TIDMAAZ
RNS Number : 4693H
Anglo Asian Mining PLC
13 March 2018
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
13 March 2018
Anglo Asian Mining plc
Geological exploration programme for 2018
Launch of wide ranging geological exploration and evaluation
programme to both extend current mine life and increase
production
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM
listed gold, copper and silver producer focused in Azerbaijan, is
pleased to announce its geological exploration and evaluation
programme for 2018.
Note that all references to "$" are to United States
dollars.
Overview
-- 2018 to be the first year of a three-year rolling programme
of geological exploration of near mine, brownfield and greenfield
areas with the objective of:
o replacing mined ounces
o extending the current mine life to a 10-year minimum
o increasing the Company's inventory of resources
o discovering new mineral deposits similar to the Ugur open pit
mine ("Ugur") which have the potential to be quickly developed into
operating mines
-- The programme will build on the results of the 2017
geological work and comprehensively cover the Company's three
operating contract areas:
o Gedabek gold, copper and silver contract area ("Gedabek") in
western Azerbaijan which is the location of the Gedabek and Ugur
mines and the Gadir underground mine ("Gadir");
o Gosha contract area ("Gosha") which is located 50 kilometres
from Gedabek; and
o Ordubad contract area ("Ordubad") which is located in
Nakhichevan, South West Azerbaijan
-- A total of around 43,500 metres of surface and underground drilling is planned
-- One reverse circulation and two core drill rigs to be purchased as part of the programme
-- Airborne geophysics programme planned for the entire Gedabek contract area
-- Database management and modelling will continue to meet
requirements for JORC resource and reserve statements
-- Expected cost of programme in 2018 to be approximately $6
million which will be funded from internal cash flow
Anglo Asian CEO Reza Vaziri commented, "I am very pleased to
announce this programme of geological exploration of our three
operating contract areas. This will build upon the success of the
previous few years during which time we discovered the Ugur and
Gadir deposits. In addition to demonstrating that our exploration
can produce results, we have importantly shown that we can quickly
produce value from any new discoveries as exemplified by Ugur,
which we brought into production in less than 12 months from
discovery.
"I look forward to updating our shareholders during the year on
the results of the programme."
Anglo Asian Group Director of Geology & Mining Stephen
Westhead commented, "I am very excited to be able to roll out this
programme of geological exploration and mineral deposit evaluation.
In addition to an extensive drilling programme, we will carry out
an airborne geophysical survey over the entire Gedabek contract
area and also investigate the potential of Gosha and Ordubad. The
purchase of three drill rigs will also significantly add to the
Company's ability to carry out in-house exploration.
"There are numerous known mineral occurrences at Gedabek and our
existing mines have further development potential. We have also
made significant finds of commercially exploitable minerals in the
previous few years. Taken together, this leads us to believe this
programme has the potential to significantly add value to your
company especially given our proven ability to convert mineral
exploration results into resources and reserves and fast track mine
construction."
Details
Overview of exploration programme
The geological programme is designed to extensively explore
Gedabek through a three-year rolling programme. In addition, work
will be carried out at Gosha and Ordubad to further evaluate their
potential.
Geological evaluation at Gedabek will be undertaken using
various methods. Core and reverse circulation drilling will be
carried out at, and near to, existing mines. Geological field
mapping and sampling and trenching will also be carried out at more
prospective areas. A heli-borne electromagnetic survey will be
completed covering the entire Gedabek site. In 2018, it is
anticipated that around 12,000 metres of reverse circulation,
17,500 metres of surface core and 14,000 metres of underground core
drilling will be carried out.
Extensive use will be made of the Datamine suite of geological
software tools to carry out this programme. These will be operated
by Anglo Asian employees, following appropriate training, in
conjunction with staff from Datamine International.
The work programme for 2018 is based on the extensive
exploration work that was carried out during 2017, a period when
the new Ugur mine was being built and production from the main
Gedabek open pit and the Gadir underground mine was temporarily
halted.
Main exploration activities at Gedabek
Gedabek main open pit
2,500 metres of core and 7,500 metres of reverse circulation
drilling are planned for 2018. The main purpose is to identify the
quantity and quality of the feedstock for the processing
plants.
Gedabek underground
During 2017, a tunnel was constructed from Gadir to the
mineralisation below pit 4 of the Gedabek main open pit.
Mineralisation was intersected during the tunnelling and drill
holes of BQ size were drilled at the end of the tunnel to determine
the presence of mineralisation under the main pit. The results were
positive and confirmed the down dip continuity of mineralisation
from the Gedabek main open pit.
