Chaarat Gold Regulatory News (CGH)

11 Feb 2008 07:00

Chaarat Gold Holdings Ltd10 February 2008 For immediate release 11th February 2008 Chaarat Gold Holdings Ltd ("Chaarat" or "the Company") Chaarat Gold Holdings Ltd (AIM:CGH) reports positive gold recovery from the Chaarat mineralisation in laboratory scale metallurgical tests Road Town, Tortola, British Virgin Islands (11th February 2008). Chaarat is pleased to announce the positive results from recent laboratory tests which demonstrated 94%-96% goldrecovery of the mineralised samples extracted from the Chaarat deposit. The work was conducted by RDI (anindependent party) as part of the Scoping Study being undertaken by Behre Dolbear (UK). This confirms the resultsof preliminary metallurgical testwork undertaken previously. Highlights • Gold recovery of 94% to 96% was obtained from a composite sample assaying 4.68 g/t Au, 1.087% As and 2.343% Ssulfide. • Order-of-Magnitude capital cost for a plant processing 1.5 million tpy was estimated at 180 MM dollars. • The operating cost for the process was estimated at $18.27/tonne. Dekel Golan CEO of Chaarat comments: "We are delighted with the positive results. This is a further step towardsproving the economic viability of the Chaarat gold deposits. These results are very much in line with previousmetallurgical tests conducted on the deposit and help contribute towards management's aim of achieving productionat a rate of 200,000 ozs of gold per annum. Discussion The metallurgical study was performed by Resource Development Inc., (RDi) from Wheat Ridge, Colorado, USA as partof the Scoping Study being undertaken by Behre-Dolbear of the UK. The testwork undertaken by Resource DevelopmentInc., (RDi) was performed on analytical reject samples and core samples from the drill holes 20,22,24,28,45 fromdrill holes on the M24, M30 and C53 project areas. The core samples composites (cherty siltstones andcarbonaceous cherty siltstones with interlayers of sandstones) were used for physical characterization whereasthe analytical reject sample composite were used for flotation, pressure oxidation and cyanidation testing. The crushing and grinding data provided in the table below indicate that the samples are characterized as "hardto very hard but not abrasive". Crushing and Grinding Work IndicesParameter Metallurgical Sample 1 2Crusher work index, kw-hr/mt 10.25 10Abrasion Index 0.0234 0.0397Rod Mill Work Index 16.8 15.5 Results of pressure oxidation followed by cyanidation on the whole ore samples ground to 80% passing 106 micronsindicated gold extractions of 94% to 96% at 100% sulfur oxidation. The cyanide consumption was reasonable at0.16 kg/t to 0.38 kg/t. Pressure Oxidation Followed by Cyanide Leach Test ResultsTest Process Extraction, Sodium % Sulfur Conditions % Au Cyanide Oxidation Consumption, kg/t1 No oxidation 18.90% 2.426 0%2 Pressure oxidation at 39.90% 0.83 11.40% 200/C and 475 psi for 30 minutes3 Pressure oxidation at 94.50% 0.379 100% 200/C and 475 psi for 1 hour4 Pressure oxidation at 95.90% 0.16 100% 200/C and 475 psi for 2 hours Additional Tests RDi also investigated two additional processing routes, namely, whole ore bio-oxidation followed by cyanidation,and flotation to produce a high-grade gold concentrate which could be processed further to extract gold or soldto a smelter. The bio-oxidation leach process was simulated by using nitric acid as an oxidizing agent. Goldrecoveries for both these processes proved to be inferior to the proposed process. Process Selection and Cost Estimates Based on the test results, RDi recommends that the whole ore be pressure oxidized followed by cyanidation torecover gold and silver values. Conceptual process flowsheet(s) were developed for the pressure oxidation andbio-oxidation processes and order-of-magnitude capital and operating costs were estimated based on processing1,500,000 tpy. The costs were as follows: Process Capital Cost, MM$ Operating Cost, $/mtPressure Oxidation 180.4 18.27Bio Oxidation 149.4 16.23 Competent Person This press release was prepared by Chaarat Gold Holdings Ltd. and was reviewed and approved by Dr. DeepakMalhotra, President of RDi. Dr. Malhotra is a metallurgist/mineral economist with over 35 years experience inthe mineral industry. He has been responsible for the metallurgical process development for numerous projects.RDi has been involved with Chaarat since 2005. About the Chaarat Gold Project The Chaarat project is situated within the Middle Tien Shan Mountains of Kyrgyzstan which form part of the TienShan gold belt. At the completion of the 2006 exploration season, a Mineral Resource of 1.87Moz Au (JORCcompliant in the Indicated and Inferred categories) had been delineated. The Company's exploration programme isaimed at increasing the confidence levels in this Resource through infill drilling and increasing the resourcethrough down-dip and along-strike extension drilling. In addition the company intends to explore the remaininggold occurrences outside of those currently drilled in the central 6km of the 40km strike length within theChaarat Licence Area. About Chaarat Gold Holdings Chaarat Gold Holding is an exploration company founded for the purpose of developingits sole asset, being the Chaarat License Area. Chaarat was admitted to AIM on 8 November 2007. Chaarat has 71.9 million outstanding shares and approximately $12.8million in cash allowing it to comfortablycontinue its exploration program for 2008 and beyond. Disclaimer This press release includes forward-looking statements. Such forward-looking statements involve known and unknownrisks, uncertainties and other important factors beyond Chaarat's control that would cause the actual results,performance or achievements of Chaarat to be materially different from future results, performance orachievements expressed or implied by such forward-looking statements. Such forward-looking statements are basedon numerous assumptions regarding Chaarat's present and future business strategies and the environment in whichChaarat will operate in the future. Any forward-looking statements speak only as at the date of this document.Chaarat expressly disclaims any obligation or undertaking to disseminate any updates or revisions to anyforward-looking statements contained herein to reflect any change in Chaarat's expectations with regard theretoor any change in events, conditions or circumstances on which any such statements are based. As a result of thesefactors, the events described in the forward-looking statements in this press release may not occur eitherpartially or at all. Enquiries: Chaarat Gold Holdings Ltd Tel: +44 (0) 20 7499 2612Dekel Golan - Dekel@chaarat.comTerry Cross - terry@caserve.co.ukDominic Palmer-Tomkinson - tomkinson@smiths-ca.com Canaccord Adams Limited Tel: +44 (0) 20 7050 6500Mike Jones This information is provided by RNS The company news service from the London Stock Exchange