Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) said it has completed a preliminary maiden resource estimate for the Gilar deposit in Azerbaijan, which contains over 135,000 ounces of gold, 21,500 tonnes of copper, and 23,000 tonnes of zinc.
The resource estimate was compiled by an independent consultant and is based on stage one drilling. It is not, at this stage, JORC compliant.
Separately, a location for the portal has been established in order to enable tunnelling to commence. Preliminary earthworks for portal construction are underway.
"As an initial resource estimate that is likely to be increased with further drilling, Gilar has the potential to provide significant gold and copper mineralisation from underground production,” said Stephen Westhead, vice-president of Anglo Asian, in a statement.
“This will prove critical as we bridge the gap between declining grades at Gedabek and our larger, new concessions entering production in the medium-term. Given the considerable depth of the mineralisation, an underground tunnel will be constructed for further drilling," he added.
Gilar is a mineral occurrence located in the Gedabek contract area, approximately seven kilometres from the company's processing facilities. The area hosts two styles of mineralisation, gold in quartz veins and hydrothermal gold-copper.