We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Chaarat Gold Holdings Ltd | LSE:CGH | London | Ordinary Share | VGG203461055 | ORD USD0.01 (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 2.85 | 2.80 | 2.90 | 2.95 | 2.85 | 2.95 | 59,854 | 08:00:20 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 92.35M | -8.58M | -0.0124 | -2.30 | 19.66M |
From Apr 2023 to Apr 2024
TIDMCGH
RNS Number : 6130X
Chaarat Gold Holdings Ltd
27 April 2023
27 April 2023
Chaarat Gold Holdings Limited
("Chaarat" or "the Company")
Kapan Ore Reserves
Chaarat (AIM:CGH), the AIM-quoted gold mining Company with an operating mine in Armenia, and assets at various stages of development in the Kyrgyz Republic is pleased to announce the updated JORC-compliant Ore Reserves Estimate ("ORE") for its Kapan polymetallic mine in the Republic of Armenia. The full ORE report will be published on Chaarat's website.
Highlights
-- AMC Consultants (UK) Limited ("AMC") were engaged by Chaarat Kapan CJSC ("Chaarat") to undertake a review of the Kapan Mine ("Kapan") Ore Reserves and to act as a competent person ("CP") as defined by the JORC (2012) reporting code.
-- Proven & Probable Ore Reserves effective 31 December 2022 were confirmed totalling 3.14 Mt at an AuEq grade of 3.28 g/t consisting of 1.65 g/t Au, 32.47 g/t Ag, 0.36 % Cu, 1.33 % Zn, resulting in a 5-year mine life.
-- This represents an increase of 25% in Ore Reserves, 2% in AuEq grade and an additional 2 years of mine life versus the previous ORE.
-- The 2022 resource definition drilling programme of over 60,000 metres replaced depletion and added additional years to the life of mine plan.
-- Ongoing resource definition drilling will continue to target the conversion of inferred and unclassified mineralisation to allow for further mine life extension.
-- The 2022 constrained Mineral Resource Estimate published in November 2022 contained 722 thousand gold equivalent ounces ("koz AuEq")(1) in Measured & Indicated ("M&I") compared to 583 koz AuEq M&I reported in June 2021, reflecting a 24% increase.
Michael Fraser, Chief Executive Officer, commented:
"We are pleased to report a 25% increase in reserves, and a corresponding 2-year increase in the mine life at Kapan. The MRE and ORE reports demonstrate that there remains a large amount of inferred and unclassified mineralisation at Kapan. The ongoing exploration programme at Kapan will continue to target the conversion of this material to M&I, P&P and ongoing mine life extensions over the coming years."
Updated ORE RESERVES STATEMENT
The following table summarises the recent Kapan ORE (effective 31 December 2022):
Hot Features
Premium
Grade Metal
Classification Tonnes Au Ag Cu (%) Zn (%) AuEq Au Ag Cu Zn AuEq
(Mt) (g/t) (g/t) (g/t) (Koz) (Koz) (Kt) (Kt) (Koz)
------- ------- ------- ------- ------- ------- ------- -------- ------- ------- -------
Proven 0.21 2.40 42.07 0.51 1.85 4.64 16.2 284.5 1.1 3.9 31.4
------- ------- ------- ------- ------- ------- ------- -------- ------- ------- -------
Probable 2.93 1.59 31.78 0.35 1.29 3.18 150.0 2,991.1 10.1 37.8 299.0
------- ------- ------- ------- ------- ------- ------- -------- ------- ------- -------
Total Proven
and Probable 3.14 1.65 32.47 0.36 1.33 3.28 166.3 3,275.6 11.2 41.7 330.4
------- ------- ------- ------- ------- ------- ------- -------- ------- ------- -------
Table 1 Kapan Mine, Ore reserves 2022
Notes:
-- Ore Reserves are reported in accordance with the JORC Code (2012).
-- Ore Reserves based on August 2022 consensus prices for LOM of USD1,750/oz Au, USD21.8/oz Ag, USD8,300/t Cu, and USD2,950 Zn.
-- Ore Reserves are based on a gold equivalent cut-off of 2.3g/t Au. -- Mineral Resources which are not Ore Reserves do not have demonstrated economic viability. -- Table is subject to rounding errors. -- The average density of 2.64 t/m(3) was used for unmodelled diluting waste material. -- Tonnes reported are in situ, dry tonnes.
The 2021 Ore Reserves statement contained 2.55 Mt at a grade of 1.66 g/t Au, 33.17 g/t Ag, 0.34% Cu, and 1.25% Zn, and 263.7 Koz of AuEq.
As previously announced, the 2022 MRE reflected a 24% increase in contained ounces compared to 2021. As expected from historical conversion rates, this increase has flowed through from the MRE into the ORE resulting in a 25% increase in proven and probable AuEq ounces.
The increase in ORE replaces depletion and adds an additional 2 years of mine life. The 5 years identified in the life of mine plan is consistent with the stated reserve for the history of the Kapan mine. Given the deep dipping nature of the ore body, M&I levels of certainty can only be obtained by underground drilling, which limits how much of the inferred and unclassified mineralisation is converted ahead of mining.
The 2022 MRE shows that there is still significant mineralisation within the Shahyuman ore body. The ongoing exploration definition drilling program will continue to target the conversion of inferred and unclassified mineralisation into M&I. This conversion is expected to flow through into future ORE updates as proven and probable to replace mining depletion and provide additional mine life beyond that indicated in the current reserve.
The full report is available on Chaarat's website at this link .
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).
Enquiries
+44 (0)20 7499
Chaarat Gold Holdings Limited 2612
Mike Fraser, Chief Executive Officer IR@chaarat.com
Canaccord Genuity Limited (NOMAD and +44 (0)20 7523
Joint Broker) 8000
Henry Fitzgerald-O'Connor
James Asensio
Gordon Hamilton
+44 (0)20 7220
finnCap Limited (Joint Broker) 0500
Christopher Raggett
Panmure Gordon (UK) Limited (Joint +44 (0)20 7886
Broker) 2500
John Prior
Hugh Rich
About Chaarat
Chaarat is a gold mining company which owns the Kapan operating mine in Armenia as well as Tulkubash and Kyzyltash Gold Projects in the Kyrgyz Republic. The Company has a clear strategy to build a leading emerging markets gold company through organic growth and selective M&A.
