Highly Positive Exploration Update at Gedabek

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

8 January 2014

Anglo Asian Mining plc ('Anglo Asian' or 'the Company')

Continues to Verify High Grade Gold Discovery Just North of the Gedabek Mine, Azerbaijan

 

Anglo Asian Mining plc, the AIM listed gold producer in Azerbaijan, is pleased to announce further positive exploration updates from new drilling undertaken just north of its flagship Gedabek gold ('Au'), copper ('Cu'), silver ('Ag') mine in western Azerbaijan.

 

Overview

·    On-going ~3,000m drilling programme has shown continuation of a high grade gold zone just 400m north of the Gedabek operating mine area

·    Elevated gold values received at previously completed core hole AIMCDD-106 had 1m interception of 101 g/t Au (3.3 g/t troy ounces per tonne ('opt') Au) from 313m to 314m with 78 g/t Ag (2.5 g/t opt Ag) andin composite 41m at 7.6 g/t Au from 296m to 337m - this has now been confirmed under JORC QA/QC standards by ALS Chemex check analyses

·    Drill hole 107, just completed ~20m south of hole 86 and 20m south-west of hole 106 at a lower ground elevation and has gold interceptions higher than those in hole 106 with 1m of 207.1 g/t Au (6.66 g/t opt Au), 42.02 g/t Ag (1.35 g/t opt Ag), and 2.86% Cu from 248m to 249m or for 5m of 47.2 g/t (1.52 g/t opt Au) from 245m to 250m

·    Additional gold interceptions of significance include 6m of 7 g/t Au from 277m to 283m, 10m of 3.04 g/t Au from 302m to 312m and 2m of 2.82 g/t Au from 325m to 327m

·    Two additional drill holes planned in the next month to further test the gold mineralisation of this newly discovered gold trend at Gedabek

·    To further outline the extent of this discovery, a geophysical programme is scheduled to commence in Q2 of 2014 - this programme will assist in the optimisation of drill hole targets over the 1,500m of potential extension to the east

 

Please click the following link to view a map of the Gedabek deposit and drilling target areas.

 

http://www.rns-pdf.londonstockexchange.com/rns/1312X_-2014-1-7.pdf

 

Anglo Asian CEO Reza Vaziri said, "Validation of this mineral discovery immediately north of the current open pit working at Gedabek supports the theory that Gedabek is part of a much larger mineralisation system.  While the full extent of this discovery is unknown, an aggressive exploration programme in 2014 will determine how much additional resource will be available to extend the mine life at Gedabek.

 

"The apparent high grade nature of this significant new discovery would certainly enhance our ability to optimise the reprocessing of spent heap leach tailings through the AGL by blending.  We look forward to continued success for the potential exploitation of this new find."

 

Further Information

 

Anglo Asian's 26,842m resource drilling programme at Gedabek concluded in Q1 2013 and, as a result, an upgraded Measured and Indicated JORC compliant resource of 44,644,658t at 0.783 g/t of Au for 1,123,767oz Au and a total JORC compliant resource of 51,591,901t at 0.754 g/t Au for 1,250,043oz Au, 0.155 % Cu for 80,036t Cu and 5.915 g/t Ag for 9,811,719oz Ag (at a cut-off grade of 0.3 g/t Au) was announced.

 

Core hole AIMCDD86, to the northwest of the Gedabek mine, was drilled to a depth of 650m earlier in 2013.  In a zone between 250m and 350m there was evidence of intense alteration accompanied by high grade gold mineralisation. To test the continuity of the mineralisation exhibited at drill hole AIMCDDC86, an additional hole (AIMCDD106) was drilled 20m east of hole 86 to a depth of 349m in October 2013. There are two zones of significance in core hole 106.  The upper zone of mineralisation has 5m of 95 g/t Ag (3.1 g/t opt Ag) at 234m to 238m and a lower zone that contains 41m at 7.6g/t of Au from 296m to 337m.  Within this lower zone, 1m of 101 g/t Ag (3.3 g/t opt Ag) with 78.7 g/t Au (2.5 g/t opt Au) occurs at 313 metres. 

 

This new area, 400m from the current pit, is informally called the Gadiz mineralisation, however should the deposit be extended, it will be likely be renamed Gedabek North.  The newly completed core hole in this area (AIMCDD107) was drilled 20m to the south of AIMCDD86 to a target depth of approximately 445m. 

 

Two other core holes (108 and 109) are planned now for drilling in January 2014 to the west of hole AIMCDD86 for an additional 900m.  The Company had intended to drill these holes during 2013 but had an immediate need for core data in Pit 4 for the 2014 mine development.  From experience, AIMC has found that drilling closer spaced holes at Gedabek is more effective for deposit delineation than wider spaced drilling due to the pod-like nature of the high mineralisation zones.  However, the use of an inductive polarization ('IP') survey in 2014, that targets sulfide zones, will help to determine the extent of the gold trend beyond this drilling area and whether the gold is occurring in sulfides.  The Company's core rig will return to this new discovery location in Q1 2014 to be augmented by the IP survey when the weather improves.

