Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) said it discovered a new sub-vertical gold vein, "Hasan", to the south of its main Gosha gold mine in Azerbaijan.
Bonanza grades of up to 229.5 grammes a tonne (g/t) of gold were encountered over 0.5 metres (m), with other significant drill intersections including 3.6m at 53.42 g/t and 10.0m at 23.24 g/t.
The AIM-listed company said the new vein can be easily accessed from existing underground mine workings.
An evaluation of the existing Vejnaly mine and plant, located in the restored contract area in Zangilan, is also progressing. Land mine clearance has been completed, allowing safe access to the site and the underground mine.
Anglo Asian said it expects to start production from the new gold vein at Gosha and the Vejnaly mine in the first half of this year.
"We are highly encouraged by the discovery of the promising Hasan vein, which looks to be an exciting addition to the Gosha mine,” said chief executive Reza Vaziri. “We are now planning the mining of the vein, whilst our ongoing assessment work at Vejnaly continues to progress.
"We continue to produce from our existing mines at Gedabek, and we look forward to providing an update on full-year production guidance once the assessments at Hasan and Vejnaly have been completed."
The company expects the existing Gedabek operations to produce between 54,000 and 58,000 gold equivalent ounces in 2022. Total output guidance for 2022 will be released later in the first half.