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Kyrgyzstan cheer for Chaarat

Article Date:  Nov 03 2009

Chaarat Gold Holdings reports ‘encouraging’ sampling results from its Chaarat gold property in the central Asian republic of Kyrgyzstan.

The British Virgin Islands-based AIM counter, chaired by ex-Cazenove partner Christopher Palmer-Tomkinson, says channel samples from Chaarat’s Tulkubash zone in the Tien Shan gold belt have shown examples ranging from 18 metres at 4.6 grammes of gold per tonne of ore to 24.6 metres at 4.88 grammes a tonne. According to Chaarat, the Tulkubash zone is one of three in the project, for which the company reported late last year a formal resource estimate of 3.34 million oz of gold at a modest average of 4.3 grammes a tonne.

Chief executive officer Dekel Golan says the drilling results so far represent ‘another step in achieving the important goal of establishing the economic viability of the Chaarat project’. He adds ‘we remain on track to announce a new resource update in the first quarter of 2010.

Floated at 60p two years ago, Chaarat shares, having plunged to 8.75p within the past year, now trade at 23.75p, valuing the company at £27 million. The appeal is speculative.

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