 

ANALYTICAL RESULTS FOR CORE HOLE AIMCDD107

 

Depth from (m)	Depth to (m)	Thickness (m)	Gold (ppm)	Silver (ppm)	Copper (%)	Depth from (m)	Depth to (m)	Thickness (m)	Gold (ppm)	Silver (ppm)	Copper (%)
226	228	2	0.06	<0.75	0.012
228	230	2	0.05	<0.75	<0.0100
230	232	2	0.07	<0.75	0.016
232	234	2	<0.05	<0.75	0.014
234	236	2	<0.05	<0.75	0.018
236	237	1	0.07	<0.75	0.011
237	238	1	<0.05	<0.75	0.150
238	239	1	<0.05	<0.75	0.013
239	240	1	0.07	<0.75	<0.0100
240	241	1	<0.05	<0.75	<0.0100
241	242	1	<0.05	<0.75	<0.0100
242	243	1	<0.05	<0.75	<0.0100
243	244	1	0.05	<0.75	<0.0100
244	245	1	0.07	<0.75	<0.0100
245	246	1	3.01	2.73	0.056
246	247	1	5.70	4.00	0.367
247	248	1	15.41	10.45	2.688
248	249	1	207.05	42.02	2.845
249	250	1	4.66	9.050	0.907	245	250	5	47.17	13.65	1.372
250	251	1	1.34	5.420	0.490
251	252	1	0.45	9.576	0.071
252	253	1	0.32	9.145	0.009
253	254	1	0.25	9.614	0.012
254	255	1	0.58	15.892	0.015
255	256	1	0.43	10.738	0.012
256	257	1	0.61	6.954	0.017
257	258	1	0.25	12.616	0.008
258	259	1	0.31	5.947	0.010
259	260	1	0.42	7.258	0.047
260	261	1	0.34	13.243	0.017
261	262	1	0.24	8.132	0.006
262	263	1	0.46	7.315	0.014
263	264	1	0.87	9.690	0.062
264	265	1	0.45	6.745	0.139
265	266	1	0.65	7.733	0.134
266	267	1	0.35	<0.75	0.056
267	268	1	0.27	<0.75	0.103
268	269	1	0.45	0.930	0.213
269	270	1	0.78	<0.75	0.276
270	271	1	0.42	<0.75	0.025
271	272	1	0.90	<0.75	0.232
272	273	1	0.51	<0.75	0.115
273	274	1	0.33	<0.75	0.100
274	275	1	0.31	<0.75	0.058
275	276	1	0.67	<0.75	0.107
276	277	1	0.35	<0.75	0.045
277	278	1	6.98	<0.75	0.056
278	279	1	3.00	<0.75	0.039
279	280	1	14.0	20.0	0.273
280	281	1	7.4	130.8	0.163
281	282	1	8.7	<0.75	0.203
282	283	1	2.122	<0.75	0.015	277	283	6	7.03	25.13	0.125
283	284	1	0.06	<0.75	<0.0100
284	285	1	0.13	<0.75	<0.0100
285	286	1	0.08	<0.75	<0.0100
286	287	1	0.07	<0.75	<0.0100
287	288	1	0.06	<0.75	<0.0100
288	289	1	0.25	<0.75	<0.0100
289	290	1	0.72	<0.75	0.028
290	291	1	0.07	<0.75	<0.0100
291	292	1	0.09	<0.75	<0.0100
292	293	1	<0.05	<0.75	<0.0100
293	294	1	<0.05	<0.75	0.011
294	295	1	0.13	<0.75	0.018
295	296	1	0.07	<0.75	0.014
296	297	1	0.59	<0.75	0.023
297	298	1	0.65	<0.75	0.035
298	299	1	0.98	<0.75	0.016
299	300	1	1.16	<0.75	0.030
300	301	1	0.11	<0.75	0.041
301	302	1	0.56	<0.75	0.026
302	303	1	4.73	1.280	0.070
303	304	1	1.77	1.020	0.051
304	305	1	3.93	3.320	0.091
305	306	1	1.18	<0.75	0.053
306	307	1	0.85	2.770	0.038
307	308	1	4.39	2.010	0.052
308	309	1	2.62	<0.75	0.064
309	310	1	5.92	<0.75	0.220
310	311	1	1.29	5.010	0.197
311	312	1	3.72	0.810	0.246	302	312	10	3.04	1.62	0.108
312	313	1	1.17	<0.75	0.185
313	314	1	1.43	3.640	0.044
314	315	1	1.28	<0.75	0.226
315	316	1	0.34	<0.75	0.067
316	317	1	0.24	<0.75	0.100
317	318	1	0.71	<0.75	0.036
318	319	1	1.00	<0.75	0.052
319	320	1	0.29	<0.75	0.026
320	321	1	0.05	<0.75	0.092
321	322	1	0.08	1.960	0.147
322	323	1	0.48	<0.75	0.050
323	324	1	0.73	<0.75	0.068
324	325	1	0.60	<0.75	0.053
325	326	1	3.11	<0.75	0.024
326	327	1	4.53	<0.75	0.033	325	327	2	3.82	0	0.029
327	328	1	1.65	<0.75	0.061
328	329	1	0.70	<0.75	0.045
329	330	1	0.28	<0.75	0.028
330	331	1	0.16	<0.75	0.015
331	332	1	0.68	<0.75	0.015
332	333	1	0.28	<0.75	0.020
333	334	1	0.11	<0.75	0.030
334	335	1	<0.05	<0.75	0.011
335	336	1	<0.05	<0.75	<0.0100
336	337	1	<0.05	<0.75	0.011
337	338	1	<0.05	<0.75	<0.0100
338	339	1	<0.05	<0.75	0.032
339	340	1	<0.05	<0.75	0.046
340	341	1	<0.05	<0.75	0.033
341	342	1	<0.05	<0.75	0.019
342	344	2	0.06	<0.75	0.014
344	346	2	0.06	<0.75	0.023
346	348	2	<0.05	<0.75	0.012
348	350	2	<0.05	<0.75	0.020
350	352	2	<0.05	<0.75	<0.0100
352	354	2	<0.05	<0.75	<0.0100
354	356	2	<0.05	<0.75	<0.0100
356	358	2	<0.05	<0.75	0.068
358	360	2	<0.05	<0.75	<0.0100
360	362	2	0.06	<0.75	<0.0100
362	364	2	0.05	<0.75	0.046
364	366	2	0.09	<0.75	0.059
366	368	2	0.01	<0.75	0.042
368	370	2	0.07	<0.75	0.016
370	372	2	0.04	<0.75	0.014
372	374	2	0.07	<0.75	0.013
374	376	2	0.07	<0.75	0.006
376	378	2	0.07	<0.75	0.009
378	380	2	0.06	<0.75	0.006
380	382	2	0.14	<0.75	0.008
382	384	2	0.05	<0.75	0.014
384	386	2	0.04	<0.75	0.011
386	388	2	0.04	<0.75	0.006
388	390	2	0.04	3.94	0.009
390	392	2	0.03	<0.75	0.010
392	394	2	0.01	<0.75	0.004
394	396	2	0.01	<0.75	0.007
396	398	2	0.05	<0.75	0.008
398	400	2	0.04	<0.75	0.010
400	402	2	0.04	<0.75	0.006
402	404	2	0.05	<0.75	0.006
404	406	2	0.05	<0.75	0.009
406	408	2	0.05	<0.75	0.005
408	410	2	0.07	<0.75	0.009
410	412	2	0.06	<0.75	0.004
412	414	2	0.06	<0.75	0.004
414	416	2	0.05	<0.75	0.004
416	418	2	<0.05	<0.75	0.010
418	420	2	0.08	<0.75	<0.0100
420	422	2	<0.05	<0.75	0.048
422	424	2	<0.05	<0.75	0.068
424	426	2	0.10	<0.75	<0.0100
426	428	2	<0.05	<0.75	0.010
428	430	2	0.05	<0.75	<0.0100
430	432	2	<0.05	<0.75	0.011
432	434	2	0.08	<0.75	<0.0100
434	436	2	0.05	<0.75	<0.0100
436	438	2	<0.05	<0.75	<0.0100
438	440	2	0.14	<0.75	<0.0100
440	442	2	<0.05	<0.75	0.018
442	444	2	<0.05	<0.75	<0.0100
444	446	2	<0.05	<0.75	<0.0100
446	447.5	1.5	0.40	<0.75	0.021

