Advertisement

Chaarat Gold says Tulkubash project is on track

Chaarat Gold Holdings shares climbed Monday after the miner announced an increase in gold resources and a positive update on its Tulkubash project in Kyrgyz Republic.

Chaarat Gold Holdings shares climbed Monday after the miner announced an increase in gold resources and a positive update on its Tulkubash project in Kyrgyz Republic.

Chief Executive Officer Dekel Golan said the Tulkubash project remains on track to begin production in the second half of this year using heap leaching which is expected to reduce capital costs and power requirements.

Advertisement - Article continues below

"Chaarat will benefit from the lower upfront investment and lower power requirements of heap leach processing, having identified both a significant amount of shallow material in the Tulkubash which is amenable to heap leaching and established the greater-than-expected open pit potential of the deposit," he said.

Following last year's drilling, the company saw a 3.0% increase in gold resources to 5.76m ounces.

The Tulkubash project is expected to improve results when the firm starts the first stage of development which involves the processing of low-sulphur clean ore.

It is estimated that approximately 2.7 metric tonnes of resource at a grade of 2.06 gross tonnage are suitable for heap leaching at the prospect.

The company has previously announced it would raise a working capital of $20m to cover initial mining costs. However savings have been identified from the original project budget as the capital required to build a heap leaching pad is lower than a carbon in leach plant. Chaarat also cut costs in the construction of the access road to the site.

"Through our strict control of capital expenditure and the revised approach to production, the company's cost of reaching production is going to be lower than we previously estimated," said Golan.

"These savings have been mitigated by the effect of the changes in the new tax regime which have a negative effect of about $15m on our cash flow prior to becoming net cash generative. The final revised requirement for working capital will be confirmed once we have completed our detailed work on the revised mine plan and operating budget."

RD

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

OBR: UK house prices could fall by 12% next year
House prices

OBR: UK house prices could fall by 12% next year

The Office for Budget Responsibility says UK house prices could fall by as much as 12% next year. John Stepek looks at how likely that is.
14 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
We’re spending more than at any time since World War II – how will we pay it back?
UK Economy

We’re spending more than at any time since World War II – how will we pay it back?

With the UK spending vast sums on stimulus measures, this year’s budget deficit will be greater than at any time since World War II. The big question,…
14 Jul 2020