TIDMAAZ
RNS Number : 9991R
Anglo Asian Mining PLC
16 December 2016
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
16 December 2016
Anglo Asian Mining plc
Significant oxide zone drilled at newly discovered Ugur
deposit
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 update for its new gold
discovery, "Ugur", within its Gedabek licence area in western
Azerbaijan ("Gedabek Licence").
Highlights
-- Phase II drilling programme commenced in October 2016 to
expand the potential resource at the Gedabek Licence - provides
significant potential upside to the Company's future gold
production
-- Additional 35 reverse circulation drill holes completed since
previous update - 1,842 metres of reverse circulation drilling now
completed
-- Core drilling commenced with six drill holes completed totalling 1,221 metres
-- Initial Phase II core drilling programme has now confirmed an
oxide zone to depth of about 60 metres
-- Core drilling on-going based on a 40-metre grid system to
allow for resource and reserve estimation
-- Detailed geological structural and alteration mapping has
started and an additional 240 metres of trenching completed
-- Significant upside potential from results of alteration
mapping - core drilling of flanks of main zone planned
Anglo Asian CEO, Reza Vaziri, said "These encouraging results
from the newly discovered Ugur deposit enhance our understanding of
the deposit and show that the oxide zone extends deeper than
initially determined by previous drilling. Ugur is only three
kilometres from our processing facilities at our main Gedabek site,
highlighting the clear strategic value of developing this deposit.
Work will continue to expand the potential resource of this new
discovery. I look forward to updating shareholders on our progress
as we work towards further enhancing our already profitable
operation at Gedabek through the mining of multiple zones of
mineralisation."
Anglo Asian Group Director of Geology, Stephen Westhead, said
"With core drilling results having determined a significant oxide
zone containing gold, it is planned to continue core drilling on a
grid in the central area to allow for three-dimensional modelling
for resource and reserve estimation of this exciting prospect. In
conjunction with this, we will also drill the flanks of the area
targeted by surface alteration mapping to expand the gold
potential. We look forward to continuing to evaluate this deposit
with a view to adding gold reserves in advance of mining as we aim
to enhance our entire production profile for the Gedabek
Licence."
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 on-going 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 geological mapping. An
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).
Detailed drill hole results
A total of 55 vertical reverse circulation ("RC") drill holes
totalling 1,842 metres and six core drill holes totalling 1,221
metres have now been drilled at Ugur from which assay results have
been subsequently obtained. The area covered by RC drilling is 600
metres (east-north-east) by 200 metres (north-north-west) within
the alteration area, while a central mineralised zone of 225 metres
(east-north-east) by 130 metres (north-north-west) has been defined
with six core drill holes completed in this area.
The Company reported the significant results of RC drilling from
the first twenty RC drill holes in its release of 17 October 2016.
Subsequent to that release, a further 35 RC drill holes have been
completed. Six of the RC drill holes contained significant
mineralisation above the cut-off grade of 0.3 grammes per
tonne.
The results of the six RC drill holes which contained
significant mineralisation and the core drill holes one to six are
set out in the tables 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
significant results for copper.
Additional Reverse Circulation drill holes since 17 October 2016
release (drill holes 21 to 55)*
Depth of drill hole Grade
-------------------------------- ---------------
From To Total Gold Silver
interval
Drill-hole (metres) (metres) (metres) (g/t) (g/t)
------------ --------- --------- ---------- ------ -------
UGRC21 0.0 8.0 8.0 0.20 1.38
------------ --------- --------- ---------- ------ -------
UGRC24 5.0 23.0 18.0 0.19 1.19
------------ --------- --------- ---------- ------ -------
UGRC24 23.0 27.0 4.0 0.34 0.75
------------ --------- --------- ---------- ------ -------
UGRC24 27.0 34.0 7.0 0.16 0.75
------------ --------- --------- ---------- ------ -------
UGRC25 1.0 4.0 3.0 0.34 1.54
------------ --------- --------- ---------- ------ -------
UGRC25 4.0 12.0 8.0 0.18 0.86
------------ --------- --------- ---------- ------ -------
UGRC25 12.0 19.0 7.0 0.41 1.51
------------ --------- --------- ---------- ------ -------
UGRC25A 12.0 14.0 2.0 0.36 0.86
------------ --------- --------- ---------- ------ -------
UGRC25A 14.0 19.0 5.0 0.12 0.91
------------ --------- --------- ---------- ------ -------
UGRC25A 19.0 24.0 5.0 0.30 1.26
------------ --------- --------- ---------- ------ -------
UGRC28 1.0 4.0 3.0 0.31 2.69
------------ --------- --------- ---------- ------ -------
UGRC29 2.0 3.0 1.0 1.14 1.76
------------ --------- --------- ---------- ------ -------
UGRC40 3.0 9.0 6.0 0.32 2.64
------------ --------- --------- ---------- ------ -------
* The above results are for only those 6 drill holes which
showed mineralisation above the cut-off grade of 0.3 grammes per
tonne.
