Q4 2019 Geological Exploration Activities

RNS Number : 8064D

Anglo Asian Mining PLC

24 February 2020

 

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

24 February 2020

Anglo Asian Mining plc

Q4 2019 Geological Exploration Activities

Gedabek, Gosha and Ordubad Contract Areas

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 very extensive and productive geological exploration activities from 1 October to 31 December 2019 ("Q4 2019") at its Gedabek, Gosha and Ordubad Contract Areas.

Positive results were achieved in all three 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

· Significant exploration completed at Avshancli district - 128 outcrop samples, 296 metres of trenching and nine surface drill holes completed

o  Good reportable grades returned from both outcrop sampling and trenching

o  Nine surface drill holes of total length 1,732 metres returned good gold and copper grades

· Small scale ground-based geophysics (magnetic) study completed at Avshancli-1 identified significant magnetic anomalies

· Drilling at Gilar commenced with four drill holes totalling 692 metres completed

o  Presence confirmed of gold quartz vein

· Surface and underground drilling carried out at Gadir

o  Current productive mineralisation footprint further extended both laterally and down dip

· A further 488 metres of underground tunnelling completed from Gadir towards Gedabek underground

· Four surface drill-holes completed at Ugur totalling 1,509 metres

o  Positive results with copper grades returned approaching two per cent.

· Six holes totalling 1,475 metres at the Gedabek open pit and one hole of 727 metres completed at the adjacent area Duzyard

· Work commenced at a new ZTEM target designated "Parakend Bugor" close to Korogly

o  343 outcrop samples collected of which 45 samples show presence of gold

· A research team from the Natural History Museum (London) visited in November 2019

Gosha

· Drilling programme targeting "Zone 5" was further extended with five drill-holes totalling 1,688 metres completed

o  Mineralisation confirmed at depth below 'Zone 5'

· 89 linear metres of trenching carried out around the Gosha mine and 169 outcrop samples collected around both the Gosha mine and the wider contract area

o  Presence further confirmed of gold on the surface in area surrounding the Gosha mine

Ordubad

· Analysis and corroboration continues of the WorldView-3 satellite data

· Assay results now returned from all drill-holes at Keleki and Dirnis completed in H1 2019

o  Good gold grades returned which are now being verified

· Trenching programme commences at the new target Aylis with a total of 48 trenches completed - awaiting assay results   

Stephen Westhead, Director of Geology & Mining, commented, "Our geological work programme continues over our three contract areas. At the Gedabek contract area, work on the two new targets of Avshancli and Gilar is progressing well. Good grades at Avshancli have been returned from the surface geological work and drilling and the vein system at Gilar has been confirmed. The mineralisation footprint of the Gadir underground mine has also been further extended. Additionally, we have started investigation of a new ZTEM target, Parakend Bugor which is next to Korogly.

"Considerable work has been carried out at Gosha which has been successful confirming the mineralisation below the existing Gosha mine. Surface geological work in the Gosha mine area also indicates the presence of gold. At Ordubad, the majority of the assay results from drilling at Keleki and Dirnis completed earlier in the year have now been received and show significant gold and copper grades. We have also started trench sampling at a new target "Aylis" at Ordubad and are beginning to corroborate the results of the WorldView-3 remote satellite sensing against data obtained from field geology.

"The Company is also providing shareholders, in a separate announcement today, a summary of the overall progress of our exploration programme and the work planned in 2020."

Gedabek Contract Area ("Gedabek CA")

Avshancli district

Avshancli is a recently discovered significant mineral district which is 10.5 kilometres north-east of the Gedabek open pit. Avshancli is a gold-copper occurrence comprising three defined areas, Avshancli 1,2 and 3. In Q4 2019, a significant amount of exploration work took place comprising collecting 128 outcrop samples, completing 1,732 metres of trenching and commencing a surface diamond drilling programme.

Of the 128 outcrop samples, 32 returned good reportable assay grades with gold grades as high as 6.07 grammes per tonne and copper grades as high as 1.49 per cent.

Trenching was carried out over all three Avshancli areas in Q4 2019. Two trenches were dug in Avshancli 1 and one each in Avshancli 2 and 3. Notable intersections were as follows:

Trench i.d.	Intersection			Weighted average grade
	From	To	Length	Gold	Silver*	Copper	Zinc
	(metres)	(metres)	(metres)	(g/t)	(g/t)	(per cent.)	(per cent.)
AV1TR1	4.00	5.00	1.00	5.27	28.00	0.30	0.02
	5.50	10.00	4.50	4.29	8.33	0.49	0.03
	13.00	14.00	1.00	0.05	5.00	0.44	0.05
	19.00	27.00	8.00	0.05	5.00	0.55	0.11

* 5 g/t is the minimum detection limit for silver. Any grades below 5 g/t are reported as 5 g/t.

