AAZ Anglo Asian Mining Plc

25 January 2024

Anglo Asian Mining PLC

Significant copper resource confirmed at Xarxar

Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to announce that drill results confirm a significant quantity of copper mineralisation at Xarxar. The drill results will form part of a forthcoming JORC mineral resource estimate for the Xarxar deposit.

In July 2022, an extensive geological exploration programme commenced at the Xarxar deposit, targeting the central copper mineralisation zone. Surface drill holes intercepted significant high-grade and continuous grades of copper mineralisation, with intercepts of continuous copper for up to 380 metres.

A Joint Ore Reserves Committee ("JORC") Mineral Resource Estimate ("MRE") is being prepared for the Xarxar deposit and will be published by the end of March 2024. A site visit by the Company's independent geological consultants, Mining Plus UK, was completed in September 2023 as part of the JORC due diligence process.

Following the publication of the MRE, further infill and extension drilling will be planned, along with a metallurgical testwork programme and geometallurgical modelling. A mining trade-off study including a mine design and a production plan will also be prepared.

Stephen Westhead, Vice-President of Anglo Asian, commented:

"We are delighted to announce the findings of our recent drilling campaign at Xarxar, confirming internal estimates regarding the presence of significant quantities of copper at the deposit. This reaffirms the potential size of the mineral deposit that can be brought into production.

"Considerable progress has also been made regarding the development of our JORC mineral resource estimate, and the long-term development of the asset. Xarxar represents an important project for the Group and our transition towards copper, as we pursue our previously disclosed medium-term production strategy.

"As we complete the next phase of drilling and testwork, we remain enthusiastic regarding the project's prospects and are in the latter stages of determining how best to bring the deposit into production, as well as identifying other nearby exploration opportunities."

Figure 1: Map showing location of drill holes. 

Figure 2: Cross-Section (north-south) showing the drill holes.

Figure 3:  Cross-Section (east-west) showing the drill holes.

Figure 4:  3-D section showing latest drill holes.

This first phase of drilling has defined the latest extent of the Xarxar deposit, however, mineralisation remains open at depth. Statistics from the intercept analysis shows that all drill holes apart from two reverse circulation drill holes met the intercept criteria (a minimum intercept thickness of 10 metres, at a 0.1 per cent. copper cut-off with a maximum of 5 metres internal waste), with the results as follows:

Further details of the intercepts can be found below in the Appendix - Table 1.

Review of historical data and current drilling at Xarxar

Anglo Asian has identified significant mineralisation at the Xarxar deposit by an in-depth review and verification of data acquired from AzerGold CJSC and in-house geological field work. This gives confidence that the Xarxar deposit contains significant copper mineralisation.

Historical drilling work statistics on the Xarxar deposit area is tabulated below:

Three of the AzerGold JCSC drill holes (totalling 1,140 metres) had been sampled and assayed by AzerGold CJSC prior to Anglo Asian acquiring Xarxar. Geological core logging, sampling and assaying of the remaining drill core has been conducted by Anglo Asian. Anglo Asian has also reviewed other information acquired from AzerGold CJSC which included geochemical and geophysical data together with maps and interpretative reports.

A core drilling programme commenced at Xarxar immediately following its acquisition in July 2022. A portal has been constructed and a 500 metre long, 3.5 metre by 3.5 metre exploration tunnel constructed into the mineralisation from where underground horizonal drilling was carried out. The exploration tunnel is also used for providing representative bulk samples for test processing.

The topography of the deposit lends itself towards open pit mining. Preliminary in-house  work by Azerbaijan International Mining Company ("AIMC") (a wholly-owned subsidiary of Anglo Asian) on open pit designs indicates that the open pit should eventually finish at a depth of about 200 metres. AIMC is also considering processing methods including conventional flotation or bacterial heap leaching with conventional open pit and/or underground mining. In-situ recovery methods are also being investigated.

Selected assay results from new drill holes in the Xarxar deposit are shown in the Appendix - Table 1

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.

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About Anglo Asian Mining

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer with a high-quality portfolio of production and exploration assets in Azerbaijan. The Company produced 31,821 gold equivalent ounces ("GEOs") for the year ended 31 December 2023. 

On 30 March 2023, the Company published its strategic plan for growth which shows a clearly defined path for the Company to transition to a multi-asset, mid-tier copper and gold producer by 2028, by which time copper will be the principal product of the Company, with forecast production of around 36,000 copper equivalent tonnes. It plans to achieve this growth by bringing into production four new mines during the period 2024 to 2028 at Zafar, Gilar, Xarxar and Garadag. 

The Company owns approximately 13.1 per cent. of Libero Copper & Gold Corporation ("Libero"). Libero is listed on the TSX Venture Exchange in Canada and owns Mocoa in Colombia, one of the world's largest undeveloped copper-molybdenum resources. 

https://www.angloasianmining.com/

About the Xarxar deposit

The mineralisation footprint determined by AIMC drilling is hosted within a zone that is over 500 metres in the broadly east-west direction by about 300 metres in the north-south direction. Mineralisation is exposed at surface in some areas, but the upper contact ranges from 25 metres to 115 metres from the surface and continues to a depth of over 500 metres.

The structural positioning of the mineral-forming process was largely controlled by a northeast striking fault system, where a 300 times 300 metre quartz-diorite-porphyry stock is in direct contact with the metasomatite host rock.

The mineralisation is copper-dominant and comprises mainly oxides and secondary sulphides, with minerals such as malachite, azurite, pyrite, chalcocite and bornite, together with some primary chalcopyrite as common minerals in the deposit, and minor barite and magnetite minerals are also recorded. The main copper mineralisation lenses are located in the central part of the Xarxar deposit, with approximate east-west orientations. Samples from the deposit also show specks of native copper visible to the naked eye.

About the Xarxar Contract Area

The Xarxar contract area borders the Gedabek contract area to the north, east and west and the two contract areas are contiguous. Xarxar hosts the Xarxar deposit and multiple other mineral occurrences. A map of the Xarxar and Gedabek contract areas is shown in figure 5.

Figure 5: Gedabek and Xarxar Contract Area boundaries showing the position of ongoing projects. 

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.