TIDMAAZ
RNS Number : 6202M
Anglo Asian Mining PLC
17 October 2016
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
17 October 2016
Anglo Asian Mining plc
New Gold Discovery at its Gedabek Licence Area
Anglo Asian Mining plc ("Anglo Asian" or "the Company"), the AIM
listed gold, copper and silver producer focused in Azerbaijan, is
pleased to announce a new gold discovery, "Ugur", within its
Gedabek licence area in western Azerbaijan ("Gedabek Licence").
This is in line with the Company's strategy to continue to expand
the potential resource at the Gedabek Licence. Ugur provides
significant potential upside to the Company's future gold
production.
Highlights
-- Gold exploration target discovered 3 kilometres north-west of
the Company's agitation leaching plant and heap leach facilities at
its Gedabek Licence
-- Positive assay results returned from chip samples and reverse circulation drilling
o All drill holes ended in oxide mineralisation
o Preliminary testwork results yielded an average recovery of
gold of 87 per cent. suggesting the oxide zone is amenable to
leaching
-- Initial Phase II core drilling programme has commenced to
determine overall depth and style of mineralisation with a view to
increase resources
-- Detailed geological structural and alteration mapping has
started and additional trenching is also planned before the end of
2016
-- Significant upside potential as target has only been
partially drilled and initial field mapping suggests that the area
is open along strike
-- Additional exploration target defined in the expanded Ugur area
o Based on similar alteration and geomorphological position to
the Ugur deposit located approximately 1,500 metres south of the
current Ugur drilling area
o Further evaluation planed as part of the 2017 field work
programme
Anglo Asian CEO, Reza Vaziri, said, "In line with our strategy
to increase our gold production, we are constantly evaluating the
upside surrounding our producing mines and the discovery of the
Ugur deposit has the potential to add significantly to our gold
resources and reserves and hence our future production at Gedabek.
Having recently returned to profitability, and following the
completion of several operational initiatives to improve
efficiencies and lower costs at Gedabek, I believe Anglo Asian is
now well positioned to expand its mineable reserves which will lay
the foundations for long term and sustainable production from
multiple deposits at Gedabek. This is an exciting time for the
Company and I look forward to updating shareholders on our progress
as we look to unlock the potential from this new target and
increase value for our shareholders in the process."
Anglo Asian Group Director of Geology, Stephen Westhead, said
"This prospect is very exciting given its close proximity to the
Gedabek processing facilities and the initial positive drill and
metallurgical testwork results. We look forward to continuing
exploration work with a view to enlarging our gold and copper
resources and reserves for extending or increasing mine
production".
Background
Anglo Asian's in-house exploration group has defined a new
mineral occurrence named "Ugur" (meaning "good luck" or "success"
in the Azeri language) located three kilometres north-west from its
agitation leaching plant and heap leach facilities at its Gedabek
Licence. This was defined as part of the ongoing exploration
programme to assess alteration zones and geological structures
along strike from its Gedabek mine. As previously reported, this
programme is designed to expand the Gedabek gold and copper
resource.
The Ugur deposit area was defined from mapping and is a
significant surface alteration rock assemblage with the presence of
barite, barite-haematite, and limonite in gossan-style zones along
with vuggy silica in brecciated volcanic rocks. These findings were
established by 500 chip samples taken from outcrop, many of which
contained gold. This alteration zone extends over an area of 1,000
metres (east-north-east by west-south-west) by 500 metres
(north-west by south-east) and has been initially explored via five
excavator trenches to a depth of 1.5 metres over a total length of
210 metres. This yielded good assay results for gold (zone
thicknesses between 5 to 10 metres contain gold with ranges 0.3 to
2.0 grammes per tonne and silver between 1.0 to 15.0 grammes per
tonne).
