrov, P. Geo, AIG member and a Competent Person as defined in the 2012
edition of the JORC Code 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves' and is a Qualified Person under
the AIM Rules. Mr. Dimitar Dimitrov was former senior VP Exploration of CGH,
but now operates in an independent consultancy capacity.
Sampling and Quality Control
Sampling comprises predominantly diamond core drilling, along with trenches
sampling and channel sampling from the access roads. The samples are
processed and assayed in "Stewart Assay and Environmental Laboratory" (SAEL),
located in Karla Balta, Kyrgyzstan. Gold is analysed using a 30-gramme fire
assay with an atomic absorption spectroscopy (AAS) finish. The lower detection
limit (LDL) of the gold analysis is 0.05ppm, and the samples below the LDL
were further replaced with half of the LDL - 0.025ppm. No other element of
interest, except Au was considered important. A Quality Control & Quality
Assurance (QAQC) protocol was employed via Certified Reference Material (SRM),
blanks (sterile material) field duplicates, pulp, and coarse duplicates
(internal SAEL procedures) and external verification from independent
laboratory - SGS Vostok Limited Lab in Chita, Russia. The obtained results are
meeting the industry standards, and the assay database is considered suitable
for Mineral Resource Estimation (MRE).
Resource Modelling Procedures
The Karator's ore wireframes (completed in Micromine ™) modelling was done
via series of sections, as per step of 40m, using the drill holes and surface
workings. Composite ore intervals with cut-off grade of 0.2 ppm Au and maximal
internal waste of 6m, were prepared and further used as a base for the ore
interpretation. The lower border of the ore bodies was constrained by the
designed oxidation break, and the upper by topography. The completed total of
32 field density measurement are not considered sufficient to be used for
variable density interpolation within the block model, fixed density of 2.60 g
/cm3, calculated as an average from the tested samples was applied. The
ultimate grade interpolation was done via Ordinary Kriging (OK).
Oxidation, recovery
The intense fracturing of the ore zones in Karator (and in Tulkubash type,
too) has allowed better water percolation along the fine lattice of fractures
in the silica matrix leading to extensive oxidation of the primary sulphide
gold mineralization. This process results in reasonable cyanide solubility of
the gold even though sulphide levels in the host silica matrix may still be
high. As most gold-bearing mineralization occurs in cracks in the host rock -
the degree of oxidation of the fracture surfaces is considered the primary
indicator of leachability.
No up to date comprehensive gold extraction test works were implemented for
Karator. The assumption of between 70 - 75 % recovery was used which
referenced the results from the similar Tulkubash oxide gold deposit, which
has had a wide variety of detailed metallurgical test works (including bottle
roll extractions). Also, the Karator data has available hot cyanide solution
shake test (leachWELL) data, completed by SAEL as part of the regular core
samples.
As a conclusion it is considered fair to believe that Karator could achieve
recovery of about 70 -75%, in terms of open pit mining followed by crushing
and stacking the ore onto a heap leach pad, and further leaching via standard
cyanide solution irrigation.
Cutoff Grade Calculation
The applied cutoff grade in Karator Resource reporting is the same as the used
in the most recent Tulkubash project reporting - 0.21 ppm Au (from April
2022). The Karator cutoff grade estimation with applied Tulkubash economic
mining and metallurgical factors, considering additional transportation costs
from Karator to Tulkubash Heap Leaching pad are shown in the table below.
Mining costs are excluded from the cutoff grade calculation.
Mining N/A $/t ore
Mining N/A $/t waste
Ore transport 1.5 $/t ore
Processing 4.79 $/t ore
G&A 1.25 $/t ore
Total 7.54 $/t ore
Recovery 70 %
Mining Losses 5 %
Price 1,900 $/oz
Refining 9.78 $/oz
Payable 95 %
Diluted COG 0.20 g/t Au
Dilution 5 %
Undiluted COG 0.21 g/t Au
Table 2 Key economic parameters and Karator Cutoff grade estimation.
