Aim-listed gold miner Chaarat Gold increased production from its Kapan mine, in Armenia, by 21% year-on-year to 16 174 gold-equivalent ounces for the first quarter of this year.

Third-party ore treated amounted to 34 000 t during the quarter, up from nil in the first quarter  of 2020.

The Kapan mine also achieved an all-inclusive sustaining cost of $1 024/oz, 4.7% lower than the $1 074/oz achieved in the first quarter of 2020. The mine’s preliminary unaudited standalone earnings before interest, taxes, depreciation and amortisation contribution increased by 245% year-on-year to $6.9-million.

Chaarat’s Kyrgyz Republic-based Tulkubash and Kyzyltash projects, meanwhile, experienced strong support and appreciation for investment and community support received from the new government and head of the investment agency in Kyrgyz Republic.

Chaarat reports that financing is on track for closing in the first half of this year for both projects, while an updated bankable feasibility study (BFS) is expected to be released in May, following which drilling programmes are set to commence at both projects.

In terms of Chaarat’s group financing, the company reports that its funding package of $52.2-million closed in February 2020 has reduced its net debt position by 82%, from $64.5-million as at December 31, 2020 to $12-million.

CEO Artem Volynets says the company experienced a strong quarter with further improvements to the mine and especially the work on reducing dilution and increasing efficiencies supported by the continuing strong commodity price environment that have contributed to the strong performance.

“I am very happy with the performance of the Kapan team in delivering higher production this quarter by mining higher-grade areas and treating more third-party ore, offsetting a temporary reduction in own tonnes mined.”

At Tulkubash, he says the BFS update is almost ready for release along with a revised mineral resource estimate and ore reserve. “The teams are ready to commence exploration works and construction works.”