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.
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