Chaarat aims to create value for its shareholders, employees and communities from its high-quality gold and mineral deposits by building relationships based on trust and operating to the best environmental, social and employment standards. Further information is available at www.chaarat.com/ .
Competent Person- Mineral Resource Estimate
The information in this announcement that relates to the mineral resource estimate is based on and fairly represents information and supporting documentation prepared by Dimitar Dimitrov, P. Geo, AIG member and a Competent Person as defined in the 2012 edition of the JORC Code 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and is a Qualified Person under the AIM Rules . Mr. Dimitar Dimitrov is a part-time employee of the company. Mr. Dimitrov consents to the publication of this new release dated 27 April 2023 by Chaarat. Mr. Dimitrov certified that this news release fairly and accurately represents the information for which he is responsible.
Competent Person- Ore Reserves
The CP for the Ore Reserves declared under the JORC Code (2012) in this report is James Town, Chartered Engineer (CEng), Member of the Institute of Materials, Minerals & Mining (MIMMM). IOM3 membership number: 0478326. Mr Town is a Competent Person as defined in the 2012 edition of the JORC Code 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and is a Qualified Person under the AIM Rules. Mr Town has reviewed this news release and has consented to its publication with the inclusion of the information for which he is responsible in the form and context in which it appears.
Glossary of Technical Terms
"Ag" chemical symbol for silver
"Au" chemical symbol for gold
"AuEq" the value of a tonne of mineralised material
calculated by summing the value of each contained
payable metal and expressing it as an equivalent
gold content at a given set of metals prices
"Cu" the chemical symbol for copper
"Cut-off-grade" the lowest grade value that is included in a
Resource or Reserves statement. It must comply
with JORC requirement 19: "reasonable prospects
for eventual economic extraction" the lowest
grade, or quality, of mineralised material that
qualifies as economically mineable and available
in each deposit. It may be defined on the basis
of economic evaluation, or on physical or chemical
attributes that define an acceptable product
specification
"g/t" grammes per tonne, equivalent to parts per million
"Indicated Mineral that part of a Mineral Resource for which tonnage,
Resource" densities, shape, physical characteristics, grade,
and mineral content can be estimated with a reasonable
level of confidence. It is based on exploration,
sampling and testing information gathered through
appropriate techniques from locations such as
outcrops, trenches, pits, workings, and drill
holes. The locations are too widely or inappropriately
spaced to confirm geological and/or grade continuity
but are spaced closely enough for continuity
to be assumed.
"JORC" The Australasian Joint Ore Reserves Committee
Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves 2012 (the "JORC Code"
or "the Code"). The Code sets out minimum standards,
recommendations, and guidelines for Public Reporting
in Australasia of
Exploration Results, Mineral Resources and Ore
Reserves
"koz" thousand troy ounces of gold
'Measured Mineral A Measured Mineral Resource has a higher level
Resource' of confidence than that applying to either an
Indicated Mineral Resource or an Inferred Mineral
Resource. A 'Measured Mineral Resource' is that
part of a Mineral Resource for which quantity,
grade (or quality), densities, shape, and physical
characteristics are estimated with confidence
sufficient to allow the application of Modifying
Factors to support detailed mine planning and
final evaluation of the economic viability of
the deposit
"Mineral Resource" concentration or occurrence of solid material
of economic interest in or on the Earth's crust
in such form, grade (or quality), and quantity
that there are reasonable prospects for eventual
economic extraction. The location, quantity,
grade (or quality), continuity and other geological
characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological
evidence and knowledge, including sampling. Mineral
Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated
and Measured categories
"Mt" million tonnes
"Ore Reserves" represents the economically mineable part of
a Measured and/or Indicated Mineral Resource.
It includes diluting materials and allowances
for losses, which may occur when the material
is mined or extracted and is defined by studies
at Pre-Feasibility or Feasibility level as appropriate
that include application of Modifying Factors.
Such studies demonstrate that, at the time of
reporting, extraction could reasonably be justified
"oz" troy ounce (= 31.103477 grammes)
"Pb" the chemical symbol for lead
"Probable Ore represents the economically mineable part of
Reserve" an Indicated, and in some circumstances, a Measured
Mineral Resource. The confidence in the Modifying
Factors applying to a Probable Ore Reserve is
lower than that applying to a Proved Ore Reserve
" Proved Ore represents the highest confidence category of
Reserve" reserve estimate and implies a high degree of
confidence in geological and grade continuity,
and the consideration of the Modifying Factors
"t" tonne (= 1 million grammes)
"Zn" the chemical symbol for zinc
12.0 JORC Code, 2012 Edition - Table 1 report
Section 1 Sampling Techniques and Data
Criteria JORC Commentary
Code
explanation
------------------------------------------------
Sampling Nature and quality of sampling (e.g., cut Sampling comprises historical surface drilling,
techniques channels, random chips, or specific specialized historical and current underground drilling,
industry standard measurement tools appropriate and channel sampling.
to the minerals under investigation, such as Predominantly diamond drilling, and channel
down hole gamma sondes, or handheld XRF cut from the face, with a chisel saw, according
instruments, to a marked channel boundary.
etc.). These examples should not be taken as Core was drilled along the full mineralization
limiting the broad meaning of sampling. intersection, as normal to the mineralization
Include reference to measures taken to ensure strike as possible.
sample representativity and the appropriate Channel rock chips are providing representative
calibration of any measurement tools or systems data collection of the sampled face.
used. All sampling practices are meeting the industry
Aspects of the determination of mineralization standards.
that are Material to the Public Report.
In cases where 'industry standard' work has
been done this would be relatively simple
(e.g.,
'reverse circulation drilling was used to
obtain
1 m samples from which 3 kg was pulverized
to produce a 30 g charge for fire assay').