Detailed drill-hole results
20 vertical reverse circulation ("RC") holes totalling 360
metres were drilled at Ugur from which assay results were
subsequently obtained. The initial area covered by this RC drilling
is 350 metres (east-north-east by west-south-west) by 180 metres
(north by south) within the alteration area. Significant results
are set out in the table below. These intersections (above 0.3
grammes per tonne) are all located in the oxide zone commencing
from surface (unless otherwise stated). The assays returned no
results for copper.
Drillhole Intersection
Gold grade in grammes per tonne - (g/t)
---------- ------------------------------------------
UGRC 3 34 metres at 0.39 g/t (including 13
metres at 0.83 g/t from 13 metres depth)
---------- ------------------------------------------
UGRC 4 27 metres at 1.82 g/t (starting 3 metres
from surface*)
---------- ------------------------------------------
UGRC 5 13 metres at 1.00 g/t
---------- ------------------------------------------
UGRC 7 24 metres at 0.39 g/t (starting 11 metres
from surface*)
---------- ------------------------------------------
UGRC 10 29 metres at 1.31 g/t (starting 5 metres
from surface*)
---------- ------------------------------------------
UGRC 11 34 metres at 1.23 g/t
---------- ------------------------------------------
UGRC 12 34 metres at 0.65 g/t
---------- ------------------------------------------
UGRC 13 34 metres at 1.11 g/t
---------- ------------------------------------------
UGRC 14 34 metres at 5.45 g/t
---------- ------------------------------------------
UGRC 15 34 metres at 0.58 g/t
---------- ------------------------------------------
UGRC 16 19 metres at 1.68 g/t
---------- ------------------------------------------
UGRC 18 28 metres at 1.42 (starting 6 metres
from surface*) including 8 metres at
2.83 g/t from 6 metres depth
---------- ------------------------------------------
UGRC 20 30 metres at 1.11 g/t (including 8 metres
at 1.74 g/t from 10 metres depth)
---------- ------------------------------------------
* sample not taken from surface due to clay soil layer.
All drillholes ended in oxide mineralisation. Preliminary bottle
roll testwork results yielded an average recovery of gold of 87 per
cent., suggesting the oxide zone is amenable to leaching.
Summary and future evaluation
These drill results continue to expand the resource potential at
the Gedabek Licence, and the Company is encouraged by the positive
findings at the Ugur deposit. The area has only partially been
drilled and initial field mapping suggests that the area is open
along strike. Further detailed geological structural and alteration
mapping has started and additional trenching is also planned this
year. An initial Phase II core drilling programme designed on a
grid for resource estimation has commenced, and will establish the
overall depth and style of mineralisation.
A further geological exploration target has been defined in the
expanded Ugur area based on similar alteration and geomorphological
position to the Ugur deposit that is located about 1,500 metres to
the south of the current Ugur RC drilling area. This will be
further evaluated as part of the 2017 programme of field work.
Competent Person Statement
The information in the announcement that relates to exploration
results is based on information compiled by Dr Stephen Westhead,
Director of Geology at the Anglo Asian Mining group, who is a
Fellow of The Geological Society of London, a Chartered Geologist
and a Member of The Institute of Materials, Minerals and
Mining.
Stephen Westhead 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 qualified
person as defined by the AIM rules. Stephen Westhead has reviewed
the exploration results included in 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
-------------------- ------------------- ------------------
Anglo Asian Mining Tel: +994 502 916
Stephen Westhead plc 894
-------------------- ------------------- ------------------
Ewan Leggat SP Angel Corporate Tel: +44 (0) 20
Finance LLP 3470 0470
Nominated Adviser
and Broker
-------------------- ------------------- ------------------
Laura Harrison SP Angel Corporate Tel + 44 (0) 20
Finance LLP 3470 0470
-------------------- ------------------- ------------------
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
-------------------- ------------------- ------------------
Susie Geliher St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
-------------------- ------------------- ------------------
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 mines high grade ore from the
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.
Gold production for the year ended 31 December 2015 from Gedabek
totalled 72,032 ounces with 969 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 commenced production in
the last quarter of 2015. This is initially 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
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