Reasonable Prospects of Eventual Economic Extraction (RPEEE)
At the current stage of knowledge, the Reasonable Prospects for Eventual
Economic Extraction (RPEEE) is considering open pit method of mining and
transportation to Tulkubash heap leaching pad, located of about 15 km driving
distance. As there are not yet completed advanced geotechnical,
hydrogeological, or other engineering and economical studies at Karator, the
presented here RPEEE assumption is considered preliminary, but sufficient for
the current purpose of maiden MRE. The RPEEE assumption for constrained
Resource was calculated via manually designed open pit, constrained limited to
the area of the major drilling, and having slope angles of between 50-60
degrees.
The current preliminary RPEEE is calculating strip ratio (SR) of approximately
1:3 ore (t) to waste (t).
Resource Classification
At the current stage of knowledge only Indicated and Inferred JORC compliant
Resource could be reasonably outlined. The Inferred Resource portion is
constrained within the main drilling area (the plan distance between the holes
there is between 60 and 80 meters). The Indicated Resource are constrained as
a portion from the Inferred, using only the blocks interpolated within the
search ellipsoid with dimensions of 50m*40m*30m; minimum 4 samples from 2
different drillholes (or surface workings). The rest portion (outside of
Indicated and Inferred) of the Resource model is considered as not JORC
compliant Unclassified material.
Glossary of Technical Terms
"Au" The chemical symbol for the element gold.
"Cut-off-grade" Lowest grade of mineralized material considered economic, used in
the calculation and / or reporting of ore resources.
"g/t" Grammes per tonne, equivalent to parts per million (ppm).
"Indicated Mineral Resource" That part of a Mineral Resource for which tonnage, densities, shape, physical
characteristics, grade, and mineral content can be estimated with a reasonable
level of confidence. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings, and drill holes. The locations are too
widely or inappropriately spaced to confirm geological and/or grade continuity
but are spaced closely enough for continuity to be assumed.
That part of a Mineral Resource for which the tonnage and grade and mineral
content can be estimated with a low level of confidence. It is inferred from
the geological evidence and has assumed but not verified geological and/or
grade continuity. It is based on information gathered through the appropriate
"Inferred Mineral Resource" techniques from locations such as outcrops, trenches, pits, working and drill
holes which may be limited or of uncertain quality and reliability.
"JORC" The Australasian Joint Ore Reserves Committee Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves 2012 (the "JORC Code"
or "the Code"). The Code sets out minimum standards, recommendations, and
guidelines for Public Reporting in Australasia of Exploration Results, Mineral
Resources and Ore Reserves
"Measured Mineral Resource" A Measured Mineral Resource has a higher level of confidence than that
applying to either an Indicated Mineral Resource or an Inferred Mineral
Resource. A 'Measured Mineral Resource' is that part of a Mineral Resource for
which quantity, grade (or quality), densities, shape, and physical
characteristics are estimated with confidence sufficient to allow the
application of Modifying Factors to support detailed mine planning and final
evaluation of the economic viability of the deposit.
Describing the science concerned with the production, purification.
and properties of metals and their applications.
"Metallurgical"
Non formal quantification of concentration or occurrence of solid material
of economic interest, estimated by variety of empirically or theoretically
based procedures. Within the current report the term Mineral Inventory is
considering the immediate oxide gold mineralization potential, outlined by the
"Mineral Inventory" ore wireframing, but with lack of sufficient confidence to be referenced to
JORC compliant Mineral Resource or Reserve.
"Mineral Resource" Concentration or occurrence of solid material of economic interest in or on
the Earth's crust in such form, grade (or quality), and quantity that there
are reasonable prospects for eventual economic extraction. The location,
quantity, grade (or quality), continuity and other geological characteristics
of a Mineral Resource are known, estimated, or interpreted from specific
geological evidence and knowledge, including sampling. Mineral Resources are
sub-divided, in order of increasing geological confidence, into Inferred,
Indicated and Measured categories.
"Ore Reserves" Represents the economically mineable part of a Measured and/or Indicated
Mineral Resource. It includes diluting materials and allowances for losses,
which may occur when the material is mined or extracted and is defined by
studies at Pre-Feasibility or Feasibility level as appropriate that include
application of Modifying Factors. Such studies demonstrate that, at the time
of reporting, extraction could reasonably be justified.
"Probable Ore Reserve" Represents the economically mineable part of an Indicated, and in some
circumstances, a Measured Mineral Resource. The confidence in the Modifying
Factors applying to a Probable Ore Reserve is lower than that applying to a
Proved Ore Reserve.
