The Sandalash License Area is a 604 square kilometre area which may best be described as a gold province.
The Sandalash Licence area occupies 604 square kilometres and forms an important gold province within the Tien Shan belt known for hosting several important gold deposits.
The licence area has extensive areas of gold mineralisation along 40 kilometres of strike.
The Sandalash license area map
The gold occurrences seem to converge in three main clusters or “Targets”; Chaarat , Minteke and Kashkasu.
A significant amount of work has been conducted on the Chaarat Project . The JORC resource delineated thus far is presented in table 1 below. The other two Projects have, however, have been worked on to date only by the Soviets, Apex and Newmont.
Chaarat Central Target Resource Calculation
Calculated by SRK South Africa report March 2009
At 3.0g/t Cut-off
The geologic setup of The License Area
Chaarat Gold Holdings, through its wholly owned Kyrgyz subsidiary, Chaarat Zaav CJSC (“Chaarat K”), is developing the Chaarat Gold Project located in western Kyrgyzstan. The project is situated within the Tien Shan gold belt, one of the most prolific gold producing areas in the world. The gold belt, which extends across Central Asia from Uzbekistan in the west to China in the east, hosts a number of large deposits including Muruntau (175 million oz), Daugyztau (18 million oz), Zarmitian (11 million oz) and Kumtor (18 million oz).
Chaarat Project Location in the Tien Shan Gold Belt
The Licence (Licence # Au 174-02)
In December 2002, the State Agency of Geology and Mineral Recourses (SAGMR) issued Chaarat Zaav with a two year licence to explore the licence area. In March 2005, Chaarat entered into a new licence agreement with SAGMR whereby the licence area was extended from 439km2 to the current 604.6km2. This agreement was valid until the end of 2008.
In July 2008 SAGMR extended the term of the Licence for a further two years from 1 January 2009 until 31 December 2010 by way of Licence Agreement No. 6. The Licence extension applies to the entire 604 km2 property.
Chaarat is entitled to apply for a further period of two years, which would extend the Licence until 10 December 2012, before the Company is obliged to apply for a mining Licence. The exploration licence grants Chaarat the exclusive right to explore the prospect area for gold and other metals until that time.