appears to be simple and straight forward. a diode and a cap. So this would act as a switch?
That is the peak detector - diode, cap,resistor. It basically stores the value of the peak voltage from the CT load terminals and is constantly refreshed as the voltage varies. The peak value varies based on the current flowing thru the CT---lower current--lower voltage, visa versa. I haven't tried this circuit arrangement but seems you could connect the gate of a mosfet to the detector output and set the voltage to the gate "as a threshold value" to turn the mosfet on/off. The mosfet drain could then drive a relay.