Chaarat Gold has achieved a major milestone in development of its Chaarat project in northwest Kyrgyzstan, receiving a mining permit for the Tulkubash site. In March 2011, the company raised the funds required to construct the Tulkubash open pit mine and has since been in negotiations with the Kyrgyz Government about a long-term agreement at the licence area.  1

Chaarat’s chief executive officer Dekel Golan says, “We are delighted to report on the award of the mining permit for the Tulkubash project, which marks the achievement of another significant milestone in our progress towards production in 2013.”

The company plans to develop the Chaarat project in three phases, with the first to begin processing ore with a low sulphur content that is found in the Tulkubash zone. To begin, the daily processing capacity will be 1000 tonnes with annual production of up to 40,000 ounces of gold.

Major infrastructure including access and internal roads, power distribution and power back up systems and staff camps are also part of the first phase.

A feasibility study will be completed for the second phase of the project which entails expanding the plant to a daily 2500 tonne capacity and mining underground where grades are higher. Chaarat says the final phase will double production again to 5000 tonnes with the aim of increasing annual gold production to 200,000 ounces.

The Chaarat project is within the Middle Tien Shan Mountains which form part of the Tien Shan gold belt. It hosts a JORC-compliant mineral resource of 5.6 million ounces @ 4.08 grams/tonne gold.

www.chaarat.com