In other cases, more explanation may be
required,
such as where there is coarse gold that has
inherent sampling problems. Unusual commodities
or mineralization types (eg submarine nodules)
may warrant disclosure of detailed information.
------------------ ------------------------------------------------ ------------------------------------------------
Drilling Drill type (e.g., core, reverse circulation, DH sampling: approximately 717 000 samples
techniques open-hole hammer, rotary air blast, auger, (1024km).
Bangka, sonic, etc.) and details (e.g., core Channel sampling: approx. 122 000 samples
diameter, triple or standard tube, depth of (123.1
diamond tails, face-sampling bit, or other km).
type, whether core is oriented and if so, by Total sampling: approx. 840 000 samples
what method, etc.) (1147km).
Core is predominantly HQ and NQ diameter, singe
barrel drilled.
Channel samples are chipped along the marked
face with a pneumatic hammer and collected
by the sampler in one-meter intervals. All
channel samples are taken from south to north,
in a horizontal fashion, rather than
perpendicular
to the mineralized dip angle. The results from
the channel sampling are used for grade
control,
modelling, mine design, resource estimation,
and for mine reconciliation data.
The samples are contoured along all major
lithological
breaks.
------------------ ------------------------------------------------ ------------------------------------------------
Drill sample Method of recording and assessing core and The core recovery is assessed by regular
recovery chip sample recoveries and results assessed. measurements
Measures taken to maximize sample recovery of each drill run and generally excess 95 %.
and ensure representative nature of the Core recovery is based on recovered core length
samples. vs drill run length, and RC material is
Whether a relationship exists between sample assessed
recovery and grade and whether sample bias by the recovered weights.
may have occurred due to preferential loss/gain There does not appear to be a relationship
of fine/coarse material. bias between grade and length, or sample weight
or recovery.
The average grade of the channel samples is
higher compared to the drilling. This is
primarily
attributed to the frequency of channel samples
in high grade open areas of the mine, compared
to drilling
------------------ ------------------------------------------------ ------------------------------------------------
Logging Whether core and chip samples have been Once the hole is finished, the core is
geologically transported
and geotechnically logged to a level of detail to the core storage area for logging. The core
to support appropriate Mineral Resource trays are plastic, and are covered with a
estimation, plastic
mining studies and metallurgical studies. cover as well, to prevent core losses or extra
Whether logging is qualitative or quantitative moving.
in nature. Core (or costean, channel, etc) The key procedures are including core recovery
photography. measuring; sample interval marking; geological
The total length and percentage of the relevant and geotechnical logging; photo documentation;
intersections logged . sampling and later destruction of
non-mineralized
part.
Core logging is including lithology;
alteration;
mineralization; structures; obtaining
geotechnical
data for assess RMR and Q-index.
Sampling is primarily based on the visible
mineralization, and minimum 2 meters are taken
from either side of the sampled interval.
The maximum sampling interval is 1 meter, the
minimum is 0.2m
Once the sampling intervals are outlined,
currently
a full core diameter is used for assaying.
Areas with non-visible mineralization, outside
of the expected mineralization zone are not
sampled.
In absence of visible mineralization, but in
areas where mineralization interception is
expected the material is sampled depending
on the field geologist's decision, considering
all the available information.
The collection of geological data is meeting
the industrial standards.
The core logging protocol keeps a high
standard,
and the involved geologists have sufficient
knowledge for Shahumyan mineralization system.
------------------ ------------------------------------------------ ------------------------------------------------
Sub-sampling If core, whether cut or sawn and whether Prior to July 2017 core was halved with a
techniques quarter, diamond
and sample half or all core taken. saw and half was sent for analysis and the
preparation If non-core, whether riffled, tube sampled, other half was retained. Since then, the whole
rotary split, etc and whether sampled wet or core is processed and only the pulps are
dry. retained
For all sample types, the nature, quality, for future analysis.
and appropriateness of the sample preparation The laboratory prepares samples according to
technique. industry standard of drying crushing,
Quality control procedures adopted for all pulverizing,
sub-sampling stages to maximise splitting and analysis.
representativity All samples are analysed in the local Kapan's
of samples. mine laboratory
Measures taken to ensure that the sampling The laboratory is providing Fire Assay with
is representative of the in situ material AAS for gold ( 0.2 g/t-1000g/t) , and AAS for
collected, Ag ( 0.2 g/t -20000g/t ), Cu ( 0.005%-9.9%
including for instance results for field ), Pb ( 0.005%-19.9% ) and Zn ( 0.005%-29.9%
duplicate/second-half ).
sampling.
Whether sample sizes are appropriate to the
grain size of the material being sampled.
------------------------------------------------ ------------------------------------------------
Quality The nature, quality and appropriateness of The assaying is meeting the industry standards
of assay the assaying and laboratory procedures used and it is suitable to support Mineral Resource
data and and whether the technique is considered partial estimate.
laboratory or total. The current QA/QC scheme is including blank
tests For geophysical tools, spectrometers, handheld samples and certified reference material (CRM).
XRF instruments, etc, the parameters used in As core is no longer halved, no field
determining the analysis including instrument duplicates
make and model, reading times, calibrations are assessed, and historically these results
factors applied and their derivation, etc. were no good due to highly variable nature
Nature of quality control procedures adopted of mineralization.
(eg standards, blanks, duplicates, external QA/QC achieves acceptable levels of accuracy
laboratory checks) and whether acceptable and precision.
levels
of accuracy (ie lack of bias) and precision
have been established.
------------------------------------------------ ------------------------------------------------
Verification The verification of significant intersections Yearly, in each quarter, between 3 and 5
of sampling by either independent or alternative company percent
and assaying personnel. of the pulps are sent to Yerevan state
The use of twinned holes. laboratory
Documentation of primary data, data entry for reference the results.
procedures, data verification, data storage A twin analysis has been conducted during
(physical and electronic) protocols. 2017-2018
Discuss any adjustment to assay data. by local geology team for channel and diamond
drilling (DD) holes and shows potential bias
that could be attributed to highly variable
nature of mineralization
------------------------------------------------ ------------------------------------------------
Location Accuracy and quality of surveys used to locate Grid system is Pulkovo 1942 /Gauss -Kruger
of data drill holes (collar and down-hole surveys), zone 8, ( with reduced first 2 digits in the
points trenches, mine workings and other locations BM and wireframes encoding).
used in Mineral Resource estimation. Survey is completed underground, with high
Specification of the grid system used. precision tools which meets the industrial
Quality and adequacy of topographic control. standards: Leica TS16 (3" accuracy), Ranger
Explorer II R2231, IMMN_32A.
