Chaarat Gold Regulatory News (CGH)

3 Apr 2008 07:00

Chaarat Gold Holdings Ltd02 April 2008 For immediate release 03rd April 2008 Chaarat Gold Holdings Ltd ("Chaarat" or "the Company") Chaarat Gold Holdings Ltd (AIM:CGH) reports a wide, high grade mineralised intersection in the adit at the C 5300 Project Area at the Chaarat Gold Property Road Town, Tortola, British Virgin Islands (03 April 2008). Chaarat is pleased to announce very encouraging results from the Contact Zonemineralisation recently intersected in the adit on the C5300 Project Area at its100% held, 604 square kilometre, Chaarat gold property. The Contact Zone is one of three mineralised zones being prospected in theChaarat Licence Area, and comprises some 10 kilometres of strike. The C5300Project Area is one of the higher potential areas of the eight project areaswhere mineral resources have been delineated at Chaarat. The adit was excavated at an altitude of 2333 metres above sea level which is onaverage 300 vertical meters below the outcrops at this area (400 down dip) inorder to facilitate year-round drilling of the mineralization at depth and toprovide exposure for geological and rock mechanics studies and access tomaterial for a bulk metallurgical sample. The mineralised zone was continuously channel sampled along the north easternand south western side walls at one metre intervals and returned the followingassay results: NE Sidewall 24.00 metres at 6.10 g/t Au and 14.39 g/t Agincluding 22.00 metres at 6.36 g/t Au and 15.00 g/t Ag SW Sidewall 27.00 metres at 5.41 g/t Au and 12.00 g/t Agincluding 19.00 metres at 6.43 g/t Au and 15.00 g/t Ag The true widths of the intersections, corrected for dip, are 20.7 metres (NEsidewall) and 24.2 metres (SW sidewall). From the portal, the adit progressed through a succession of sandstones,siltstones, carbonaceous shales, diorite and quartz carbonate veins before itintersected the mineralised Contact Zone, which dips at 50 degrees to the northwest, and comprises a 24 to 27 metre wide zone of sheared sandstone, with thegold mineralization being associated with sulphides, sericite-carbonate-quartzalteration and quartz veinlets along the shear zone. The results confirm the persistence of the wide, well mineralised zone to adepth of some 400 metres down dip from outcrop and will be included in therevised resource estimate which currently is being prepared and will be reportedby the end of April 2008. In order to provide adequate underground infrastructure for an extensivedrilling programme, the adit is being developed beyond the mineralised zone anda drift will be developed parallel to the mineralised zone. Comments Dekel Golan, CEO of Chaarat "These excellent results confirmmanagement's view of the significant potential of the Contact Zone in generaland this project, in particular, and will allow us to pursue, with increasedconfidence, our intention to establish a low cost bulk mining operation on thesewide zones of mineralisation. In addition, the access provided by the adit willenable us to greatly accelerate the drilling operation and thereby willfacilitate the delineation of the resources in this area." The Contact Zone Mineralisation in the Contact Zone is hosted in a wide shear zone which is knownto extend for at least 10 kms on strike on the contact between the underlyingOrdovician Chaarat Formation (siltstones and sandstones) and the overlyingDevonian Tulkubash Formation (quartzites). The wide mineralised zones dip at 50-60 degrees to the NW. The gold mineralisation is associated with sulphides,sericitic alteration and minor quartz veinlets. Competent Person The Competent Person with overall responsibility for this press release is JedDiner, P.Geo. , M.Sc, VP exploration, who is an employee of Chaarat Gold. MrJed Diner is an exploration geologist with 27 years experience in the resourceindustry, is a member of the Association of Professional Geoscientists ofOntario and has sufficient experience relevant to the style of mineralizationand type of deposit under consideration and was supervisor to the work subjectof this release. Mr. Diner has been involved in the Chaarat project since 2004. 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 Samples are sent to laboratory with 5% standards and 5% blanks. 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 at a grade of 4.1 g/tgold (JORC compliant in the Indicated and Inferred categories) had beendelineated. The Company's exploration programme is aimed at increasing theconfidence levels in this Resource through infill drilling and increasing theresource through down-dip and along-strike extension drilling. In addition thecompany intends to explore the remaining gold occurrences outside of thosecurrently drilled in the central 6km of the 40km strike length within theChaarat Licence Area. About Chaarat Gold Holdings or the Company Chaarat Gold Holding is an exploration company founded for the purpose ofdeveloping the Chaarat License Area. Chaarat was admitted to AIM on 8 November2007. 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