Represents the highest confidence category of reserve estimate and implies a
high degree of confidence in geological and grade continuity, and the
consideration of the Modifying Factors.
"Proved Ore Reserve"
Proportion of valuable material obtained in the processing of an ore, stated
as a percentage of the material recovered compared with the total material
present.
"Recovery"
APPENDIX 1: JORC Code, 2012 Edition - Table 1 (Sections: 1 & 3)
Section 1 Sampling Techniques and Data
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or · Sampling comprises predominantly diamond core drilling, along with
specific specialised industry standard measurement tools appropriate to the trenches sampling and channel sampling from the access roads.
minerals under investigation, such as downhole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · Core was drilled through the full expected mineralization
meaning of sampling. intersection, as normal to the mineralization strike, as it is possible,
considering the geological knowledge and the terrain conditions.
· Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems used. · The core samples are predominantly HQ, occasionally PQ diameter.
· Aspects of the determination of mineralization that are Material to · The trenching and road cutting sampling were done via ordinary
the Public Report. hammer, along marked intervals.
· In cases where 'industry standard' work has been done this would be · The average down-hole sample length is about 1.5m and the average
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m trench and road cut sample is about 2.0m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay'). In other cases more explanation may be required, such as where there · The samples are taking in to account all major lithological breaks.
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralization types (eg submarine nodules) may warrant disclosure of detailed
information.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary · Diamond core wireline drilling
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or
standard tube, depth of diamond tails, face-sampling bit or other type, · HQ drilling diameter was used as a major drilling diameter, spare PQ
whether core is oriented and if so, by what method, etc). diameter was used as well aiming to guarantee best drilling performance. The
drilling was occasionally conducted via triple-tube aiming to advance the core
recovery.
· Most of the drilling is inclined, targeting the expected
mineralization strike as normal as possible.
· No drilling orientation was applied.
· Drilling equipment is in good condition, provided and operated by
local subcontractor with wide experience in central Asia.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · The core recovery is logged as percent of the total length, measured
results assessed. directly from the core box.
· Measures taken to maximise sample recovery and ensure representative · The core recovery is improved by using triple - core tube and
nature of the samples. additive drilling muds, when needed.
· Whether a relationship exists between sample recovery and grade and · The overall core recovery is above 90%
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material. · There doesn't appear to be a relationship bias between the grade, the
sample length or sample weight and the recovery.
Logging · Whether core and chip samples have been geologically and · Drill core logging was done by company's geologists, or subcontractor
geotechnically logged to a level of detail to support appropriate Mineral company but under the supervising of senior company's geologists.
Resource estimation, mining studies and metallurgical studies.
· Road-cuts logging was done by company's geologists.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography. · Trench logging was done by sub-contractors, under the supervision of
company's geologists.
· The total length and percentage of the relevant intersections logged.
· The total length of the logged drill holes is about 2540m.
· The total length of the logged surface workings is about 4640m.
· The samples from the logged drill holes used for the grade
interpolation are about 62 % of the total, relatively with 38 % for the
samples from the surface workings.
· Core logging is including lithology, hydrothermal alteration,
oxidation stage, degree of fracturing, mineralization, structures, RQD, core
recovery.
· Each day, the core was transported to the field core storage area for
logging. The core trays are wooden, including wooden cover as well, to prevent
core losses or extra moving.
· Core logging is done in laptops, using AGR 4.0 software as a database
platform.
· Photo documentation is done on wet trays, and data is also
incorporated in the database.
· At the end of the field season all core is transported at the main
core storage facility, in Malovodnoye village, located close to the Kyrgyzstan
capital - Bishkek.
· Logging procedures meeting sufficient representativeness, and are
considered suitable for Mineral Resource Estimation
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · All intact core samples are sawn along the long axis, using core saw,
taken. in case of intensively fractured zones, samples are taken with trowel.
· If non-core, whether riffled, tube sampled, rotary split, etc and · Half core is packed in labelled polyethylene bags, weighted, and
whether sampled wet or dry. further transported to "Stewart Assay and Environmental Laboratory", located
in Karla Balta, Kyrgyzstan
· For all sample types, the nature, quality and appropriateness of the
sample preparation technique. · All the drilled core is sampled, except the initial diluvium /
alluvium zones.
· Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples. · The bedrock exposures, outcropped in trenches and new road cuts were
selectively sampled as well, using ordinary hammer, and taking in to account
· Measures taken to ensure that the sampling is representative of the the lithological and alteration breaks
in situ material collected, including for instance results for field
duplicate/second-half sampling.
· Whether sample sizes are appropriate to the grain size of the
material being sampled.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · All samples are transported to "Stewart Assay and Environmental
laboratory procedures used and whether the technique is considered partial or Laboratory", located in Karla Balta, Kyrgyzstan, for further sample
total. preparation and analysis.
· For geophysical tools, spectrometers, handheld XRF instruments, etc, · Through the sample preparation process, the entire sample is crushed
the parameters used in determining the analysis including instrument make and to passing 90% at 2mm. Two pulps are made by pulverizing to 85% passing 0.075
model, reading times, calibrations factors applied and their derivation, etc. mm. One pulp is return to the company as duplicate, the second one is
analysed, including: Fire Assay and ICP - 35 elements.
· Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of · The applied Quality Assurance and Quality Control (QAQC) scheme is
accuracy (ie lack of bias) and precision have been established. including about 15% of the core samples and 10% of the trench and road cut
samples.
· QAQC sampling is including:
- several types of certified reference material provided by
RockLabs ™
- Blank material, collected from barren sediments located close to the filed
camp
- Pulp and coarse duplicates, tested internally by the laboratory
- Field duplicates for the drill core
- Verification from independent laboratory - SGS Vostok Limited (Chita,
Russia)
· The applied QAQC procedures and the obtained results are meeting the
industrial standards and are confirming the representativeness of the
available results.
Verification of sampling and assaying · The verification of significant intersections by either independent · SGS Vostok Limited Russia laboratory was used for external
or alternative company personnel. verification of sample portion (48 samples)
· The use of twinned holes. · No twin holes were designed in the current assessment.
· Documentation of primary data, data entry procedures, data · All the assay results are received electronically as an excel
verification, data storage (physical and electronic) protocols. spreadsheets, and further incorporated in the database by company's database
manager.
· Discuss any adjustment to assay data.
· The access of the database is limited, and only authorized employees
can make corrections in it.
· Prior to data interpretation, the lower detection limits of Au (0.05
ppm) are changed to half of the detection limit (0.025ppm)
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · All collar locations and surface workings are reported at Gauss
and down-hole surveys), trenches, mine workings and other locations used in Kruger Pulkovo 1942 Zone 12 coordinates.
Mineral Resource estimation.
· The survey is conducted, using Lecia Total Station (centimetre
· Specification of the grid system used. accuracy)
· Quality and adequacy of topographic control. · All holes have a downhole survey, taken approximately at 25m
interval, using REFLEX EZ SHOT tool.
· The topographic model is based on satellite data.
· Roads and drill sites have been added after on-the-ground survey
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Exploration holes collars are in accordance with existing profiles
designed perpendicular to the mineralized zones.
· Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for the Mineral · The average space of drilling is between 60 and 80m, with surface
Resource and Ore Reserve estimation procedure(s) and classifications applied. workings located between it. This is considered sufficient for maiden
Mineral Resource Estimation (MRE) and confirming of JORC compliant Inferred
· Whether sample compositing has been applied. and Indicated Mineral Resources, constrained within the most intense sampling
zones.
· The Inferred Resource portion is constrained within the main
drilling area manually, including only the bodies intercepted by drill holes.
· Within the Inferred portion additionally was selected indicated
portion, using only the blocks interpolated within the "Run1": search ellipse,
with dimensions of 50m*40m*30m; minimum 4 samples from 2 different drillholes
(or surface workings)
· No historical drilling is available in Karator area prior 2021 year.
· Sample compositing of 1.5m is applied within the process or Mineral
Resource Estimate
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · All the holes were designed in attempt to intercept the expected
possible structures and the extent to which this is known, considering the northeastern striking mineralization as normal as possible, and to avoid
deposit type. sampling biases.
· If the relationship between the drilling orientation and the · The mineralization strike is northeastern direction, and the drill
orientation of key mineralised structures is considered to have introduced a bearing is within two major directions - southeastern and northwestern.
sampling bias, this should be assessed and reported if material.
