TIDMAAZ
RNS Number : 5923Q
Anglo Asian Mining PLC
01 March 2021
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
01 March 2021
Anglo Asian Mining plc
H2 2020 Geological Exploration Activities
Gedabek, Gosha and Ordubad Contract Areas
Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM
listed gold, copper and silver producer focused in Azerbaijan, is
pleased to provide a summary of its extensive and productive
geological exploration activities from 1 July to 31 December 2020
("H2 2020") at its Gedabek, Gosha and Ordubad Contract Areas.
The exploration programme resulted in a new discovery "Zafer"
during H2 2020, which was announced in January 2021. Zafer is a
copper-gold mineral occurrence approximately 1.5 kilometres ("km")
from the Company's processing facilities at Gedabek.
The comprehensive exploration programme already underway at
Gedabek continued in H2 2020 and substantial drilling was carried
out at several priority mineral deposit targets. A considerable
amount of exploration was also carried out at its Gosha contract
area. However, COVID-19 travel restrictions continue to impede the
geological work that could be undertaken at Ordubad. Detailed
reports of the Company's work programmes, including drill hole data
and other exploration results for each contract area, can be found
following the links below in each relevant section and on the
Company's website ( www.angloasianmining.com ).
Highlights
Gedabek
-- New mineral discovery Zafer announced on 19 January 2021
o Copper-gold mineral occurrence discovered approximately 1.5 km
north-west of the Company's Gedabek processing plant
o Significant drill hole intersection of copper-gold
mineralisation - 113 metres at 0.5 per cent. copper and 0.7 grammes
per tonne ("g/t") of gold
o Maximum grades within all drill holes completed to 31 December
2020 of up to 6.0 per cent. copper, 14.6 per cent. zinc and 12.4
g/t of gold
-- Initial models of gold and copper mineralisation completed
and drilling activity continued in the Avshancli mineral
district
o Initial models of gold and copper mineralisation completed for
Avshancli 1 which exhibit a central zone of about 200 by 300 metres
surrounded by satellite zones
o The central zone is free digging with the possibility of
mining the area in the near future by open pit
o Significant drill hole intercepts of up to 16.7 g/t of gold
were reported
o Outcrop and trench sampling reported notable grades of up to
19.9 g/t of gold
-- Initial drill programme commenced and surface Induction
Polarisation ("IP") survey conducted at Gilar
o Preliminary interpretation of IP survey shows main anomalies
are located in the south-east and north-east part of the
mineralised area
o Significant drill hole intercepts were reported of up to 13.3
g/t of gold
-- Substantial drilling completed at the Gadir and Gedabek underground mines
o Gold grades of up to 6.2 g/t of gold were reported in the
underground Gedabek mine
o Gold grades of up to 4.5 g/t of gold were reported in the
underground Gadir mine
-- Core drilling continued at Ugur Deeps, targeting the
high-grade copper and silver mineralisation
o Seven drill holes were completed with intersections of more
than one per cent. copper encountered at depths of around 300
metres
Gosha
-- Infrastructure to support sustained geological exploration
now completed including a geological camp
-- Drilling continued close to the Gosha underground mine
targeting areas of extension to "Zone 5" and in the "New Zone" (the
area between "Zone 5" and "Zone 13")
o Significant gold grades of up to 15 g/t of gold were
encountered
o Assay results confirm that gold mineralisation exists at depth
below "Zone 5" and "New Zone"
Ordubad
-- Due to a continuation of the access restrictions as a result
of COVID-19, no drilling was carried out in H2 2020
-- A limited trenching programme continued at the Uchurdag and Unus targets:
o 149 trenches totalling 561 linear metres were completed
o 560 trench samples collected from the Uchurdag and Unus
targets and results will be reported in H1 2021
Stephen Westhead, Director of Geology & Mining, commented,
"Our comprehensive geological programme continues to yield
excellent results. We were very pleased to report in January the
discovery of Zafer in the second half of last year. Zafer is
considered a very significant discovery and a preliminary estimate
of the deposit size is about six million tonnes of mineralised
rock. It is also very close to our processing facilities and very
little additional infrastructure will be required to bring it into
production. We envisage production will be by underground
mining.
"Substantial further exploration work was also carried at
Gedabek, in particular at Avshancli and Gilar. An initial model of
Avshancli shows gold and copper mineralisation in a 200 to 300
metre central zone surrounded by satellite zones. The central zone
is free digging, and we are considering the possibility of mining
this area in the near future by open pit. A core drilling programme
commenced at Gilar and a surface Induction Polarisation survey was
also carried out.
"Work continued at Gosha and good drill results were obtained
from holes around the existing narrow vein mine. Gosha is very
under-explored and we continued with both outcrop sampling and
trench sampling throughout the contract area. Unfortunately, drill
access was still not possible to Ordubad due to the COVID-19
pandemic. However, some limited trench sampling was carried out at
the Uchurdag and Unus targets"
Gedabek Contract Area ("Gedabek CA")
Gedabek open pit and Duzyurd
There was no exploration in and around the operating Gedabek
open pit and Duzyurd in H2 2020 due to production priorities.
