Tipped to fly 2011!
Now here’s an interesting gold play that has been and is about to set the world on fire.
I draw the Blogospheres attention to Chaarat Gold who are Developing a new Gold province in the Kyrgyz Republic.
I’ve been waiting and watching now for several months until the rumoured placing was announced as to see just what price it would come in at there was talk many moons ago that it could be 60p this was when Chaarat was trading in excess of 70p. It’s a good job that I held off from writing the article as the placing price was 50p.
If you take a long hard look at the company you’ll find that they are rather more than a punt.
The Company are in the process of a huge development known as the Kiziltash and Tulkubash projects situated within the Tien Shan Mountains of Kyrgyzstan,part of the Tien Shan gold belt. The Company has already ” delineated a JORC compliant mineral resource of 4.406 Moz at a grade of 4.2 g/t gold across both deposits. The Company is currently in the process of compiling a Pre-Feasibility study on the Kiziltash(Underground) project and a Definitive Feasibility Study on the Tulkubash project (Open Pit) mining begins here in 2011. Chaarat’s objective is to become a low-cost gold producer targeting production of over 200,000 ounces per annum by early 2014. With production beginning at Tulkubash in early 2012.
Now The Tien Shan gold belt is a globally recognised prolific region which extends across Central Asia from Uzbekistan in the west to China in the east, Tien Shan has known deposits including Muruntau (175 million oz), Daugyztau (18 million oz), Zarmitian (11 million oz) and Kumtor (18 million oz).
Chaarat do have a whole host of other assets/Licences but for the sake of not boring you with reams of technical data on each and every asset I’ll stick to these two major assets.
To recap
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Licence covering a “Gold Province” in Western Kyrgyz Republic –only partially explored
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4 Million JORC ounces delineated in last resource statement March 2010
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Update in early 2011 will increase the resource –promising results recently published
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Ore bodies are open along strike and down dip with many more targets undrilled
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Pre-feasibility in progress –funded to completion
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Multi project company –moving beyond gold
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We are moving to development and gold production in 2012
They do have many institutions on Board and a friend of mine who works at Cazenove is very bullish on the stock and has been wittering on about them since they were 15p. Cazenove are also invested for approx’ 7% (give or take a few points).
Chaarat have Three MAIN Targets and the whisper is that the JORC could double. Work to date has focused on the southern half of the Chaarat Target area.
They are set to fly this year as the funding issue has now been completed. On full production of over 200,000 ounces per annum and with an almost certain raising of the current JORC in place they will fly! Set a target of 200p for 2011. With more project potential from Chaarats’ portfolio of additional assets. Once production begins here you are looking at £10+ per share Minimum. They are an investment not a day trade stock. Please research them!
Viva!
Daniel
£10! slightly getting ahead of yourself there Dan.
Even if we’re naive and say no more dilution until 200k oz production on cash costs of say $600, gold price $1300
200,000oz x $700 = $140million/£88million
5 times Cashflow is quite rich for a company operating in one of the stans, just look at Oxus, but go with that. (theres always a chance of a government asset grab in the stans)
Thats a Market cap of £440million
To reach £10 they would have to have a market cap of £2.4 billion.
Sorry but thats pie in the sky stuff!
Well Mark, Chaarat are not Oxus. And the current gold price is in excess $1400 dollars and expected to rise dramatically. You’ve also failed to address that Chaarat are aiming for low cost production which will significantly increase revenue indeed the company are looking at production OVER 200k not 200k. I recall the same mis-givings on several other gold plays some years ago Peter Hambro mining now Petropavlovsk. They were trading at approx’ £2 they’re now in excess of £10 and have been as high as £13.
It’s merely opinion and we both are quite entitled to it.
Dan
Cheers Dan, took a small punt.
cheers dan, this was just about at my buy in price too and now you have tipped it, you could of waited till next week. aaarrrrhhhh lol.
does look a good company!
dont suppose you could do a wee update on gcm? its been a while
Fair comment Dan, as you say everyone is entitled to there view.
I do believe however that there’s no way on earth that Chaarat will be valued at over £2.4billion ‘ Once production begins here’ , so may be misleading to investors not having done proper research of the political and economic risks involved.
What do you think about Central Rand Gold Dan? They are pushing for a breakout soon, could be a defo multi-bagger.
Mark – If you want a Bargain look at MTA. Dan has kindly pointed them as his favourite share.
Dan – I have noticed plenty of rumours on these mta patch reefs that are cable of producing in excess of 3000bopd, PH has confirmed they exist somewhere on SOKO. I am surprised you have never picked up or mentioned it on your blog? its a vital part of the company going
Hi BMD,
Any update on SOLG? Things must be progressing, although floods could have slowed things in queensland
thanks
Yes – would be interested to hear your current views on this too Dan!
I to would much appreciate a write up/views on SOLG
Keep up the good work Dan!
Hi BMD
I’m amazed nobody has been talking about these –
2 blocks next door to Char & tower/arcadia blocks
(GBP) Global petroleum doing the the deal to buy
update due 16th march
Market Cap only £30m & has other interests and Cash in the bank of £16.5m + producing interests in the US & a few other interests
Feels like char did a year or two back
what to you think? Have you looked into?
Hi BMD,
Sorry for lots of questions..
How is the £1m challenge going
Be good to see a blue peter type totaliser type thing
GL anyway
I’m amazed nobody has been talking about these –
DDD group – 3D tech or GBP – oil or Char – oil namibia
GL
BMD,
Have you looked into Global Petroleum GBP ?
Next Char/Trp of namibia
I did invest in Global quite some time ago and also posted on them over a year ago sold up after and invested it in Encore etc last year.
Dan
Hi There Dan
I know you have branded central rand gold death by a thousand cuts before but I think it is really on the turnaround if you have a gander. They have a JORC of 35.7M gold resource with 9,000 ounces produced last year but more importantly new underground mining to bring the production figures up this year as well de risking taking place concerning the acid mine drainage issues. With gold prices looking to keep rising for the foreseeable future the future is bright the future is gold (you can use that one for CRND).
Morning Dan,
Keep up the great tips/posts, chaarat looks a bargain at the moment. Have you looked into any of the mines with rare earths etc like SRX Sierra Rutile?
They had a CPR released a week or so ago upgrading resources to 8 Billion USD from a previous 3 Billion USD, there was a broker target of 20p based on the 3 Billion USD. Another cracking rns was relseased on thursday and the sp has since climbed 60% over the last two days, with only 27.7% shares in issue available to pi’s and a current market cap of 137 million £ i would have thought it may be worth adding to your 100k to 1 million challenge pf.
Current trading range 28p previously traded at 85p 3 years ago, still plenty of great news left to come. Seems a no brainer however your opion greatly appreciated, will understand if you are too busy. Also an update of your 100k to 1 million challenge would be good to see also.
Jo
Morning Dan,
Keep up the great tips/posts, chaarat looks a bargain at the moment. Have you looked into any of the mines with rare earths etc like SRX Sierra Rutile?
They had a CPR released a week or so ago upgrading resources to 8 Billion USD from a previous 3 Billion USD, there was a broker target of 20p based on the 3 Billion USD. Another cracking rns was relseased on thursday and the sp has since climbed 60% over the last two days, with only 27.7% shares in issue available to pi’s and a current market cap of 137 million £ i would have thought it may be worth adding to your 100k to 1 million challenge pf. Current trading range 28p previously traded at 85p 3 years ago, still plenty of great news left to come. Seems a no brainer however your opion greatly appreciated, will understand if you are too busy. Also an update of your 100k to 1 million challenge would be good to see also.
Jo