 

All analyses were conducted at the mine site laboratory in accordance with QA/QC procedures for JORC inferred resource reporting, which included the incorporation of blanks and duplicates. Further validation under JORC standards will be available in 2014 as duplicates of these samples are being analysed by the external laboratory, ALS Chemex.

 

Mr. Sean Muller has reviewed and approved the technical information contained in this announcement.  Mr. Muller is a Competent Person under JORC deposits of the type of Gedabek since 1983 and Gosha since the early 1990s.  He has been involved in major gold discoveries that have gone into production since 1973.  This experience, together with membership in AIPG since 1985, and Registered Member status with Society of Mining Engineers qualifies Mr. Muller as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and a 'qualified person' as defined in the Note for Mining and Oil & Gas Companies published by the London Stock Exchange in June 2009. 

 

**ENDS**

 

For further information please visit www.angloasianmining.com or contact:

           

Reza Vaziri	Anglo Asian Mining plc	Tel: +994 12 596 3350
Sean Duffy	Anglo Asian Mining plc	Tel: +994 12 596 3350
Ewan Leggat	SP Angel Corporate Finance LLP	Tel: +44 (0) 20 3463 2260
Laura Littley	SP Angel Corporate Finance LLP	Tel: +44 (0) 20 3463 2260
Felicity Edwards	St Brides Media & Finance Ltd	Tel: +44 (0) 20 7236 1177
Lottie Brocklehurst	St Brides Media & Finance Ltd	Tel: +44 (0) 20 7236 1177

 

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 from 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.

 

Anglo Asian is actively looking to exploit its first producer advantage in Azerbaijan by developing additional projects, as well as looking for other properties in the Central Asia region to fulfil its expansion ambitions and become a mid-tier gold and base metal production company.