(Alliance News) - Chaarat Gold Holdings Ltd on Monday said it has updated the mineral resource estimates for its Kapan polymetallic mine, located in Armenia.
The AIM-listed gold mining company said the update follows depletion as well as new assay and geological data derived from 627 meters of underground drilling.
Chaarat said the life of mine plan has seven years, with gold equivalent production averaging 60,000 ounces per annum.
The average grade of the Kapan measured and indicated resource has decreased, however, to 5.89 grams per tonne of gold equivalent from 6.20 grammes per tonne gold equivalent anticipated in mid-July, due to an update in the gold equivalence formula in order to reflect revised pricing and estimation parameters "that match mill results through reconciliation exercises".
Looking ahead, Chaarat said historical upgrade of inferred resource to measured and indicated resource that can be converted to reserves, suggests that the life of mine can be further extended from the anticipated upgrading of a portion of the current inferred resource.
"The resource and reserve update show that depletion continues to be replaced with new reserves through our well-developed and successful exploration programme," said Chief Executive Artem Volynets.
He added: "This ongoing replacement of resource through exploration continues to give us the confidence that this mine should have many years of ongoing operation well beyond the current life of mine plan. Indeed, the fact that we bought the Kapan mine in early 2019 with a five-year life of mine and now, net of depletion, we have a seven-year life of mine, supports this confidence."
Chaarat shares were untraded in London on Monday, last closing at 36.40 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Chaarat Gold (CGH)