Chaarat Gold is planning to advance development works on its Tulkubash gold project in Kyrgyzstan in an attempt to begin production in 2019.
In its interim report for the six months ending 30 June, the company reported that the improving investment conditions in the country, combined with government support are positive signs to develop the project.
The development comes days after the company signed a licence agreement with the Kyrgyz Government, securing approval for the plan to take the first two stages of the Chaarat gold project into production.
The Chaarat gold project comprises three parallel mineralised zones, comprising the Contact Zone, the Main Zone and the Tulkubash Zone.
Chaarat Gold chairman Martin Andersson said: “I am delighted with the progress during the first six months of this year, and subsequently, and the diligent execution of our plans to take the Tulkubash heap leach project into production.
“Based on the progress we have achieved, including the positive drilling results and with all local permitting secured, the management team are now working on budgets, plans and timelines to accelerate construction ahead of securing the full construction financing.”
The company received approval for construction of the Tulkubash heap leach project.
In addition, it secured funding of $15m through the issue of convertible loan notes to finalise the Bankable Feasibility Study related to the Tulkubash project and begin preparations for its construction.
The company is planning to start detailed design of the mining, processing and infrastructure facilities.