“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 growth potential through the East Flank extension option. It accelerated Chaarat’s transformation from a developer to a producer with an anticipated group production of approximately 60koz Au Eq in 2022. Chaarat is well placed to take advantage of the opportunities presented by this cash-generative asset, which, following significant investment in the asset by previous owners and significant optimisation work performed over the past three years, is estimated to grow production by approximately 30% per annum in 2022 versus the period before Chaarat took ownership.

Download 2023 AMC Ore Reserve Report


Production60koz AuEq p.a.
Life of MineRolling 3-5 year mine plan
Resources sufficient for continuous extension
  • 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.

Asset Location

  • Located in South-eastern Armenia in the Syunik Province
  • The nearest town of Kapan (population ~43,200) is 1 km away from the deposit, ensuring easy access to power supply and other infrastructure
  • The capital city of Yerevan (population of 1.0 million) is 320 km away from the deposit and is accessible via year-round paved roads
  • Direct year-round highway access to the Poti seaport in Georgia (~850 km)
  • Continental climate with a long lasting warm to hot summer and short mild winters

Geology and Mineralisation

  • Located in the south of Armenia in a relatively underexplored region of the Lesser Caucasus within the vast Tethyan orogenic belt
  • Characterized by narrow veins (0.2 – 2.0 m) with a steep dipping and E-W orientation, containing Cu-Zn-Pb-Au-Ag
  • The veins are frequently identified within the areas and zones of sericite alterations and disseminated mineralization (up to 10 – 25m wide)
  • Ore mineralization is mainly represented by sphalerite, pyrite, chalcopyrite, galena and bornite

Resource Potential

  • Since 1H 2016, Polymetal and Chaarat have drilled ~150km, identifying an additional resources of over 600 koz AuEq (5.3 g/t AuEq)
  • Future resource expansion opportunities associated with flanks and deeper horizons of the Kapan deposit
  • Eastern flank has been identified as the most prospective area with estimated additional resources of ~120 koz AuEq which will be investigated further in 2020

Kapan Upside Potential

East Flank Extension

  • Management has identified a new area adjacent to our mine reviewing the historical database (62 holes, 22km of drilling)
  • The East Flank requires further definition, a new decline and further mining & milling equipment to increase throughput
  • Initial timeline to implementation is approx. 2 years subject to funding and capex refinement
East Flank could increase Kapan throughput and performance from H2 2020

Operation Layout

Mining, Mining Equipment and Processing

Underground Mine
  • Mechanised underground mine with capacity of 700 ktpa
  • Sub-level open stoping
  • Access via two decline ramps with crosscuts developed from each decline, intersecting the veins at roughly 90 degrees
Processing Plant
  • Crushing and grinding followed by conventional flotation producing copper and zinc concentrates
  • Recently renovated milling and flotation circuits with capacity of 2,100 tpd (750 ktpa) and 2,300 tpd, respectively
  • Access via two decline ramps with crosscuts developed from each decline, intersecting the veins at roughly 90 degrees
Key Mining Equipment


Transport route

  • Copper concentrate, shipped in bulk bags, is transported by truck to Poti port in Georgia
  • Zinc concentrates follow the same route, but are shipped in bulk
  • Automobile and sea transport is operational all year round