The available digital elevation model of the
area topography is used in the Mineral Resource
estimation process (surveyed via GPS by
expatriate
and local surveyors in 2013)
------------------------------------------------ ------------------------------------------------
Data spacing Data spacing for reporting of Exploration Along the drive advancing, a channel sampling
and distribution Results. is taken every blast.
Whether the data spacing, and distribution Typically, the space between two blasts is
is sufficient to establish the degree of 4 -6m
geological The grade control drilling net is 20 X 20 m,
and grade continuity appropriate for the adjusted to denser grid, where required
Mineral The geostatistical analysis and trial blast
Resource and Ore Reserve estimation unit drilling data have shown that thicker
procedure(s) data spacing, and distribution do not add any
and classifications applied. sufficient value in accuracy of geological
Whether sample compositing has been applied. and grade continuity.
As majority of samples have 1m in length, the
1m composite is being applied.
------------------------------------------------ ------------------------------------------------
Orientation Whether the orientation of sampling achieves Geometry is derived and interpreted from
of data unbiased sampling of possible structures and underground
in relation the extent to which this is known, considering mapping and sampling. True thickness is
to geological the deposit type. calculated
structure If the relationship between the drilling from apparent thickness, during the
orientation interpretation.
and the orientation of key mineralised No bias has been introduced through the
structures geometry
is considered to have introduced a sampling of the sampling and subsequent geological
bias, this should be assessed and reported interpretation
if material.
------------------------------------------------ ------------------------------------------------
Sample The measures taken to ensure sample security. The mine process plant and laboratory are
security sufficiently
secured, with security guards and entry,
requiring
personal ID cards
------------------------------------------------ ------------------------------------------------
Audits The results of any audits or reviews of Independent reviews have considered the
or reviews sampling sampling
techniques and data. process to meet industry best practices: NI
43-101 Technical Report in 2014 (Galen White
- QP, Julian Bennett- QP, Simon Meik - QP)
and Global Report (Galen White - QP) in 2018
by CSA, report by AMC (Alan Turner, Bryan
Pullman)
in 2019. At 2021 AMC consulting completed a
high-level review of MRE 21.
------------------------------------------------ ------------------------------------------------
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria JORC Commentary
Code
explanation
------------------------ -----------------------------------------------------------------------------------------------------
Database Measures taken to Data is logged and digitized by trained geologists.
integrity ensure that data has The used software is providing several stages
not of cross validation, initial through the logging
been corrupted by, for process, second when the logging data is imported
example, transcription to main database platform (acQuire) and one
or keying errors, more time prior the Mineral Resource estimation.
between its initial
collection
and its use for Mineral
Resource estimation
purposes.
Data validation
procedures used.
------------------------ -----------------------------------------------------------------------------------------------------
Site visits Comment on any site The last site visit of competent person (Dimitar
visits undertaken by Dimitrov) for the Mineral Resource was from
the Competent Person 17th to 28th of May 2022
and the outcome of Mr.Dimitar Dimitrov P. Geo, AIG member and
those a Competent Person as defined in the 2012 edition
visits. of the JORC Code 'Australasian Code for Reporting
If no site visits have of Exploration Results, Mineral Resources and
been undertaken Ore Reserves', is a SVP -Exploration of Chaarat
indicate Gold Holdings, and part-time employee of the
why this is the case. company.
------------------------ -----------------------------------------------------------------------------------------------------
Geological Confidence in (or Based on lithological evidence (drill core
interpretation conversely, the logging and underground mapping data) the veins
uncertainty and veinlets are being interpreted.
of) the geological The Mineral Resource is controlled by hard
interpretation of the boundaries of the interpreted geological structures,
mineral deposit. including faults and post mineralization barren
Nature of the data used dykes.
and of any assumptions The geological continuity is reasonable, but
made. grade variability is high, often within the
The effect, if any, of mineralized structure.
alternative
interpretations
on Mineral Resource
estimation.
The use of geology in
guiding and controlling
Mineral Resource
estimation.
The factors affecting
continuity both of
grade and geology.
------------------------ -----------------------------------------------------------------------------------------------------
Dimensions The extent and The Resource includes a series of E-W striking
variability of the orebodies (veins), dipping from 45(o) to 90(o)
Mineral (mainly in South direction). Vein strike lengths
Resource expressed as reach up to 0.5km, and the true thickness ranges
length (along strike from several cm to 2m.
or otherwise), plan The Resources goes near the surface (950masl)
width, and depth below to average of 500 - 600 m asl deep.
surface to the upper Further mineralization potential exists below
and lower limits of 600msal, and to the flanks of current Resource,
the Mineral Resource. explored historically.
------------------------ -----------------------------------------------------------------------------------------------------
Estimation The nature and The Mineral Resource estimation was completed
and modelling appropriateness of the in Datamine Studio by Kapan's geological department
techniques estimation The wireframes were prepared in Leapfrog Geo
technique(s) applied The grades were interpolated by Ordinary Kriging
and key assumptions, Top-cuts were applied for each vein (based
including treatment of on statistical analysis).
extreme grade values, The search radii were defined by variogram
domaining, modelling of veins
interpolation The estimate was constrained into the hard
parameters and maximum boundary of the mineralization interpretation
distance of Parent cell dimensions are 4m*4m*4m, with minimum
extrapolation from data sub-celling dimensions 0.1m*0.1m*0.1m
points. The composite length is 1m
If a computer assisted The validation methods currently show high
estimation method level of correspondence between resource model
was chosen include a and the actual data, and are done via visual
description of computer inspection, preparation of Q-Q and swath plots.
