The Company’s near-term focus in Kyrgyz Republic is on the development of its Tulkubash open pit heap leach project. Tulkubash forms the stage 1 development within Chaarat’s mining licence ultimately leading to the development of the stage 2 Kyzyltash deposit.
Annual drilling programme and feasibility studies carried out over many years have revealed a simple open pit deposit with standard heap leach processing to generate significant cash flows for a fast payback of the USD 115m capital investment and providing cash flows to progress the Kyzyltash deposit to a construction decision. The Tulkubash JORC-compliant Mineral Resource consists of three pit areas, the main, mid and east pit with further satellite pits and significant further anomalies identified within the wider licence area.
Construction / Development
The Company’s near-term focus in Kyrgyz Republic is on the development of its Tulkubash open pit heap leach Project. The Project has been well drilled and advanced to bankable feasibility study level over the past years and received USD 50 million of investment to date. Early construction has started in 2019 and to date approximately 10% of the project is constructed with another two construction seasons required to get to first gold production. Further extensive drilling programmes will be carried out over the next years to enhance the mine life of the Tulkubash project with Inferred Resource conversion and further exploration in the 70% undrilled areas of the licence. Discovery costs per ounce and ounces discovered per meter drilled are encouraging and continue to validate the belief that Tulkubash will continue to grow into a robust long term gold deposit and is the beginning of an emerging new gold district. The Company continues with the construction and exploration work with full scale construction commencing with the closing of the project financing. The Project is fully permitted for construction and operation and has been developed in accordance with highest international environmental and social standards.
|Mine type||Oxide, Open Pit|
|Mine life||5 years|
|Annual production||95.2koz pa|
|Capital expenditure||115 USDm|
- Average gold production of 95,200 ounces per annum over an initial mine life of 5 years;
- All-in sustaining cost (AISC) of USD866 per ounce;
- Initial construction capital expenditures of USD 115 million required;
- Equity funding of USD 35 million secured;
- Project debt financing in finalisation;
|Au | Ag price (USD/oz)||1,450 | 17.5||1,700 | 22.0|
|Ave Project Cash Flow p.a.||44||55|
|LOM Project Cash Flow incl. CAPEX (USDm)||134||199|
Significant Potential for Mine Life Extension
2. BFS update expected in Q1 2021, numbers subject to change