TIDMAAZ
RNS Number : 3798E
Anglo Asian Mining PLC
08 May 2017
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
8 May 2017
Anglo Asian Mining plc
Ugur Gold Deposit Development & 2017 Strategy Update
Anglo Asian Mining plc ("Anglo Asian" or "the Company"), the AIM
listed gold, copper and silver producer, is pleased to announce the
completion of Phase II core drilling and additional development
progress at its "Ugur" gold deposit, located on the Company's
Gedabek licence area ("Gedabek Licence") in Western Azerbaijan,
ahead of targeted first mining in Q4 2017.
Overview
-- Considerable progress made at newly discovered Ugur gold
deposit ahead of intended first production in Q4 2017
-- Supports Anglo Asian's strategy to increase exploration
activities at its Gedabek Licence alongside continuing production
to optimise long-term profitable and sustainable production
-- Ugur production will contribute to Anglo Asian's total gold
equivalent target for 2017 of 64,000 to 72,000 ounces
Ugur Development Highlights
-- Phase II core drilling programme completed at end April 2017
to enable resource and reserve estimation in Q3 2017
-- Drilling expands the total resource potential at the Gedabek
Licence, providing significant potential upside to the Company's
future gold production
-- Independent quality assurance and quality control assaying of drill samples is underway
-- Independent geotechnical-hydrogeological study completed for open pit mine design
-- Further metallurgical test-work confirms the amenability of
gold ores to leaching (both agitation and heap leaching)
-- Haul road design finalised following completion of a detailed
topographic survey of the area between the Ugur gold deposit and
the Gedabek processing facilities
-- JORC reserve calculation and ore extraction plan targeted for completion in Q3 2017
-- Significant upside potential from results of alteration
mapping - core drilling of flanks of main zone planned
Anglo Asian CEO, Reza Vaziri, said "As a result of the
accelerated work programme conducted at Ugur over recent months, we
are on track to deliver a JORC reserve and ore extraction plan in
Q3 2017 - less than a year after the deposit's initial discovery.
As a production company with multiple mines, both open pit and
underground, the Ugur deposit will be an important new component of
our evolving production portfolio. During the remainder of 2017,
when production from stockpiles will play an important role in
contributing to our total gold equivalent target of 64,000 to
72,000 ounces, bringing Ugur into production will be a welcome new
development. It demonstrates the value we are creating due to our
increased emphasis on exploration to create future flexibility and
growth at our Gedabek Licence. We look forward to seeing the
results of our optimisation efforts in 2018 when full production
recommences at Gedabek."
Anglo Asian Group Director of Geology & Mining, Stephen
Westhead, said "The Ugur gold deposit significantly benefits Anglo
Asian in allowing for increasing future gold production. The
exploration and evaluation of this deposit forms part of the
on-going near mine exploration, assessment of extensions of
existing known zones, and future open pit and underground mine
optimisation. Production flexibility, expansion and opportunity are
resulting from this exciting phase that will provide a platform for
future growth."
Development of the Ugur Deposit Discovery
Anglo Asian's in-house exploration group defined from geological
mapping a new mineral occurrence in 2016 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.
55 vertical reverse circulation ("RC") drill holes totalling
1,842 metres and 39 core drill holes totalling 5,472 metres have
now been drilled at Ugur which has resulted in confirmation of an
oxide gold-rich zone to a depth varying between 50 to 60 metres.
The area covered by this drilling and proposed open pit outline is
350 metres (east-north-east) by 250 metres (north-north-west).