software and parameters Comparison with previous Mineral Resource estimates
used. Reconciliation that includes comparing forecasted
The availability of data and measurements in different phases of
check estimates, mining process
previous
estimates and/or mine
production records Mineral Inventory (depleted) up to 09-2022
and whether the Mineral : Class Mt SG (g/cm(3) AuEq (g/t) AuEq (koz)
Resource estimate )
takes appropriate Meas 0.646 2.75 8.9 185
account of such data. ------- ------------ ----------- -----------
The assumptions made Ind 5.627 2.76 5.3 958
regarding recovery ------- ------------ ----------- -----------
of by-products. M &
Estimation of I 6.273 2.76 5.7 1 143
deleterious elements or ------- ------------ ----------- -----------
other Inf 6.790 2.78 4.5 975
non-grade variables of ------- ------------ ----------- -----------
economic significance Total 13.063 2.77 5.0 2 118
(eg sulphur for acid ------- ------------ ----------- -----------
mine drainage
characterisation).
In the case of block AuEq=Au+Ag*21.8/1750+Cu*8300*31.1035/175000+Zn*2950*31.1035/17500
model interpolation,
the block size in
relation to the average
sample spacing and the
search employed.
Any assumptions behind
modelling of selective
mining units.
Any assumptions about
correlation between
variables.
Description of how the
geological
interpretation
was used to control the
resource estimates.
Discussion of basis for
using or not using
grade cutting or
capping.
The process of
validation, the
checking
process used, the
comparison of model
data
to drill hole data, and
use of reconciliation
data if available.
------------------------ -----------------------------------------------------------------------------------------------------
Moisture Whether the tonnages Tonnage is reported on dry basis
are estimated on a
dry basis or with
natural moisture, and
the
method of determination
of the moisture
content.
------------------------ -----------------------------------------------------------------------------------------------------
Cut-off The basis of the
parameters adopted cut-off The Reasonable Prospects for Eventual Economic
grade(s) Extraction of the Mineral Inventory was conducted
or quality parameters via Mine Shape Optimization (MSO) run. Cut-off
applied. grade of 2.1 g/t AuEq was applied.
------------------------ -----------------------------------------------------------------------------------------------------
Mining factors Assumptions made The Resource model is based on geology.
or assumptions regarding possible The reasonable prospects for eventual economic
mining extraction were achieved by running Mineable
methods, minimum mining Stope Optimization (MSO) and reported is Resource
dimensions and internal is constrained by the MSO. The MSO parameters
(or, if applicable, are in accordance with the selective mining
external) mining method planned to be implemented.
dilution.
It is always necessary COG_AuEq_ppm 2.1 ppm
as part of the process Used AuEq_formula AUEQV=AU+AG/80+CU/0.6779+ZN/1.9072
of determining -----------------------------------
reasonable prospects Ore body dip MMU (MSO)
for eventual 80(o) -90(o) 1.2m
economic extraction to 70(o) -80(o) 1.8m
consider potential < 70(o) 2.2m
mining methods, but the -----------------------------------
assumptions made Development overbreak 0%
regarding mining Production Stope
methods and parameters overbreak:
when First mining sublevel 5%
estimating Mineral Middle sublevel 10%
Resources may not Bottom sublevel 15%
always -----------------------------------
be rigorous. Where this
is the case, this
should be reported with Kapan's 2022 Mineral Resource is:
an explanation of SG (g/cm3
the basis of the mining Class Mt ) AuEq (g/t) AuEq (koz)
assumptions made. Meas 0.341 2.76 12.1 132
------ ---------- ----------- -----------
Ind 2.261 2.77 8.1 590
------ ---------- ----------- -----------
M & I 2.602 2.77 8.6 722
------ ---------- ----------- -----------
Inf 1.864 2.77 6.5 389
------ ---------- ----------- -----------
AuEq=AU+AG*21.8/1750+CU*8300*31.1035/175000+ZN*2950*31.1035/17500
------------------------ -----------------------------------------------------------------------------------------------------
Metallurgical The basis for The metal recovery data is as follows: Process recovery Units 2017 2018 2019 2020 2021
factors or assumptions or Au recovery
assumptions predictions (all con) % 83.6 76.2 79.7 73.1 75.5
regarding metallurgical ------- ----- ----- ----- ----- -----
amenability. It is Ag recovery
always necessary as (all con) % 83 80.9 82.4 82.2 82.5
part of the process of ------- ----- ----- ----- ----- -----
determining reasonable Cu recovery
prospects for eventual (Cu con) % 86.4 83.6 86.4 87 85.2
economic extraction to ------- ----- ----- ----- ----- -----
consider potential Zn recovery
metallurgical methods, (Zn con) % 81.9 77.4 80.2 76.4 71.1
but the assumptions ------- ----- ----- ----- ----- -----
regarding metallurgical
treatment processes Extraction of Au
and parameters made at refining % 91
when reporting Mineral Extraction of Ag
Resources may not at refining % 84
always be rigorous. ---
Where Extraction of Cu
this is the case, this at refining % 94
should be reported ---
with an explanation of Extraction of Zn
the basis of the at refining % 85
metallurgical ------------------ ---
assumptions made.
Metal recovery is not directly applied in the
reported Resource.
------------------------ -----------------------------------------------------------------------------------------------------
Environmental Assumptions made There are no known factors which may inhibit
factors or regarding possible the extraction of the Resource
assumptions waste
and process residue
disposal options. It
is always necessary as
part of the process
of determining
reasonable prospects
for eventual
economic extraction to
consider the potential
environmental impacts
of the mining and
processing
operation. While at
this stage the
determination
of potential
environmental impacts,
particularly
for a greenfields
project, may not always
be well advanced, the
status of early
consideration
of these potential
environmental impacts
should be reported.
Where these aspects
have
not been considered
this should be reported
with an explanation of
the environmental
assumptions made.