Nine surface drill holes of 1,732 metres total length were completed at the Avshancli district during Q4 2019 to commence the initial drill programme. There was one notable intersection as set out below:

Drill hole i.d.	Intersection			Weighted average grade
	Depth from	Depth to	Downhole Length	Gold	Silver*	Copper	Zinc
	(metres)	(metres)	(metres)	(g/t)	(g/t)	(per cent.)	(per cent.)
19BFDD05	0.90	2.00	1.10	7.03	5.00	0.45	0.04

* 5 g/t is the minimum detection limit for silver. Any grades below 5 g/t are reported as 5 g/t.

A ground-based magnetic survey covering approximately 0.15 square kilometres was completed over the Avshancli 1 region in October 2019. This was to determine if there was any subsurface magnetic response to help target drilling. The survey utilised a GEM System Overhauser GSM-19 magnetometer. Three key magnetic anomalies were identified which are believed to be associated with alteration zones. This study will enable optimisation of the drilling programme through identifying geologically favourable targets. Further use of this technique is planned over both Avahancli 2 and 3 during 2020.

Gilar

Gilar is a new mineral occurrence located approximately two kilometres south of Avshancli 1. A preliminary programme completed four drill holes totalling 692 metres in Q4 2019. Assay results have been returned from three of the drill holes with the following significant intersections:

Drill-hole i.d.	Intersection			Weighted average grade
	Depth from	Depth to	Downhole Length	Gold	Silver*	Copper	Zinc
	(metres)	(metres)	(metres)	(g/t)	(g/t)	(per cent.)	(per cent.)
19GLDD01	13.00	14.00	1.00	0.03	5.00	0.35	0.21
	23.00	24.40	1.40	5.48	5.00	0.01	0.01
	28.20	29.40	1.20	0.03	20.00	0.01	0.01

* 5 g/t is the minimum detection limit for silver. Any grades below 5 g/t are reported as 5 g/t.

Gedabek open pit and Duzyard

Six surface drill holes were completed around the Gedabek open pit and one drill hole at Duzyard (an area situated on the south-western flanks of the Gedabek open pit mine). One of the Gedabek drill holes and the Duzyard drill hole were designed to explore the geology at depth, with one hole (19GBD09) drilled to over 1,000 metres in depth.

Completed assay results which contained no notable intersections have been returned for the drill hole at Duzyard. The assay results for the six surface drill holes completed around the Gedabek open pit are still awaited and will be reported in the next exploration update.

Gadir underground mine

A total of five surface drill holes were completed with a total length of 2,375 metres and 62 (37 BQ diameter and 25 HQ/NQ diameter) underground drill holes completed for a total length of 2,937 metres. Surface drill holes showing significant grades were as follows:

Drill hole i.d.	Intersection			Weighted average grade
	Depth from	Depth to	Downhole Length	Gold	Silver*	Copper	Zinc
	(metres)	(metres)	(metres)	(g/t)	(g/t)	(per cent.)	(per cent.)
19GDD08	427.10	428.10	1.00	10.05	5.00	0.02	0.02
	437.10	438.10	1.00	2.81	5.00	0.61	0.02
	447.10	449.10	2.00	10.78	8.50	0.05	0.02
19GDD09	438.50	439.50	1.00	2.02	2.88	0.39	0.10

* 5 g/t is the minimum detection limit for silver. Any grades below 5 g/t are reported as 5 g/t.

The drilling has resulted in defining mineralisation that extend the current productive Gadir mineralisation footprint both laterally and down dip. These positive results demonstrate the expansion potential of the Gadir mine.

Underground tunnelling continued from Gadir to access Gedabek underground with 488 metres completed in Q4 2019.

Ugur regional

Continuing the work from Q3 2019, four surface drill holes were completed around the eastern edge of the Ugur open pit during Q4 2019 with a total length of 1,509 metres targeting down dip extensions. Assay results from two drill holes (19UGDD03 and 06) completed in Q4 2019 have been returned together with assay results from two holes (19GDD04 and 05) drilled in Q3 2019. Drill holes 19UGDD03 and 06 returned particularly positive results for copper, silver and zinc as follows:

Drill hole i.d.	Intersection			Weighted average grade
	Depth from	Depth to	Downhole Length	Gold	Silver	Copper	Zinc
	(metres)	(metres)	(metres)	(g/t)	(g/t)	(percent.)	(per cent.)
19UGDD03	356.30	357.00	0.70	0.03	48.00	0.01	0.03
19UGDD06	309.40	334.40	25.00	0.06	124.80	1.93	1.47
	310.40	315.40	5.00	0.04	68.60	2.78	3.87
	321.40	326.40	5.00	0.07	182.20	2.50	0.83

WorldView-3 satellite remote sensing

WorldView-3 satellite remote sensing took place over the Gedabek CA in September 2019. This indicated various areas of potential mineralisation which are now being investigated by surface geological work.

