Chaarat Gold Regulatory News (CGH)

15 Jan 2008 09:25

Chaarat Gold Holdings Ltd14 January 2008 For immediate release 15th January 2008 Chaarat Gold Holdings Ltd ("Chaarat" or "the Company") Chaarat Gold Holdings Ltd (AIM:CGH) increases the strike length in multiple zones of gold mineralisation drilled in the Main Zone 2400 Project Area at the Chaarat Property Road Town, Tortola, British Virgin Islands (15th January 2008). Chaarat is pleased to announce further encouraging drilling results from 8 drillholes in the M2400 Project Area of the Main Zone at its 100% held, 604 sq km,Chaarat Licence Area in western Kyrgyzstan. All 8 of the holes drilled,comprising 1628 metres of drilling, intersected significant gold mineralisationand were all drilled during the recently completed 2007 programme. This drillingwas part of a broader 53 drill hole (10,200 metre) drilling programme, completedon the Licence Area in 2007 (see press release 6 December 2007). The Main Zone is one of three zones in the Chaarat Licence Area, in which goldmineralisation is developed in multiple shears (Projects) and comprises atleast 4 kilometres of strike. The recently completed exploration has extendedthe strike length and down dip extent of the mineralisation within the M2400Project Area. Highlights Drilling results show good continuity in the Main Zone depositHigher grades and thicker intersections encountered at depthAdditional Hangingwall mineralisation intersectedApparent strike extended to approximately 680mConfirmation that depth potential could be extended by at least 200m Drill hole 98 4.63 metres at 4.05 g/t Au Drill hole 99 8,51 metres at 3.55 g/t Au Drill hole 101 21.83 metres at 5.66 g/t Au including 11.73m at 8.65 g/t Drill hole 105 9.60 metres at 3.74 g/t Au including 3.84m at 6.93 g/t Bulldozer Cut 762 57.00 metres at 4.66 g/t Au CEO Dekel Golan says "We are very pleased with these results, as the M2400Project Area, although only drilled to a down-dip depth of 150 metres, is animportant target to increase the resources on the Chaarat Property. The factthat these results indicate an increase in the strike length and down dipextensions to the mineralisation and that we continue to drill multiple zones ofmineralisation, many with wide or high grade intersections, is very encouraging. Table 1: Main Zone Drilling Results, 2007 Project Section DH From (m) To (m) length (m) True width (m) Au g/t Ag g/t M2400 2380 DH98 106 113.5 7.5 4.63 4.05 9 M2400 2380 DH98 122.5 124 1.5 0.9 3.83 3 M2400 2380 DH98 143.5 149.5 6 2.95 1.58 3 M2400 2370 DH98 167.5 169 1.5 1.37 3.08 14 M2400 2350 DH99 120 129 9 8.51 3.55 5 M2400 2330 DH99 172.5 178.5 6 5.74 1.75 2 M2400 2350 DH100 94.5 96 1.5 1.12 3.26 1 M2400 2170 DH101 82.5 111 33.5 21.83 1.67 1 M2400 2170 including 82.5 91.5 9 5.86 3.3 1 M2400 2200 DH101 136.5 169.5 33 21.5 5.66 1 M2400 2200 including 139.5 157.5 18 11.73 8.21 1 M2400 2620 DH105 45 60 15 9.6 3.74 6 M2400 2620 including 54 60 6 3.84 6.93 11 M2400 2620 DH105 72 76.5 4.5 2.88 2.59 1 M2400 2160 DH124 91 113.5 22.5 8.7 2.06 1 M2400 2160 including 104.5 113.5 9 3.48 3.02 1 M2400 2150 DH124 154 158.5 4.5 2 2.88 1 M2400 2150 DH124 164.5 169 4.5 2 3.38 1 M2400 2280 DH125bis* 210 216 6 4.91 3 1 M2400 2270 DH125bis* 249 255 6 4.75 2.06 1 M2400 2150 DH127 88.5 91.5 3 2.45 4.57 1 M2400 2160 DH127 127.5 130.5 3 2.75 2.7 1 M2400 2160 DH127 139.5 151.5 12 11.3 2.93 1 M2400 2160 including 139.5 142.5 3 2.36 5.56 1 M2400 2160 including 148.5 151.5 3 2.79 4.24 1 M2400 2170 DH127 159 161 3 1.9 2.66 1 * DH 125 bis failed to reach target depth and provides only a partial result of the zone. 