TIDMAAZ
RNS Number : 3328V
Anglo Asian Mining PLC
08 April 2019
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
8 April 2019
Anglo Asian Mining plc ('Anglo Asian' or 'the Company')
Ordubad Polymetalic Contract Area
Multiple exciting targets under investigation
$1.8 million committed for 2019 Work Programme
Anglo Asian Mining plc, the AIM listed gold, copper and silver
producer focused in Azerbaijan, is pleased to provide a summary of
its 2018 geological exploration activities and 2019 exploration
plans at its 462 square kilometre Ordubad Contract Area
('Ordubad'). A detailed report of the Company's 2018 exploration
work programme and results reported according to the JORC Code
(2012) can be found at
http://www.rns-pdf.londonstockexchange.com/rns/3328V_1-2019-4-5.pdf
and on its website www.angloasianmining.com/operations.
Highlights
-- Highly favourable geology indicates that Ordubad may contain
multiple Porphyry mineralisation systems
-- Soviet era data indicate very large mineral resources - work now underway to verify
-- 2018 work programme included 5,504 surface samples collected
and sent for analysis with results expected Q2 2019
-- 1,488 metres of linear trenching completed at Shakardara
-- National History Museum worked at Ordubad as part of its FAMOS ore deposit research programme
-- Over 5 kilometres of roads cleared to give access to mineral deposits
-- 2019 geological programme totalling $1.84 million commenced
to include satellite mapping, geological mapping and sampling and
circa 6,000 metres of core drilling
Anglo Asian Director of Geology & Mining, Stephen Westhead,
said, "Now that Gedabek production is robust, a well-structured
exploration programme to expand our mineral resources pipeline for
future production is taking shape; this includes the potentially
significant mineral resource wealth of Ordubad.
"Ordubad has several exciting targets all within a 5-kilometre
radius. We previously worked on two of these, Piyazbashi and
Agyurt, which as independent deposits are relatively small given
the level of exploration. However, it is the overall picture of how
these quartz-gold-sulphide deposits fit into the larger framework
of mineral deposit formation that is important. Given the known
porphyry-style ore province and the identification of rock
alteration consistent with this type of mineralisation, it is this
model that will be further advanced utilising the latest
exploration techniques. We look forward to updating the market on
our progress."
Anglo Asian CEO, Reza Vaziri, said, "The work programme at
Ordubad forms part of our development portfolio as a mid-tier gold,
copper and silver mining company and provides us with significant
potential to increase our overall resources and reserves. Previous
work has already highlighted Ordubad's potential, however, Gedabek
was developed first due to infrastructure and other considerations.
It is with this background that we were delighted to approve a
significant budget to facilitate an expanded geological work
programme in 2019."
Ordubad Contract Area
Ordubad is in the south-eastern corner of the Nakhchivan region
of Azerbaijan, an area known for its mineral potential. Small-scale
historical mine development took place during the Soviet era and
the region is adjacent to significant porphyry copper deposits in
neighbouring countries (e.g. the Sungun copper mine, Iran). Ordubad
is part of the Mikhmana-Zangezur tectonic subzone, which hosts a
number of known copper, gold and molybdenum deposits.
Ordubad was a subject of Soviet era exploration and geological
studies. There are 15 known mineral deposits and occurrences within
Ordubad, six of which have resources classified according to the
Soviet resource system. These six gold and copper-bearing deposits
were later studied in more detail by the mining consultant group
Behre Dolbear. Its Competent Person's Report ('CPR') was included
as Part IV in the 2005 Initial Public Offering ('IPO') document of
Anglo Asian Mining, which can be found at
www.angloasianmining.com/investors/shareholder_info/constitutional_documents.
