Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) said it has completed a scoping study for the Zafar underground mine in Azerbaijan. Development work and the construction of two portals has also started.
The study included a review of geotechnical conditions, optimal mining methods and mine scheduling and design.
The company said the mine will be constructed using sub-level caving, supplemented by sub-level open stoping on the margins of the mineralised zone.
A primary haulage decline to access the orebody and a parallel ventilation decline are being constructed. The ventilation decline can be used as an escape way which reduces risk.
The Zafar mine has a resource of 28,000 tonnes of copper, 73,000 ounces of gold and 36,000 tonnes of zinc. The design is based on ore production of 700,000 tonnes per annum at a 0.5% copper equivalent cut-off grade.
"Completing the study provides confidence in our ability to profitably extract an initial two million tonnes of ore from the total 5.5mln tonnes as referenced in the JORC report,” said Anglo Asian vice-president Stephen Westhead in a statement.
“Once nearing the orebody, underground drilling will be conducted to further evaluate the growth potential of this copper-zinc deposit. The team look forward to updating the market on the developments at Zafar and its contribution to future production," he added.