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 shear zone, which is up to 15metres wide, and which extends for at least 4 kilometres on strike, as ananatomising strike slip fault system, within the Ordovician age ChaaratFormation (siltstones and sandstones). The mineralised zones dip at 70-80degrees to the NW. The gold is associated with sulphides, sericitic alterationand minor quartz veinlets. Prospecting, to date, within the Main Zone has beenfocused on four Project Areas - the M2400, M3000, M3900 and M4000 ProjectAreas, and the mineralisation has been traced over a cumulative strike length of3000 metres, out of the total 4km strike length of the Main Zone. Based on drilling completed in 2006, a JORC compliant (indicated and inferred)resource containing 923,500 oz at a grade of 4.29 g/t Au had been delineated inthe Main Zone Project Areas to depths varying between 80 metres to 250m metresdown the dip from outcrop. The mineralisation remains open down dip all alongthe Main Zone. Surface exploration undertaken this year discovered additionalmineralisation along strike in the now designated M4600 and M5000 Project Areas(See attached maps). http://www.rns-pdf.londonstockexchange.com/rns/7623l_-2008-1-14.pdf M2400 Project Area Resources of 2.06 M at 4.5g/t Au (JORC compliant indicated and inferred) weredelineated in the mineralised zone in the M2400 Project Area, based on the 2006drilling data. The average true width of the mineralised zone was measured at7.5 metres. During 2007, a total of 8 drill holes (1628.1metres) were completed on the M2400Project Area, bringing the total number of holes drilled to 16. Of the recentlycompleted holes, four were infill drilling, which reduced the drill spacing to40 metres in some parts of the mineralised zone, and four tested the down dipextension to the mineralisation. In addition, the surface expression of themineralisation was exposed in a bulldozer cut, DC762, along strike on thenorthern part of the Project Area, with a channel sampled width of 57 metres ata grade of 4.66 g/t Au. This increased the strike length of the mineralisationfrom 570 metres to 620 metres. Of significance, 7 of the 8 drill holes reported here intersected multiple zonesof mineralisation, which in the case of DH 98 and DH 127, both intersected foursuch zones within the shear zone. The additional mineralised intersections aredeveloped both in the hanging wall and the footwall of the main mineralised zoneand have the potential to add to the resource in this Project Area. Inparticular, the significant intersection in DH 101 of wide, high grademineralisation (21.83 metres at a grade of 5.66 g/t Au) in the hanging wall ofthe main mineralised zone represents an attractive additional exploration targetfor the forthcoming spring drilling programme. Furthermore, all the drilling completed to date on this Project Area hasintersected mineralisation to a depth, down dip below outcrop, of only 150metres and it remains open both along strike and down dip. Furthermore,elsewhere in the Main Zone, drilling has established that the mineralisationextends for an additional 200 metres below from the corresponding current lowerlimit of drilling in the M2400 Project Area. Drilling of both the down dip andstrike extensions to the mineralisation will also be a focus of the proposedspring drilling programme. The drilling results reported here will be incorporated into the resourceestimate, which will be revised by March 2008. The Company continues to processdrilling and sampling results from another seven Project Areas, in the Main,Contact and Tulkubash Zones, as well as from regional targets, as they arereceived. These results will be reported, in batches, in the coming weeks. 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 or the Company Chaarat Gold Holdings is an exploration company founded for the purpose ofdeveloping its sole asset, being the Chaarat License Area. Chaarat was admittedto 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 END This information is provided by RNS The company news service from the London Stock Exchange