TIDMAAZ
RNS Number : 3760X
Anglo Asian Mining PLC
19 November 2014
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
19 November 2014
Anglo Asian Mining plc
Increase in JORC Ore Reserve at Gedabek mine in Azerbaijan
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM
listed gold, copper and silver producer, is pleased to announce a
JORC compliant ore reserve statement for its Gedabek
gold/copper/silver mine ("Gedabek") located in western Azerbaijan.
This ore reserve statement is based on the latest mineral resource
estimate announced in June 2014 following the completion of an
extensive drilling programme at Gedabek.
Overview
-- Total JORC ore reserve for the Gedabek open pit as of 1
September 2014 is 20.5 million tonnes of ore grading 1.03 grammes
per tonne of gold (682 thousand ounces), 0.50 per cent. copper (117
thousand tonnes); and 7.35 grammes per tonne of silver (4.84
million ounces)
-- The ore reserve estimate, when compared to the previous
estimate of May 2012 (20.3 million tonnes at 1.14 grammes per tonne
of gold, 9.46 grammes per tonne of silver and 0.29 per cent.
copper), indicates an increase of approximately 3.9 million tonnes
of ore, after allowing for mining depletion between 31 December
2011 and 1 September 2014
-- The ore reserve estimate is based on the latest resource
statement of May 2014 of 61.8 million tonnes of ore grading 0.73
grammes per tonne of gold (1.45 million ounces), 0.23 per cent.
copper (144 thousand tonnes); and 5.26 grammes per tonne of silver
(10.46 million ounces) in the Measured and Indicated categories
-- The contained copper in the ore reserve estimate has
increased by 96 per cent. to 117 thousand tonnes and the
recoverable copper increased by over 500 per cent. to 68 thousand
tonnes compared to 11 thousand tonnes in the May 2012 ore reserve
statement. This is a result of including ore with high copper
grades that can be economically recovered by flotation
-- The increase in recoverable copper is a result of the
Company's evolving strategy to turn Gedabek into a poly-metallic
mine by introducing a flotation plant to process sulphide ore with
a high copper content which is currently being mined
-- The ore reserve estimate does not include an estimated 70
thousand ounces of gold, which is either stacked in leach pads,
included in the Company's stockpiles or in circuit in the Company's
agitated leach plant
Anglo Asian CEO Reza Vaziri said, "We are delighted to announce
this ore reserve statement which shows an increase of approximately
3.9 million tonnes of ore, after allowing for depletion due to
mining. Significantly, the high copper content reflected in this
updated ore reserve statement reflects what we are seeing on the
ground at Gedabek. With an increase of over 500 per cent. in
recoverable copper by introducing flotation compared to the ore
reserve statement in 2012, it is clear that Gedabek is suited to
transition from a mine predominantly focused on gold production to
a poly-metallic mine producing gold, copper and silver.
"Whilst we are still focused on increasing the recovery of gold
where we have 682 thousand ounces in the ore reserves, we are
aiming to take advantage of the significant copper content we are
seeing at Gedabek. Consequently, as previously announced, we are in
the final stage of assessing the construction of a small scale
flotation plant suited to process this type of ore to produce a
copper and precious metals concentrate. I look forward to providing
further updates with regards to this in due course."
Further Information
CAE Mining was requested by Anglo Asian to estimate the ore
reserves for the existing open pit operation of the Gedabek mineral
deposit, located in western Azerbaijan. The resulting ore reserve
report is based on the latest resource statement of May 2014 of
61.8 million tonnes of ore grading 0.73 grammes per tonne of gold
(1,450,000 ounces), 0.23 per cent. copper (144,000 tonnes); and
5.26 grammes per tonne of silver (10,459,000 ounces) in the
Measured and Indicated categories.
This latest resource estimate ("table 1") was based on previous
exploration drilling campaigns (2006 to 2011), plus the most recent
drilling campaign (2011 to 2013), which included an additional 99
holes to give a total of 394 drillholes to date, giving a total of
61,715 meters drilled and 27,623 samples taken to date.
Table 1: Resource Estimate for Gedabek, May 2014 (0.3 grammes
per tonne gold cut-off grade)
Total Mineralisation Tonnes Gold Copper Silver
(g/t) (%) (g/t)
---------------------- ----------- ------- ------- -------
Measured 37,189,682 0.822 0.246 5.904
---------------------- ----------- ------- ------- -------
Indicated 24,606,093 0.591 0.213 4.298
---------------------- ----------- ------- ------- -------
Measured & Indicated 61,795,775 0.730 0.233 5.264
---------------------- ----------- ------- ------- -------
Inferred 9,444,918 0.967 0.135 4.739
---------------------- ----------- ------- ------- -------
It should be noted that the mineral resource statement includes
an area to the west of the open pit Gedabek called Gadir. This
inferred resource will be mined by underground methods, and has
been excluded when estimating the reserve base.
