LONDON (ShareCast) - (Sharecast News) - Mining company Chaarat Gold announced the completion of the first phase metallurgical test programme on its Kyzyltash gold project on Tuesday.
The AIM-traded firm said the work showed similar first-stage recoveries from both pressure oxidation and Albion technologies.

It said the Albion process uses ultra-fine grinding followed by aerated cyanide leaching to extract gold, while POX uses high-pressure and temperature conditions to oxidise refractory sulphides prior to gold extraction by conventional carbon-in-leach technology.

Bio-oxidation test work was ongoing, with those results expected in the third quarter.

Chaarat said the test work would be analysed in an economic trade-off study comparing the potential processing technologies applicable to the ore with the aim of making a final decision in 2023.

Following that, Chaarat said it would aim to progress towards an updated feasibility study on the Kyzyltash project.

Looking at the study, the company said SGS Lakefield performed flotation and oxidative treatment tests on the representative samples of the 2021 Kyzyltash drilling programme, with the ore shown to be amenable to froth flotation, recovering 87% to 90% of gold, with a 23% to 24% mass pull.

Leach recovery for both Albion and POX averaged 80% to 90%, with similar results between the two processes.

Looking ahead, the board said further investigation and variability testing would be performed on all processing options to confirm the first stage results.

Final test results would be used to conduct an economic trade-off study to determine the preferred processing option.

That study would include an assessment on flotation and full ore processing options, before proceeding with other workstreams required towards an updated feasibility study.

"The development of the Kyzyltash project is continuing as planned," said chief executive officer Mike Fraser.

"These first results of the Kyzyltash metallurgical test work have provided confirmation that the gold is favourably recoverable with various technologies.

"The fact that the results from the Albion process were similar to POX is very encouraging, as Albion could potentially offer a substantially simpler, lower cost means of processing Kyzyltash ore."

Fraser said further testwork to confirm the preferred processing route would enable Chaarat to proceed with an updated feasibility study, with the aim of "unlocking" the significant future value that the project could bring to shareholders.

"Moreover, there exist significant synergies between Kyzyltash and the construction-ready Tulkubash open pit oxide leach project which lies in the same licence area and has already proved its merits on a standalone basis.

"On a combined basis these two projects have the potential to develop into a significant long-life gold producing hub with the potential for further exploration upside."

At 1046 BST, shares in Chaarat Gold Holdings were down 1.72% at 11.99p.

Reporting by Josh White at Sharecast.com.

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