Sample security · The measures taken to ensure sample security. · The samples are sufficiently secure, with security guards in the
entry, on both - field camp and Malovodnoye core shed
Audits or reviews · The results of any audits or reviews of sampling techniques and data. · No external field audit was implemented
Section 3 Estimation and Reporting of Mineral Resources
Database integrity · Measures taken to ensure that data has not been corrupted by, for · The field data is compiled on the site and after that combined,
example, transcription or keying errors, between its initial collection and verified, and stored in AGR™ 4.0 database platform
its use for Mineral Resource estimation purposes.
· Data verification is done one time on the field, second time in the
· Data validation procedures used. within to AGR™ 4.0 verification process, and third time prior the Resource
Modelling
Site visits · Comment on any site visits undertaken by the Competent Person and the · Last two field visits by Competent Person (CP) were done in September
outcome of those visits. 2021 and January 2024, both times by Mr. Dimitar Dimitrov
· If no site visits have been undertaken indicate why this is the case. · Mr. Dimitar Dimitrov P. Geo, AIG member and a Competent Person as
defined in the 2012 edition of the JORC Code 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves', is former SVP
Exploration of Chaarat, and currently independent consultant.
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological · Mineralization and associated hydrothermal alteration, developed
interpretation of the mineral deposit. along a system of regional structural deformations, is genetically associated
with Permian magmatism.
· Nature of the data used and of any assumptions made.
· Karator mineralization zones are presented by series of dilatational
· The effect, if any, of alternative interpretations on Mineral jogs, hosted in silicified sandstones.
Resource estimation.
· No clear hard contacts can be outlined between Karator mineralization
· The use of geology in guiding and controlling Mineral Resource and host rock. The transition between wase and ore is gradual, within
estimation. relatively short interval (usually within 1-2 m)
· The factors affecting continuity both of grade and geology. · The ore interpretation is based on gold distribution and logged
geology, using the database from the drilling and surface workings.
· Overall, there is a moderate level of confidence in the geological
continuity, although detailed drilling is required to advance the
interpretation of the different mineralization lenses.
· The wireframing process is using composites (0.2 ppm cut - off
grades, and 6m maximal internal waste)
Dimensions · The extent and variability of the Mineral Resource expressed as · The Mineral Resource extends approx. 1000m along strike, with plan
length (along strike or otherwise), plan width, and depth below surface to the width between 100 and 250m, depth below surface of approx. 200m
upper and lower limits of the Mineral Resource.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied · The 2024 Maiden Mineral Resource Estimate (MRE) was supervised and
and key assumptions, including treatment of extreme grade values, domaining, confirmed by Dimitar Dimitrov (CP).
interpolation parameters and maximum distance of extrapolation from data
points. If a computer assisted estimation method was chosen include a · The data processing and modelling was completed by Nikolay Pushev -
description of computer software and parameters used. senior geologist of Ridge Consulting company.
· The availability of check estimates, previous estimates and/or mine · The MRE is using both drill hole data and surface workings data for
production records and whether the Mineral Resource estimate takes appropriate both ore interpretation and grade interpolation.
account of such data.
· Micromine ™ Software (under the license of Chaarat) was used for
· The assumptions made regarding recovery of by-products. data processing, wireframing the resource modelling.
· Estimation of deleterious elements or other non-grade variables of · The Mineral Resource was estimated into block model, using ordinary
economic significance (e.g. sulphur for acid mine drainage characterisation). kriging for Au. No other element of interest was considered, except Au.
· In the case of block model interpolation, the block size in relation · Block model with parent block size of 5*5*5 (1m minimum sub-selling)
to the average sample spacing and the search employed. was generated within the ore wireframe.
· Any assumptions behind modelling of selective mining units. · Grade estimates was done by 1.5m composite sampling.
· Any assumptions about correlation between variables. · Top cuts determination of 8 ppm Au was used, achieving coefficient of
variation about 1.5.
· Description of how the geological interpretation was used to control
the resource estimates. · The variogram models were designed in Micromine ™
· Discussion of basis for using or not using grade cutting or capping. · Block model was verified statistically and visually, including swath
plots (using as references the sample composites and simple IDW interpolation)
· The process of validation, the checking process used, the comparison and section by section review accordingly.
of model data to drill hole data, and use of reconciliation dta if available.
· The grade distribution within the block model is sufficiently
corelating with the composite data.
