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Anglo Asian Mining PLC (ISE:AAZ)

Anglo Asian Mining PLC (ISE:AAZ)


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Anglo Asian Mining PLC RNS Release

H1 Geological Exploration Activities and Results


RNS Number : 8950A
Anglo Asian Mining PLC
17 September 2018
 

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

17 September 2018

Anglo Asian Mining plc

H1 2018 Geological Exploration Activities and Results

 

Anglo Asian Mining plc (the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide a summary of its geological exploration activities at the Company's Gedabek contract area ("Gedabek") and Ordubad contract area ("Ordubad") in the six months to 30 June 2018 ("H1 2018").  A detailed report of the Company's H1 2018 exploration work programmes and results can be found at http://www.angloasianmining.com/media/pdf/2018%20H1%20Exploration%20Activity%20and%20Results%2017.09.18.pdf and on the Company's website www.angloasianmining.com/operations/. 

 

Exploration programme highlights:

 

·     Confirmation of further mineable copper and gold ores in the currently producing Gedabek open pit - updated resource and reserve estimate classified and reported in accordance with the JORC Code to extend the mine life of the open pit will be published  by the end of September 2018

·     Increased confidence in the short to medium term production profile at the Gadir underground mine ("Gadir") following confirmation of continuation of the Gadir ore-body down-dip and potentially along strike

·     Significant gold grades of over three ounces per tonne (93 grammes per tonne) intersected in drilling and confirmed by underground tunneling at Gadir

·     Numerous areas of high grade mineralisation adjacent to the current Gadir operation identified - a resource and reserve estimate for Gadir is expected in Q4 2018

·     Additional mineralisation beneath the Gedabek open pit confirmed which will be the subject of further underground evaluation accessed by tunnels developed from the Gadir mine

·     Extensive alteration zones of porphyry style previously discovered at Ordubad with confirmation of copper and gold mineralisation, are the subject of an extensive geochemical sampling programme

 

Objectives of the exploration programme in H1 2018

 

The geological programme in H1 2018 formed part of an expanded rolling three-year exploration plan, and was designed to achieve the following main objectives:

 

·     To better establish the gold and copper-gold distribution of the Gedabek main open pit, with the aim of updating the resource and reserve estimate

·     To assess the extent of the mineralisation potential of the Gadir underground mine and confirm ongoing mineable potential through the publication of a resource and reserve estimate in accordance with the JORC Code by the end of 2018

·     To commence exploration of the mineral potential below the Gedabek main open pit from underground

·     To commence evaluation of the opportunity for copper development at Ordubad and improve the understanding of how deposits of the area link together according to ore genesis

·     To provide additional mineralisation to extend the current life of mine as the exploration findings underpins the opportunity of defining future mineable products

·     To identify potential new areas of mineralisation and drill targets with the potential to fast track towards production as a standalone mining operation

 

Overview of exploration activity in H1 2018

 

Extensive drilling and other exploration works were carried out at mine and near mine targets mainly at Gedabek as follows

·     42 surface core drill-holes completed totalling 8,505 metres

·     111 reverse circulation drill-holes completed totalling 6,087 metres

·     14 underground HQ/NQ size underground core drill-holes completed totalling 1,345 metres

·     An additional 58 underground BQ size underground core drill-holes totalling 1,399 metres and 5,618 metres of surface reverse circulation grade control drilling

 

The exploration results obtained provide a solid foundation for the previously announced 2018 geological programme.

 

Anglo Asian Director of Geology & Mining, Stephen Westhead, commented, "The Exploration Programme launched in March of this year set out with the clear aim of replacing mined ounces and extending the current mine life to a target of a 10-year minimum, increasing Anglo Asian's inventory of resources and also creating a pipeline of new areas ripe for exploitation, similar to the Ugur open pit mine which we advanced from discovery to first production in just 11 months.  I am delighted to report that this programme is now bearing fruit for Anglo Asian and we anticipate being in position to report updated resource and reserve estimates classified and reported in accordance with the JORC Code for both Gedabek and Gadir within the coming months - giving investors a tangible sense of the long-term potential for these highly profitable mining operations.  Together with the recently announced heli-borne aeromagnetic survey, which we hope will highlight forthcoming Resource ounces and future mining operations, we believe that the potential for our 300 square kilometre Gedabek contract area remains extremely exciting.

 

"In addition, our Ordubad contract area continues to provide significant upside potential for Anglo Asian and we are encouraged by the results derived from the geochemical sampling programme underway. 

 

"I am excited to build on the successes that we have had thus far in the programme, and convert these encouraging exploration results into resources, reserves and future mines in as short timeframe as possible."

 

Competent Person Statement

 

The information in the announcement that relates to exploration results is based on information compiled by Dr Stephen Westhead, who is a full-time employee of Anglo Asian Mining with the position of Director of Geology & Mining, who is a Fellow of The Geological Society of London, a Chartered Geologist, Fellow of the Society of Economic Geologists, Member of The Institute of Materials, Minerals and Mining and a Member of the Institute of Directors.

 

Stephen Westhead has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as a "competent person" as defined by the AIM rules.

 

Market Abuse Regulation (MAR) Disclosure

 

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

**ENDS**

 

For further information please visit www.angloasianmining.com or contact:

 

Reza Vaziri

Anglo Asian Mining plc

Tel: +994 12 596 3350

Bill Morgan

Anglo Asian Mining plc

Tel: +994 502 910 400

Stephen Westhead

Anglo Asian Mining plc

Tel: +994 502 916 894

Ewan Leggat

SP Angel Corporate Finance LLP

Nominated Adviser and Broker

Tel: +44 (0) 20 3470 0470

Soltan Tagiev

SP Angel Corporate Finance LLP

Nominated Adviser and Broker

Tel + 44 (0) 20 3470 0470

Susie Geliher

St Brides Partners Ltd

Tel: +44 (0) 20 7236 1177

Lottie Wadham

St Brides Partners Ltd

Tel: +44 (0) 20 7236 1177

 

Notes:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 square kilometre portfolio, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement modelled on the Azeri oil industry.

 

The Company's main operating location is the Gedabek contract area ("Gedabek") which is a 300 square kilometer area in the lower Caucasus mountains in western Azerbaijan. The Company developed Azerbaijan's first operating gold/copper/silver mine at Gedabek which commenced gold production in May 2009.  Mining at Gedabek was initially from its main open pit which is an open cast mine with a series of interconnected pits. The Company also operates the high grade Gadir underground mine which is co-located at the Gedabek site, In September 2017, production commenced at the Ugur open pit mine, a recently discovered gold ore deposit at Gedabek. The Company has a second underground mine, Gosha, which is 50 kilometres from Gedabek. Ore mined at Gosha is processed at Anglo Asian's Gedabek plant.

 

The Company produced 71,461 gold equivalent ounces ('GEOs') for the year ended 31 December 2017.  Gedabek is a polymetallic project which demonstrates a high copper content at the main open pit mine, and an oxide gold-rich zone at Ugur.  The Company therefore employs a series of flexible processing routes through which to optimise recoveries and efficiencies.  The Company produces gold doré through agitation and heap leaching operations, copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant and also a copper and precious metal concentrate from its flotation plant, which is processing tailings from the agitation leach plant. A second dedicated crusher line has recently been installed for the flotation plant to enable the flotation plant to operate independently of the agitation leaching plant.

 

Anglo Asian is also actively seeking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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