TIDMAAZ
RNS Number : 7564Q
Anglo Asian Mining PLC
25 October 2011
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
25 October 2011
Anglo Asian Mining plc ('Anglo Asian' or 'the Company')
Gedabek Gold/Copper Mine - Exploration Update, Positive Infill
Drilling Results
Anglo Asian Mining plc, the AIM listed gold producer, announces
positive results from its 5,460m Phase 1 drilling campaign at its
flagship Gedabek gold/copper mine ('Gedabek') in Azerbaijan.
Overview
-- 5,460m infill drilling programme undertaken to re-classify
the current mineral resources and ore reserves categories and
assess the spatial continuity and metallurgy of the existing
resource to consider future mineral processing options
-- Drilling concentrated on the existing resource pit boundaries
at Gedabek - results demonstrated consistent gold, silver and
copper grades and spatial continuity of mineralisation
-- Best intersections of 3.2m at 29.47 g/t gold ('Au'), 11.76
g/t silver ('Ag') and 0.61% copper ('Cu') and 17.3m at 11.57 g/t
Au, 46.52 g/t Ag and 0.88% Cu
-- CAE Mining conducting review of all drilling programmes
completed at Gedabek - new three dimensional orebody interpretation
and modelling expected to be completed by the end of 2011
-- Phase 2 drilling underway concentrating on outside the boundaries of the existing pit
-- Upgraded JORC resource report targeted for Q1 2012 followed
by a JORC compliant reserve estimate later in 2012
Anglo Asian CEO Reza Vaziri said, "These latest drilling results
covering the existing pit continue to demonstrate consistent solid
gold, silver and copper grades and continuity of mineralisation at
Gedabek. With a current resource base of 791,000oz of gold, 49,300t
of copper and 7,597,000oz of silver for all categories, it is our
intention to continue both infill and exploration drilling at
Gedabek. This is focussed on expanding the existing resource
outline in order to announce an increased and upgraded resource by
Q1 2012 and in turn, a JORC compliant reserve estimate thereafter.
Additionally the latest drilling programme has enabled the Company
to gain a better understanding of the metallurgy of the current
resource at Gedabek to help assess future mineral processing
options and ensure an accurate evaluation of the proposed agitation
leaching plant, which would potentially enable an increase in
Gedabek's mine life and thereby further improving the economic
fundamentals of the mine.
"In addition, with gold and copper production continuing to
perform solidly at Gedabek we remain confident of realising our
production target of 58,000 to 60,000oz of gold and 525 tonnes of
copper for FY 2011."
Detailed Information
The latest infill drilling programme at Gedabek comprised 59
holes over 5,460m across a 90,000 sq m area and concentrated within
the boundaries of the existing pit at Gedabek. The drilling
campaign was undertaken with a view to increasing and upgrading
Gedabek's JORC compliant resource, which currently stands at
791,000oz of gold, 49,300t of copper and 7,597,000oz of silver for
all categories. Drilling was also carried out to increase the
confidence of the spatial variability of the already known gold,
silver and copper mineralisation; to assess the metallurgy of the
existing resource and in turn future mineral processing
options.
