Chaarat Gold Regulatory News (CGH)

10 Jan 2008 07:00

Chaarat Gold Holdings Ltd09 January 2008 For immediate release 10th January 2008 Chaarat Gold Holdings Ltd ("Chaarat" or "the Company") Chaarat Gold Holdings Ltd (AIM:CGH) Reports Further Positive Drill Results from Wide Zones the Contact Zone at the Chaarat Property Road Town, Tortola, British Virgin Islands (10th January 2008). Chaarat is pleased to announce further positive drilling results from 15 drillholes in the Contact Zone at its 100% held, 604 sq km Chaarat Licence Area inwestern Kyrgyzstan. All 15 of the holes, comprising 3550 metres of drilling,intersected significant gold mineralisation and were all drilled during therecently completed 2007 programme on two Project Areas along the Contact Zone,the C5300 and C4600 Project Areas. The drilling on the Contact Zone was part ofa broader 53 drill hole (10,200 metres) 2007 programme which was completedduring December (see press release of 6th December 2007). The Contact Zone is one of three zones in the Chaarat Licence Area, in whichgold mineralisation has been discovered, and comprises some 10 kilometres ofstrike and includes, inter alia, the C5300 and C4600 Project Areas. The recentdrilling has extended the mineralisation in these Project Areas and hasintersected significant additional mineralised zones in the hanging wall andfootwall. Highlights In the C5300 Project AreaDrill hole 117 10.50 metres* at 4.43 g/t AuDrill hole 135 33.00 metres at 4.71 g/t AuDrill hole 136 6.00 metres at 5.72 g/t Au and 16.5 metres at 3.3g/t AuDrill hole 139 14.50 metres at 5.00 g/t Au and 4.50 metres at 6.13 g/t AuDrill hole 140 14.00 metres at 4.86 g/t Au, including 3.00 metres at 14.69 g/t Au \* These are drilled width intercepts and not true thickness. True widths given in the tables below have been measured from sections drawn through the drill lines. These may change slightly when the Resources are updated upon receipt of all 2007 results. In the C4600 Project Area Drill hole 157 3.00 metres at 11.87 g/t AuDrill hole 158 16.5 metres at 3.50 g/t Au In road cut at C4300 Bulldozer Cut 790: 2.00 metres at 22.7 g/t Au and 248 g/t Ag. Comments Dekel Golan, CEO of Chaarat: "We are delighted with these results,which confirm our view of the extensive nature of the gold mineralisation inwide zones at Chaarat. We are particularly pleased that drilling has returnedsome high grade intersections and wider zones, and that we have managed toextend the mineralisation in the Contact Zone Project Areas, both down dip andalong strike. The added value of the high silver grades drilled in parts of theContact Zone is also encouraging. It is also significant that we have discoverednew mineralised zones in the hanging wall and the footwall, which enhances theexploration potential to delineate multiple zones of mineralisation." Table 1: Contact Zone Drilling Results, 2007 Project Drill hole From To length (m) True width Au grade Ag grade Au eq* Area No (metres) (metres) (m) (g/t) g/t grade g/t C5300 DH117 203.5 206.5 3 2.5 2.5 36 3.22 C5300 DH117 415 451 36 18.5 2.92 16 3.24 C5300 including 440.5 451 10.5 5.45 4.43 25 4.93 C5300 including 415 422.5 7.5 3.9 3.51 24 3.99 C5300 DH117 497.5 499 1.5 - 9.31 1 9.33 C5300 DH122 44 90.5 46.5 44 1.15 6 1.27 C5300 DH123 118.5 127.5 9 2.5 1.16 7 1.3 C5300 DH123 148.5 174 25.5 5.5 1.25 5 1.35 C5300 including 148.5 151.5 3 0.85 3.27 14.5 3.56 C5300 DH134 133.5 136.5 3 - 2.51 27 3.05 C5300 DH 135 62.5 67 4.5 3.9 3.93 59 5.11 C5300 DH135 202.5 244.5 42 10.5 4.2 26 4.72 C5300 including 211.5 244.5 33 8.25 4.71 32 5.35 C5300 DH136 81 85.5 4.5 2.8 2.19 312 8.43 C5300 DH136 102 142.5 40.5 21.6 2.18 9 2.36 C5300 including 126 132 6 3.6 5.72 12 5.96 C5300 including 126 142.5 16.5 10 3.3 9 3.48 C5300 DH137 52 62.5 10.5 - 1.59 15 1.89 C5300 DH137 142.5 145.5 3 - 2.91 17 3.25 C5300 DH 138 106.5 113.5 7 4.2 2.66 12 2.9 C5300 DH139 185 214.5 29.5 9.6 3.65 20 4.05 C5300 including 185 199.5 14.5 4.75 5 30 5.6 C5300 including 210 214.5 4.5 1.45 6.13 22 6.57 C5300 DH139 286 289 3 - 13.61 1 13.63 C5300 DH140 189 203 14 6.4 4.86 15 5.16 C5300 including 189 192 3 1.4 14.69 41 15.51 C5300 