“Chaarat Kapan” CJSC was acquired by Chaarat in early 2019 for a consideration of US$55 million.

The acquisition was an important milestone in achieving Chaarat’s goal of building a leading emerging markets gold company with an initial focus on Central Asia and the FSU through organic growth and selective M&A. It demonstrates the Company’s ability to execute deals quickly, diligently and on accretive terms.


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Kapan has strengthened the company’s portfolio of assets and provided both near term cash flow as well as significant growth potential. It accelerates Chaarat’s transformation from a developer to a producer with an anticipated group production of approximately 65koz Au Eq in 2019.

Chaarat is well placed to take advantage of the opportunities presented by this cash-generative asset, which, following significant investment in the asset over the last two years, is estimated to grow production by approximately 30% per annum in 2019 versus 2017.


Productionc. 65koz Au eq/ year
Life of MineCurrent mine plan for 7 years
Resources sufficient for 10+ years
  • Measured & indicated Resources + Reserves: 1,178koz contained metal; 6.4M at 5.7 g/t (Au eq.)
  • Extraction Process: Underground mining, 900kt flotation circuit

“Chaarat Kapan” CJSC comprises one Mining Licence and one Exploration Licence covering 90.7 km2 which draw from the Shahumyan deposit. The Shahumyan mineralization is characterized by narrow veins (0.2-2.0 m), steeply dipping (70°-85°), east-west orientation, and contain gold-base metals (Cu-Zn-Pb-Au-Ag).

Kapan comprises an automated underground mine with a capacity of 700 ktpa, feeding an on-site crushing and grinding facility followed by a conventional flotation circuit. The recently renovated milling and flotation circuits have a capacity of 2,100 tpd (750 ktpa) and 2,300 tpd (840 ktpa) respectively, with potential to expand capacity to 900 ktpa. Kapan produces copper and zinc concentrate which is trucked to the Poti seaport in Georgia (~850 km).

For the year ended December 2017, the Kapan Mine produced around 50 Koz of gold equivalent, generating a PBT of US$2.2 million, and had gross assets of US$95 million.

Chaarat is currently executing several improvement programmes for the Kapan Mine which prioritise safety, operating efficiency and cost discipline. By maintaining a focus on these actions along with active engagement with host communities, Chaarat believes that the benefits of the acquisition and new management approach will deliver considerable additional value to all stakeholders.