Chaarat Gold to acquire remaining shares in Kyrex Ltd

Chaarat Gold (LON:CGH) will now acquire the remaining equity in Guernsey-incorporated Kyrex Ltd - which holds four large license areas in the north west of the Kyrgyz Republic - as ‘drag-along’ provisions in Kyrex’s articles of association are activated, after shareholders with more than 75% of Kyrex shares accepted Chaarat’s offer.
The 22-day offer period closed yesterday.

The company 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.

Kyrex’s 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.

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 in Kyrgyztan 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.