TIDMAAZ
RNS Number : 8078D
Anglo Asian Mining PLC
24 February 2020
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
24 February 2020
Anglo Asian Mining plc
Overall Progress of Exploration Programme
Planned Exploration Work for 2020
Anglo Asian Mining PLC ("AAM" or the "Company"), the AIM listed
gold, copper and silver producer focused in Azerbaijan, is pleased
to provide a summary of the overall progress of its exploration
programme. The Company also provides details of its planned
exploration in 2020 at its Contract Areas ("CA").
Highlights
Gedabek
-- Work defining further mineable lateral and down-dip
mineralisation at Gadir is ongoing and showing good results
-- The tunnel development towards the mineralisation target
below the Gedabek open pit is advancing at a good pace
o The tunnel will be extended to enable the construction of
drill chambers to test the down-dip extensions
o The very important milestone of extending the tunnel from Pit
four to Pit six to be achieved in 2020
-- Publication planned of new Resource and Reserves statements for Gedabek open pit in 2020
-- Follow-up geophysics planned on the exciting copper
mineralisation intersections adjacent to the Ugur deposit
-- Ground-based geophysics at Avshancli to be carried out to
target drilling for resource estimation
-- Further exploration at mineralisation occurrences at Söyüdlü,
Maarif and Bittibulag in 2020
Gosha
-- Recent early stage exploration of Gosha fully supports the case for further exploration
-- Further work planned in 2020
o Drill programme for Asrikchay as well as reinterpretation of
electrical geophysics to target polymetallic mineralisation
o Investigation of subsurface potential beneath Gosha
o Surface core drilling to test targets outside of 'Zone 5'
--
Ordubad
-- Work at Ordubad is extremely encouraging with significant
grades intersected at both Dirnis and Keleki
o Further surface geological mapping, trenching and sampling
focused around Aylis, Dirnis, Keleki and Urchurdag planned
-- Future drill locations to be determined through geological
modelling and mineral targeting with the aim to prioritise
locations for resource drilling
-- Preparation of a new geological map for the Ordubad CA underway
-- Drilling planned between Shakardara and Piyazbashi, Aylis,
and copper targets near Dirnis, focusing on copper and gold
structural targets
Stephen Westhead, Director of Geology & Mining, commented:
"I am delighted to provide both an overview of the progress of our
exploration programme to date and the work planned for the rest of
this year. Overall, the work that has been carried out at our three
contract areas over the past year has been highly encouraging. In
2020, we will actively continue our exploration programmes to
capitalise on the significant potential upside which we believe
exists across our portfolio. We look forward to sharing with you
the results of our 2020 work programmes and are confident that we
will expand our resources and extend the footprint of our
operations."
Gedabek CA
Work defining the lateral and down-dip mineralisation at the
Gadir underground mine is ongoing and further mineable extensions
are being discovered. The tunnel development from Gadir towards the
target mineralisation below the Gedabek open pit is advancing at a
good pace. The tunnel is currently extended to about 120 metres
below the pit floor at the northern part of the Gedabek open pit
(Pit number four). Drill chambers to test the down-dip extensions
have also been constructed. The ventilation system is also in
place, which will allow underground drilling to commence once the
tunnelling work for the cross-cut tunnels and drill chambers is
complete.
It is planned that in 2020, a very important milestone in the
tunnel development of Gedabek underground will be achieved, namely,
the underground tunnelling will be extended from Pit four to Pit
six. This is the targeted area of mineralisation. As in previous
years, efforts will also continue to expand the reserve footprint
of current operations, with the planned publication in 2020 of an
update of the Gedabek open pit Resource and Reserves.
Exploration work continues in the vicinity of the Ugur mine. The
results of drill holes adjacent to the Ugur deposit are especially
exciting with intersections at 25 metres of nearly two per cent.
copper. This will be the focus of geophysical follow up in
2020.