· No estimation of deleterious elements was made.
· The Reasonable Prospects of Eventual Economic Extraction (RPEEE)
assumption was calculated via manually designed open pit, constrained within
the area of the major drilling, and having slope angles of between 50-60
degrees.
· The January 2024 constrained Mineral Resource is:
CLASS DENSITY (t/m³) Mt Au (g/t) Koz
INDICATED 2.60 2.5 0.96 77
INFERRED 2.60 4.2 0.97 130
TOTAL 2.60 6.7 0.96 207
Moisture · Whether the tonnages are estimated on a dry basis or with natural · All Mineral Resource is estimated and reported on a dry basis
moisture, and the method of determination of the moisture content.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · Mineral Resources have been reported at cut-off grade of 0.21 ppm Au
applied.
· The applied cutoff grade in Karator Resource reporting is the same as
the used in most recent Tulkubash project reporting - 0.21 ppm Au (from April
2022).
· The Karator cutoff grade estimation with applied economic mining and
metallurgical factors is shown in the table below.
Mining $/t ore
Mining $/t waste
Ore transport 1.5 $/t ore
Processing 4.79 $/t ore
G&A 1.25 $/t ore
Total 7.54 $/t ore
Recovery 70 %
Mining Losses 5 %
Price 1,900 $/oz
Refining 9.78 $/oz
Payable 95 %
Diluted COG 0.20 g/t Au
Dilution 5 %
Undiluted COG 0.21 g/t Au
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · The RPEEE assumption for constrained Resource was calculated via
dimensions and internal (or, if applicable, external) mining dilution. It is manually designed open pit, limited to the area of the major drilling, and
always necessary as part of the process of determining reasonable prospects having slope angles of between 50-60 degrees. Just for an example main
for eventual economic extraction to consider potential mining methods, but the Tulkubash area is designed with: Bench face angle: 66° and 75°; Inter-ramp
assumptions made regarding mining methods and parameters when estimating angle: 51° and 58°.
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions · No comprehensive gold extraction test works were implemented for
made. Karator up to date. Reliable assumption of between 70 - 75 % recovery shall be
referenced to the results from the similar Tulkubash oxide gold deposit, which
currently is having wide variety of detailed metallurgical test works
(including bottle roll extractions)
· Along with that, the Karator data have available hot cyanide
solution shake test (leachWELL) data, completed by SAEL for the part of the
regular core samples.
· As a conclusion it is considered fair to believe that Karator
could achieve recovery of about 70 -75%, in terms of open pit mining followed
by crushing and stacking the ore onto a heap leach pad, and further leaching
via standard cyanide solution irrigation.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical
amenability. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider potential · The intense fracturing of the ore zones in Karator (and in
metallurgical methods, but the assumptions regarding metallurgical treatment Tulkubash type, too) has allowed better water percolation along the fine
processes and parameters made when reporting Mineral Resources may not always lattice of fractures in the silica matrix leading to extensive oxidation of
be rigorous. Where this is the case, this should be reported with an the primary sulphide gold mineralization. This process results in reasonable
explanation of the basis of the metallurgical assumptions made. cyanide solubility of the gold even though sulphide levels in the host silica
matrix may still be high.
· As most gold-bearing mineralization occurs in cracks in the host
rock - the degree of oxidation of the fracture surfaces is considered the
primary indicator of leachability.
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue · There are not considered to be any environmental factors likely to
disposal options. It is always necessary as part of the process of determining affect the assumption that the deposit has reasonable prospects for eventual
reasonable prospects for eventual economic extraction to consider the economic extraction.
potential environmental impacts of the mining and processing operation. While
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
Bulk density · Whether assumed or determined. If assumed, the basis for the · Dry bulk density is measured using paraffin -coated immersion
assumptions. If determined, the method used, whether wet or dry, the frequency (Archimedes) method to evaluate the specific gravity (SG)
of the measurements, the nature, size and representativeness of the samples.
· The completed total of 32 field density measurement are not consider
· The bulk density for bulk material must have been measured by methods sufficient to be used for variable interpolation within the block model, fixed
that adequately account for void spaces (vugs, porosity, etc), moisture and density of 2.60 g /cm3, calculated as an average from the tested samples was
differences between rock and alteration zones within the deposit. applied. It is considered representative and is similar with the Tulkubash
deposit results, which was expected.
