Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) said it has significantly increased the resource estimate at its Gilar deposit in Azerbaijan.
Gilar is now reckoned to contain over 249,000 ounces of gold, 46,000 tonnes of copper, and 48,000 tonnes of zinc.
Further encouraging drill results have increased the size of the deposit and provide additional confidence regarding the mineralisation, the company said.
The latest drill results help underpin the decision to start the construction of an underground tunnel at Gilar for exploration and production, it added.
"Gilar is a significant gold and copper project,” said Stephen Westhead, vice-president of Anglo Asian in a statement.
“Its lower zone has the potential to supply high-grade ore at a throughput of about 700,000 tonnes per annum for over three years to the agitation leach plant. This will enable the evaluation of the remaining resources and expansion of the mineral resource estimate. The company is very excited that Gilar can extend production at the current Gedabek processing facilities until Xarxar and Garadag are brought into production," he added.
The increase in resources follows the drilling of an additional 13 holes since the last estimate.