Exploration within the wider region of the Gedabek CA continues
to find both gold and copper at near-surface. Work will continue at
the high-priority targets of Avshancli (including zones 1 to 3) and
Gilar. Avshancli covers a large area and both trenching and
drilling has identified zones of good to exceptional grade
mineralisation. It is intended to carry out ground-based geophysics
to further understand the 3D geometry and continuity of the system
to target drilling for resource estimation. A reinterpretation of
the aerial survey ('ZTEM') results is providing geological field
data to better correlate anomalies with actual sample data. This
work will be correlated with the WorldView-3(R) satellite images to
focus on areas that geologically can host mineralisation. The
Gedabek CA continues to show very high prospective mineralisation
to provide further resources to grow shareholder value.
Further exploration activity is planned during 2020 at other
known mineralisation occurrences, namely the gold potential at
Söyüdlü, the copper potential at Maarif and the copper and gold
potential at Bittibulag.
Gosha CA
The Gosha CA has regions showing several differing styles of
mineralisation, including vein gold and polymetallic mineralisation
as found at Asrikchay. A reinterpretation of the electrical
geophysics survey conducted at Asrikchay will be used for drill
hole positioning to target the polymetallic mineralisation.
Exploration of the Gosha CA is still at an early stage, but the
presence of a gold mine, surface gold mineralisation and
mineralised drill intersections all support the case for further
exploration and the potential for resource development.
Given the significant mineral potential of the Gosha CA, a
programme of work has been developed for 2020 to gain an
understanding of the subsurface beneath the existing Gosha mine and
to continue to expand exploration. Further work, predominantly
diamond drilling, is planned to explore other targets away from
'Zone 5' and an additional drill programme is also planned for
Asrikchay. Preliminary wireframing of the geology beneath Asrikchay
is ongoing and will be validated against the second phase of
drilling.
Ordubad CA
The data obtained from drilling in the Ordubad CA is extremely
encouraging. Significant grades have been intersected in both
Dirnis and Keleki. Geological modelling and mineral targeting of
the region is ongoing to identify drilling locations to test the
presence and extent of mineralising systems and associated features
such as lithocaps, with the aim to prioritise locations for
resource drilling. It is apparent that the copper and gold upside
potential is significant, and the geological team continue to
prioritise targets for resource evaluation to create shareholder
value.
A programme of work has been developed to further understand the
overall geological framework of the mineralisation genesis at
Ordubad and to begin to follow up on the previously reported
geology. Work continuing into 2020 includes further visits by
geologists from the Natural History Museum (London) following up
fieldwork to expand mapping, geochemical data interpretation, drill
core interpretation and additional sampling. The preparation of a
new geological map for the Ordubad CA is planned for Q1 2020 based
on WorldView-3(R) remote sensing satellite imagery, in-house
geochemical results and field mapping. Further trenching and
drilling will be carried out to validate the findings. The
acquisition of additional WorldView-3(R) remote sensing satellite
imagery will be considered covering areas where data were not
collected in the first acquisition.
Further surface geological mapping, trenching and sampling work
will be carried out around Aylis, Dirnis, Keleki and Urchurdag. In
2020, the Company plans 1,000 metres of trenching, 200 stream
sediment sampling points, 600 outcrop samples and 2,500
litho-geochemical analyses. A ground-based induced polarisation
("IP") geophysics survey is also planned to cover the highest
ranked target. A provisional total of 7,200 metres of drilling is
also scheduled for the area between Shakardara and Piyazbashi,
Aylis, and copper targets near Dirnis, focusing on copper and gold
structural targets. This drilling will be following up on the
exceptional gold grades returned by the 2019 drill programme. The
region around Dirnis also has significant copper potential with
malachite mineralisation extensive on surface. The recent discovery
of the Aylis gold veins is thought to be part of the same
mineralising "hub" demonstrating the extent of mineralisation and
the near surface proximity highlighting the open pit potential of
the area.
Extension of Current Mine Life
The Company is in a very strong position with significant
exploration upside at all three of its Contract Areas. The
exploration programmes are being designed to be rolled out to allow
time for "dovetailing" exploration results into resources and
ultimately reserves to extend the current life of mine. The Company
is confident that the resources will yield extensions of operations
to provide significant shareholder upside from the metal in the
ground being converted to revenue.
