Q3 2019 Geological Exploration Activities

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

 

4 November 2019

Anglo Asian Mining plc

Q3 2019 Geological Exploration Activities

Gedabek, Gosha and Ordubad Contract Areas

Two New Mineral Occurrences Discovered

 

 

Anglo Asian Mining PLC ("AAM" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide a summary of its geological exploration activities from 1 July to 30 September 2019 ("Q3 2019") at its Gedabek, Gosha and Ordubad Contract Areas. Detailed reports of the Company's work programmes including drill hole data and other exploration results for each contract area can be found following the links below in each relevant section and on the Company's website (www.angloasianmining.com).

 

Highlights

 

Gedabek

·    Two exciting new mineral occurrences discovered:

o  Avshancli: gold-copper occurrence comprising three areas

o  Gilar: gold-hosting quartz vein

·   Drilling at the Gadir underground mine identified further mineable extensions giving increased confidence in life of mine

·    Evaluation of higher resolution data from surface Induced Polarisation geophysical survey carried out over the Gadir underground deposit area and part of the Gedabek open pit

·    Work continued at high-priority ZTEM targets - 1,305 outcrop samples taken

·    WorldView-3 satellite remote sensing carried out over the northwest region of the contract area

·   Near-mine exploration activity commenced around Ugur - seven drill holes (including two geotechnical holes) completed

 

Gosha

·    Extension of drilling programme - six additional diamond drill holes completed targeting 'Zone 5' potential mine extension 

 

Ordubad

·    WorldView-3 satellite remote sensing carried out over central Ordubad - alteration consistent with mineralisation defined

·    Preliminary results received from the Natural History Museum's whole rock analysis that suggests the presence of igneous rocks favourable for porphyry formation

·    Assays returned from a further eight diamond drill holes at Dirnis copper-silver target - good grades returned

·    Several vein targets for gold mineralisation identified from soil and litho-geochemical work - new target "Aylis" identified northeast of Dirnis

 

Stephen Westhead, Director of Geology & Mining, commented, "A balanced work programme of near mine and greenfield exploration has provided positive results this quarter. The two newly discovered mineral occurrences at Gedabek and newly defined target areas at Ordubad provide exciting opportunities for growth. Work will continue at pace to follow-up and define the three-dimensional continuity and resource potential of Avshancli and Gilar.

 

"The Company's other geological exploration at Gedabek is also encouraging with near-mine exploration at Gadir and Ugur providing good results. Work at Gosha continues to provide further indications of near mine potential.

 

"Our integrated exploration approach at Ordubad differs as it is at an earlier stage. We are using various techniques such as satellite mapping, whole rock analysis and soil and litho-geochemical sampling to build-up a detailed understanding of the geology of the region. The WorldView-3 satellite remote sensing survey in quarter three was another important addition to our understanding."

 

Gedabek Contract Area ("Gedabek CA")

 

Overview of Exploration Activity in Q3 2019

Avshancli and Gilar deposits

Two promising new mineral occurrences were discovered in the northeast region of the Gedabek CA and these have been named Avshancli and Gilar. Avshancli is a gold-copper occurrence comprising three defined areas and Gilar is a gold-hosting quartz vein. The Company will provide further details on these new discoveries in a separate announcement.

 

Gedabek open pit

The Geology team focussed on Gedabek production activities in Q3 2019, with the implementation of new reverse circulation grade control drilling. No exploration work was carried out in the Gedabek open pit area.

 

Gadir underground mine

Exploration work comprised underground drilling and mapping. 73 core drill holes (51 BQ and 22 HQ/NQ diameter) with a total length of 3,412 metres were completed. The drilling work resulted in defining ores that extend the footprint of the current Gadir mineralisation both laterally and down dip. These positive results demonstrate expansion potential of the Gadir underground mine.

 

Data analysis from the surface Induced Polarisation ('IP') geophysical survey on surface over the Gadir deposit using an advanced wireless system is ongoing. This technique involves transmitting an electrical current into the sub-surface which is then monitored by further electrodes. The results have been interpreted by external geophysicists and are currently being analysed in conjunction with drill hole and other geological data by the Company.

 

Ugur regional

Seven surface drill holes were completed at the area adjacent to Ugur and drilling is continuing into Q4 2019. Drill hole 19GED03 intersected the ZTEM Zs9 anomaly ("Yagublu") and returned significant intersections across the assay suite. Notable intersections of the drill-holes are as follows:

 

Hole I.D.	Intersection			Weighted average grades
	Depth From (metres)	Depth To (metres)	Downhole Length (metres)	Gold   (g/t)	Silver   (g/t)	Copper   (%)	Zinc   (%)
19UGDD01	79.00	80.00	1.00	0.10	28.00	1.14	0.00
19UGDD01	91.60	92.40	0.80	0.24	38.00	1.46	0.01
19GED03	761.60	761.90	0.30	0.73	159.00	0.59	7.19
19GED03	762.80	764.50	1.70	1.38	99.00	0.59	6.70

 

WorldView-3 satellite remote sensing

WorldView-3 satellite remote sensing took place over the Gedabek CA in September 2019. The area covered by the survey is in the northwest corner of the Gedabek CA, capturing or partially capturing the Agamaly ("Zs4"), Narzan ("Zs20") and Hachagaya ("M1") ZTEM anomalies. These areas are being targeted to test the satellite capabilities over heavily vegetated terrain, where access is difficult. The results will be available in Q4 2019.

