Proactive Investors - Run By Investors For Investors

Anglo Asian says new oxide zone deeper than thought

Early results from a core drilling programme have indicated the depth of the oxide is 60 metres
Picture of gold bars
Oxide zone goes down to 60 metres

Anglo Asian Mining Plc’s (LON:AAZ) newly discovered oxide zone, Ugur, within its Gedabek licence area in western Azerbaijan, is deeper than originally thought.

Early results from a core drilling programme have indicated the depth of the oxide is 60m with significant expansion potential.

Six core drill holes have been completed totalling 1,221 metres and will continue based on a 40-metre grid system to allow for resource and reserve estimation.

Stephen Westhead, Anglo Asian’s director of geology, added:  "With core drilling results having determined a significant oxide zone containing gold, it is planned to continue core drilling on a grid in the central area to allow for three-dimensional modelling for resource and reserve estimation of this exciting prospect.

“In conjunction with this, we will also drill the flanks of the area targeted by surface alteration mapping to expand the gold potential.”

 Reza Vaziri, chief executive, added Ugur was only three kilometres from its processing facilities at the main Gedabek site, highlighting the clear strategic value of developing this deposit. 

Shore Capital noted that all of the early shallow drilling had been carried out utilising just one drill bit, which suggests the oxide material at Ugur is comparatively soft and not abrasive.

"That should mean minimal blasting and high comminution productivity. Preliminary bottle roll test work results yielded an average gold recovery of 87% with “low” cyanide consumption."

Shares dropped 11% to 20.38p.

--update for broker comment and share price --



View full AAZ profile View Profile

Anglo Asian Mining Plc Timeline

Related Articles

picture of mine interior
July 20 2017
Caledonia retains operational control of Blanket and ownership of 49% of the mine in Zimbabwe
May 31 2017
Eastmain is steaming ahead with exploration at the James Bay area
Canadian flag
July 27 2017
This will be very easy to fast-track, because we’ve done all the work we need to move forward for the nickel lease

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use