TIDMAAZ
RNS Number : 6294U
Anglo Asian Mining PLC
26 October 2017
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
26 October 2017
Anglo Asian Mining plc
Exploration and Development Activity Update
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM
listed gold, copper and silver producer focused in Azerbaijan, is
pleased to announce an exploration and development update for its
Gedabek gold, copper and silver licence area ("Gedabek") in western
Azerbaijan, which includes its new open pit gold mine, "Ugur", the
Gedabek open pit mine and the Gadir underground mine ("Gadir"), in
addition to the Company's Ordubad contract licence area, located in
the Nakhichevan exclave of Azerbaijan.
Highlights
-- Exploration underway at newly producing Ugur open pit mine
with the objective of defining extensions of similar mineralisation
to increase resource inventory
-- On-going drilling programme at Gedabek open pit to evaluate
and optimise the mine plan ahead of recommencement of mining
activities in Q1 2018
-- Recommencement of Gadir underground mine following temporary
pause in mining ore since February 2017 to enable development and
exploration drilling:
o Drilling has confirmed that Gadir can recommence production in
Q4 2017
o Continuity of mineralisation demonstrated following evaluation
of further down dip potential
o First phase of the tunnel between Gadir and Gedabek
underground mineralisation completed with Gedabek style
mineralisation intersected - tunnel extension to continue into
2018
-- Low-cost exploration work successfully completed at Ordubad
contract licence with encouraging initial results confirming
presence of surface and underground gold and copper
mineralisation
-- Gedabek tailings dam wall raise to support planned expansion
now underway - wall is being raised to provide additional six
metres of vertical capacity in first phase and a further six metres
in second phase - scheduled for completion by the end of 2017
Anglo Asian CEO Reza Vaziri commented: "We have been extremely
busy on the ground in Azerbaijan in regards to exploration. We
recently reported increased production for quarter three of 2017
with the commencement of mining at Ugur. Having spent time in 2017
optimising the extraction of gold and gold-copper ores from the
Gedabek open pit, we now look forward to recommencing mining to
contribute to production in the first quarter of 2018 with the
enhanced knowledge of the mineralisation that these exploration
activities will provide. We are also increasing the capacity of our
tailings dam to support the expansion."
Further Information
Ugur Open Pit Mine
Quarter three of 2017 proved to be a significant milestone for
Anglo Asian with the commencement of open pit mining of the Ugur
gold deposit following completion of the JORC mineral resource and
ore reserve statements. Work at Ugur in Q3 2017 focused on
finalising the geological work for mine planning and project
construction. The geological team is now assessing the surrounding
area for extensions of the Ugur type of mineralisation, and has
taken 295 geochemical samples from surface. Due to the geological
activities to bring the Ugur deposit to reserve level with expanded
drill core and reverse circulation chip logging and sampling, work
on this deposit has utilised most of the resources of the Company's
exploration geological team in 2017.
Gedabek Open Pit
Certain mining operations have been temporarily suspended to
enable development exploration, optimisation and redeployment of
equipment to other tasks. Mining in the Gedabek open pit was
suspended in Q3 2017 to allow for continuation of the drilling
programme to evaluate and optimise the extraction of the gold and
gold-copper ores. Some of the heavy earthmoving equipment has been
redeployed for transporting stockpiled ore for production,
construction and implementation of the new open pit mine at Ugur,
and raising the tailings dam wall. Reverse circulation ("RC") and
core drilling ("DD") is ongoing at the Gedabek open pit. As at the
end of Q3 2017, 31 RC drill-holes with a total of 2,978 metres and
34 DD drill-holes with a total of 1,792 metres were completed.
Another 5,000 metres of drilling is planned for Q4 2017.
Gadir Underground Mine
As previously announced, ore production was temporarily stopped
from the Gadir underground mine in February 2017 to allow
development and exploration drilling. Production from Gadir
recommenced in September 2017. Underground development and
exploration activity until end Q3 2017 included 2,712 metres of
tunnelling that comprised spiral ramp development for production
preparation, exploration tunnels at Gadir, and an underground
tunnel from Gadir to the deep mineralisation at the northern end
below the Gedabek open pit. Drilling activity for ore extraction
planning comprised 48 DD drill-holes with a total of 1,311 metres
of BQ diameter, 36 DD drill-holes (HQ/NQ size core) with a total of
2,268 metres completed. 2,711 metres of sidewall has been
geologically mapped. This work confirms that Gadir can recommence
production in Q4 2017 and has provided over 3,250 assays.
Regarding surface extension drilling of the Gadir mine to
evaluate further down dip potential, nine core drill-holes
totalling 4,007 metres were completed. 2,150 samples have been
assayed which has provided results that demonstrate continuity of
mineralisation.