On receipt of the assays from the final four core drill holes, a
sectional resource and reserve estimate will be made by Anglo Asian
for the Azerbaijan Government. It is further planned for an
independent JORC resource estimate and reserve calculation to be
compiled which will be available in Q3 2017. Work towards providing
the required data for this evaluation includes:
-- On-going RC drilling to provide "infill" data of the core
drill data on a 20 metre grid for JORC estimates and preliminary
mine planning and scheduling. Five RC drill holes have been
completed and a further 25 drill holes with a total of 3,000 metres
are planned;
-- Independent check assaying of 515 samples and full
multi-element analysis are underway by external western
consultants;
-- Extensive specific gravity tests have been completed for ore tonnage calculations;
-- Independent environmental impact assessments have been
completed and hydrogeological baseline monitoring will be
established;
-- Independent geotechnical studies to assess rock mass strength
and structural geology relationships for mine design parameters is
complete;
-- Two geotechnical drill holes (76.5 metres and 163.75 metres
in length) from the position of the "ore" in the proposed open pit
area into the preliminary designed backwall have been completed and
geotechnically assessed;
-- Further independent rock strength tests are underway
following initial tests that resulted in good competency;
-- Infrastructure sites for soil storage area, waste dump and
equipment laydown and workshop areas have been delineated;
-- On completion of the resource drilling, condemnation drilling
over the proposed infrastructure area to confirm the absence of
mineralisation will be completed; and
-- Detailed topographic surveying of the proposed road position
between the Ugur deposit and plant is complete. This will allow for
finalising the road layout and design.
Results will be released on completion of the resource
estimation and reserve calculation.
Full results from the Ugur drilling programme are set out in
Appendix I below.
2017 Exploration & Production Optimisation
Anglo Asian is undertaking extensive exploration and production
optimisation during 2017 with the aim of creating future
flexibility and growth at its Gedabek Licence. This will be
achieved by utilising ore from the Company's extensive stockpiles
for processing to maintain production, so that certain mining
operations can be temporarily suspended to enable development
exploration, optimisation and redeployment of equipment to other
tasks. Mining in the Gedabek open pit will be reduced during May
2017 until the end of the year. Some of the heavy earthmoving
equipment will be redeployed for transporting stockpiled ore,
construction of the infrastructure and a new open pit mine at Ugur,
and raising the tailings dam wall.
Ore production has also been stopped from the Gadir underground
mine (from February 2017 until September 2017) to allow development
and exploration drilling. Any ore mined from Gadir during this
exploration development phase will be stockpiled for Q4 2017
production.
Based on successful process test work, process flexibility
between agitation leaching and flotation is possible, whereby the
Company can utilise flotation first followed by agitation leaching,
or vice versa. The benefits of the flotation-first configuration
are increased copper concentrate production, while saving costs by
removing the cyanide consuming copper before the leach circuit.
The production plan is to configure the plant to
flotation-leaching between February 2017 to August 2017, and then
revert to leaching-flotation from September 2017 to the end of
year. In the latter period, plant feed will be sourced from Gadir,
stockpiles, Ugur and Gosha (the Company's second underground mine,
which is 50 kilometres from Gedabek). Full production mining in the
Gedabek open pit is planned to resume at the beginning of 2018.
Total production target for FY 2017 expressed as gold equivalent
ounces is between 64,000 ounces and 72,000 ounces compared to FY
2016 actual total production of 72,304 gold equivalent ounces, thus
maintaining the Company's position as a gold and copper producing
company supported by mineral resource development and
exploration.
The strategic plan outlined above provides a unique opportunity
to enhance sustainable production for Anglo Asian:
-- Removal of stockpile inventory, providing space for future
stockpile management. This also allows for the reduction in mining,
thus providing opportunity for mine drilling and mine
development;
-- The development of the new Ugur open pit mine that Anglo
Asian will have brought into production in only 18 months from
discovery;
-- Ore body delineation in the open pit and Gadir underground mines;
-- Drilling of the Gedabek open pit area to target further
copper-gold mineralisation for future production;
-- Ore body delineation in the Gadir mine for future production;
-- Staff development in the use of advanced software for exploration and mine planning.
Production flexibility, expansion and further opportunities will
result from this exciting phase in the Company's development that
will provide a platform for future growth.
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 & Mining at the Anglo Asian Mining group,
who is a Fellow of The Geological Society of London, a Chartered
Geologist, Fellow of the Society of Economic Geologists 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.
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.
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
-------------------- ------------------- ------------------
Soltan Tagiev 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 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.