However, some reverse circulation drilling was carried out for
grade control and mine planning purposes.
Gadir and Gedabek underground mines
A considerable amount of exploration activity was completed at
Gedabek underground during H2 2020. Various platforms were utilised
to complete 23 core drill holes (16 in BQ diameter and 7 HQ/NQ
diameter) for a total of 1,371 metres. Gold grades of up to 6.2 g/t
of gold were reported.
Significant drilling was carried out in the Gadir underground in
H2 2020. 14 core drill holes (14 in BQ diameter) were completed for
a total of 533 metres. Gold grades of up to 4.5 g/t of gold were
reported.
Ugur Deeps
Exploration in H2 2020 was focused on and around the Ugur open
pit to assess the potential extensions to the Ugur deposit. Seven
core drill holes were completed to the south-east of, and around,
the Ugur open pit. These holes targeted deeper extents of
high-grade copper-silver mineralisation. Intersections assaying
more than one percent copper were encountered at depths of around
300 metres. Drilling is continuing in H1 2021.
Zafer
Zafer is a new discovery which was announced 19 January 2021.
Zafer was defined by Anglo Asian's in-house exploration group and
is a new mineral occurrence approximately 1.5 km north-west of the
Company's Gedabek processing facilities. The mineralisation was
identified by geological exploration follow-up of field mapping
between ZTEM targets. Geological, structural and alteration mapping
was used to target the initial drilling, which commenced in August
2020. A series of drill holes demonstrated that the geology
progressively moved from altered rock into weakly mineralised rocks
and finally into the zone of significant mineralisation.
Once the scale of the mineralisation was understood,
ground-based IP and resistivity electrical geophysics was employed
to define the potential extent of the mineralisation. In total, 10
profile lines covering an overall length of nearly 25 km were
completed. The 2-D and 3-D interpretations resulted in the
identification of a number of "hot spot" anomalies that are being
followed up with further drilling.
The geology of the area is structurally complex, comprising
mainly of Upper Bajocian-aged volcanics. The mineralisation seems
to be associated with a main northwest-southeast trending
structure, which is interpreted as post-dating smaller
northeast-southwest structures. In the southwest area, outcrops
with tourmaline have been mapped, which can be indicative of the
potential for porphyry-style mineral formation. The exploration
area is located along the regional Gedabek-Shekarbek fault system,
with Shekarbek being another target area known to host copper
mineralisation, situated in the northwest of the zone.
In 2020, 12 drill holes were completed totalling 7,675 metres.
The drill results are summarised in the linked report. The deposit
is currently being drilled with three core drill machines and
further geophysical work will be carried out if required. Sampling
for a mineralogical study is also underway to assess the textural
relations between the metallic minerals and gangue mineralogy. This
will be used to assess the associations between the copper and gold
mineralisation (grain size and liberation characteristics), which
will be used to determine the grind sizes and processing
options.
Based on the work in 2020, a preliminary estimate of the deposit
size is about six million tonnes of mineralised rock.
Avshancli district
Avshancli is a significant mineral district which is 10.5 km
north-east of the Gedabek open pit. Avshancli is a gold-copper
occurrence comprising three defined areas, Avshancli 1, 2 and 3. In
H2 2020, detailed mapping continued over the region. Both core and
reverse circulation drilling, as well as outcrop and trench
sampling, were carried out. These programmes all remain ongoing.
Fourteen core drill holes totalling 2,978 metres and 54 reverse
circulation drill holes totalling 3,676 metres were completed.
Significant intercepts of up to 16.7 g/t of gold were reported.
Outcrop and trench sampling reported notable grades of up to 19.9
g/t of gold.
Initial models of gold (at > 0.3 g/t gold) and copper (at
> 0.2 per cent.) mineralisation have been prepared for Avshancli
1. The mineral concentrations exhibit a central zone about 200 by
300 metres surrounded by satellite concentrations that are
currently disconnected from the main central zone. The central area
contains gold mineralisation near surface in a substrate that is
free digging. The thickness of the zone seems restricted and work
is continuing to assess geological controls on the continuity both
laterally and at depth. Exploration is on-going with further work
planned to test the continuity from the central area to the
satellite zones.
Gilar
Gilar is a new mineral occurrence located approximately two km
south of Avshancli 1. A considerable amount of exploration was
completed during H2 2020 comprising core drilling and outcrop
mapping. A ground-based Induction IP survey was also carried
out.
To commence the initial drill programme, 19 core drill holes
were completed at Gilar during H2 2020 totalling 5,832 metres.
Significant intercepts were reported of up to 13.3 g/t of gold. An
additional three core drill holes were drilled in the flank of the
Gilar for the evaluation of ZTEM shallow targets ZS14 and ZS15.
Interpretation of the ZTEM drill holes will be reported in
2021.
BLASTO LLC were contracted to conduct an IP survey over the
Gilar mineralisation area, which was carried out between 19 August
to 1 September 2020. The target depth of exploration was 400
metres. Six profile lines (including one test profile) were run.
