REG - Anglo Asian Mining - Access to Demirli

Anglo Asian MiningAnnouncement

11/11/2024 07:00

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RNS Number : 5920L  Anglo Asian Mining PLC  11 November 2024

11 November 2024

 

Anglo Asian Mining plc

Access to Demirli and assessments to ascertain next steps

 

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM-listed gold,
copper and silver producer focused on Azerbaijan, is pleased to announce an
update about its Demirli mine and plant (the "Demirli Property").

 

Located in the Karabakh region (formerly Nagorno Karabakh) of Azerbaijan (see
Appendix one), the Demirli contract area was acquired by the Company in 2022.
The Demirli Property comprises two contiguous open pits and a six million
tonnes per annum flotation plant to produce copper concentrate, together with
a smaller molybdenum flotation plant. There is good access to Demirli from
Baku over mainly metalled roads.

 

The mine and plant were opened approximately ten years ago and operated until
2022. Further details about the property are given in Appendix two with
accompanying images in Appendix three.

 

Condition of the Demirli Property and current work

Access was acquired to the Demirli Property this summer and the Company has
since conducted a number of preliminary assessments. An office has been set up
at the property and the accommodation block and canteen facilities
refurbished. A small laboratory, which can carry out limited assays, has also
been established.

 

The plant is intact and in reasonable order. However, some electrical and
mechanical equipment within the plant has been removed. Tailings were
discharged into a tailings dam of upstream construction, sited immediately
adjacent to the plant, and which is close to full capacity. The Company has
commissioned a study of the tailings dam to ascertain its serviceability and
suitability for a further wall raise. The Company is also evaluating the
options for the provision of reliable power and water supplies to the
operations.

 

The Company has recovered only partial details of the mineral resources of the
deposit. In addition, the current block model is incomplete. Considerable
drilling of the deposit has been carried out previously and drill core is
stored at site. However, the drill core has not yet been matched to drill
holes. Based on incomplete data, the Company has estimated there are
approximately 58 million tonnes of residual ore containing 239,000 tonnes of
copper*. Of these 58 million tonnes of ore, 22 million tonnes have been
reported as reserves and suitable as feed for flotation. However, it is not
known whether the remainder of this mineralisation is suitable for flotation.

 

A drone survey of the entire site has recently been carried out to determine
the topology of the deposit. Reverse Circulation ("RC") drilling, to a depth
of ten metres, is also being carried out to identify ore blocks of sufficient
size to commission the plant and operate it for one year. The Company plans to
produce a JORC mineral resources estimate of the remaining ore deposit. Near
mine exploration targets are also being explored.

 

The Company is also conducting an initial benchmark environmental study, with
a local provider currently being commissioned to carry out a more detailed
benchmark and baseline study and an Environmental and Social Impact Assessment
("ESIA"). The Company will need to identify any damage to the environment
caused by the previous operations and ensure it has no liability in respect of
any damage identified.

 

The Company continues to conduct the necessary analysis on the Demirli
Property. It will provide an update on the timing and cost of reopening the
plant when these are ascertained.

 

*The ore and contained copper figures are not compliant with any recognised
mining code and represent company estimates.

 

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 Vice-President, who is a Fellow of The Geological Society of
London, a Chartered Geologist, Fellow of the Society of Economic Geologists,
Fellow 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 mineral resources 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, which was incorporated into UK law by the European
Union (Withdrawal) Act 2018, until the release of this announcement.

 

For further information please contact:

 

 Anglo Asian Mining plc
 Reza Vaziri, Chief Executive Officer                            Tel: +994 12 596 3350
 Bill Morgan, Chief Financial Officer                            Tel: +994 502 910 400
 Stephen Westhead, Vice President                                Tel: +994 502 916 894

 SP Angel Corporate Finance LLP (Nominated Adviser and Broker)   Tel: +44 (0) 20 3470 0470

 Ewan Leggat

 Adam Cowl
 Hudson Sandler (Financial PR)                                   Tel: +44 (0) 20 7796 4133

 Charlie Jack

 Harry Griffiths

 

Notes to Editors:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer with a
high-quality portfolio of production and exploration assets in Azerbaijan.
The Company produced 31,821 gold equivalent ounces ("GEOs") for the year
ended 31 December 2023.

 

On 30 March 2023, the Company published its strategic plan for growth which
shows a clearly defined path for the Company to transition to a multi-asset,
mid-tier, copper and gold producer by 2028, by which time copper will be the
principal product of the Company, with annual forecast production of around
36,000 copper equivalent tonnes. It plans to achieve this growth by bringing
into production four new mines during the period 2024 to 2028 at Zafar, Gilar,
Xarxar and Garadag.

 

https://www.angloasianmining.com/ (https://www.angloasianmining.com/)

 

Appendix one

Location of the Demirli Property together with Gedabek for comparison

Appendix two

About the Dermirli Property

The Dermirli Property consists of an open pit mine comprising a contiguous
central and western pit, a six million tonnes per annum comminution plant, a
copper flotation plant, a secondary molybdenum flotation plant and a tailings
dam. The plant appears to have been professionally constructed and components
used are generally from suppliers considered to be of high quality, including,
the mills and flotation system manufactured by F L Smidth, gears by CMD
ERMaster (a French engineering supplier) and electrical components by ABB.
Dimet supplied the magnet system, lab furnaces were supplied by SNOL, and many
other recognised international suppliers were also used.

The open pit mine comprises a central and western open pit. It has been mined
for about the last 10 years. Ore is transported from the mine to the plant in
a fleet of Caterpillar 55.5 tonne and Komatsu 91 tonne trucks, which are
parked by the plant.

The plant contains a generally straightforward comminution circuit of a SAG
and ball mill,  banks of flotation cells and a dewatering press to produce a
copper concentrate. Ore is fed through a hopper and then transported to the
main body of the plant via a conveyor belt. The ore is highly fractured and
does not require any crushing. It is fed directly into the SAG mill then to
the ball mill to produce ground ore. This is treated by flotation to produce a
copper concentrate, which is de-watered on a filter press.

Tailings from the plant are sent to an upstream tailings dam, immediately
adjacent to the plant. The dam has had five wall raises and is almost full.

There is a small tailings water decant pond next to the plant for the storage
of water with an associated pumping station. Water is collected in the pond
from several sources in the surrounding region including a reservoir
approximately 14 kilometres from the plant. There is an electrical substation
and the plant is connected to the grid.

Appendix three

Gallery

Panoramic view of the Demirli plant

View of open pit mine at Demirli

 

Mining fleet at Demirli

 

Ball mill at Demirli

 

Flotation cells at Demirli

 

Tailings dam

 

 

Accommodation block at Demirli

Reverse circulation drilling rig working at Demirli

 

 

 

 

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