Gold production for the year ended 31 December 2016 from Gedabek
totaled 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.
APPIX
Further Information
Core drill holes (drill holes 7 to 33)
Depth of drill hole
------------ ------------------------------------------------ ----------------- -----------------
Drill-hole From (metres) To (metres) Interval (metres) Gold (g/t) Silver (g/t)
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD07 0.0 61.0 61.0 1.89 7.36
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD08 0.0 77.0 77.0 2.36 24.19
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD09 10.0 85.5 75.5 0.88 3.60
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD10 0.0 112.5 112.5 1.20 5.71
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD11 124.2 125.3 1.1 0.34 1.82
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD12 0.0 13.0 13.0 0.33 1.06
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD13 88.0 90.0 2.0 0.86 0.40
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD14 0.0 71.5 71.5 0.66 4.25
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD14 71.5 76.5 5.0 1.90 2.25
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD14 76.5 91.7 15.2 0.31 0.70
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD16 0.0 42.0 42.0 1.06 6.74
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD16 42.0 114.0 72.0 0.40 2.50
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD17 0.0 15.0 15.0 2.13 11.60
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD18 0.0 50.0 50.0 0.72 5.06
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD18 61.0 74.3 13.3 1.10 2.37
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD19 0.0 7.0 7.0 1.00 3.47
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD19 12.0 45.0 33.0 1.02 6.46
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD19 45.0 71.4 26.4 0.37 1.38
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD20 5.0 9.0 4.0 1.30 1.42
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD20 9.0 27.0 18.0 0.33 1.48
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD20 27.0 33.0 6.0 1.78 5.33
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD20 71.0 72.0 1.0 1.11 0.40
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD21 0.0 9.1 9.1 0.47 6.26
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD21 9.1 15.0 5.9 1.05 4.51
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD21 15.0 32.0 17.0 0.36 4.70
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD21 32.0 46.5 14.5 1.01 3.70
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD21 46.5 104.5 58.0 0.31 0.86
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD22 0.0 14.0 14.0 0.81 1.34
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD24 0.0 2.9 2.9 0.32 3.04
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD25 14.5 22.0 7.5 1.50 4.87
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD25 25.0 27.0 2.0 0.39 4.06
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD26 0.0 3.0 3.0 4.58 10.43
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD27 13.0 51.5 38.5 1.46 6.49
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD28 0.0 43.5 43.5 1.06 2.25
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD30 5.5 49.8 44.3 1.51 7.87
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD30 82.5 90.0 7.5 2.25 1.74
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD31 0.0 7.0 7.0 0.37 1.49
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD31 52.5 62.5 10.0 0.34 0.86
------------ -------------- ------------ ------------------ ----------------- -----------------
UGDD32 0.0 51.9 51.9 0.45 4.81
------------ -------------- ------------ ------------------ ----------------- -----------------
Note: awaiting assays for drill holes 34 to 39.
Reverse Circulation drill holes
Depth of drill hole
------------ -------------------- ------------ ------------------ ----------------- -----------------
Drill-hole From (metres) To (metres) Interval (metres) Gold (g/t) Silver (g/t)
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC01 0.0 6.0 6.0 no sample no sample
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC01 6.0 7.0 1.0 0.16 2.12
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC01 7.0 24.0 17.0 2.28 11.79
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC01 24.0 33.0 9.0 0.57 1.18
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC01 33.0 60.0 27.0 1.36 2.71
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC01 60.0 84.0 24.0 0.70 1.03
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC03 1.0 32.0 31.0 0.22 0.61
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC03 32.0 102.0 70.0 1.35 3.18
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC03 102.0 119.0 17.0 0.39 1.94
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC05 0.0 111.0 111.0 0.19 0.56
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC07 9.0 57.0 48.0 2.45 4.42
------------ -------------------- ------------ ------------------ ----------------- -----------------
RGRC07 57.0 113.0 56.0 0.33 1.49
------------ -------------------- ------------ ------------------ ----------------- -----------------
This information is provided by RNS
The company news service from the London Stock Exchange
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