This work is being planned to optimise the life of mine for each
property within the current permitted activity timeline in the
Production Sharing Agreement ("PSA"). Assuming the two available
five-year extensions in the PSA are requested by AIMC for each
property, the permitted production periods are as follows:
Mine Year of submission Last year of permitted
of notice of discovery production
Gedabek 2008 2033
------------------------ -----------------------
Gadir 2012 2037
------------------------ -----------------------
Ugur 2016 2041
------------------------ -----------------------
Gosha 2012 2037
------------------------ -----------------------
Competent Person Statement
The information in the announcement that relates to exploration
results, minerals resources and ore reserves is based on
information compiled by Dr Stephen Westhead, who is a full-time
employee of Anglo Asian Mining with the position of Director of
Geology & Mining, who is a Fellow of The Geological Society of
London, a Chartered Geologist, Fellow of the Society of Economic
Geologists, Member of The Institute of Materials, Minerals and
Mining and a Member of the Institute of Directors.
Stephen Westhead has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Stephen Westhead consents to the inclusion in the
announcement of the matters based on his information in the form
and context in which it appears.
Stephen Westhead has sufficient experience, relevant to the
style of mineralisation and type of deposit under consideration and
to the activity that he is undertaking, to qualify as a "competent
person" as defined by the AIM rules. Stephen Westhead has reviewed
the resources and reserves included in this announcement.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
**ENDS**
For further information please visit www.angloasianmining.com or
contact:
Reza Vaziri Anglo Asian Mining plc Tel: +994 12 596 3350
Bill Morgan Anglo Asian Mining plc Tel: +994 502 910 400
------------------------------ ----------------------
Stephen Westhead Anglo Asian Mining plc Tel: +994 502 916 894
------------------------------ ----------------------
Ewan Leggat SP Angel Corporate Finance Tel: +44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
------------------------------ ----------------------
Soltan Tagiev SP Angel Corporate Finance Tel + 44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
------------------------------ ----------------------
Camilla Horsfall Blytheweigh Financial Tel: + 44(0) 20 7138
3224
------------------------------ ----------------------
Megan Ray Blytheweigh Financial Tel: + 44(0) 20 7138
3224
------------------------------ ----------------------
Notes:
Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver
producer in Central Asia with a broad portfolio of production and
exploration assets in Azerbaijan. The Company has a 1,962 square
kilometre portfolio, assembled from analysis of historic Soviet
geological data and held under a Production Sharing Agreement
modelled on the Azeri oil industry.
The Company's main operating location is the Gedabek contract
area ("Gedabek") which is a 300 square kilometre area in the Lesser
Caucasus mountains in western Azerbaijan. The Company developed
Azerbaijan's first operating gold/copper/silver mine at Gedabek
which commenced gold production in May 2009. Mining at Gedabek was
initially from its main open pit which is an open cast mine with a
series of interconnected pits. The Company also operates the high
grade Gadir underground mine which is co-located at the Gedabek
site. In September 2017, production commenced at the Ugur open pit
mine, a recently discovered gold ore deposit at Gedabek. The
Company has a second underground mine, Gosha, which is 50
kilometres from Gedabek. Ore mined at Gosha is processed at Anglo
Asian's Gedabek plant.
The Company produced 82,795 gold equivalent ounces ("GEOs") for
the year ended 31 December 2019 at budget metal prices. Gedabek is
a polymetallic ore deposit that has gold together with significant
concentrations of copper in the main open pit mine, and an oxide
gold-rich zone at Ugur. The Company therefore employs a series of
flexible processing routes to optimise metal recoveries and
efficiencies. The Company produces gold doré through agitation and
heap leaching operations, copper concentrate from its
Sulphidisation, Acidification, Recycling, and Thickening (SART)
plant and also a copper and precious metal concentrate from its
flotation plant.
Anglo Asian is also actively seeking to exploit its first mover
advantage in Azerbaijan to identify additional projects, as well as
looking for other properties in order to fulfil its expansion
ambitions and become a mid-tier gold and copper metal production
company.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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