------------------------ -----------------------------------------------------------------------------------------------------
Bulk density Whether assumed or Currently the density estimation is using polynomial
determined. If assumed, regression model based on modelled sulphur
the basis for the grade:
assumptions. If If S >= 19.8 %, Density == exp [0.2587x + 0.4835],
determined, for x = ln (S grades)
the method used, If S > 1 and S <19.8%, Density == exp [0.0114169x6
whether wet or dry, the - 0.0891652x5 + 0.26951043x4 + 0.38060004x3
frequency of the + 0.23832052x2 + 0.0052027x + 0.9070334], for
measurements, the x = ln (S grades)
nature, If S<1, Density = 2.65 g/cm3
size and In dykes Density = 2.65 g/cm3
representativeness of This approach is considered as slightly conservative
the samples. scenario for density assessment.
The bulk density for
bulk material must
have been measured by
methods that adequately
account for void spaces
(vugs, porosity,
etc), moisture and
differences between
rock
and alteration zones
within the deposit.
Discuss assumptions for
bulk density estimates
used in the evaluation
process of the
different
materials.
------------------------ -----------------------------------------------------------------------------------------------------
Classification The basis for the The model is classified according to the quantity
classification of the and quality of the data.
Mineral Resources into The Measured Mineral Resource category was
varying confidence assigned to portions of the ore bodies in the
categories. following cases:
Whether appropriate In the areas of current mine development workings,
account has been taken informed by both channel sampling data and
of all relevant factors drilling data and where the data spacing is
(ie relative confidence less than 20x20 m.
in tonnage/grade
estimations, The Indicated category was assigned to the
reliability portions of the ore bodies in the following
of input data, cases:
confidence in - In the areas with the exploration grid spacing
continuity of up to 20×20 m, provided there was enough
geology and metal confidence in the continuity of the ore body
values, quality, mineralization between the drill holes.
quantity - In the areas of extrapolation to up to 30
and distribution of the m distance from the last sublevel drift in
data). down-dip/up-dip direction of the ore body,
Whether the result provided there was enough confidence in the
appropriately reflects continuity of its mineralization. The intersections
the Competent Person's of extrapolation areas by exploration drill
view of the deposit. holes are not required in this case.
- In the areas of extrapolation to up to 30
m distance from the last sublevel drift in
the downdip /up-dip direction of the ore body.
In case of any doubts in continuity of this
ore body mineralization, the exploration grid
spacing of not more than 20-30 m is required
to classify the mineralization as an Indicated
Mineral Resource.
The Inferred category was assigned to the portions
of the ore bodies if they could not be classified
as an Indicated Mineral Resource.
------------------------ -----------------------------------------------------------------------------------------------------
Audits or The results of any No external audits or reviews were conducted
reviews audits or reviews of for MRE 2022
Mineral Resource
estimates.
------------------------ -----------------------------------------------------------------------------------------------------
Discussion Where appropriate a The effective date of the Resource is 01.09.2022
of relative statement of the Model estimates were checked by QQ plots, swath
accuracy/ relative plots, and by comparing the volumes of the
confidence accuracy and confidence wireframes and the block model, statistically
level in the Mineral and visually.
Resource estimate using
an approach or
procedure
deemed appropriate by
the Competent Person.
For example, the
application of
statistical
or geostatistical
procedures to quantify
the relative accuracy
of the resource within
stated confidence
limits, or, if such an
approach is not deemed
appropriate, a
qualitative
discussion of the
factors that could
affect
the relative accuracy
and confidence of the
estimate.
The statement should
specify whether it
relates to global or
local estimates, and,
if local, state the
relevant tonnages,
which
should be relevant to
technical and economic
evaluation.
Documentation should
include
assumptions made and
the procedures used.
These statements of
relative accuracy and
confidence of the
estimate should be
compared
with production data,
where available.
------------------------ -----------------------------------------------------------------------------------------------------
JORC CODE, 2012 EDITION - TABLE 1 REPORT
Section 4 Estimation and Reporting of Ore Reserves
Criteria JORC Code explanation Commentary
Mineral
Resource * Description of the Mineral Resource estimate used as * The Mineral Resource Estimate was produced by Mr
estimate for a basis for the conversion to an Ore Reserve. Dimitar Dimitrov, Senior VP Exploration of Chaarat,
conversion to with an effective date of 1 September 2022 as
Ore Reserves described in Section 3.
* Clear statement as to whether the Mineral Resources
are reported additional to, or inclusive of, the Ore
Reserves. * The Mineral Resources are reported inclusive of the
Ore Reserves.
============================================================ ==================================================================
Site visits
* Comment on any site visits undertaken by the * A site visit, of four days, was undertaken by the Ore
Competent Person and the outcome of those visits. Reserves Competent Person (CP), Mr James Town of AMC
Consultants (UK) Limited, in July 2019.
* If no site visits have been undertaken indicate why
this is the case. * No recent site visits have been undertaken due to
security-related travel restrictions.
============================================================ ==================================================================
Study status
* The type and level of study undertaken to enable * Kapan Mine has been operating since 1994 and at full
Mineral Resources to be converted to Ore Reserves. production for more than 15 years. Information
gathered during the production period has been used
to update and inform the current Ore Reserve.
* The Code requires that a study to at least Production, sales, and other data from the previous
Pre-Feasibility Study level has been undertaken to five years were used as a basis for assessing the ore
convert Mineral Resources to Ore Reserves. Such reserve calculation.
studies will have been carried out and will have
determined a mine plan that is technically achievable
and economically viable, and that material Modifying * The Ore Reserve is based on the life-of-mine design
Factors have been considered. generated by the Mine Technical Services Department
(effective date of 1 January 2023), which has been
reviewed by AMC.
* AMC produced a schedule and cost model based on the
data provided by Chaarat.
============================================================ ==================================================================
Cut-off
parameters * The basis of the cut-off grade(s) or quality * Cut-off grades are calculated using a gold equivalent
parameters applied. (AuEq) calculation using the revenue contributions of
the four payable metals Au, Ag, Cu, and Zn.
* The AuEq calculation includes all site operating
costs associated with the mine, process plant, and
G&A along with royalties, transport and concentrate
treatment, and refining charges and penalties.