Interpretation of the IP data is currently being undertaken by both
an external consultant and the Company. The preliminary
interpretation shows the main anomalies are located in the
south-east and north-east part of the mineralisation area.
A detailed report on the H2 2020 exploration activities at the
Gedabek CA can be found at
https://www.angloasianmining.com/operations/exploration-and-development/
.
Gosha Contract Area ("Gosha CA")
Preliminary infrastructure has now been constructed at Gosha to
support exploration efforts. In H2 2020, seven core drill holes
were completed for a total of 1,636 metres. These were drilled
around "Zone 5" and the now named "New Zone" between "Zone 5" and
"Zone 13", which is approximately 500 metres from "Zone 5". The aim
of this drill programme continues to be to test the Gosha vein
system at depth, below the current "Zone 5" and to further assess
the "New Zone". Significant gold grades of up to 15 g/t of gold
were encountered. These assay results confirm that gold
mineralisation exists at depth below "Zone 5" and "New Zone".
Surface exploration was also carried out at the Gocdere and
Khatinca regions of the Gosha CA. 145 outcrop samples were
collected and 14 trenched totalling 301 metres were completed from
which 190 samples were taken.
A detailed report on the H2 2020 exploration activities at the
Gedabek CA can be found at
https://www.angloasianmining.com/operations/exploration-and-development/
.
Ordubad Contract Area ("Ordubad CA")
Due to COVID-19 restrictions, drill access continued to be
restricted and therefore no drilling was able to be undertaken in
H2 2020. Trench work was carried out during H2 2020 on the Unus and
Uchurdag gold vein systems. A total of 149 trenches were dug
amounting to 561 linear metres. 560 samples were obtained at one
metre intervals unless geological constraints warranted adjustment
in sample length. Assay results for these samples have not yet been
received and will be reported in H1 2021.
The Company is still awaiting results from the samples collected
by the geological team from the Natural History Museum London as
part of their ongoing From Arc Magmas to Ores ("FAMOS")
international research project. This study is being carried out to
determine whether there are any indications of a porphyry system
within the Ordubad CA. The results of this investigation should
have been available by now, but unfortunately they have been
delayed by the COVID-19 pandemic.
A detailed report on the H2 2020 exploration activities at the
Gedabek CA can be found at
https://www.angloasianmining.com/operations/exploration-and-development/
.
Competent Person Statement
The information in the announcement that relates to exploration
results, minerals resources and ore reserves is based on
information compiled by Dr Stephen Westhead, who is a full-time
employee of Anglo Asian Mining with the position of Director of
Geology & Mining, who is a Fellow of The Geological Society of
London, a Chartered Geologist, Fellow of the Society of Economic
Geologists, Member of The Institute of Materials, Minerals and
Mining and a Member of the Institute of Directors.
Stephen Westhead has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity being undertaken 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'. Stephen Westhead consents to the inclusion in the
announcement of the matters based on his information in the form
and context in which it appears.
Stephen Westhead has sufficient experience, relevant to the
style of mineralisation and type of deposit under consideration and
to the activity that he is undertaking, to qualify as a "competent
person" as defined by the AIM rules. Stephen Westhead has reviewed
the resources and reserves 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.
**S**
For further information please contact:
Reza Vaziri Anglo Asian Mining plc Tel: +994 12 596 3350
Bill Morgan Anglo Asian Mining plc Tel: +994 502 910 400
------------------------------ ----------------------
Stephen Westhead Anglo Asian Mining plc Tel: +994 502 916 894
------------------------------ ----------------------
Ewan Leggat SP Angel Corporate Finance Tel: +44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
------------------------------ ----------------------
Adam Cowl SP Angel Corporate Finance Tel + 44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
------------------------------ ----------------------
Megan Ray Blytheweigh Financial PR Tel: + 44(0) 20 7138
3224
------------------------------ ----------------------
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 at its active Gedabek, Gosha and Ordubad
contract areas assembled from analysis of historic Soviet
geological data and held under a Production Sharing Agreement
("PSA") modelled on the Azeri oil industry. The Company also has
three recently restored contract areas in the formerly Occupied
Territories and Nagorno Karabakh under its PSA which will be
evaluated as soon as access permission is received from the
Government of Azerbaijan.
The Company's main operating location is the Gedabek contract
area ("Gedabek") which is a 300 square kilometre area in the Lesser
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. 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 67,249 gold equivalent ounces ("GEOs") for
the year ended 31 December 2020. Gedabek is a polymetallic ore
deposit that has gold together with significant concentrations of
copper in the main open pit mine, and an oxide gold-rich zone at
Ugur. The Company therefore employs a series of flexible processing
routes to optimise metal 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.
Anglo Asian is also actively seeking to exploit its first mover
advantage in Azerbaijan to identify additional projects, as well as
looking for properties in other jurisdictions in order to fulfil
its expansion ambitions and become a mid-tier gold and copper metal
production company. It has announced that it is negotiating a joint
venture with Conroy Gold and Natural resources PLC to explore and
develop various gold properties in The Republic of Ireland and
Northern Ireland.
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