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

21 March 2022

Anglo Asian Mining plc

Zafar JORC Mineral Resource completed - 6.8 million tonnes of mineralisation with average copper grade of 0.50 per cent.

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 JORC Mineral Resource for its Zafar polymetallic deposit (the "Zafar deposit"). The Zafar deposit is situated in the central region of the Company's Gedabek contract area in western Azerbaijan and is approximately 1.5 kilometres from the existing Gedabek processing facilities.

Zafar deposit highlights

·    6.8 million tonnes of mineralisation with average grades of 0.5 per cent. copper, 0.6 per cent. zinc and 0.4 grammes of gold per tonne

·    In-situ Mineral Resource of 28,000 tonnes of copper, 73,000 ounces of gold and 36,000 tonnes of zinc

·    Angled drill holes completed since the maiden Mineral Resource was published on 16 August 2021 identified voids which has resulted in a smaller resource

·    Upper part of the resource is now defined as more massive and continuous which will result in more efficient mining

·    Over 302 metres of continuous mineralisation in the thickest intersection

·    Total drilling to date is 40,538 metres

Mineral Resource estimate for the Zafar deposit at 30 November 2021

Reporting cut-off: >= 0.3 per cent. copper equivalent

Note that all tonnages reported are dry metric tonnes. Totals may not add due to rounding.

Anglo Asian CEO Reza Vaziri commented:

"Anglo Asian is pleased to report this JORC Mineral Resource for Zafar. While this final resource estimate is not as large as initially evaluated in our maiden JORC mineral resource, it is a considerable asset that adds significant value to our growing portfolio of resources. The upper part of the deposit is now defined as more continuous, which can be mined more efficiently and economically. Preparations at the site continue at pace, and we are on track to begin production in 2023. We look forward to updating the market on its progress."

Anglo Asian Vice-President, Stephen Westhead commented:

"This Mineral Resource estimate is now very robust under the criteria of the JORC reporting Code. The deposit can be broadly divided into an upper and lower section. The upper portion contains the main mineralisation zone where continuity of mineralisation provides for a high confidence of estimation. The lower portion exhibits less continuity with mineralisation being less massive and more irregularly distributed. The lower portion will be subject to further evaluation drilling in the future from underground.

"We are now proceeding with Ore Reserves estimation and mine planning. The location of the underground portal has been defined. Following further geotechnical drilling, access tunnelling and development work will commence this year."

Mineral Resource estimation and current work at Zafar

Further details about the Zafar deposit, the Mineral Resource estimation and the current work being carried out at Zafar 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.

For further information please contact:

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 64,610 gold equivalent ounces ("GEOs") for the year ended 31 December 2021.  

In September 2021, the Company announced a transaction with the Government of Azerbaijan which grants it 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. The transaction is subject to ratification by the parliament of Azerbaijan.

In December 2021, the Company undertook a private placement which acquired 19.8 per cent. of Libero Copper & Gold Corporation ("Libero"). The transaction was completed in January 2022. 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.    

https://www.angloasianmining.com/

Zafar deposit

The detailed JORC ('Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition') "JORC" Mineral Resource estimate for the Zafar deposit has been published on the Company's website and is available at https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2022/03/MP-10032-Zafar-JORC-MRE-Update-r3-220316.pdf. The Table 1 report accompanying the JORC Mineral Resource estimate is available at https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2022/03/UPG10032_Zafar_MRE_JORC_TABLE1_r0.pdf. 

The initial announcement dated 19 January 2021 "New Copper and Gold Discovery at its Gedabek Licence Area" is available on the Company's website which gives the background to the Zafar property.

Zafar mineral resources - supporting work and independent expert opinion

The Company engaged Mining Plus UK Limited, the independent consulting group, to review the Company's database and provide the Mineral Resource estimate.

A preliminary mining method study comparing open pit versus underground methods has indicated that underground semi-bulk extraction by a sub-level caving system is likely to be the optimum mining method for the Zafar ore body. Stope design has commenced and a mineable shape optimiser ('MSO') was used to generate stope shapes to test the data, which resulted in a coherent stope model. A schematic ramp design to access the mineralisation has also been completed to allow for planning of condemnation drill targets and geotechnical studies.

In conjunction with Mining Plus, the Company engaged a hydrological and geotechnical consulting group ('KLM Consulting Services') to assess water issues and rock mass for mine planning and design. A structural and hydrological model was produced and the design completed for emplacing piezometer sensors for monitoring ground water.   

The Company has also prepared indicative three-dimensional geology, geological structural and mineral alteration models. Data from the recent ground-based geophysical Induction Polarisation ('IP') and resistivity survey are being interpreted in conjunction with the nearby ZTEM data.

Competent Person Statement

The information in the announcement that relates to exploration results and Mineral Resources is based on information compiled by Dr Matthew Field, who is a full-time employee of Mining Plus UK Ltd with the position of Principal Geology Consultant, who is a Fellow of The Geological Society of London, a Fellow of the Geological Society of South Africa, Fellow of the Society of Economic Geologists, and registered with the South African Council for Natural Scientific Professions (SACNASP) with the designation Pr.Sci.Nat.

Matthew Field 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'. Matthew Field consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

Matthew Field has extensive 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. Matthew Field has reviewed the Mineral Resources included in this announcement.

APPENDIX: GLOSSARY OF TERMS AND ABBREVIATIONS

The following definitions are extracted from the JORC Code, 2012 Edition