* Mining areas are considered for inclusion in the Ore
Reserve if the diluted AuEq is greater than, or equal
to, 2.3 g/t AuEq.
============================================================ ==================================================================
Mining factors
or assumptions * The method and assumptions used as reported in the * Ore Reserves are based on an operating mine design
Pre-Feasibility or Feasibility Study to convert the generated by the on-site technical staff, which has
Mineral Resource to an Ore Reserve (i.e. either by been reviewed by AMC.
application of appropriate factors by optimisation or
by preliminary or detailed design).
* The mining method used is long-hole open-stoping,
which is an appropriate method for the narrow-vein
* The choice, nature and appropriateness of the deposit. The mining method has been refined with
selected mining method(s) and other mining parameters operational experience.
including associated design issues such as pre-strip,
access, etc.
* Grade control consists of pre-development diamond
drilling at approximately 20 m spacing followed by
* The assumptions made regarding geotechnical mapping and face channel sampling at approximately 4
parameters (eg pit slopes, stope sizes, etc), grade m spacing during vein drive development. All samples
control and pre-production drilling. are processed at the on-site laboratory with 5%
control samples sent to external international
laboratories.
* The major assumptions made and Mineral Resource model
used for pit and stope optimisation (if appropriate).
* SRK completed a geotechnical study in 2013, from
which site geotechnical personnel have developed
* The mining dilution factors used. procedures with operational experience. All
development headings and stopes are assessed before
and during development by the Geotechnical Engineer
* The mining recovery factors used. and have geotechnical specifications detailing
support requirements.
* Any minimum mining widths used.
* Individual stopes have a maximum length of 80 m and
maximum height of 18 m, with a maximum of three
* The manner in which Inferred Mineral Resources are stopes forming a panel between a crown pillar, with
utilised in mining studies and the sensitivity of the surface and sill pillars between levels.
outcome to their inclusion.
* A minimum mining width of 2.2 m has been applied to
* The infrastructure requirements of the selected the Ore Reserve using Mineable Shape Optimizer(TM)
mining methods. (MSO).
* Current mining areas are accessed via portals located
at the south of the deposit and multiple declines
located across the deposit.
* Dilution is accounted for in the Ore Reserve on a
vein-by-vein basis, based on geometry and historic
production statistics. The average dilution factors
in the Ore Reserve are:
_ Primary mining dilution (minimum mining width): 54%.
_ Secondary mining dilution (unplanned in stope): 9%.
* Mining losses are estimated to be 2% of the Ore
Reserve.
* Inferred and Unclassified Mineral Resources were
treated as waste dilution.
============================================================ ==================================================================
Metallurgical
factors or * The metallurgical process proposed and the * Gold and zinc concentrates are produced through
assumptions appropriateness of that process to the style of conventional crushing, grinding, flotation,
mineralisation. thickening, and filtration.
* Whether the metallurgical process is well-tested * The process is well-tested and has been in operation
technology or novel in nature. at Kapan for more than 15 years.
* The nature, amount and representativeness of * The process plant has two primary jaw crushers
metallurgical test work undertaken, the nature of the capable of crushing 2 Mtpa. The grinding and
metallurgical domaining applied and the corresponding flotation circuits have a maximum capacity of
metallurgical recovery factors applied. approximately 900 ktpa.
* Any assumptions or allowances made for deleterious * Metallurgical recoveries are based on historical
elements. plant performance data.
* The existence of any bulk sample or pilot scale test * The Ore Reserve is based on the Mineral Resource
work and the degree to which such samples are Estimate which includes individual estimation
considered representative of the orebody as a whole. parameters for the payable metals Au, Ag, Cu, and Zn;
and as such, is appropriate to the mineralogy being
processed.
* For minerals that are defined by a specification, has
the ore reserve estimation been based on the
appropriate mineralogy to meet the specifications? * Operational metallurgical testwork is carried out
daily at the plant metallurgical test laboratory.
* Deleterious elements Pb and S are also modelled in
the Mineral resource model; however, with the current
mining locations and for the remainder of the mine
plan, the grades are not high enough to warrant
corrective measures in the process plant.
============================================================ ==================================================================
Environmental
* The status of studies of potential environmental * Chaarat possesses the required permits and planning
impacts of the mining and processing operation. permissions to effectively operate the Kapan Mine, in
Details of waste rock characterisation and the accordance with Armenian environmental regulations.
consideration of potential sites, status of design
options considered and, where applicable, the status
of approvals for process residue storage and waste * To the best of the CP's knowledge, all sites for
dumps should be reported. waste rock and process tailings and their design and
construction have complied with all environmental
regulations, permits, and recommendations.
============================================================ ==================================================================
Infrastructure
* The existence of appropriate infrastructure: * All infrastructure required for the processing and
availability of land for plant development, power, mining of ore is in place and has been in place since
water, transportation (particularly for bulk exploration of the deposit in Soviet times (1980s).
commodities), labour, accommodation; or the ease with The mine is located adjacent to the town of Kapan on
which the infrastructure can be provided, or the main trunk-road connecting southern Armenia to
accessed. the capital city, Yerevan.
============================================================ ==================================================================
Costs
* The derivation of, or assumptions made, regarding * Operating costs are based on site operating costs.
projected capital costs in the study. AMC has reviewed historical cost reports including
copies of major contractor invoices.
* The methodology used to estimate operating costs.
* Treatment and refining costs are based on current
concentrate sales terms. AMC has reviewed historical
* Allowances made for the content of deleterious gold and zinc concentrate sales invoices to confirm
elements. the inputs used in the calculations.
* The source of exchange rates used in the study. * Penalty elements are accounted for in the concentrate
treatment charges.
* Derivation of transportation charges.
* Government royalties are included at 6% of NSR.
* The basis for forecasting or source of treatment and
refining charges, penalties for failure to meet
specification, etc.
* The allowances made for royalties payable, both
Government and private.
