The acquisition of the Kapan Mine, in the Republic of Armenia, is a key milestone in the Company’s development, turning Chaarat from developer to producer in a single step.
It has been achieved under the stewardship of a new CEO and senior management team, supported by an augmented Board.
Production at the Kapan Mine commenced in 2003 and the current reserve life extends to 2023; however, the Company believes that conversion of current inferred resources to reserves and new exploration success is likely to extend the mine life. Indeed, the Company’s internal modelling assumes production will continue until 2029.
For the year ended December 2017, the Kapan Mine produced around 50 Koz of gold equivalent, generating a PBT of US$2.155 million, and had gross assets of US$95.445 million. Meanwhile, 2019 production guidance is currently 65 Koz of gold equivalent (based on Chaarat management’s analysis).
Chaarat is currently planning several near term actions for the Kapan Mine, prioritising efficiency and production discipline. By maintaining a focus on active engagement with host communities, the Company believes that the benefits of this strategy will flow to all stakeholders, helping to manage ongoing risks.