Chaarat Gold to acquire molybdenum-silver-gold-copper licenses in Kyrgyzstan

Kyrgyzstan focused gold explorer and developer Chaarat Gold Holdings (LON:CGH) is looking to expand its presence in Kyrgyzstan, intending to acquire Guernsey-incorporated Kyrex Ltd, which holds four large license areas in the north west of the Kyrgyz Republic.
Chaarat will trade 54 of its shares for each share in Kyrex, making for an aggregate consideration of 11.92 million shares representing 10.56% of the total share capital of Chaarat for the entire share capital of Kyrex. The company has so far received acceptances representing 75% of the issued share capital of Kyrex, stating that the drag along provisions in the articles of association of Kyrex will enable Chaarat to acquire the remainder of the issued and to be issued Kyrex shares.
The three most prospective assets are Chontash, Mironovskoye and Kyzil Ompul.

A JORC-compliant resource estimate conducted by SRK Consulting Zimbabwe for Chintash classified 3.2 Mt (million tonnes) at a grade of 0.223% Mo (molybdenum) in the Inferred category. Soviet-era drilling results have also indicated some potential for significant copper values.
The Mironovskoye gold-silver-copper deposit was extensively explored during the Soviet era. Work  undertaken by Kyrex has indicated that the  resource model may have been based on  bismuth cut-offs and a grade of 1.2% Cu, and 1.7g/t gold could be estimated for a  similar tonnage. Mironovskoye is easily accessible and infrastructure is in place with the previously operating gold mine of Taldy Bulak only 30 km (kilometres) to the southwest.
Kyzil Ompul is an early  stage licence  area in  which a number of small gold, copper, molybdenum, lead and uranium deposits have  been delineated by Soviet geological teams.
The offer will remain open for 15 business days from 22 June 2010.
Chaarat’s flagship asset is the 4 Moz (million ounce) Chaarat gold project in Kyrgyzstan.
In mid-May the company reported that findings of the preliminary feasibility study at its Chaarat project indicate the potential of implementing an initial high grade, low-cost, open pit mine within the T0700 project area. The focus of a preliminary feasibility study has been on the Tulkubash zone of the Chaarat project, and in particular area TO700.

This zone currently has resources of 336,000 ounces at a grade of 4.18 g/t (grammes per tonne). The company has thus far delineated a JORC compliant mineral resource of 4.009 Moz at a grade of 4.14 g/t gold. A scoping study demonstrating the economic viability of the Chaarat Gold Project was completed at the end of 2008.

Chaarat's objective is to become a low cost gold producer targeting an initial production of over 200,000 ounces per annum by early 2013.
Earlier this month, Chaarat stated that its operations had not been affected by the recent unrest in Kyrgyzstan.

http://www.proactiveinvestors.co.uk/companies/news/17913/chaarat-gold-to-acquire-molybdenum-silver-gold-copper-licenses-in-kyrgyzstan-17913.html