DH141 62.5 66.5 4 4 3.38 51 4.61 C5300 DH143 67.5 70.5 3 - 3.45 84 5.13 C5300 DH143 189.5 197 7.5 2.4 5.01 13.4 5.28 C4600 DH157 148 151 3 2.1 11.87 44 12.75 C4600 DH158 195.5 228.5 33 22.8 2.2 30 2.8 C4600 including 195.5 212 16.5 11.4 3.15 33 3.81 C4600 DH161 198 202.5 4.5 3.2 3.04 54 4.12 * Eq Au in this release is obtained by using an Au/Ag price ratio of 50:1 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, except for one hole DH 161. Comparison ofassays from the two laboratories shows a small bias with Genalysis reportinghigher values but with an acceptable HARD value variance on the averages. Withthe 817 samples submitted to Genalysis, 71 were internationally recognisedreference materials and of these only one value was marginally outside theaccepted range. It is concluded that the Genalysis assays are of sufficientquality to be included in the Resource database although no up-dated Resourcehas been estimated at this stage. The Contact Zone Mineralisation in the Contact Zone is hosted by a 10-15 metre wide shear zonewhich extends for at least 10 kilometres along the contact between theunderlying Ordovician Chaarat Formation (siltstones and sandstones) and theoverlying Devonian Tulkubash Formation (quartzites). The mineralised zones dipat 50-60 degrees to the NW. The gold mineralisation is associated withsulphides, sericitic alteration and minor quartz veinlets. Locally high silverand antimony values are associated with the gold mineralisation. Prospecting todate has been focused mainly on three Project Areas within the contact zone, theC5300, C4600 and C4000 and the mineralisation has been traced over a cumulativestrike length of 1,900 metres. Based on drilling to the end of 2006, a JORCcompliant (indicated and inferred) resource containing 903,000 oz at a grade of3.8 g/t Au had been delineated in the Contact Zone Project Areas to depths of150-270 metres down the dip, except for one drill hole where exploration wascarried to 400m down dip. When Ag is added, the resource is 1 MOZ at an averageequivalent grade of 4.22 g/t. Surface exploration undertaken this yearsubstantiates earlier indications for the existence of additional mineralisedbodies above and below the Contact Zone. The strike length of the C5300 zone hasbeen extended by drilling to 490m. For better understanding of the structure and significance of the results thereader is referred to the maps at the end of this press release. C5300 Project Area During 2007, a total of 12 drill holes (2823 metres) were completed on the C5300Project Area, bringing the total number of holes to 25. Of the recentlycompleted holes, 10 were infill drilling, which reduced the drill spacing to 40metres in some parts of the body, one tested the down dip extension and onedrilled the strike extension to the mineralisation. As a result of thisdrilling, the strike length of the mineralisation increased from 450 metres to490 metres and the down dip extent of the mineralization increased in anadditional section from 250 metres to 460 metres down dip and remains open atdepth and along strike to the south west. Significantly, the deeper drilling indicates that the mineralised zone appearsto increase in width with increasing depth (Table 2). In the 2006 resourceestimate for mineralisation down to a depth of 120-250 metres down dip in mostsections, the average mineralised widths were measured at 5.8 metres, whereasthe one deep hole drilled in 2006 and recent deeper drilling indicates themineralisation is between 10 and 15 metres wide in the depths ranges of 290 to460 metres, down dip below outcrop. Table 2: C5300 Project Area - Mineralised Width and Depth Relationship. C5300 dh Intersection from (m) to (m) length True Au g/t Ag g/t Au eq g/t grid elevation (m) width (m)section ASL C 0+ 680 dh135 2392 202.5 244.5 42.00 10.00 4.21 26 4.73C 0+ 640 dh86 2260 448.5 469.5 21.00 12.30 3.1 11 3.32C 0+ 590 dh139 2456 185 214.5 29.50 9.60 3.58 19 3.96C 0+ 550 dh56 2469 181.9 200.5 18.60 7.00 3.81 17 4.15C 0+ 480 dh117 2286 415 451 36.00 18.50 2.92 16 3.84C 0+ 420 dh 143 2515 189.5 197 7.50 2.40 5.01 13.4 5.28 Elevation is absolute elevation (ASL) at the