Chaarat Gold Holdings Ltd (LON:CGH) have seen their annual production rise in an update on Wednesday afternoon.
Chaarat is a gold mining company which owns the Kapan operating mine in Armenia as well as Tulkubash and Kyzyltash Gold Projects in the Kyrgyz Republic.
The gold miner noted that annual production had increased at its Kapan mine in Armenia – which shareholders should be impressed with in a highly saturated market.
In addition to this, the Chaarat also reported that reserves had risen at the Tulkubash project in Kyrgyz Republic.
The firm noted “The objective of the drilling programme was to test targets northeast of the prior Resource boundary, enhance the project economics by adding ore to the previously defined pits, and to increase understanding of prospectivity of the wider licence area.”
Looking at gold production figures, the firm noted that gold equivalent output had increased at the Kapan project by 60,252 ounces in 2019 from 56,424 in 2018.
Sales also surged by 8.5%, from 50,915 ounces to 55,255 ounce – Chaarat added.
Going forward, Chaarat have forecasted gold equivalent production of 55,000 ounces in 2020. Notably, this would see an 8.7% dip year on year, however the firm has remained confident in delivering these expectations.
At the Tulkubash gold project, proven and probable reserves were boosted by 14% to 25 million tonnes from 22 million tonnes, following a drilling programme.
Artem Volynets, Chief Executive Officer, commented:
“I’m pleased to report the results of the 2019 drilling programme at our Tulkubash gold project in the Kyrgyz Republic. The drilling programme followed the announcement of the 2019 Feasibility Study and has delivered a 14% increase in the ore reserve statement to 749koz at a higher grade of 0.95g/t, adding even more years of life to what was already an economically robust project, while also improving our understanding of this exciting asset. The next phase of the work programme is focused on further developing the mine plan within the next couple of months. First production is still expected in late 2021.”
Shares in Chaarat Gold Holdings Ltd trade at 35p (-0.56%). 19/2/20 14:45BST.