· Discuss assumptions for bulk density estimates used in the evaluation
process of the different materials.
Classification · The basis for the classification of the Mineral Resources into · Classification of Mineral Resources is based upon a review of
varying confidence categories. geological continuity, quality of supporting data, spatial grade continuity
and quality of a block model.
· Whether appropriate account has been taken of all relevant factors
(ie relative confidence in tonnage/grade estimations, reliability of input · The Inferred Resource portion is constrained within the main
data, confidence in continuity of geology and metal values, quality, quantity drilling area manually, including only the bodies intercepted by drill holes
and distribution of the data). (the plan distance between the holes there is between 60 and 80 meters, along
with surface workings between it)
· Whether the result appropriately reflects the Competent Person's view
of the deposit. · Within the Inferred portion additionally was selected indicated
portion, using only the blocks interpolated within the "Run1": search ellipse
with dimensions of 50m*40m*30m; minimum 4 samples from 2 different drillholes
(or surface workings)
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · No other external reviews have been made
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · The Karator Mineral Resource is considered appropriate representation
level in the Mineral Resource estimate using an approach or procedure deemed of the Tulkubash oxide gold style of mineralization, and it is adequate to the
appropriate by the Competent Person. For example, the application of available data.
statistical or geostatistical procedures to quantify the relative accuracy of
the resource within stated confidence limits, or, if such an approach is not · It is considered that the current drill hole spacing is sufficient to
deemed appropriate, a qualitative discussion of the factors that could affect demonstrate geological continuity of the mineralization but requires addition
the relative accuracy and confidence of the estimate. infill drilling to increase the confidence.
· The statement should specify whether it relates to global or local · Accuracy of the Mineral Resource is sufficient to confirm the
estimates, and, if local, state the relevant tonnages, which should be economic potential of the deposit.
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used. · The Mineral Resource estimation methodology is deemed appropriate,
based upon validation of the model, using visual, statistical, and graphical
· These statements of relative accuracy and confidence of the estimate checks. Any alternative methods are likely to yield only minor changes to
should be compared with production data, where available. global Mineral Resource
· The designed mineralization bodies and estimated average grades are
considered representative interpretation of the available technical data
Moisture
· Whether the tonnages are estimated on a dry basis or with natural
moisture, and the method of determination of the moisture content.
· All Mineral Resource is estimated and reported on a dry basis
Cut-off parameters
· The basis of the adopted cut-off grade(s) or quality parameters
applied.
· Mineral Resources have been reported at cut-off grade of 0.21 ppm Au
· The applied cutoff grade in Karator Resource reporting is the same as
the used in most recent Tulkubash project reporting - 0.21 ppm Au (from April
2022).
· The Karator cutoff grade estimation with applied economic mining and
metallurgical factors is shown in the table below.
Mining $/t ore
Mining $/t waste
Ore transport 1.5 $/t ore
Processing 4.79 $/t ore
G&A 1.25 $/t ore
Total 7.54 $/t ore
Recovery 70 %
Mining Losses 5 %
Price 1,900 $/oz
Refining 9.78 $/oz
Payable 95 %
Diluted COG 0.20 g/t Au
Dilution 5 %
Undiluted COG 0.21 g/t Au
Mining factors or assumptions
· Assumptions made regarding possible mining methods, minimum mining
dimensions and internal (or, if applicable, external) mining dilution. It is
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions
made.
· The RPEEE assumption for constrained Resource was calculated via
manually designed open pit, limited to the area of the major drilling, and
having slope angles of between 50-60 degrees. Just for an example main
Tulkubash area is designed with: Bench face angle: 66° and 75°; Inter-ramp
angle: 51° and 58°.
· No comprehensive gold extraction test works were implemented for
Karator up to date. Reliable assumption of between 70 - 75 % recovery shall be
referenced to the results from the similar Tulkubash oxide gold deposit, which
currently is having wide variety of detailed metallurgical test works
(including bottle roll extractions)
· Along with that, the Karator data have available hot cyanide
solution shake test (leachWELL) data, completed by SAEL for the part of the
regular core samples.
· As a conclusion it is considered fair to believe that Karator
could achieve recovery of about 70 -75%, in terms of open pit mining followed
by crushing and stacking the ore onto a heap leach pad, and further leaching
via standard cyanide solution irrigation.