Core drill holes (drill holes 1 to 6)
Depth of drill hole Grade
-------------------------------- ---------------
From To Total Gold Silver
interval
Drill-hole (metres) (metres) (metres) (g/t) (g/t)
------------ --------- --------- ---------- ------ -------
UGDD1 4.0 63.2 59.2 2.02 6.03
------------ --------- --------- ---------- ------ -------
UGDD1 63.2 76.2 13.0 0.20 1.80
------------ --------- --------- ---------- ------ -------
UGDD2 3.0 64.5 61.5 3.36 12.13
------------ --------- --------- ---------- ------ -------
Including:
------------ --------- --------- ---------- ------ -------
UGDD2 3.0 17.0 14.0 8.00 17.09
------------ --------- --------- ---------- ------ -------
UGDD2 17.0 35.4 18.4 1.32 16.62
------------ --------- --------- ---------- ------ -------
UGDD2 35.4 46.0 10.6 4.26 7.88
------------ --------- --------- ---------- ------ -------
UGDD2 46.0 64.5 18.5 1.46 4.43
------------ --------- --------- ---------- ------ -------
UGDD3 0.0 35.0 35.0 1.08 10.05
------------ --------- --------- ---------- ------ -------
UGDD4 8.0 51.5 43.5 1.82 4.94
------------ --------- --------- ---------- ------ -------
Including:
------------ --------- --------- ---------- ------ -------
UGDD4 24.0 28.7 4.7 9.07 12.90
------------ --------- --------- ---------- ------ -------
UGDD5 0.0 28.0 28.0 0.25 1.64
------------ --------- --------- ---------- ------ -------
UGDD6 18.0 59.6 41.6 0.49 1.06
------------ --------- --------- ---------- ------ -------
UGDD6 73.4 87.3 13.9 0.79 1.17
------------ --------- --------- ---------- ------ -------
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 has provided further drill
targets. The Phase II core drilling programme designed on a grid
for resource estimation will continue over the winter.
Installation of six primary topographic base stations that tie
into the Gedabek mine grid system to allow for determining the
coordinate of the drill collar locations have been completed. A
topographical survey of the area is planned which is required for
exploration planning, resource estimation and reserve
calculation.
The 29 RC drill holes, completed since the last release and not
reported above, had results to a depth of 34 metres which were
either barren or only showed mineralisation below the 0.3 grammes
per tonne cut-off grade. They were located in an area of about 250
metres by 70 metres extending west-south-west from the main central
mineralised zone. It is planned to test this area by core drilling
to deeper levels to ascertain its mineralisation.
All RC drilling at Ugur was carried out utilising only one drill
bit, indicating the oxide material is comparatively soft and is not
abrasive. This suggests that the material would require minimal
blasting for extraction, and comminution productivity should be
high. Preliminary bottle roll test work results yielded an average
recovery of gold of 87 per cent. with low cyanide consumption. The
full metallurgical properties of the deposit will be assessed in
due course.
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 Anglo Asian, 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 for Companies. Stephen Westhead
has reviewed the exploration results included in this
announcement.
**ENDS**
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
END
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