Name of the Project
Tulkubash oxide gold project.

Location
Kyrgyzstan.

Project Owner/s
Charaat Gold Holdings.

Project Description
An undated bankable feasibility study (BFS) has produced a 22.18-million-tonne reserve, an increase of 39%, at an average grade of 0.92 g/t gold over an initial mine life of 5.3 years.

The BFS envisages average gold production of 94 000 oz/y, with peak production during steady-state operations of more than 111 000 oz/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an improved after-tax net present value, at a 5% discount rate, of $70-million and an internal rate of return of 20%.

Capital Expenditure
The updated BFS has resulted in an overall capital reduction from $132-million to $110-million.

Planned Start/End Date
First gold production is scheduled for 2021.

Latest Developments
Chaarat unveiled plans for a fundraising on February 5 to raise $25-million and has said that an agreement with its biggest shareholder will cut debt by one-third.

The company will raise the capital by issuing new shares at 26p each. It has received commitments for $23.5-million.

Chaarat has said it will use the fundraising to complete the upfront equity portion of the Tulkubash project and that the raising will fulfil one of the key criteria to draw on any debt project finance facility to be arranged.

The company has ongoing discussions on debt financing of about $80-million and anticipates having this completed during the first half of 2021 to fully fund the project construction capital of $110-million.

Funds more than those required for Tulkubash will be used for growth activities at the Kyzyltash project and the East Flank development at the Kapan operation.

Key Contracts, Suppliers and Consultants
LogiProc (overall project management, mineral processing and metallurgical testing, recovery methods, project infrastructure, capital cost estimate, operating cost estimate, project execution plan); SMS (geological block model and associated data integrity, mining method review, economic analysis and ore reserve statement); WAI (environmental studies, permitting, social or community impact, geochemistry, hydrology, hydrogeology) and Ausenco (drilling, mineral resource review, sample preparation, data verification, analyses, security and heap-leach facility design).

Contact Details for Project Information
Charaat Gold Holdings, tel +44 20 7499 2612 or email info@chaarat.com.