29% Increase in Resource - Gedabek (Replacement)

RNS Number : 9714I

Anglo Asian Mining PLC

05 June 2014

 



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

5 June 2014

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

29% Increase in Resource at Flagship Gedabek Gold/Copper/Silver Mine in Azerbaijan (Replacement)

This announcement replaces the announcement that was made by the Company today at 7.00 a.m. with RNS No.8785I. The changes relate to the table which summarises the updated resources and in particular the quantity of silver and copper products.  In addition, the sixth bullet point under the table, which was incorrect, has been amended to:

·    An additional 700,000 tonnes of 6 grammes per tonne inferred resources recently found at the Gadir discovery immediately north of Pit 4. CAE has noted that this can be changed to indicated ounces with more structural interpretation that is in progress;

All other details in the announcement remain the same.  The full amended text is shown below.

Anglo Asian Mining, the AIM listed gold producer in Azerbaijan, is pleased to announce a 29% increase in its JORC compliant gold resource at its flagship Gedabek gold/copper/silver mine in western Azerbaijan ('Gedabek') to 61,795,775 tonnes at 0.730 g/t of gold ('Au') for 1,449,537 oz in the Measured and Indicated categories.  This latest resource update is primarily due to new drilling results at Gedabek leading to a reinterpretation of the mine model and accordingly the JORC resource has been adjusted for any depletion to December 2013.  Gedabek's JORC reserve base currently stands at 744,038oz Au.

Model of April 2014		0.3g/t Au Cut-off					Cell Size: 10x10x2.5
Oxide Material				Grades				Products
		Tonnes	Au (g/t)	Ag (g/t)	Cu (%)		Au (Oz)	Ag (Oz)	Cu (t)
	Measured	12,020,215	0.75	6.06	0.14		289,817	2,342,022	16,790
	Indicated	6,169,672	0.602	5.139	0.154		119,508	1,019,331	9,520
	Measured & Indicated	18,189,888	0.7	5.748	0.145		409,326	3,361,353	26,310
	Inferred	4,436,283	1.201	4.79	0.101		171,262	683,196	4,489
Transitional Material
		Tonnes	Au (g/t)	Ag (g/t)	Cu (%)		Au (Oz)	Ag (Oz)	Cu (t)
	Measured	4,714,927	0.691	4.705	0.135		104,804	713,166	6,385
	Indicated	2,717,196	0.602	4.044	0.143		52,599	353,244	3,892
	Measured & Indicated	7,432,124	0.659	4.463	0.138		157,403	1,066,410	10,278
	Inferred	617,313	1.243	4.405	0.106		24,679	87,426	654
Sulphide Material
		Tonnes	Au (g/t)	Ag (g/t)	Cu (%)		Au (Oz)	Ag (Oz)	Cu (t)
	Measured	20,454,539	0.894	6.088	0.334		587,676	4,003,615	68,226
	Indicated	15,719,225	0.584	4.012	0.249		295,131	2,027,436	39,083
	Measured & Indicated	36,173,764	0.759	5.186	0.297		882,807	6,031,051	107,309
	Inferred	4,391,322	0.692	4.733	0.173		97,736	668,225	7,586
Total Mineralisation
		Tonnes	Au (g/t)	Ag (g/t)	Cu (%)		Au (Oz)	Ag (Oz)	Cu (t)
	Measured	37,189,682	0.822	5.904	0.246		982,298	7,058,803	91,401
	Indicated	24,606,093	0.591	4.298	0.213		467,239	3,400,011	52,495
	Measured & Indicated	61,795,775	0.73	5.264	0.233		1,449,537	10,458,814	143,896
	Inferred	9,444,918	0.967	4.739	0.135		293,678	1,438,847	12,729

The main differences from the last JORC compliant resource upgrade in October 2013 are related to additional drilling since August 2013 (cut-off date for October 2013 update), extensive confirmatory RC drilling in the pit area in November and December 2013 and a new discovery known as Gadir immediately north of the Gedabek mine.  Geologic interpretation and recent computer modelling by CAE Mining reveals:

·    An increase of 325,400 measured and indicated  to 1,449,537 gold ounces ;

·    An increase of 167,400 inferred  to 293,678 gold ounces;

·    A significant increase in low grade oxide ore;

·    A two-fold increase in transition (i.e. mixed oxide and sulphide) ore;

·    A 9% drop in sulphide ore due to reclassification as transitional ore;

·    An additional 700,000 tonnes of 6 grammes per tonne inferred  resources recently found at the Gadir discovery immediately north of Pit 4. CAE has noted that this can be changed to indicated ounces with more structural interpretation that is in progress;

·    A near doubling of the measured resources from October 2013 due to infill RC drilling;

·    A drop in average grades in all categories excepting inferred resources; and,

·    A tripling in the amount of copper resources.

Mine planning is currently underway for an updated calculation of the reserves for the life of mine (LOM).  CAE Mining will issue an updated JORC report during Q3 2014.

Anglo Asian CEO Reza Vaziri said, "The significant addition of resources at Gedabek indicates that continued exploration and development in the immediate Gedabek area may result in the discovery of additional resources in 2014 and hopefully a resource of 'district size' proportion. We are delighted that this resource expansion has the potential to extend the life-of-mine for several additional years and look forward to reporting further on the exploration and development of Gedabek in the coming year."

This JORC compliant resource update has been prepared by the independent consultants, CAE. The principal Competent Person (CP) under JORC is Gerard Evans, P.Geo. from CAE Mining's Johannesburg office.  This estimate has also been reviewed by Anglo Asian's CP Sean Muller, P.Geo. to ensure that the determination of oxide, transition and sulphide mineralization has been designated in accordance to process amenability.

**ENDS**

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

Reza Vaziri	Anglo Asian Mining plc	Tel: [phone]
Sean Duffy	Anglo Asian Mining plc	Tel: [phone]
Ewan Leggat	SP Angel Corporate Finance LLP	Tel: [phone]
Laura Harrison	SP Angel Corporate Finance LLP	Tel: [phone]
Felicity Edwards	St Brides Media & Finance Ltd	Tel: [phone]
Lottie Brocklehurst	St Brides Media & Finance Ltd	Tel: [phone]

*The Company has a Production Sharing Agreement ('PSA') in place with the Government of Azerbaijan which governs how the production of each of the Company's Contract Areas under the PSA is divided between the Company and the Government of Azerbaijan. Currently, the Company takes ownership of 87.25% of the production at Gedabek, which accounts for the difference between the total gold produced at Gedabek and the amount of gold sold by the Company. It should also be noted that there will always be short-term timing differences between gold production and sales.

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.  Gold production for the year ended 31 December 2012 totalled 50,215 oz of gold and FY 2013 gold production was 52,068 oz. Projections for 2015 are 62-67,000 ounces of gold, following the commissioning of a new agitation leaching plant at Gedabek in 2013 and the recent start-up of the Gosha mine.

Anglo Asian is actively looking 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 base metal production company

 

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