Chaarat Gold Holdings has received a mining permit for its Tulkubash licence area from the Kyrgyz Government.
The company raised the funds for the project in March 2011 and is now in negotiations with the Government for a long term agreement.
Chaarat Gold Holdings CEO Dekel Golan said, "We are delighted to report on the award of the mining permit for the Tulkubash Project, which marks the achievement of another significant milestone in our progress towards production in 2013."
The Tulkubash Project forms the first part of the Chaarat Project, which is situated within the Middle Tien Shan Mountains.
An earlier Joint Ore Reserves Committee compliant mineral resource estimate at the Chaarat Gold Project delineated 5.59 million ounces at a grade of 4.08g/t gold.
Chaarat’s key objective is to become a low cost gold producer with initial production from the Tulkubash Project, targeting increased combined annual production of over 200,000 ounces as the full project comes on stream.