TIDMAAZ
RNS Number : 1312T
Anglo Asian Mining PLC
16 March 2023
16 March 2023
Anglo Asian Mining plc
Targeting 10,000 tonnes of annual copper production at Xarxar
following geological modelling and open pit optimisation study
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM
listed gold, copper and silver producer primarily focused in
Azerbaijan, is pleased to announce it has completed an initial
geological block model and open pit optimisation study at the
Xarxar deposit. The Company now expects mining and processing of 3
million tonnes of ore per annum, with a production target of 10,000
tonnes of copper metal per annum over a 7-year period.
Since July 2022, an extensive geological exploration programme
has been carried out at the Xarxar deposit, targeting the central
copper mineralisation zone. Surface drill holes intercepted
significant high-grade and continuous grades of copper
mineralisation. The base case open pit optimisation study used a
copper price of $8,000 and showed over 93,000 tonnes of
economically extractable copper. The detailed results of the
geological exploration are set out below in appendix one. The
Company has used its own in-house estimate of resources and
economically extractable copper in this notification and these
figures are not based on a Standard, such as JORC. The Company
intends to carry out JORC reporting on completion of the ongoing
drilling and exploration programme.
An underground mining method trade-off study will be carried out
to assess the economics of underground mining. This will enable
preparation of the optimum mining plan for a combined open pit and
underground mine. An alternative approach utilising the option of
in-situ recovery is also being studied.
Exploration is continuing in the central mineralisation zone,
and further resource estimation will be carried out.
Anglo Asian Vice-President, Stephen Westhead, commented:
"These results represent an important step in our strategy of
transitioning to a mid-tier miner, as Xarxar is expected to
contribute a considerable amount of annual copper production to our
portfolio. The initial study and exploration have delivered
significant upside potential. The Company is enthused by the
positive results and potential for advancing a 100,000 tonne plus
copper metal project towards the production target. The project's
development options, including mining, processing and in-situ
recovery, are currently being assessed. The rock mass properties,
the presence of copper and molybdenum minerals and the geological
setting suggest a porphyry formation."
Block model of the Xarxar deposit
A preliminary three-dimensional dynamic block model has been
completed (Figure 1), which will be updated as further drilling
takes place. A drill hole database has been set up, consisting of
Anglo Asian and AzerGold CJSC drill results. The model shows that
copper mineralisation exhibits encouraging continuity.
Figure 1: Block model of Xarxar showing a cross-section through
the three-dimensional model
Mineralisation modelling was carried out within a 0.1 per cent.
copper shell and grade-tonnage estimates were made using various
cut-off grades. The range of the contained amounts of copper, based
on mineralisation above certain depths, is as follows:
Above level 1,200 Above level
metres 1,000 metres
------------------------- ---------- ------------- ------------------------- ---------- ---------
cut-off Mineralisation Resultant Metal cut-off Mineralisation Resultant Metal
(Cu (tonnes) (Cu %) (Cu tonnes) (Cu (tonnes) (Cu (Cu
%) %) %) tonnes)
--------------- ---------- ------------- -------- ---------- ---------
0.15 41,394,352 0.34 140,741 0.15 64,915,146 0.32 207,728
--------------- ---------- ------------- -------- --------------- ---------- ---------
0.30 17,095,640 0.53 90,607 0.30 23,428,520 0.51 119,485
--------------- ---------- ------------- -------- --------------- ---------- ---------
0.45 8,150,558 0.72 58,684 0.45 10,212,706 0.71 72,510
--------------- ---------- ------------- -------- --------------- ---------- ---------
Pit optimisation modelling
Preliminary optimisation modelling to test the economics for
various mining options is underway to initially assess the open pit
potential. The optimisation modelling shows that open pit mining
would be economically viable at the Xarxar deposit. Studies are
also ongoing to assess underground mining options to yield the
optimum mix of open pit and underground mining.
The base case for the open pit optimisation used a copper price
of $8,000. Copper metal prices within the range of $5,000 - $20,000
per tonne were used to test the sensitivity of the open pit to
copper metal prices and mineral zone geometry. Two pit depths were
used as a "minimum" and "maximum" elevation to establish the amount
of mineralisation located beneath the various intervening pit
floors. Significant mineralisation is located below the open pit
floor in the base case. This will allow for the optimisation of the
combined open pit and underground mining approach. The results of
these initial open pit evaluations are shown in Figure 2.
Figure 2: Cross section showing the various pit shell profiles
at various copper prices
The results of the initial open pit optimisation study (Base
Case 'OP 3' using a copper price of $8,000) and sensitivities are
shown in the following table:
OPTION ORE WASTE STRIPPING COPPER COPPER BOTTOM DEPTH
(copper price/tonne) (tonnes) (tonnes) RATIO (tonnes) (per (metres)
cent.)