To complete the first phase of the tunnel between Gadir and the
Gedabek underground mineralisation, some 600 metres of tunnelling
has been completed that intersected Gedabek style mineralisation at
the end of the tunnel drive. It is further planned to extend this
tunnel along the Gedabek mineralisation beneath the backwall of the
open pit and to fan drill to assess the mining potential for a
Gedabek underground mine. This exploration work is planned for 2018
as underground mining equipment is now being utilised to mine ore
at Gadir. The mineralisation target is additional to the current
Gedabek open pit reserves.
Other Exploration
Within the Gedabek contract area, reconnaissance sampling of
surface outcrop has provided 34 samples with positive results for
gold and copper mineralisation at the "Soyudlu" area, some two
kilometres from the tailings dam facility. Follow-up geological
mapping, alteration mapping and area definition for drilling is
planned. This area was initially investigated as part of the
planning to situate future expansion of the tailings dam.
Due to the work required to bring Ugur into production, activity
at Bittibulag was suspended during 2017. Geological manpower was
diverted from Bittibulag to Ugur because Ugur is closer to the
Company's processing facilities and the geological uncertainty at
Bittibulag. Initial drilling in 2016 did confirm the presence of
mineralisation and surface geochemical sampling confirmed an
alteration area. However, the continuity of mineralisation was not
clearly defined due to structural deformation. It is planned in
2018 to further investigate Bittibulag with geophysical methods to
determine the geometry and extent of mineralisation to focus future
drilling.
The Gedabek contract area hosts many targets of different styles
of mineralisation, which are being assessed in order to prioritise
future exploration programmes. It is planned to prepare an annual
three year work programme to dovetail into the Company's gold and
copper production profile. This demonstrates the geological
opportunities available to the Company for further evaluation.
Further information regarding exploration programmes during 2018
and beyond will be announced by the end of Q4 2017.
Low cost exploration work also continued at the Ordubad contract
licence area in the Nakhchivan region of Azerbaijan. During Q3
2017, 750 metres of road cleaning was completed to reach
exploration adits and surface mineralisation at the Shakadara
deposit in order to verify the presence of mineralisation as
reported in Soviet reports. 604 linear metres of trenching was
completed from which 441 samples were collected. Initial results
confirm the presence of surface and underground mineralisation of
both gold and copper. It is planned to test similar style surface
gold-quartz mineralisation at the adjacent Keleki area. On
confirmation of this gold mineralisation, the Company will decide
on a strategy to fully assess these deposits along with the
Piazbashi and Agyurt deposit in the Ordubad area.
Tailings dam
To support the planned expansion resulting from the exploration
activities and other production increases as a result of the
strategic review earlier in 2017, the Company is also increasing
the capacity of its tailings dam to meet future requirements. The
work required consists of raising the existing tailings dam wall
using rock that is mined and hauled to the tailings dam. This work
is being carried out in two phases which in total will raise the
wall by an additional 12 metres. The volume of rock required of
phase I (a raise of 6 metres) is approximately 700,000 cubic
metres. This work is scheduled for completion in Q4 2017, after
which time the equipment currently being used will be redeployed to
Ugur mining activity, run-of-mine pad and stockpile management and
preparation of works to re-commence mining activities to the
Gedabek open pit. Work is also underway constructing a second
pipeline between the tailings dam and the Company's processing
facilities to facilitate planned expansion of the processing
facilities.
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.
*S**
For further information please visit www.angloasianmining.com or
contact:
Anglo Asian Mining Tel: +994 12 596
Reza Vaziri plc 3350
----------------- ------------------- ------------------
Anglo Asian Mining Tel: +994 502 910
Bill Morgan plc 400
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Anglo Asian Mining Tel: +994 502 916
Stephen Westhead plc 894
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Ewan Leggat SP Angel Corporate Tel: +44 (0) 20
Finance LLP 3470 0470
Nominated Adviser
and Broker
----------------- ------------------- ------------------
Soltan Tagiev SP Angel Corporate Tel + 44 (0) 20
Finance LLP 3470 0470
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Susie Geliher St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
----------------- ------------------- ------------------
Lottie Wadham St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
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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 developed Azerbaijan's first operating
gold/copper/silver mine, Gedabek, which commenced gold production
in May 2009. Gedabek 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. 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 has also started production in
September 2017 from its Ugur open pit mine, a recently discovered
gold ore deposit at Gedabek.
Gold production for the year ended 31 December 2016 from Gedabek
totalled 65,394 ounces with 1,941 tonnes of copper also produced.
Gedabek is a polymetallic deposit and its ore has a high copper
content, and as a result the Company produces copper concentrate
from its Sulphidisation, Acidification, Recycling, and Thickening
(SART) plant. Anglo Asian also produces a copper and precious metal
concentrate from its flotation plant, which is processing tailings
from the agitation leach 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 company news service from the London Stock Exchange
END
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