The Sandalash Licence area occupies 604 square kilometres and forms an important gold province within the Tien Shan belt known for hosting several important gold deposits.
The licence area has extensive areas of gold mineralisation along 40 kilometres of strike.
The Sandalash license area map
The license area is situated within the Tien Shen gold belt, one of the most prolific gold producing areas in the world. The gold belt, which extends accross central Asia from Uzebekistan in the west to China in the east, hosts a number of large deposits including Muruntau (175 million oz), Daugyztau (18 million oz), Zarmitian (11 million oz) and Kumtor (18 million oz).
Chaarat Project Location in the Tien Shan Gold Belt
The gold occurrences converge in three main Targets; Chaarat , Minteke and Kashkasu.
A significant amount of work has been conducted on the Chaarat Project, but not, to date, on Minteke and Kashkasu.
The JORC resource delineated thus far is presented in table 1 below.
Calculated by SRK South Africa report February 2010 at 2.0g/t Cut-off
Chaarat Central Target Resource Calculation
Wardell Armstrong International has compiled an updated resource estimate announced on 7th July 2011 on the Chaarat Project, incorporating the results of the further drilling on the Contact Project at the cut off grade of 2.0g/t.
Details of the resource update are set out below:
|
Average Grade g/t |
Total Koz |
Grade g/t |
Inferred Koz |
Grade g/t |
Indicated Koz |
|
|
4.25 |
2,001 |
4.20 |
951 |
4,30 |
1,050 |
February 2011 |
|
4.36 |
2,331 |
4.33 |
900 |
4.38 |
1,431 |
July 2011 |
|
|
+16.50 |
|
-5.40 |
|
+36.30 |
Change % |
The Sandalash License
The Licence (Licence # Au 174-02)
In December 2002, the State Agency of Geology and Mineral Recourses (SAGMR) issued Chaarat Zaav with a two year licence to explore the licence area. This license has been successively amended and renewed in negotiation with the authorities in Kyrgyzstan. Currently the license extends to 604.6km2.
On 21 May 2010 Chaarat successfully applied for a further extension, which extend the Licence until 31 December 2012, when the Company is obliged to apply for a mining Licence. On the same date Licence Agreement No.8 was entered between Chaarat and the Ministry of Natural Resources of the Kyrgyz Republic which was established in late 2009 in place of SAGMR. The exploration licence grants Chaarat the exclusive right to explore the prospect area for gold and other metals until that time.