Extracts from this CPR include:
The Soviets completed extensive technology reports on several
properties. In general, the Soviets only completed technology
reports on properties they considered should be developed into
mining operations. The Ordubad Contract Area is 462 square
kilometres in the Nakhchivan region and contains numerous deposits,
six of which have been studied by Behre Dolbear: Shakardara,
Piyazbashi, Misdag, Agyurt, Shalala and Diakhchay. These deposits
lie within a 5-kilometre radius. The Ordubad Contract Area also
contains other significant properties with Soviet era defined
resources in Yashiling, Goyhundur, Keleki and Kotam. Porphyry
copper deposits of the Ordubad ore region are localised within the
western part of the Megri-Ordubad granitoid massif, where the
Paragachay, Diakhchay, Misdag, Gey-gel, Geydag, Goyhundur, Shalala
and other deposits are found. In conclusion, Behre Dolbear believes
that thorough exploration will reveal significantly more
potentially economic mineralisation than is presently known,
especially in the Ordubad and Gedabek Contract Areas.
An extract from the CPR of the Soviet resources table for
Ordubad is shown below. Previous attempts to replicate some of the
Soviet results correlated poorly. However, it is believed that the
check sampling methodology and the locations for duplication were
incorrect. The tonnages of Piyazbashi and Agyurt however were
broadly confirmed in previous work by the Company.
The Company believes these resource estimates are not fully
defined and it intends to carry out further work to review the
source reports and then validate with follow-up field work.
However, the Soviet data indicate the presence of potentially
extensive mineralisation, which justifies further work.
Nevertheless, exploration targeting cannot solely rely on
historical Soviet data. For example, two of the Company's three
operating mines, namely Gadir and Ugur, were not part of the Soviet
deposit inventory. However, modern exploration techniques and
processing facilities and contemporary industry economics create a
different environment today for exploration and exploitation, thus
creating new exploration opportunity as compared with the Soviet
era.
Ordubad Resources (Soviet Classified), extracted from Behre
Dolbear CPR (2005)
Name Category Ore Cu Au Ag Cu Au Ag
---------- ----- ----- ----- ----- ------ ------ -------
Mt % g/t g/t kt koz koz
---------- ----- ----- ----- ----- ------ ------ -------
Shakardara P2 156 0.4 1.1 3.6 624 5,518 18,058
---------- ----- ----- ----- ----- ------ ------ -------
Misdag P1 350 0.43 - - 1,505 - -
---------- ----- ----- ----- ----- ------ ------ -------
Shalala C2+P1 20.6 0.5 - - 103 - -
---------- ----- ----- ----- ----- ------ ------ -------
Agyurt C2+P1 1.13 1.28 6.39 23.4 15 232 850
---------- ----- ----- ----- ----- ------ ------ -------
Piyazbashi C2+P1 0.89 - 6.6 - - 189 -
---------- ----- ----- ----- ----- ------ ------ -------
Diakchay C2+P1 14.4 0.44 - - 63 - -
---------- ----- ----- ----- ----- ------ ------ -------
2018 Exploration Programme
Main objectives
-- To assess the extent of the copper, gold and associated mineralisation potential of Ordubad.
-- To bring new mineral occurrence targets into the resource and reserve development pipeline.
-- To identify potential new areas of mineralisation and targets for drilling in 2019.
-- To determine the logistical requirements for future production.
Programme Highlights
-- Completion of a surface geochemical sampling programme
covering the Shakardara and Dirnis areas, for a total area of 26.7
square kilometres, following up on porphyry-style alteration zones
and surface outcrops of malachite mineralisation. A total of 5,504
samples were collected and sent for analysis to ALS Minerals 'OMAC'
(ALS Loughrea) in Ireland; results are expected Q2 2019.
-- A geological research team from the Natural History Museum
('NHM') of London worked with the Company at Ordubad for two weeks
in November 2018, collecting 83 samples for X-Ray Diffraction
analysis ('XRD') and petrographic studies among others.
-- 1,488 metres of linear trenching completed at Shakardara,
with 916 trench samples collected and over 989 metres sampled.
-- 42 stream sediment samples collected at Piyazbashi.
-- Detailed geological (lithological, alteration and structural)
mapping completed over the 26.7 square kilometre Shakardara
geochemical study area.
-- 5,500 metres of road-clearing completed by bulldozer to
access mineral occurrences and deposits.
-- Preliminary review of primary (where available) historical
geological reports and initial target selection.
-- Drillhole planning at the copper target of Dirnis and the gold targets at Keleki.
