Chaarat Gold Regulatory News (CGH)

5 Feb 2008 11:41

Chaarat Gold Holdings Ltd05 February 2008 For immediate release 5th February 2008 Chaarat Gold Holdings Ltd ("Chaarat" or "the Company") Chaarat Gold Holdings Ltd (AIM:CGH) reports wide, high grade gold intersections from prospecting results on the Main Zone, M3000 Project Area, at the Chaarat Property Road Town, Tortola, British Virgin Islands (5th February 2008). Chaarat is pleased to announce further positive results from the ongoingprospecting programme on the M3000 Project Area of the Main Zone at its 100%held, 604 sq km, Chaarat Licence Area in western Kyrgyzstan. The prospectingoperations included trenching and bulldozer excavations of the mineralised zone,as well as the drilling of one core hole. The further excavations on themineralised zone have extended the strike length of the mineralisation in thisProject Area by 150 metres. The 217.2 metre long hole intersected significantgold mineralisation. The drilling on the Main Zone was part of a broader 53drill hole (10,200 metre) programme completed on the Licence Area in 2007 (seepress release, 6 December 2007). The Chaarat License area comprises three parallel zones of gold mineralization,namely, Main Zone, Contact Zone and Tulkubash Zone. The Main zone has beendelineated over a strike length of 4 kilometres. It has been further sub-dividedinto six project areas (Please refer to Chaarat website: http://www.chaarat.com/Default.aspx?Cont=5) for convenience of exploration. Highlights Strike length of the mineralised zone increased from 340 metres to 490 metres. Drill hole 128 22.56 metres at 5.82 g/t Au, including 12.3 metres at 9.23 g/t Au Bulldozer excavation 7202-I 8.0 metres at 4.48 g/t Au Bulldozer excavation 777 6.3 metres at 5.07 g/t Au Trench 5/07 9.0 metres at 2.62 g/t Au Table 1: M3000 Project Area Drilling Results, 2007 Project DH From (m) To (m) length (m) True width Au g/t Ag g/t (m) M3000 DH128 111 144 33 22.56 5.82 2 M3000 including 126 144 18 12.30 9.23 2 M3000 DH128 168 171 3 2.40 4.13 1 Table 2: M300 Project Area Bulldozer and Trench Results, 2007 Trench No/ metres g/t Au Bulldozer cut DC 7202-I 8 4.48 Tr 5-07 9 2,26 DC 777 6.3 5.07 QA/QC PROCEDURES Sampling Methodology and Quality Control All samples are sent to a laboratory in Kyrgyzstan, the Central ScientificResearch Laboratory, JSC Kara Balta, (CSRL), accredited by the UK AccreditationService, for sample preparation and initial assays. All samples with gold above1 g/t are then submitted to Genalysis, Australia, a NATA ISO/IEC 17025accredited laboratory for analysis by fire assay. Only results received fromGenalysis are included in the Mineral Resource database and the interceptsummaries in this press release. Comparison of assays from the two laboratoriesshows a small bias with Genalysis reporting higher values but with an acceptableHARD value variance on the averages. With the 817 samples submitted toGenalysis, 71 were internationally recognised reference materials and of theseonly one value was marginally outside the accepted range. It is concluded thatthe Genalysis assays are of sufficient quality to be included in the Resourcedatabase although no up-dated Resource has been estimated at this stage. The Main Zone Mineralisation in the Main Zone is hosted in a 10-15 metres wide shear zone, which extends for at least 4 kilometres on strike, as an anastomising strikeslip fault system, within the Ordovician age Chaarat Formation (siltstones andsandstones). The mineralised zones dip at 70-80 degrees to the NW. The gold isassociated with sulphides, sericitic alteration and minor quartz veinlets.Prospecting to date, within the Main Zone, has been focused on four ProjectAreas - the M2400, M3000, M3900 and M4000 Project Areas. Based on drillingcompleted in 2006, a JORC compliant (indicated and inferred) resource containing923,500 oz at a grade of 4.29 g/t Au, 4.39 g/t Ag and 0.30% Sb had beendelineated in the Main Zone Project Areas to depths varying between 180 metresto 250 metres, down the dip from outcrop. The mineralisation remains open downdip all along the Main Zone. Surface exploration undertaken this year discoveredadditional mineralisation along strike in the now designated M4600 and M5000Project Areas (See http://www.chaarat.com/Default.aspx?Cont=5). M 3000 Project Area The M3000 Project Area extends for a known 490 metres on strike, in which themain mineralised zone dips at 70 degrees to the north west. The mineralisationis characterised by the 10-22 metre wide main mineralised zone and multiplesubsidiary mineralised zones, of 2-3 metre width, developed in the footwall. The area has poor outcrop exposure and therefore it requires surface trenchingand bulldozer