OP1 - $5,000 7,362,221 21,685,157 2.9 51,513 0.70 150
----------- ------------ ---------- ---------- -------- -------------
OP2 - $7,500 17,334,016 29,376,561 1.7 85,573 0.49 190
----------- ------------ ---------- ---------- -------- -------------
Base Case OP3
- $8000 20,116,723 31,982,108 1.6 93,408 0.46 205
----------- ------------ ---------- ---------- -------- -------------
OP4 - $10,000 29,176,251 39,932,179 1.4 114,732 0.39 240
----------- ------------ ---------- ---------- -------- -------------
OP5 - $12,000 36,224,004 52,831,917 1.5 130,876 0.36 270
----------- ------------ ---------- ---------- -------- -------------
OP6 - $15,000 43,739,585 76,392,038 1.7 147,663 0.34 310
----------- ------------ ---------- ---------- -------- -------------
OP7 - $20,000 53,028,965 131,403,872 2.5 169,064 0.32 360
----------- ------------ ---------- ---------- -------- -------------
Further drilling targeting both infill and extension of
mineralisation is ongoing. In addition, a detailed metallurgical
study using the microscopic study of thin and polished sections of
rock, along with phase analysis, will be used to determine the
supergene and enrichment versus hypogene mineral assemblages. In
parallel, Anglo Asian is carrying out metallurgical test work to
assess processing options, which include flotation to produce
copper concentrate, or copper heap and bacterial leaching, followed
by solvent extraction and electrowinning (SX-EW) to produce cathode
copper metal.
Appendix One
Geological exploration work carried out at Xarxar
Exploration activity carried out to the end of February 2023 by
Anglo Asian on the Xarxar deposit include the following:
-- 12 surface trench and 36 outcrop samples
-- 19 diamond drill core holes with a total length of 6,696 metres
-- 9 reverse circulation holes with a total length of 830 metres
-- 472 metres of underground development with a section area 3.5 metres by 3.5 metres
-- 327 underground channel samples with total length of 333 metres
-- All drill holes and channel samples have been geologically
logged, sampled, assayed and loaded to the new database
-- All data (Anglo Asian and historical) converted to "new
standard" database system which will be imported to Seequent "MX
deposit" software
-- Geotechnical study of the deposit completed by an independent
engineering contractor, including geotechnical core logging,
laboratory analysis and surface structural mapping.
-- Mineralogical-petrological and X-ray diffraction (XRD) alteration studies and lithological-structural-alteration mapping of the deposit is in progress.
Utilising the geological model geometry, further drilling has
been planned to test extensions of mineralisation and refine the
understanding of the geological structure.
The Xarxar deposit hosts a range of copper minerals, including
malachite, azurite, chalcocite, bornite, neotocite, chalcopyrite,
rarely molybdenite and pyrite minerals associated with intense
argillic and phyllic alteration. The maximum and average grades of
copper by sample method are shown below:
Type of sampling Number of Maximum copper Average copper
assays percentage percentage
Surface trench 56 2.15 1.33
---------- --------------- ---------------
Reverse circulation drilling 830 1.28 0.49
---------- --------------- ---------------
Core drilling 6,661 7.39 0.49
---------- --------------- ---------------
Underground channel 327 2.57 0.57
---------- --------------- ---------------
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, which was incorporated into UK law by
the European Union (Withdrawal) Act 2018, until the release of this
announcement.
All references to "$" are to United States dollars.
For further information please contact:
Anglo Asian Mining plc
Tel: +994 12 596
Reza Vaziri, Chief Executive Officer 3350
Tel: +994 502 910
Bill Morgan, Chief Financial Officer 400
Tel: +994 502 916
Stephen Westhead, Vice President 894
SP Angel Corporate Finance LLP (Nominated Tel: +44 (0) 20
Adviser and Broker) 3470 0470
Ewan Leggat
Adam Cowl
Hudson Sandler (Financial PR) Tel: +44 0) 20 7796
Charlie Jack 4133
Harry Griffiths
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 Vice-President,
who is a Fellow of The Geological Society of London, a Chartered
Geologist, Fellow of the Society of Economic Geologists, Fellow 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 mineral resources included in this announcement. For the
avoidance of doubt, resources and economically extractable copper
figures in this notification are not based on a Standard for the
reporting of reserves and resources, such as JORC, as defined in
the AIM Rules for Companies.
About Anglo Asian Mining
Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver
producer in south-west Asia with a broad portfolio of production
and exploration assets in Azerbaijan. The Company produced 57,618
gold equivalent ounces ("GEOs") for the year ended 31 December
2022.
In December 2021, the Company undertook a private placement
which acquired 19.8 per cent. of Libero Copper & Gold
Corporation ("Libero"). Libero is listed on the TSX Venture
Exchange in Canada and owns, or has the option to acquire, several
copper exploration properties in North and South America, including
Mocoa in Colombia, one of the world's largest undeveloped
copper-molybdenum resources. Two further follow-on investments have
been made in Libero to maintain the Company's shareholding at 19.8
per cent.
On 5 July 2022, the Parliament of Azerbaijan ratified amendments
to the Company's Production Sharing Agreement, which granted it
legal title to three additional concessions with a combined area of
882 square kilometres, including the Garadagh porphyry copper
deposit, with a Soviet classified resource of over 300,000 tonnes
of copper. https://www.angloasianmining.com/
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DRLGZGMFRKZGFZM
(END) Dow Jones Newswires
March 16, 2023 03:00 ET (07:00 GMT)
Anglo Asian (AQSE:AAZ.GB)
Historical Stock Chart
From Dec 2024 to Jan 2025
Anglo Asian (AQSE:AAZ.GB)
Historical Stock Chart
From Jan 2024 to Jan 2025