The link to Table 1 shows the average grades of gold, silver and
copper of each infill drill hole with grades greater than or equal
to 0.3 g/t Au from the fourth drilling programme. The colour in
each drill hole interval highlights the classification of the
mineralisation, as follows:
-- Yellow highlighted results - 0.3 <= Au g/t < 1.5
-- Orange highlighted results - 1.5 <= Au g/t < 3.0
-- Red highlighted results - 3.0 <= Au g/t < 30.0
Link to Table 1
http://www.rns-pdf.londonstockexchange.com/rns/7564Q_-2011-10-24.pdf
Best intersections from this drilling programme at Gedabek
include:
-- SGSDD02 - 19m at 3.61 g/t Au, 10.52 g/t Ag and 0.18% Cu
-- SGSDD16 - 17.3m at 11.57 g/t Au, 46.52 g/t Ag and 0.88% Cu
-- SGSDD22A - 3.2m at 29.47 g/t Au, 11.76 g/t Ag and 0.61% Cu
-- SGSDD31 - 2.3m at 16.05 g/t Au, 73.54 g/t Ag and 3.45 % Cu
-- SGSDD33 - 2.1m at 9.35 g/t Au, 23.26 g/t Ag and 0.42 % Cu
A designated competent person from the mining consultants, CAE
Mining, has carried out a detailed review of the latest drilling
programme results and of those collated from the previous three
drilling campaigns. These data include plan and cross section
views, together with mineral resource models for Gedabek compiled
by mining consultants SRK in 2007 and SGS Geostat in 2010. The
review has confirmed the continuity of the gold, silver and copper
mineralisation and geological structures across the Gedabek
deposit. The new three dimensional orebody interpretation and
modelling is expected to be completed by the end of 2011 with a
view to announcing an upgraded JORC resource estimate by the first
quarter of 2012 and a JORC compliant reserve estimate
thereafter.
With the completion of this latest drilling programme the
drilling grid in the north area of the existing resource at Gedabek
has been reduced to 20 x 20 m in order to improve the
classification and increase the confidence of the spatial
distribution of gold, silver and copper grades across the mineral
resource.
In addition to Phase 1 drilling, the Company commenced Phase 2
of the exploration and development programme of Gedabek in the
first quarter of 2011. Drilling is focussed on increasing the
existing resource base and is concentrated on exploring outside of
the existing pit boundary. So far 55 drill holes for a total of
8,300m of drilling have been completed and some of the assays have
been received. Further drill holes have been planned as the ore
body shows extensions towards the south of the existing pit
boundary.
Other exploration activities continue within the Gedabek
Contract Area, namely at the Maarif target. To date, 1,520m of the
planned 3,000m drilling programme has been completed at Maarif, and
the samples have been sent for independent assay. Remote sensing
has also commenced and is being conducted across the entire Gedabek
Contract Area with several potential anomalies detected for further
investigations, which are planned for 2012.
Qualified Person
This announcement has been reviewed by Mr Gerard Evans the
Competent Person at mining consultants CAE Mining Inc, who has more
than 20 years of relevant experience in the field of activity
concerned. He has a B.Sc (Hons) in Geology, SACNASP registered
(reg. no: 400015/08), member of GSSA and GASA, and has consented to
the inclusion of the material in the form and context in which it
appears.
**ENDS**
For further information please visit www.aamining.com or
contact:
Reza Vaziri Anglo Asian Mining plc Tel: +994 12 596 3350
----------------- -------------------------- ----------------------
Andrew Herbert Anglo Asian Mining plc Tel: +994 12 596 3350
----------------- -------------------------- ----------------------
Stuart Skinner Numis Securities Limited, Tel: +44 (0) 20 7260
as Nominated Adviser 1000
----------------- -------------------------- ----------------------
James Black Numis Securities Limited, Tel: +44 (0) 20 7260
as Corporate Broker 1000
----------------- -------------------------- ----------------------
Felicity Edwards St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
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Hugo de Salis St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
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Notes:
Anglo Asian Mining plc (AIM:AAZ) is a gold producer in Central
Asia with a broad portfolio of production and exploration assets in
Azerbaijan. The Company has a 1,962 sq km prospective exploration
portfolio, assembled on the back of analysis of historic Soviet
geological data and held under a Production Sharing Agreement
('PSA') based on the Azeri oil industry. The Company developed
Azerbaijan's first operating gold/copper mine, Gedabek, which
commenced gold production in May 2009. Gold production for the year
ended 31 December 2010 totalled 67,267 oz of gold.
Anglo Asian is actively looking to exploit its first mover
advantage in Azerbaijan to identify additional projects, as well as
looking for other properties in Central Asia and Caucasia in order
to fulfil its expansion ambitions and become a mid-tier gold and
base metal production company focussed in these regions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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