Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

24 August 2021

Anglo Asian Mining plc

H1 2021 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 on Azerbaijan, is pleased to provide a summary of its extensive and productive geological exploration activities from 1 January to 30 June 2021 ("H1 2021").

The comprehensive exploration programme at the Gedabek contract area ("Gedabek") continued throughout H1 2021 and substantial drilling and other exploration work was carried out. Detailed reports of the Company's work programmes at Gedabek, including drill hole data and other exploration results, can be found by following the link below and in the relevant section of the Company's website (www.angloasianmining.com).

No geological field work was carried out at Ordubad during the period due to COVID-19 travel restrictions, however the Company conducted desktop geological studies and historical drill core relogging. Geological interpretation for drill planning was carried out for Gosha in H1 2021, and drilling at Gosha has now recommenced in the second half of the year.

Gedabek exploration highlights

·    Extensive drilling at the Zafar polymetallic deposit ("Zafar Deposit")

o 35 core drill holes completed with a total length of 16,319 metres

·    Maiden Mineral Resource for the Zafar Deposit published 16 August 2021

o 8.47 million tonnes of mineralisation with average grades of 0.60 per cent. copper, 0.47 per cent. zinc and 0.30 grammes per tonne of gold

o In-situ Mineral Resource of 51,000 tonnes of copper, 82,000 ounces of gold and 40,000 tonnes of zinc

·    Considerable drilling undertaken in the Gedabek and Gadir underground mines, which are now connected and form one continuous tunnel system

o 23 drill holes completed with a total length of 988 metres

o Extensions to the underground mines discovered

·    Infill drilling carried out in pit 5 of the Gedabek open pit

o 5,515 metres of reverse circulation drilling completed

o Drilling intersections returned with grades of up to one per cent. copper in this copper-rich area of the main open pit

·    Initial drill programme started at the southern part of the Gilar district

o 17 surface core drill holes completed with a total length of 4,284 metres

o Drill intersections returned with gold grades of up to 4.98 and 22.21 grammes per tonne

·    Drilling continues in the vicinity of the Ugur open pit

o 10 surface drill holes completed with a total length of 3,360 metres

o Intercepts of up to 0.4 per cent. copper were encountered

Anglo Asian Vice-President, Stephen Westhead commented: "We have made significant exploration progress in the first half of 2021, with considerable drilling undertaken during the period and the publication of a highly encouraging Maiden Mineral Resource Estimate for the Zafar deposit in July. We are now progressing with the final mineral resource estimation for Zafar, which we expect to complete by the end of 2021, followed by mineral reserve estimation, and we continue to assess the high-priority ZTEM targets identified.

"In terms of outlook, exploration is progressing well and on schedule, with ongoing work at Gadir and Gedabek and drilling set to continue over the Avshancli and Gilar areas, which are being explored with a view to supplementing the ore feed to the processing plant, ahead of the start of mining of the new Zafar resource. We have considerably strengthened our geology team at Gedabek and are bringing in new technologies and equipment to support exploration works. At Gosha, we are now commencing planned fieldwork, following the completion of extensive desk study work in the first half, and we look forward to providing an update on our progress, having already intersected gold mineralisation in the initial drill holes."

Detailed Report on the Geological Work at Gedabek

Further details about the geological work carried out at Gedabek in H1 2021 can be found below.

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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Notes to Editors:

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 produced 67,249 gold equivalent ounces ("GEOs") for the year ended 31 December 2020.  The Company has a production target for the year to 31 December 2021 of 48,000 ounces to 54,000 ounces of gold and 2,500 tonnes to 2,800 tonnes of copper. This total production target expressed as GEOs at budgeted prices is between 64,000 GEOs and 72,000 GEOs.

Gedabek geological work

Zafar Deposit

35 drill holes with a total length of 16,319 metres have been completed over the Zafar area in H1 2021. 32 of these drill holes returned grades above reportable limits. One drill hole (21GED33) intersected a thickness of 110 metres of mineralisation with average grades of 0.30 grammes per tonne of gold, 8.28 grammes per tonne of silver, 0.45 per cent. copper and 0.40 per cent. zinc. Drilling at Zafar continues at pace, and the Company plans to release the final resource estimation by the end of 2021, followed by the ore reserve estimation and final mine design in 2022. Mining equipment selection, staffing, infrastructure and process design will start in late 2021, with a view to commencing production in 2023.

The maiden Mineral Resource for the Zafar Deposit was completed during H1 2021 and published on 16 July 2021. The detailed JORC ('Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition') "JORC" Mineral Resource estimate is available on the Company's website at https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2021/08/13121825/Zafer_Mineral_Resource_Estimate.pdf. The table one report accompanying the JORC Mineral Resource estimate is available at https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2021/08/13120129/ZafAr_MRE_JORC_TABLE1.pdf. 

Gedabek and Gadir underground mines

The Gedabek and Gadir underground mines are now connected and form one continuous underground network of tunnels accessible from both the Gadir and Gedabek portals. Both underground drilling and mapping were carried out in H1 2021. The drilling was conducted along the tunnel connecting the Gedabek and Gadir mines and 23 drill holes (19 BQ and 4 HQ/NQ diameter) with a total length of 988 metres were completed. This underground drilling allows the Company to capture truly 3-dimensonal data. Notable intersections (with over 2 metres of downhole length) included 13.08, 8.94 and 8.62 grammes per tonne of gold. The drilling results have yielded extensions to the Gedabek and Gadir underground mines.

Infill drilling at pit 5 of the Gedabek open pit

Infill reverse circulation drilling at pit 5 of the Gedabek open pit was carried out in H1 2021. The drilling was for grade control and to locate ore extensions for mining and 5,515 metres of drilling was completed. Notable intersections included 42.5 metres at 1.36 grammes per tonne of gold and eight metres at 1.18 grammes per tonne of gold. Copper grades of up to 1.02 per cent. were also returned in this copper-rich area of the Gedabek open pit.

Avshancli and Gilar

During H1 2021, detailed mapping continued over the Avshancli region and further trenching was carried out at the Avshancli-2 prospect. A drilling programme is now underway at Avshancli to assess the potential for extraction. Following this, a detailed topographic survey will be carried out to enable the estimation of the resource and assess the economics for the deposit, with a view to potentially commencing mining in late 2021 or early 2022.

Drilling commenced in H1 2021 in the southern region of the Gilar district. Seventeen drill holes with a total length of 4,284 metres were completed. Notable intersections comprised 24.5 metres at 4.16 grammes per tonne of gold, 8.4 metres at 4.98 grammes per tonne of gold and 2.75 metres at 22.21 grammes per tonne of gold. Core drilling activity is continuing in the central part of Gilar to determine the gold-copper mineralisation boundary. The Company is also assessing the economic feasibility of tunnelling for exploration to allow for underground drilling and bulk sampling.

Ugur open pit and Ugur Deeps

The Ugur pit has now been fully exhausted. However, drilling is continuing in the vicinity of the depleted open pit (Ugur Deeps region) to locate possible extensions to the deposit. Ten drill holes with a total length of 3,360 metres were drilled in H1 2021, targeting high-grade copper-silver mineralisation. Intercepts of up to 0.4 per cent. copper were encountered at depths of 100 metres and below. However, drilling has been temporarily stopped in this area, in order to focus on other projects with nearer-term potential for production.

A detailed report on the H1 2021 exploration activities in the Gedabek contract area can be found at https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2021/08/23151238/H1-2021-Exploration-Activities-Gedabek_final.pdf and on the Company's website (www.angloasianmining.com).

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 mineral resources included in this announcement.