Chaarat Gold Ltd. (LON:CGH) has said it is maintaining its current production guidance in an update on the current situation in Armenia, where it has an operating mine.
The AIM-quoted gold miner, which also has assets at various stages of development in the Kyrgyz Republic, noted that, on November 9, 2020, a peace deal brokered by Russia was agreed between Azerbaijan and Armenia in relation to the Nagorno-Karabakh region.
Russia has deployed resources to keep the peace in the region with an initial period of five years and a potential extension for another five years, it added.
The company said the operational impact to it has been limited and management has successfully focused on higher-grade areas and treating additional third-party ore purchases.
Additionally, transport routes and concentrate shipments have seen minimal impact from the conflict, it noted.
As a result, Chaarat said it is maintaining its annual production guidance of 55,000 gold equivalent ounces from its Kapan operation.
In a statement, Artem Volynets, Chaarat chief executive officer, commented: “Chaarat proactively managed the situation in the previous months and was able to balance production allowing us to maintain our annual guidance. The outstanding efforts of our employees were critical in keeping our operations as stable and successful as they have been to date.”