Anglo Asian Mining PLC (ISE:AAZ)

Anglo Asian Mining PLC (ISE:AAZ)


Share Price
89.60 p
Change
1.6 (1.82 %)
Market Cap
£102.50 m
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Anglo Asian Mining PLC RNS Release

Airborne Geophysical Survey Across Gedabek


RNS Number : 9426H
Anglo Asian Mining PLC
21 November 2018
 

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

21 November 2018

 

Anglo Asian Mining plc

Airborne Geophysical Survey of Entire Gedabek Contract Area

 

Anglo Asian Mining plc (the "Company"), the AIM listed gold, copper and silver producer in Azerbaijan, which has recently paid its first dividend, is pleased to announce an update about the airborne geophysical survey (the "Survey") underway at the Company's 300 square kilometre Gedabek contract area in Azerbaijan ("Gedabek"). The aim of the Survey is to define new drill targets and identify new mineable deposits which may provide additional producing mines at Gedabek. The Survey, which is now approximately 77 per cent. complete, is being conducted by Geotech Limited ("Geotech"), one of the leading global airborne geophysical surveying companies.

 

Anglo Asian's Group Director of Geology and Mining, Stephen Westhead commented, "Whilst production has increased steadily from our established producing assets at Gedabek, it is important that we continue to extend our exploration to unlock the significant potential of the entire Gebabek area. The Survey is intended to identify new drill targets to add additional resources and reserves to the current mine schedule and to identify potential new standalone mines, similar to our Ugur mine, which we brought into production within 12 months of first discovery.

 

"We are aware of multiple additional gold and copper mineral occurrences at Gedabek and preliminary results from the area surveyed to date show both magnetic and electro-magnetic anomalies relating to geological entities at depth. These will be the focus of future ground-based follow-up work.

 

"The Ministry of Emergencies of the Republic of Azerbaijan are providing helicopter services and are working very well together with Geotech. This comprehensive survey of the entire Gedabek area is the first of its type to be carried out in Azerbaijan. It is a significant milestone in developing Gedabek's potential and I look forward to reporting the findings of the Survey in the first quarter of 2019."

 

Airborne geophysical survey of Gedabek

A heli-borne electromagnetic and magnetic survey is underway to cover the entire Gedabek area.  The Survey utilises the Z-Axis Tipper Electromagnetic system ("ZTEM") and a high sensitivity magnetometer.  The ZTEM system is an innovative, airborne electromagnetic surveying system using the natural magnetic field of the Earth.  The system is an excellent mapper of surface geology and is deeply penetrating and well suited to rugged topography. This method is especially suitable for porphyry copper-gold and epithermal copper-gold-silver exploration.  The commencement of the Survey was initially delayed by four weeks due to logistical issues and the on-site flight schedule has been intermittently interrupted by 13 days due to bad weather. However, a total of 2,590 linear kilometres have now been flown of the total planned 3,385 linear kilometres.

 

The Survey will provide data with regards to geophysical anomalies arising from mineral trends and occurrences and geological structure. These will be analysed and prospective targets identified. The geophysical "signatures" of known deposits including the Gedabek open pit, Gadir underground mine and Ugur open pit will assist in identifying targets. Potential targets will be followed up with ground-based geophysical investigative techniques including geological mapping, geochemical surveys and drilling. It is anticipated data from the Survey will be interpreted and targets defined during Q1 2019.

 

Gedabek

Anglo Asian Mining currently mines gold and copper from two open pit mines and one underground mine within the 300 square kilometre Gedabek contract area.  Gedabek hosts many targets of different styles of mineralisation which are being assessed in order to prioritise future exploration programmes.  The dominant style is epithermal high sulphidation and low sulphidation mineralisation but previous drilling has also indicated porphyry style mineralisation. Evaluation of these opportunities will help determine the long-term sustainability of Gedabek.

 

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

Gaby Jenner

St Brides Partners Ltd

Tel: +44 (0) 20 7236 1177

 

About Anglo Asian Mining plc

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in South West 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 methods through which to optimise efficient metal recovery including leaching and flotation. The Company produces gold doré by agitation and heap leaching and copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant. A second dedicated crusher for its flotation plant has recently commenced operation and the flotation plant is now producing a copper and precious metal concentrate from copper rich ores.

 

The Group has a target production for the full year to 31 December 2018 of between 78,000 and 84,000 gold equivalent ounces. It recently paid its first dividend of US$0.03 per Ordinary Share on 8 November 2018.

 

Anglo Asian is also actively seeking to acquire further mining and potential mining properties in Azerbaijan and elsewhere to fulfill 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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