The ore reserve statement assumes a direct correlation between
Proven and Probable, and Measured and Indicated, and excludes
Inferred Resources. It is also assumed that all material types
(oxide, sulphide and transition) can be processed through a
combination of process routes that include the current heap leach
and agitation leach plants and a potential future flotation
plant.
A key difference between the resource and reserve estimate is
that, unlike the resource estimate the reserve is not based on a
fixed cut-off grade, instead the material is directed to the most
appropriate processing method according to the net smelter return
for the contained metals gold, copper and silver. For instance, for
flotation, the break even cut-off is primarily dependent on the
copper grade, and silver and gold are by-products in the
concentrate.
Table 2: Ore reserve estimate as at 1 September 2014
Ore Reserve
----------- -------------------------------------------------------------------------- -----------------------------
In Situ In Situ Grades Contained metal Recovered Metal
----------- ----------------------------- ------------------------------ -----------------------------
Reserve (tonnes) Au (g/t) Cu (%) (Ag g/t) Au (oz) Cu (t) Ag (g/t) Au (oz) Cu (t) Ag (g/t)
Category
----------- ----------- --------- ------- --------- -------- -------- ---------- -------- ------- ----------
Proven 16,733,000 1.12 0.61 7.63 600,000 102,000 4,105,000 447,000 58,000 1,492,000
----------- ----------- --------- ------- --------- -------- -------- ---------- -------- ------- ----------
Probable 3,761,000 0.68 0.40 6.12 82,000 15,000 740,000 58,000 10,000 298,000
----------- ----------- --------- ------- --------- -------- -------- ---------- -------- ------- ----------
Total 20,494,000 1.03 0.50 7.35 682,000 117,000 4,845,000 505,000 68,000 1,790,000
----------- ----------- --------- ------- --------- -------- -------- ---------- -------- ------- ----------
In addition to the ore reserve of 20.5 million tonnes, there is
also oxide/transition and sulphide material within the selected pit
limit that is classified as Inferred in the geological model. This
represents an additional Mineral Resource that can be investigated
in the future with further drilling.
The technical information contained in this announcement and the
ore reserves statement that relates to exploration results, mineral
resources or ore reserves is based on information compiled by Dr
Matthew Randall of CAE Mining. Dr Randall has sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking 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" and as a "qualified person" as defined
in the Guidance Note for Mining, Oil And Gas Companies, June 2009,
of the London Stock Exchange. Dr Randall has reviewed and approved
the technical information contained in this announcement and
consents to the inclusion of the ore reserves statement based on
his information in the form and context in which it appears.
To view the full ore reserves statement prepared by CAE Mining
please visit Anglo Asian's website www.angloasianmining.com and
click on the Gedabek operations page.
**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
-------------------- ------------------------------ ----------------------
Ewan Leggat SP Angel Corporate Finance Tel: +44 (0) 20 3463
LLP 2260
Nominated Adviser and Broker
-------------------- ------------------------------ ----------------------
Stuart Gledhill SP Angel Corporate Finance Tel + 44 (0) 20 3463
LLP 2260
-------------------- ------------------------------ ----------------------
Felicity Winkles St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
-------------------- ------------------------------ ----------------------
Lottie Brocklehurst St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
-------------------- ------------------------------ ----------------------
Notes:
Anglo Asian Mining plc (AIM:AAZ) is a gold producer in Central
Asia with a broad portfolio of production and exploration assets in
Azerbaijan. The Company has a 1,962 square kilometre prospective
exploration portfolio, assembled from analysis of historic Soviet
geological data and held under a Production Sharing Agreement based
on the Azeri oil industry. The Company developed Azerbaijan's first
operating gold/copper/silver mine, Gedabek, which commenced gold
production in May 2009. Gold production for the year ended 31
December 2013 from Gedabek totalled 52,068 ounces. The Company is
also developing a second resource area, Gosha, which is 50
kilometres from Gedabek. Gosha is being advanced with a view to
developing a high grade underground gold mine. Due to the proximity
of Gosha to Gedabek, gold ore produced at Gosha is processed at
Anglo Asian's Gedabek plant. In addition, Gedabek is a polymetalic
deposit and its ore has a high copper content, and as a result the
Company produces copper concentrate through its Sulphidisation,
Acidification, Recycling, and Thickening plant. Furthermore, it is
in the final stage of assessing the construction of a small scale,
low capital expenditure flotation plant to produce a copper and
precious metal concentrate. This will initially process ore from
its existing stockpiles of sulphide ore having a high copper
content.
Anglo Asian is also actively looking 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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