-- adds share price, broker comments--
Anglo Asian (LON:AAZ) has had more indications that a potential high grade gold target lies just to the north of its Gedabek mine in Azerbaijan.
Anglo Asian announced last month it found the potentially very high grade zone 400m from the existing mine following an ongoing 3,000m drilling programme.
On Wednesday it said its latest completed drill hole, 107, had found even higher grades than the last with a bonanza grade of 207.1 grams per tonne (g/t) gold (6.66 ounces per tonne), 42.02 g/t silver (1.35 ounces), and 2.86% copper over 1m at a depth of 248m. The hole also showed 47.2 g/t (1.52 ounces) from 245m to 250m.
Anglo added that there were additional gold interceptions of 7 g/t Au from a depth of 277m to 283m, 10m of 3.04 g/t Au from 302m to 312m and 2m of 2.82 g/t Au from 325m to 327m.
Reza Vaziri, Anglo’s chief executive, said the results support the theory that Gedabek is part of a much larger mineralisation system.
“While the full extent of this discovery is unknown, an aggressive exploration programme in 2014 will determine how much additional resource will be available to extend the mine life at Gedabek.
"The apparent high grade nature of this significant new discovery would certainly enhance our ability to optimise the reprocessing of spent heap leach tailings through the AGL by blending."
Two additional drill holes planned in the next month while a geophysical programme is scheduled for the second quarter to identify drill hole targets over the 1,500m of potential extension to the east.
House broker SP Angel said that exploration results have so far demonstrated good intercepts, but more drilling is required to define the continuity of the mineralisation in order to consider the area for future mine expansion.
The depth of the mineralisation suggests the company might drive an adit into the side of the Gedabek hill to access this ore, it added.
“The high grade intersections suggest this area could provide high grade ore from underground mining for blending with run of mine ore from Gedabek to increase substantially the overall value of the mine.
“Further drilling should confirm the value and overall potential impact of ore from this area relatively quickly.”
Shares rose 3% to 22.7p.