The latest 48 diamond drill holes, 9,370m in total, boosted the measured and indicated mineral resource by 210,000 ounces from the last update in September to over 1.6 million ounces of gold, which was also 67% higher than the resource used in last year's feasibility study.

 

"There has been a 15% increase in metal within the same drilled strike length of 3,200m due to discovery of new mineralisation and extension of known gold lodes within the existing footprint," Chaarat said.

 

However, the average grade of the deposit fell 0.15g/t to 1.2 g/t gold, due to the inclusion of some lower grade resource in the northeast strike extension. 

 

"This decrease in grade is compensated by an increase in tonnage and continuity of mineralisation," the company said.

 

Since the last update in September, Chaarat has focused on infill drilling within the current strike length.

 

The company is aiming to improve the quality of the resource in terms of continuity and reserve conversion.

 

Chaarat said it was preparing an updated reserve estimate and financial model for Tulkubash based on the year-end resource model, with completion expected by the end of February.

 

Technical director and head of exploratiom Dorian Nicol said Chaarat believed Tulkubash was the beginning of an emerging new gold district. 

 

"The mineralisation remains open along strike and we have drilled only a small portion of the prospective 24km trend of favourable geology and surface gold occurrences," he said.

 

"The addition of new mineralisation and demonstration of continuity of mineralisation, as well as the updated metallurgical recovery model will be incorporated in the ongoing reserve and financial model updates."

 

Chaarat's shares closed 2.94% lower Wednesday at 26.4p (US33.15c).