Sunday, October 1st 2023

Chaarat Gold Holdings Ltd

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Significant high grade gold intercepts for Chaarat 


“…The word ‘significant’ is appropriate for an asset that offers us 300,000 ounces production which then moves us into that mid tier…”


With two projects in Kyrgyzstan and an operating mine in Armenia, Chaarat Gold has always described the Kyzyltash sulphide deposit as the biggest value driver for the company and the crown jewel in the portfolio.

It was the deposit that was first on the radar and the 2021 drilling programme at the asset is completed.  Chief operating officer Darin Cooper says the programme wasn’t to confirm the resource, but getting the project into the next stage of development.  A portion of the metallurgical core is being sent to SGS Lakefield in Canada renowned for its technical solutions and intelligence regarding all things recoveries and concentrate flotation.  It also advises what method of oxidation Chaarat should be using to turn the sulphide into something that’s ‘unleachable’ whether that be via pox (pressure oxidation), biox (bio oxidation) or the albion process.

While that may sound double dutch to the average investor, what’s key is that the board does understand. Enter Mike Fraser who will be joining as chief executive officer in January.  He’s worked at  BHP Billiton and its spin out South 32.  Cooper was on the panel that interviewed him, and he was Cooper’s choice as boss. “Overall he has what we’re looking for, for this next stage of the business.  He has a good operating understanding, he has a good grasp of the overall business that we’re within, brings expertise from outside the FSU (Former Soviet Union) as well which is always useful.  You don’t necessarily need to just get stuck within your niche area, you need a team which is broad and balanced, so I am very happy that he’s going to be joining us.”

Fraser’s joining at a critical time for the company.  The team are very keen to get a Kyzyltash mine up and running.  Cooper says the word ‘significant’ is appropriate for an asset that offers 300,000 ounces production which “moves us into that mid tier, much more significant than where we are at the moment.”

Kyzyltash excitement aside, Cooper says the day-to-day priorities remain the same which is ensuring the Armenian gold mine Kapan is “as effective as possible, making sure that we’re making as much cash for the business as possible.  Kapan is still our only operating asset, so that’s where we have to focus. Every dollar that we can make from there is a dollar that we do not need to raise in some other form, so it really is the lifeblood of the operation at the moment.”

Enticingly Cooper adds the Tulkubash gold project is ready, but “It’s just a case of now getting funds in place to get full bore on that project, so that’s in a holding situation.”

Listen to Darin talk to Sarah Lowther about the robust conversations he’s looking forward to having with the new chief executive, what’s not on hold and the news flow soon to be delivered to shareholders.

Watch Darrin and CFO Chris Eger talk through the interim results released in September

Read the 2021 corporate Presentation

Follow the company on Twitter @ChaaratG


Sign up for the company’s Telegram account


The author was remunerated but does not hold shares in the company