Chaarat Gold Holdings Ltd (LON:CGH) expects to continue operating in the Kyrgyz Republic without hindrance, saying a press report in the country may have mistakenly interpreted a minister’s comments as suggesting that mineral deposits will be nationalised. The group noted a media article published by 24.kg news agency in Bishkek that reports comments made by the Kyrgyzstan Minister of Natural Resources concerning the development of large mineral deposits in Kyrgyzstan. The board's understanding of the background to the media article is that the minister's comments were made during a committee meeting concerning which Kyrgyz government body should govern, approve and benefit from the development of mineral deposits in the country, it said in a statement. It is the board's view that the minister's comments have been mistakenly translated and/or misinterpreted and that any changes contemplated should not have any impact on Chaarat's operations. Chaarat said it is not aware of any intention from any Kyrgyz authority to nationalise assets in the country; indeed recent contact between Chaarat personnel and the authorities in Kyrgyzstan indicate that the situation is unchanged. Only two weeks ago the company was granted permits on its Tulkubash property by the Ministry of Natural Resources. “It is the view of the board that the comments made by the minister have been misunderstood and that no changes to the legal status of the Chaarat property are currently contemplated.” The group’s flagship project is split between two distinct areas, the Tulkubash open-pit project and the Kiziltash underground mine project. The company is fast-tracking Tulkubash, while it continues with the feasibility studies for the larger underground project. Chaarat has delineated a JORC compliant mineral resource of 4.406 million ounces of gold at a grade of 4.20 grammes per tonne across both projects. Chaarat's key objective is to become a low cost gold producer; with initial production from the Tulkubash project, targeting annual production of over 200,000 ounces per annum as the Kiziltash project comes on stream. The group also recently announced the maiden resource estimate at its 100 percent owned Chontash project in Kyrgyzstan, which was acquired in July 2010, showing high grade molybdenum and good copper and gold credits. The Chontash project is located in the Akshirak range of mountains, which extend along the edge of the main fault in the region - the Talas Fergana. The range hosts a number of mineral deposits, the best known of which is the Makmal deposit from which almost 1.5 million ounces of gold have been extracted. The Makmal mine is currently being brought back into production.

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