Given the mineralisation intersected, in 2018 it is planned to
extend the tunnel beneath the "backwall" of the Gedabek main open
pit to Pit 6 and to exit via a spiral ramp into the vicinity of Pit
1. Cross-cut tunnels will then be driven through the mineral zones
to allow for the construction of drilling chambers. Fan drilling by
underground core drilling will then be carried out to assess the
quantity and quality of mineralisation. A total of approximately
5,750 metres of underground core drilling is planned.
Gadir
Both surface and underground drilling are planned. 7,500 metres
of core surface drilling is planned in 2018 for both Gadir itself
and between Gadir and the main open pit. The objective is to
further define the footprint geology of Gadir and assess the
geological relationship between Gadir and Gedabek mineralisation.
6,000 metres of underground core drilling (HQ/NQ size) and 2,400
metres of underground core drilling (BQ size) is also planned. The
main purpose of the drilling is to provide geological data for the
evaluation of the continuity of mineralisation and for planning in
advance of mining.
Ugur
4,500 metres of core and 4,500 metres of reverse circulation
drilling are planned for 2018. Targets to be assessed are
extensions to the known mineralisation and drilling areas adjacent
to the current mining area. Field mapping and geochemical surveying
will also be conducted.
Airborne geophysical survey of Gedabek
A heli-borne electromagnetic survey will be carried out over the
entire Gedabek contract area in 2018. The survey will employ the
Z-Axis Tipper Electromagnetic system (ZTEM). This is an innovative
airborne electromagnetic surveying system which uses the natural
magnetic field of the Earth. The system is an excellent mapper of
surface geology and is deeply penetrating and well suited to rugged
topography. This method is especially suitable for porphyry
copper-gold and epithermal copper-gold-silver exploration.
The airborne survey will provide data about geophysical
anomalies arising from mineral trends and occurrences. These will
be analysed and prospective targets will be identified. The
geophysical "signatures" of known deposits such as Ugur will assist
identifying targets. Potential targets will be followed up with
other ground-based geophysical investigative techniques including
geological mapping, geochemical surveys and drilling. Depending on
results, airborne surveys may be employed in the future at the
Company's other contract areas.
Gosha
3,000 metres of core drilling is planned to explore for gold
veins supported by geological mapping, outcrop sampling and
geochemical sediment sampling.
Ordubad
Based on the results in 2017, an initial surface exploration
programme is planned in 2018 to identify porphyry style
mineralisation and its relationships with the known gold vein
deposits of the area. This will include geological mapping, outcrop
sampling, stream sediment sampling and follow-up trenching to
provide multi-element geochemical mapping to define alteration
zones known to occur with this style of mineralisation. Based on
new knowledge, existing core drill data will be reinterpreted.
Depending on the results in 2018 an aerial electromagnetic survey
and follow-up drilling programme may be carried out in the
future.
Cost of the programme
The estimated cost in 2018 for the geological exploration
programme is $6 million. This includes $1.5 million for the
purchase of one reverse circulation and two underground core drill
rigs. The entire programme will be funded from the Company's
internal cash flow.
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
----------------- ------------------- ------------------
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
----------------- ------------------- ------------------
Susie Geliher St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
----------------- ------------------- ------------------
Lottie Wadham 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's main operating location is the Gedabek contract
area ("Gedabek") which is a 300 square kilometer area in the lower
Caucasus mountains in western Azerbaijan. The Company developed
Azerbaijan's first operating gold/copper/silver mine at Gedabek
which commenced gold production in May 2009. Mining at Gedabek was
initially from its main open pit which 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, In September 2017, production commenced at the Ugur open pit
mine, a recently discovered gold ore deposit at Gedabek. 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 produced 71,461 gold equivalent ounces ('GEOs') for
the year ended 31 December 2017. Gedabek is a polymetallic project
which demonstrates a high copper content at the main open pit mine,
and an oxide gold-rich zone at Ugur. The Company therefore employs
a series of flexible processing routes through which to optimise
recoveries and efficiencies. The Company produces gold doré through
agitation and heap leaching operations, copper concentrate from its
Sulphidisation, Acidification, Recycling, and Thickening (SART)
plant and also a copper and precious metal concentrate from its
flotation plant, which is processing tailings from the agitation
leach plant. A second dedicated crusher line is also currently
being installed for the flotation plant to enable it to operate
independently of the agitation leaching 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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