excavations to expose the mineralisation at surface. Based on thedrilling to the end of 2006, a JORC compliant resource (indicated and inferred) of 2.346 Mt at 3.96 g/t Au, 6 g/t Ag and 0.46% Sb was delineated, over a strikelength of 340 metres and to a depth below surface varying between of 180 metres(south west) and 240 metres (north east). DH 128 was drilled to a depth of 217.2 metres in the south west of M3000 ProjectArea and increased the number of holes drilled on this Project Area to 14. Thewide and high grade intersection of 22, 56 metres at 5.82 g/t Au (including12.30 metres at 9.23 g/t Au) confirms the potential of this Project Area. In addition, bulldozer excavation DC 7202-I, situated to the north east of theProject Area, intersected 8 metres of mineralisation at a grade of 4.48 g/t Au,which extends the strike length of the mineralisation by some 150 metres,towards the M3400 Project Area and indicates that the mineralisation maycontinue between the two Project Areas. Two other excavations confirmed the width of the mineralisation; trench Tr 5-07,intersected 9 metres at 2.62 g/t Au, and bulldozer excavation DC 777, in thesouth west of the Project Area and in the area of DH 128, intersected 6.3 metresat 5.07 g/t Au, in an incomplete exposure of the mineralised zone, where thesampling was terminated in mineralisation by alluvial fill. Comments CEO, Dekel Golan: "These results are very positive, as we haveconfirmed the presence of high grade and wide mineralisation in the M3000Project Area and extended the strike length of the mineralised zoneconsiderably. This area will be accorded greater priority in this year'sdrilling programme, with an aim of extending the resource and determining thepotential of the wide mineralised zone and the numerous subsidiary zones ofmineralisation in the footwall." Competent Person The Competent Person with overall responsibility for this press release isAnthony Martin, PrSciNat, MGSZ, MAuS IMM, PhD who is an employee of SRK(Zimbabwe) (Pvt) Limited. Dr Anthony Martin is an exploration geologist with 35years experience in the resource industry and has been responsible for thereviewing of exploration programmes on various properties internationally duringthe past five years and the Chaarat project since August 2005; he has made foursite visits since that time. About the Chaarat Gold Project The Chaarat project is situated within the Middle Tien Shan Mountains ofKyrgyzstan which form part of the Tien Shan gold belt. At the completion of the2006 exploration season, a Mineral Resource of 1.87Moz Au (JORC compliant in theIndicated and Inferred categories) had been delineated. The Company'sexploration programme is aimed at increasing the confidence levels in thisResource through infill drilling and increasing the resource through down-dipand along-strike extension drilling. In addition the company intends to explorethe remaining gold occurrences outside of those currently drilled in the central6km of the 40km strike length within the Chaarat Licence Area. About Chaarat Gold Holdings Chaarat Gold Holding is an exploration companyfounded for the purpose of developing its sole asset, being the Chaarat LicenseArea. Chaarat was admitted to AIM on 8 November 2007. Chaarat has 71.9 million outstanding shares and approximately $12.8million incash allowing it to comfortably continue its exploration program for 2008 andbeyond. Disclaimer This press release includes forward-looking statements. Such forward-lookingstatements involve known and unknown risks, uncertainties and other importantfactors beyond Chaarat's control that would cause the actual results,performance or achievements of Chaarat to be materially different from futureresults, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerousassumptions regarding Chaarat's present and future business strategies and theenvironment in which Chaarat will operate in the future. Any forward-lookingstatements speak only as at the date of this document. Chaarat expresslydisclaims any obligation or undertaking to disseminate any updates or revisionsto any forward-looking statements contained herein to reflect any change inChaarat's expectations with regard thereto or any change in events, conditionsor circumstances on which any such statements are based. As a result of thesefactors, the events described in the forward-looking statements in this pressrelease may not occur either partially or at all. Enquiries: Chaarat Gold Holdings Ltd Tel: +44 (0) 20 7499 2612Dekel Golan - Dekel@chaarat.comTerry Cross - terry@caserve.co.uk Canaccord Adams Limited Tel: +44 (0) 20 7050 6500Mike JonesRobin Birchall This information is provided by RNS The company news service from the London Stock Exchange