 

ZTEM study

Work has continued at the ZTEM targets with 1,305 outcrop samples taken from seven ZTEM targets, two new discoveries and one existing target. A summary of the works completed is as follows:

 

Anomaly	Outcrop sampling in Q3 2019		Current Status of exploration
	Samples (number)	Summary of results
Gyzyljadag East (Zs7)	194	Two samples returned significant gold grades	On-hold
Parakend Bugor (Zs14)	66	Two samples returned significant gold assays	Exploration continuing
Korogly (Zs15)	12	No samples returned significant gold assays	Exploration continuing
Soyugbulag (Zs16)	35	One sample returned grade above the reportable limits	Exploration continuing
Zehmetkend (Zs18)	43	Six samples returned grades above the reportable limits	Exploration continuing
Masxit (Zs19)	499	107 Samples returned significant grades	Exploration continuing
Hachagaya (M1)	12	Two samples returned grades above the reportable limits	On-hold
Avshancli	338	Sampling led to new discovery of mineral district	High priority
Gilar	72	Sampling proves vein is gold-bearing	High priority
Maarif	34	11 samples returned significant grades	Exploration continuing

 

A detailed report on the Q3 2019 exploration activities at the Gedabek CA can be found at https://www.angloasianmining.com/wp-content/uploads/2019/11/Q3-2019-Exploration-Activities-Gedabek-FILE_3.pdf and on the Company's website (www.angloasianmining.com).

 

Gosha Contract Area ("Gosha CA")

 

Overview of Exploration Activity in Q3 2019

Near-mine exploration

2,115 metres of diamond core was drilled around the existing Gosha underground mine. Preliminary analysis of the results of the drilling confirms the dominance of gold mineralisation in the vicinity of Gosha.

 

Asrikchay

18 stream sediment samples were collected over the Asrikchay valley and targeted water courses flowing into the Asrikchay River and the Asrikchay River itself. No reportable grades were returned. Exploration over the region continues.

 

A detailed report on the Q3 2019 exploration activities at the Gosha CA can be found at https://www.angloasianmining.com/wp-content/uploads/2019/11/Q3-2019-Exploration-Activities-Gosha-FILE_4.pdf and on the Company's website (www.angloasianmining.com).

 

Ordubad Contract Area ("Ordubad CA")

 

Overview of Exploration Activity in Q3 2019

Aylis

Reconnaissance fieldwork over new anomalies identified by the 2018 geochemical campaign was the main focus of the exploration. In total, two square kilometres of mapping was completed, mainly in an area approximately 2.5 kilometres northeast of Dirnis village and two kilometers east of Keleki village, now named "Aylis". This mapping provided positive results with the identification of numerous vein sets over Aylis. Outcrop sampling will commence during Q4 2019.

 

WorldView-3 satellite remote sensing

WorldView-3 satellite image collection took place over Ordubad CA in the quarter. It was planned to collect images over 150 square kilometres of Ordubad; however, extra data were collected for an actual total of 244 square kilometres.

 

Various image processing techniques were used to map the spectral geology and alterations. The images can identify clays and other forms of alteration. In addition, this technique can identify a variety of minerals, vectoring of which is especially useful in porphyry exploration. A spectral interpretation was completed that highlighted several areas which are of geological interest and require follow-up fieldwork.        

 

Natural History Museum whole rock analysis study

During their field visit to Ordubad in Q4 2018, the Natural History Museum of London collected a total of 83 rock chip samples and have since been analysing the rocks in detail. Samples were collected in the area of the 2018 geochemical sampling area, encompassing Shakardara, Keleki, Dirnis and surrounds. Age-dating of zircons is ongoing but preliminary findings of the whole rock study have now been received. The potential indicators suggest that the geochemistry of the igneous sites is favourable for porphyry formation - further information can be found in the accompanying technical report (https://www.angloasianmining.com/wp-content/uploads/2019/11/Q3-2019-Technical-Summary-Ordubad_Whole_Rock_Analysis-FILE_6.pdf).
 

Dirnis

The Dirnis prospect is located approximately 2.5 kilometres west of Dirnis village. It is a copper-silver occurrence and significant grades have previously been returned from malachite veining occurring in areas hosting both "White Rock" and "Green Rock" alteration.

 

A total of 18 diamond drill holes were completed in Q1 2019 and the assay results of three holes have been previously reported. Assay results from a further eight holes were returned in Q3 2019. Notable intersections of these drill holes are as follows:

 

Hole I.D.	Intersection			Weighted average grades
	Depth From (metres)	Depth To (metres)	Downhole Length (metres)	Gold   (g/t)	Silver   (g/t)	Copper   (%)	Zinc   (ppm)
DRDD05A	118.40	119.40	1.00	0.03	18.57	0.62	73
DRDD13	58.80	59.50	0.70	0.03	21.73	1.18	114

 

Keleki (gold prospect)

No additional diamond drilling was carried out as the diamond drill hole programme was completed by the end of H1 2019. However, samples from the completed drilling programme continued to be sent for assay during the quarter.

 

Destabashi

261 samples collected during the geochemical sampling campaign in H1 2019 were shipped to ALS Minerals Loughrea and the Company is awaiting the results.

 

A detailed report on the Q3 2019 exploration activities at Ordubad can be found at https://www.angloasianmining.com/wp-content/uploads/2019/11/Q3-2019-Exploration-Activities-Ordubad-FILE_5.pdf. Both this report and the Natural History Museum report (previously referenced) can be found 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 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 LLP Nominated Adviser and Broker	Tel: +44 (0) 20 3470 0470
Soltan Tagiev	SP Angel Corporate Finance LLP Nominated Adviser and Broker	Tel + 44 (0) 20 3470 0470
Camilla Horsfall	Blytheweigh Financial	Tel: + 44(0) 20 7138 3224
Megan Ray	Blytheweigh Financial	Tel: + 44(0) 20 7138 3224

 

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 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.

The Company has forecast production for FY 2019 of between 82,000 to 86,000 GEOs.

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.