Parakend Bugor

Parakend Bugor (ZTEM target Zs14) is approximately nine kilometres north-west of the Gedabek open pit. The potential ore body lies in an east-west direction and is approximately 1.5 kilometres in length. Its geology comprises Upper Bajocian volcanics overlain by Quaternary sediments over its eastern region. Exploration was extended to this target in Q4 2019 due to its proximity to Korogly, another target identified by the ZTEM survey. A total of 343 outcrop samples were collect in Q4 2019 and significantly good results were returned from 45.

Natural history Museum (London) ("NHM") visit to Gedabek

Geologists from the NHM visited Gedabek in late November 2019 and visited the main exploration target areas with the focus to identify buried porphyry systems. They also correlated the WorldView-3® data with other exploration results. A number of rock samples were taken which will be analysed at the NHM research facility in early 2020.

A detailed report on the Q4 2019 exploration activities at the Gebabek CA can be found at https://www.angloasianmining.com/wp-content/uploads/2020/02/Q4-2019-Exploration-Activities-Gedabek.pdf and on the Company's website ( www.angloasianmining.com ).

Gosha Contract Area ("Gosha CA")

Gosha mine and "Zone 5"

Five core drill holes were completed in Q4 2019 of total length 1,688 metres in the vicinity of the Gosha mine. The aim of this drilling is to test the Gosha vein system at depth below the current "Zone 5" development. In addition, assay results for one hole drilled in Q3 2019 (GSHDD12) were also returned. Note that assay results from one hole drilled in Q3 2019 is still awaited. Notable intersections of the drill-holes (including GSHDD12) are as follows:

Drill hole i.d.	Intersection			Weighted average grade
	Depth from	Depth to	Downhole Length	Gold	Silver*	Copper	Zinc
	(metres)	(metres)	(metres)	(g/t)	(g/t)	(per cent.)	(per cent.)
GSHDD10	125.00	126.00	1.00	1.97	5.00	0.01	0.01
	208.80	210.00	1.20	11.86	5.00	0.02	0.00
GSHDD11	142.40	142.60	0.20	1.05	5.00	0.06	0.01
	149.00	149.30	0.30	1.30	5.00	0.05	0.01
	155.30	155.7	0.40	1.24	5.00	0.13	0.01
	296.60	297.30	0.70	3.07	5.00	0.04	0.05
GSHDD15	52.00	52.20	0.20	1.11	5.00	0.01	0.01
	97.00	97.50	0.50	1.29	5.00	0.01	0.01
	108.60	108.80	0.20	1.06	5.00	0.02	0.00
	110.30	110.60	0.30	10.08	5.00	3.79	0.01
GSHDD16	59.60	60.20	0.60	1.44	5.00	0.01	0.01
	62.00	63.00	1.00	1.75	5.00	0.03	0.00
GSHDD17	68.20	68.50	0.30	10.10	5.00	1.08	0.28
GSHDD12	117.00	118.00	1.00	1.68	5.00	0.02	0.00

* 5 g/t is the minimum detection limit for silver. Any grades below 5 g/t are reported as 5 g/t.

These drill results confirm that productive gold mineralisation exists at depth below "Zone 5"

Gosha near mine

Outcrop and trench sampling took place in the Gosha near mine region in Q4 2019. A total of 169 outcrop samples were collected with five samples returning positive grades for both gold and copper as follows:

Sample i.d.	Weighted average grades
	Gold (g/t)	Silver* (g/t)	Copper (per cent.)	Zinc (per cent.)
GSHCHA2 -05	0.35	5.00	0.06	0.01
GSHCHA2 -06	0.34	5.00	0.07	0.01
GSHCHS-110	0.53	5.00	0.01	0.03
GSHCHS-116	0.07	5.00	0.32	0.16

* 5 g/t is the minimum detection limit for silver. Any grades below 5 g/t are reported as 5 g/t.

A total of 10 trenches were dug in the Gosha near mine region in Q4 2019 totalling 88 metres. 104 samples were obtained taken at one metre intervals unless geological constraints warranted adjustments in sample length. Significant intersections were as follows:

