Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) reported a lower resource estimate for its Zafar polymetallic deposit in western Azerbaijan, but said it was still on track to begin production in 2023.
Angled drill holes completed since the maiden resource estimate was published last August identified voids which resulted in a smaller resource, the AIM-traded company said.
The revised estimate gives an in-situ mineral resource of 28,000 tonnes of copper, 73,000 ounces of gold and 36,000 tonnes of zinc versus the maiden estimate of 51,000 tonnes of copper, 82,000 ounces of gold and 40,000 tonnes of zinc.
READ: Anglo Asian Mining encouraged by maiden mineral resource estimate at Zafar
On a positive note, the upper part of the resource is now defined as more massive and continuous which will result in more efficient and more economical mining, it said.
“While this final resource estimate is not as large as initially evaluated in our maiden JORC mineral resource, it is a considerable asset that adds significant value to our growing portfolio of resources,” said chief executive Reza Vaziri. “Preparations at the site continue at pace, and we are on track to begin production in 2023.”
The Zafar deposit is situated in the central region of the company's Gedabek contract area and is about 1.5 kilometres from the existing Gedabek processing facilities.
“The deposit can be broadly divided into an upper and lower section,” said vice-president Stephen Westhead.
“The upper portion contains the main mineralisation zone where continuity of mineralisation provides for a high confidence of estimation. The lower portion exhibits less continuity with mineralisation being less massive and more irregularly distributed.
“The lower portion will be subject to further evaluation drilling in the future from underground,” he said.
Anglo Asian said it was proceeding with an ore reserves estimate and mine planning.
The company has a number of production and exploration assets in Azerbaijan.
Earlier this month, it announced the discovery of a new sub-vertical gold vein, 'Hasan', to the south of its main Gosha gold mine in Azerbaijan.