Metallurgical factors or assumptions
· The basis for assumptions or predictions regarding metallurgical
amenability. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral Resources may not always
be rigorous. Where this is the case, this should be reported with an
explanation of the basis of the metallurgical assumptions made.
· The intense fracturing of the ore zones in Karator (and in
Tulkubash type, too) has allowed better water percolation along the fine
lattice of fractures in the silica matrix leading to extensive oxidation of
the primary sulphide gold mineralization. This process results in reasonable
cyanide solubility of the gold even though sulphide levels in the host silica
matrix may still be high.
· As most gold-bearing mineralization occurs in cracks in the host
rock - the degree of oxidation of the fracture surfaces is considered the
primary indicator of leachability.
Environmental factors or assumptions
· Assumptions made regarding possible waste and process residue
disposal options. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider the
potential environmental impacts of the mining and processing operation. While
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
· There are not considered to be any environmental factors likely to
affect the assumption that the deposit has reasonable prospects for eventual
economic extraction.
Bulk density
· Whether assumed or determined. If assumed, the basis for the
assumptions. If determined, the method used, whether wet or dry, the frequency
of the measurements, the nature, size and representativeness of the samples.
· The bulk density for bulk material must have been measured by methods
that adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit.
· Discuss assumptions for bulk density estimates used in the evaluation
process of the different materials.
· Dry bulk density is measured using paraffin -coated immersion
(Archimedes) method to evaluate the specific gravity (SG)
· The completed total of 32 field density measurement are not consider
sufficient to be used for variable interpolation within the block model, fixed
density of 2.60 g /cm3, calculated as an average from the tested samples was
applied. It is considered representative and is similar with the Tulkubash
deposit results, which was expected.
Classification
· The basis for the classification of the Mineral Resources into
varying confidence categories.
· Whether appropriate account has been taken of all relevant factors
(ie relative confidence in tonnage/grade estimations, reliability of input
data, confidence in continuity of geology and metal values, quality, quantity
and distribution of the data).
· Whether the result appropriately reflects the Competent Person's view
of the deposit.
· Classification of Mineral Resources is based upon a review of
geological continuity, quality of supporting data, spatial grade continuity
and quality of a block model.
· The Inferred Resource portion is constrained within the main
drilling area manually, including only the bodies intercepted by drill holes
(the plan distance between the holes there is between 60 and 80 meters, along
with surface workings between it)
· Within the Inferred portion additionally was selected indicated
portion, using only the blocks interpolated within the "Run1": search ellipse
with dimensions of 50m*40m*30m; minimum 4 samples from 2 different drillholes
(or surface workings)
Audits or reviews
· The results of any audits or reviews of Mineral Resource estimates.
· No other external reviews have been made
Discussion of relative accuracy/ confidence
· Where appropriate a statement of the relative accuracy and confidence
level in the Mineral Resource estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative accuracy of
the resource within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors that could affect
the relative accuracy and confidence of the estimate.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used.
· These statements of relative accuracy and confidence of the estimate
should be compared with production data, where available.
· The Karator Mineral Resource is considered appropriate representation
of the Tulkubash oxide gold style of mineralization, and it is adequate to the
available data.
· It is considered that the current drill hole spacing is sufficient to
demonstrate geological continuity of the mineralization but requires addition
infill drilling to increase the confidence.
· Accuracy of the Mineral Resource is sufficient to confirm the
economic potential of the deposit.
· The Mineral Resource estimation methodology is deemed appropriate,
based upon validation of the model, using visual, statistical, and graphical
checks. Any alternative methods are likely to yield only minor changes to
global Mineral Resource
· The designed mineralization bodies and estimated average grades are
considered representative interpretation of the available technical data
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. END UPDBRMPTMTBBBBIRecent news on Chaarat Gold Holdings
See all newsREG - Chaarat Gold Hlgs Ld - Full year results for year ended 31 December 2023
AnnouncementREG - Chaarat Gold Hlgs Ld - Tulkubash Gold Project Financing Update
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AnnouncementREG - Chaarat Gold Hlgs Ld - Award & Concurrent Cancellation of Options
AnnouncementREG - Chaarat Gold Hlgs Ld - £1.8 million Equity Issue
Announcement