Trench i.d.	Intersection			Weighted average grades
	From (metres)	To (metres)	Length (metres)	Gold (g/t)	Silver* (g/t)	Copper (%)	Zinc (ppm)
TR19-01	0.00	0.50	0.05	0.49	5.00	0.02	0.01
	0.05	1.00	0.05	1.30	5.00	0.04	0.05
	1.00	1.50	0.05	0.55	5.00	0.01	0.00
	1.50	2.00	0.05	0.31	5.00	0.01	0.00
	2.00	2.50	0.05	0.44	5.00	0.01	0.00
	2.50	3.00	0.05	0.37	5.00	0.01	0.01
	3.00	3.50	0.05	0.32	5.00	0.01	0.01
	3.50	4.00	0.05	0.36	5.00	0.01	0.01
	4.00	4.50	0.05	0.30	5.00	0.01	0.01
	4.50	5.00	0.05	0.36	5.00	0.01	0.01
TR19-02	0.00	0.50	0.05	0.32	5.00	0.01	0.00
	0.50	1.00	0.05	0.81	5.00	0.01	0.00
	1.00	1.50	0.05	0.34	5.00	0.01	0.01
	3.00	3.50	0.05	0.31	5.00	0.01	0.01
TR19-04	0.00	0.50	0.05	0.37	5.00	0.02	0.01
	0.50	1.00	0.05	0.41	5.00	0.03	0.00
	1.00	1.50	0.05	0.32	5.00	0.04	0.00
TR19-06	0.50	1.00	0.05	0.34	10.00	0.17	0.01
TR19-10	19.20	19.70	0.05	078	5.00	0.01	0.00

* 5 g/t is the minimum detection limit for silver. Any grades below 5 g/t are reported as 5 g/t.

A detailed report on the Q4 2019 exploration activities at the Gosha CA can be found at https://www.angloasianmining.com/wp-content/uploads/2020/02/Q4-2019-Exploration-Activities-Gosha.pdf and on the Company's website ( www.angloasianmining.com ).

Ordubad Contract Area ("Ordubad CA")

Overview of Exploration Activity in Q4 2019

Aylis

Geological mapping continued in Q4 2019 at the recently identified target, Aylis, which lies approximately 2.5 kilometres north-east of Dirnis and 2 kilometres east of Keleki. An additional two square kilometres of geological mapping was carried out in addition to the two square kilometres carried out in Q3 2019.  Trench sampling also commenced at Aylis in Q4 2019. A total of 48 trenches were dug totaling 327 linear metres until the sampling was stopped due to unfavourable weather conditions. The work will recommence when weather conditions allow and the results of the sampling will be reported in the next Geological update.   

WorldView-3 satellite remote sensing

Studies were completed in Q4 2019 in collaboration with a member of the From Arc Magmas to Ores ('FAMOS') research team of the NHM to corroborate preliminary interpretations of the Worldview-3 imaging and data against field observations.

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 11 holes have been previously reported YTD 2019. Assay results from the remaining seven holes were returned in Q4 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)
DRDD06A	47.00	48.00	1.00	0.03	5.00	0.20	95
	85.00	87.00	2.00	203.89	5.00	0.09	552
DRDD09A	0.00	4.10	4.10	10.61	5.00	0.67	134
DRDD09B	0.00	3.5	3.5	8.76	18.91	2.69	46
	7.50	16.00	8.50	7.23	17.46	1.23	105
	46.00	48.00	2.00	0.03	11.55	0.28	159
DRDD13A	34.00	36.40	2.40	0.03	23.48	1.95	104
	41.40	41.80	0.40	0.03	62.79	4.51	71
	70.50	71.00	0.50	0.03	5.00	0.66	95
DRDD21	25.00	26.00	1.00	126.61	5.00	0.08	421

* 5 g/t is the minimum detection limit for silver. Any grades below 5 g/t are reported as 5 g/t.

Due to the high gold grades of DRDD06A and DRDD21 and drill holes previously reported, a study is being carried out on the coarseness of the gold mineralisation and the assays are being verified.

Keleki (gold prospect)

A total of 10 drill holes were completed in Q1 2019 to assess the depth of the extensions of the gold bearing vein system and to better understand the orientation of the ore body. The assays of the drilling were returned in Q4 2019 and significant intersections were 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)
KLDD03	20.00	20.80	0.80	158.80	5.00	0.08	518
	86.50	87.50	1.00	86.06	5.00	0.04	255
	142.50	143.20	0.70	249.17	5.00	0.15	828
KLDD05	106.00	107.00	1.00	139.56	5.00	0.14	602

* 5 g/t is the minimum detection limit for silver. Any grades below 5 g/t are reported as 5 g/t.

A detailed report on the Q4 2019 exploration activities at Ordubad can be found at   https://www.angloasianmining.com/wp-content/uploads/2020/02/Q4-2019-Exploration-Activities-Ordubad.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 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: [phone]
Bill Morgan	Anglo Asian Mining plc	Tel: [phone]
Stephen Westhead	Anglo Asian Mining plc	Tel: [phone]
Ewan Leggat	SP Angel Corporate Finance LLP Nominated Adviser and Broker	Tel: [phone]
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 82,795 gold equivalent ounces ("GEOs") for the year ended 31 December 2019 at budget metal prices. 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.

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.

 

END

 

 

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