Chaarat Gold Holdings Ltd.'s updated bankable feasibility study for its Tulkubash oxide gold project, part of its namesake property in Kyrgyzstan, increased the ore reserve by 39%.

The feasibility study estimated a reserve of 22.2 million tonnes at an average grade of 0.92 g/t of gold over a 5.3-year initial mine life.

The posttax net present value, discounted at 5%, stands at US$70 million, with a 20% internal rate of return.

Capital expenditure was reduced to US$110 million from US$132 million in the April 2018 feasibility study, according to a June 4 release.

Average gold production from the project is expected at 94,000 ounces per annum, with peak annual production of over 111,000 ounces during steady-state operations.

Chaarat CEO Artem Volynets said the company will immediately advance project development. A drilling program this year is expected to further increase the mine life.