In an operational sense, these first-half results from junior gold explorer Chaarat Gold (CGH) look fairly inconsequential. But they have given Chaarat's management an opportunity to talk about the immense potential at the company's eponymous gold project in Kyrgyzstan.
"The deposit is clearly an elephant," says chief executive Dekel Golan in the release. "Whilst I am not sure if we hold its tail or an ear we are far from having exposed its belly." Mr. Golan adds that, while "difficulties must always be expected in a young democracy such as the Kyrgyz Republic", the outstanding potential of the Chaarat deposit will enable the company to succeed. Chaarat is certainly slowly progressing its 5.59m ounce gold deposit toward production. Moreover, new mining legislation passed this summer will help remove the uncertainty surrounding development - although that involves substantially higher royalty costs. Nevertheless, earth is currently being moved, roads are being built and equipment orders have been placed.