bottom of the mineralized intervalHole locations are shown on the map below Additional Mineralization in Hanging Wall The recent drilling also intersected additional mineralised zones in the hangingwall and in the footwall of the principal mineralisation in the Contact Zone,which indicates multiple zones within the broader mineralised envelope. Fiveholes intersected a shallow-dipping mineralised zone in the hanging wall over astrike length of 200 m in the centre of the Project Area (Table 3). Thismineralisation is of lower grade than the principal zone but is between 2.5 and10 m wide with gold grades of between 2.2 and 3.45 g/t and variable but highassociated silver values. This mineralised zone is situated between 35 and 180 metres in the hanging wallof the principal mineralised zone. It remains open down dip and represents anadditional drilling target. Table 3: Hanging Wall Mineralisation in the C5300 Project Area C5300 grid Drill from (m) to (m) length True width Au g/t Ag g/t Au eq section hole (m) (m) C 0+510 DH117 203.5 206.5 3 2.5 2.5 36 3.22 C 0+650 DH135 62.5 67 4.5 3.9 3.4 59 4.58 C 0+640 DH136 81 85.5 4.5 2.8 2.19 445 11.09 C 0+640 DH136 126 142.5 16.5 10 3.3 10 3.5 C 0+450 DH143 67.5 70.5 3 2.5 3.45 84 5.13 Footwall Mineralization In addition to the mineralizations described above, two drillholes intersected anarrow high grade (3.00 metres at 9.31 g/t and 1.50 metres 13.61 g/t Au)mineralised zone, situated 30-50 metres in the footwall of the main zone(Table2). The potential of this zone will be determined by further drilling. Table 4: Footwall mineralisation in the C5300 Project Area Section Drill hole From (m) To (m) Length (m) Au g/t Ag Au eq. g/t C 0+600 DH139 286 289 3 13.61 3 13.66 C 0+450 DH117 497.5 499 1.5 9.31 2 9.35 C4600 Project Area During 2007, three holes (726.5metres) were completed on the C4600 Project Area,bringing the total number of holes drilled on this Area to nine. These holeswere drilled from the hanging wall side (as opposed to last year's shallowdrilling from the footwall side) and give a clearer picture of mineralisation.Drilling indicated an increase in the width of the mineralisation in this zonecompared to drilling from the foot wall side, which had cumulative widths ofbetween 7 m and 11 m (DH 158 intersected 16.5 metres at 3.15g/t Au). Drilling inthe south west of the Project Area indicates that the mineralised zone isnarrower (DH 157, 3 metres at 11.87g/t Au) but has considerably higher grades.Silver grades are between 30 and 54 g/t. Mineralisation remains open at depthand along strike to both the north east and south west. Table 5: C4600 Project Area Drilling Results C4600 grid Drill hole From (m) To (m) length (m) True width Au g/t Ag g/t Au eq g/tSection (m) C 0-50 DH157 148 151 3 1.9 11.87 44 12.75 C 0+80 DH158 195.5 228.5 33 23 2.2 30 2.8 C 0+80 including 195.5 212 16.5 11.4 3.15 33 3.81 C 00 DH161 198 202.5 4.5 2.9 3.04 54 4.12 Road cuts: Results from outcrops in road cuts between C4600 and C4000 returned the following grades: Location True Width Au g/t Ag g/t Sb % Au eq g/t (m) C4250 3 5.03 72 0.37 6.47 C4300 2 22.7 248 1.08 27.66 These new outcrops are located 100m to the NE of the northernmost trench of zone C4000 and present additional scope for expansion of resources in this direction. Additional work and results: The Company is currently receiving and processing assay results from a further40 holes drilled in 2007 on the Main Zone Project Areas (M2400, M6000) and theoutstanding Contact Zone Project Area (C4000), as well as for the Tulkubash Zoneand regional prospecting. These results, as well as an updated resourcestatement, and the results of ongoing metallurgical testwork and the scopingstudy will be released periodically, as the work is completed, over the nextthree months. The excavation of the exploration adit on the C5300 Project Area is continuingand underground drilling of the mineralisation from the adit access is scheduledto commence in February. 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 Holding 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. 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