============================================================ ==================================================================
Revenue
factors * The derivation of, or assumptions made regarding * Head grades are based on the block model generated by
revenue factors including head grade, metal or Chaarat in September 2022.
commodity price(s) exchange rates, transportation and
treatment charges, penalties, net smelter returns,
etc. * Revenue has been based on metal prices of USD1,850/oz
Au, USD21.8/oz Ag, USD8,500/t Cu and USD3,000/t Zn
applied to the concentrate sales terms. These figures
* The derivation of assumptions made of metal or are representative of economic forecasts for the
commodity price(s), for the principal metals, period.
minerals and co-products.
* Transportation, treatment charges and penalties for
both gold and zinc concentrates are accounted for in
the AuEq cut-off grade calculation.
============================================================ ==================================================================
Market
assessment * The demand, supply and stock situation for the * Chaarat has agreements with long-term established
particular commodity, consumption trends and factors customers for concentrate sales.
likely to affect supply and demand into the future.
* Gold concentrate is sold to Industrial Minerals in
* A customer and competitor analysis along with the Montreal, Canada. Gold concentrate is bagged on-site,
identification of likely market windows for the loaded into containers and transported by road to
product. Poti, Georgia. From Poti, the containers are
sea-freighted to Montreal, Canada.
* Price and volume forecasts and the basis for these
forecasts. * Zinc concentrate is sold to Trafigura in Antwerp,
Belgium. Zinc concentrate is bagged on-site, loaded
into containers and transported by road to Poti,
* For industrial minerals the customer specification, Georgia. From Poti, the containers are sea-freighted
testing and acceptance requirements prior to a supply to Antwerp.
contract.
============================================================ ==================================================================
Economic
* The inputs to the economic analysis to produce the * No separate NPVs have been generated as part of the
net present value (NPV) in the study, the source and Ore Reserves determination; however, all material
confidence of these economic inputs including contained within the reserve is deemed to generate
estimated inflation, discount rate, etc. positive cashflow based on the economic input
parameters.
* NPV ranges and sensitivity to variations in the
significant assumptions and inputs. * A life of mine plan (LOMP) has been generated from
the December 2021 mine design. Analysis of the LOMP
physicals within the current Chaarat financial model
has been shown to yield a net positive cashflow and
NPV.
============================================================ ==================================================================
Social
* The status of agreements with key stakeholders and * To the best of the CP's knowledge, all agreements
matters leading to social licence to operate. with the local authorities are in place and are
current with all key stakeholders.
============================================================ ==================================================================
Other
* To the extent relevant, the impact of the following * To the best of the CP's knowledge, Chaarat is
on the project and/or on the estimation and currently compliant with all legal and regulatory
classification of the Ore Reserves: requirements and there is no reason to assume any
further government or local council permits, licences,
or statutory approvals will not be granted, if
* Any identified material naturally occurring risks. required.
* The status of material legal agreements and marketing
arrangements.
* The status of governmental agreements and approvals
critical to the viability of the project, such as
mineral tenement status, and government and statutory
approvals. There must be reasonable grounds to expect
that all necessary Government approvals will be
received within the timeframes anticipated in the
Pre-Feasibility or Feasibility study. Highlight and
discuss the materiality of any unresolved matter that
is dependent on a third party on which extraction of
the reserve is contingent.
============================================================ ==================================================================
Classification
* The basis for the classification of the Ore Reserves * The Ore Reserves have been broken down into Proved
into varying confidence categories. and Probable categories as per JORC Code (2012)
guidelines.
* Whether the result appropriately reflects the
Competent Person's view of the deposit. * It is the CP's opinion that the Ore Reserves reflect
the deposit accurately given the current level of
geological and geotechnical knowledge.
* The proportion of Probable Ore Reserves that have
been derived from Measured Mineral Resources (if
any). * No Probable Ore Reserves have been derived from
Measured Mineral Resources.
* Inferred resources have not been included in the Ore
Reserve.
============================================================ ==================================================================
Audits or
reviews * The results of any audits or reviews of Ore Reserve * The Competent Person completed a "best practices"
estimates. review of the mine planning as part of the Ore
Reserves.
* The Ore Reserve has been peer-reviewed internally and
is in line with current industry standards.
============================================================ ==================================================================
Discussion of
relative * Where appropriate a statement of the relative * Kapan Mine is in production and has more than 15
accuracy/ accuracy and confidence level in the Ore Reserve years of historic process production data and costs.
confidence estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the
application of statistical or geostatistical * The deposit is well-understood by the on-site
procedures to quantify the relative accuracy of the technical team which consists of locals with
reserve within stated confidence limits, or, if such long-term experience of the deposit.
an approach is not deemed appropriate, a qualitative
discussion of the factors which could affect the
relative accuracy and confidence of the estimate. * Owner and contractor costs are based on current
actual costs.
* The statement should specify whether it relates to
global or local estimates, and, if local, state the * All modifying factors have been applied to the Ore
relevant tonnages, which should be relevant to Reserves with updated dilution parameters for each
technical and economic evaluation. Documentation individual vein based on widths and geotechnical
should include assumptions made and the procedures assessments.
used.
* Work is ongoing on-site to reconcile and
* Accuracy and confidence discussions should extend to better-account for unplanned mining dilution.
specific discussions of any applied Modifying Factors
that may have a material impact on Ore Reserve
viability, or for which there are remaining areas of * Geological mapping and survey of vein drives is
uncertainty at the current study stage. supporting the validity of the resource model to a
level of confidence consistent with Ore Reserve
reporting.
* It is recognised that this may not be possible or
appropriate in all circumstances. These statements of
relative accuracy and confidence of the estimate * Historical mine-to-mill reconciliation on an annual
should be compared with production data, where and quarterly basis supports the validity of the
available. resource model to a level of confidence consistent
with Ore Reserve reporting.
* Current AuEq cut-off grade practice at the mine might
have an impact on mining areas where grade variations
in different metals are encountered. AMC recommends
development of a net smelter return (NSR) based
valuation and cut-off grade calculation for use in
future Ore Reserves.
============================================================ ==================================================================
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
UPDPPUMWCUPWGBQ
(END) Dow Jones Newswires
April 27, 2023 02:00 ET (06:00 GMT)
1 Year Chaarat Gold Chart |
1 Month Chaarat Gold Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