Overview of Exploration Activity in 2018
A surface geochemical sampling campaign was completed in 2018.
In total, 5,504 samples were collected over the Shakardara and
Dirnis areas on a 50 metre by 100 metre grid pattern. The samples
were dominantly in the form of outcrop and regolith samples. An
Azeri company constructed a sample preparation facility at Ordubad
for crushing, grinding and splitting the samples. This enabled the
Company to only send pulverised material, representative of the
primary rock or regolith samples, for assay. Pre-preparation of the
samples in this manner significantly reduced freight costs to the
ALS Minerals 'OMAC' laboratory in Ireland.
A research team from the NHM of London worked with the Company's
exploration geologists in the assessment of the Ordubad regional
geology and mineral potential for two weeks in November 2018. The
NHM has a highly reputable and professional geological research
unit, which forms part of a global research group studying the
genesis of porphyry copper systems. This research programme is
known as 'FAMOS' (From Arc Magmas to Ores), with the focus "to
develop new exploration tools for mineral resources by
understanding the processes by which metals are concentrated in
magmatic arcs". In consideration of this task, the NHM was keen to
assess the Ordubad area given its potential for this style of
mineralisation and its favourable palaeotectonic position
associated with the closure of the Tethys Ocean.
A preliminary report of the field visit has been prepared by the
NHM that includes information relating to the regional geological
structure, geological information of outcrops visited, mineral
alteration patterns, zoning features and project recommendations.
This report concluded: "It is clear that the Ordubad ore region is
an area in which showings of copper-molybdenum mineralisation
together with other types of hydrothermal mineralisation are
widespread. Mineralisation of contact-metasomatic type is also
present and requires further exploration and scientific
investigation."
83 samples of various rock types were collected for analysis at
the NHM research facilities in London. This work is planned for
2019 and will include X-ray Diffraction ('XRD') analysis for
alteration characterisation, petrological characterisation studies
(microscopic thin and polished sections), and additional FAMOS
studies. Following this work, the samples will be sent to an
international independent laboratory for whole-rock complete
characterisation analysis.
Exploration Outlook for 2019
Given the mineral potential of Ordubad, a programme of work has
been developed to further understand the overall geology of the
mineralisation and to commence follow-up work on the previously
reported geology. A budget of $1.84 million for 2019 has been
approved for this work programme. The main items budgeted for
include:
-- Obtaining, translation and review of primary historical
geology, exploration and technology reports.
-- Regional remote sensing utilising latest satellite technology.
-- NHM follow-up fieldwork to include mapping, drill core interpretation and further sampling.
-- Surface geological mapping and sampling, with student mapping
projects in collaboration with Azerbaijani Universities.
-- Geological field work targeting other commodities known to
occur, for example cobalt, to assess their future production
potential.
-- Core drilling at the Dirnis copper target, Keleki gold target
and other copper targets, with about 6,000 metres planned. Included
in the budget is sample preparation, assaying and analysis.
-- Investment in the required geological equipment and software
to perform the work, including an XRD alteration analyser, a ground
magnetometer with Very Low Frequency ('VLF') capabilities for
magnetic and resistivity mapping.
-- Accommodation and geological camp upgrade.
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.
**ENDS**
For further information please visit www.angloasianmining.com or
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
------------------------------ ----------------------
Soltan Tagiev SP Angel Corporate Finance Tel + 44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
------------------------------ ----------------------
Isabel de Salis/Gaby St Brides Partners Ltd Tel: +44 (0) 20 7236
Jenner 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 kilometre area in the Lesser
Caucasus mountains in western Azerbaijan. The Company developed
Azerbaijan's first modern 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 83,736 gold equivalent ounces ('GEOs') for
the year ended 31 December 2018. 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. A second
dedicated crusher line has been commissioned and is now in
operation for the flotation plant to enable it to operate
independently of the agitation leaching plant.
The Company has forecast metal production for FY 2019 of between
82,000 to 86,000 gold equivalent ounces ("GEOs"). Of the forecast
production for FY 2019, between 28,000 to 30,000 GEOs is in the
form of copper and gold flotation concentrate.
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 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.
END
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