REG - Anglo Asian Mining - Gilar maiden JORC Mineral Resource completed

Anglo Asian MiningAnnouncement

11/12/2023 07:15

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RNS Number : 2361W  Anglo Asian Mining PLC  11 December 2023

11 December 2023

 

Anglo Asian Mining plc

Gilar maiden JORC (2012) Mineral Resource completed

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM-listed gold,
copper and silver producer focused on Azerbaijan, is pleased to announce the
completion of a maiden JORC (2012) Mineral Resource for its Gilar
polymetallic deposit (the "Gilar deposit") prepared by Mining Plus UK. The
Gilar deposit was confirmed to have 6.10 million tonnes of mineralisation with
average grades of 0.88 per cent. for copper and 1.30 grammes of gold per
tonne.

Gilar deposit highlights

·    6.10 million tonnes of mineralisation with average grades of 0.88 per
cent. copper, 0.75 per cent. zinc and 1.30 grammes of gold per tonne

·    5.90 million tonnes of mineralisation within the Measured plus
Indicated JORC categories

·    In-situ Mineral Resource of 54,000 tonnes of copper, 255,000 ounces
of gold and 46,000 tonnes of zinc

·    135 drill holes (117 vertical and 18 inclined) with a total length of
42,821 metres used for the maiden Mineral Resource estimate

·    145 drill holes were completed for a total length of 46,409 metres

 

Mineral Resource estimate for the Gilar deposit at 30 November 2023

Reporting cut-off: >= 0.5 grammes per tonne of gold equivalent*

                       Tonnage            In-situ grades                      Contained metal

                       (million tonnes)

                                          Gold    Copper        Zinc          Gold    Copper   Zinc

                                          (g/t)   (per cent.)   (per cent.)   (koz)   (kt)     (kt)
 Measured              3.88               1.49    1.08          0.91          186.06  42.09    35.43
 Indicated             2.02               1.00    0.56          0.48          64.80   11.30    9.77
 Measured + Indicated  5.90               1.32    0.90          0.77          250.86  53.39    45.20
 Inferred              0.20               0.70    0.26          0.26          4.38    0.50     0.51
 Total                 6.10               1.30    0.88          0.75          255.24  53.89    45.72

Note that all tonnages reported are dry metric tonnes. Totals may not add due
to rounding.

 

*Gold equivalent calculation = Gold grammes per tonne + (copper %*1.49)
+(zinc*0.46). The metal price assumptions used were Gold - $1,675 per ounce;
Copper - $8,000 per tonne; Zinc - $2,500 per tonne.

 

Interactive presentation on the Gilar deposit

An interactive 3-D presentation on the Gilar deposit including details of its
maiden JORC Mineral Resource is available at
https://gilar-jorc-mre-2023nov.jalnext.com/
(https://gilar-jorc-mre-2023nov.jalnext.com/) . This presentation also
includes various depictions of the local topology of the Gilar deposit,
details of drill holes, block and shell models and the location of the
decline.

Reza Vaziri, CEO of Anglo Asian, commented:

"We are proud to present the maiden mineral resource estimate for the Gilar
deposit under the JORC reporting code, which marks a significant milestone for
the asset and reflects our commitment to international best practice. It is a
great step forward in understanding its geo-positioning, mineralisation
geometry and importantly the significant value opportunity it offers our
stakeholders."

 

Stephen Westhead, Vice-President of Anglo Asian, commented:

"This maiden mineral resource estimate under the JORC reporting code is now
very robust given the quantity of drilling that provided confidence in the
mineral continuity. Tunnelling to access the mineralisation is progressing. To
complement future underground drilling, further surface drilling will test the
extension of the upper zones upon completing the ongoing geophysical
investigation.

 

"The Gilar mine will be an important contributor to the future production of
the Company given its high grades of both gold and copper. The mine's
production will be critical to bridge the gap between declining grades at our
existing mines at Gedabek and our larger, new concessions entering production
in the medium-term."

 

Mineral Resource estimation and current work at the Gilar deposit

Further details about the Gilar deposit, the mineral resource estimation and
the current work being carried out at Gilar can be found below.

 

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

 

Gilar deposit

The detailed JORC ('Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code) 2012 Edition') "JORC" Mineral
Resource estimate for the Gilar deposit has been published on the Company's
website and is available at:

https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2023/12/UPG12006_GILAR_MRE_REPORT_FINAL.pdf
(https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2023/12/UPG12006_GILAR_MRE_REPORT_FINAL.pdf)
.

The Table One report accompanying the JORC Mineral Resource estimate is
available at:

https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2023/12/UPG12006_GILAR_JORC_TABLE1_FINAL.pdf
(https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2023/12/UPG12006_GILAR_JORC_TABLE1_FINAL.pdf)
.

The initial announcement about the Gilar deposit, dated 8 December 2022 -
"Significant mineralisation in Gilar drill results" which gives the background
to the Gilar property is available on the Company's website.

Current work at the Gilar deposit

The development of the Gilar deposit is now well under way. Both the primary
transport decline tunnel for accessing the mineralisation and a ventilation
tunnel are being constructed. 561 metres of the main decline and 150 metres of
the ventilation tunnel have been completed, with 900 metres and 383 metres
respectively remaining to be constructed.

 

Infrastructure development is ongoing with the construction of a heavy
earthworks equipment workshop, mine office facilities and technical support
and services offices. Security and safety fencing, mine entrance area and
power generator set foundations are under construction.

 

Land has been identified for the haul road from the Gilar portal to the
Gedabek processing plant and permission applied for the appropriate government
departments to provide the required access.

 

There is no immediate surface exploration drilling planned. Further surface
drilling will be carried out in the future to test the extension of the upper
zones. This will be undertaken once the results of the ongoing geophysical
investigation data acquired are interpreted and targets defined for both
extensions of the known mineralisation and new targets. The geophysical work
includes electrical (induced polarisation) and gravity methods. These data
will be used in conjunction with existing satellite data and ZTEM
electromagnetic and magnetic data.

 

It is further planned to drill from underground to investigate the extension
potential of the lower Zone 4, identified by two surface drillholes as an
extension to the lower Zone 4 once the tunnelling reaches the mineralisation.
Mining options and design and operational mine parameters will now be assessed
as the maiden JORC mineral resource is complete.

 

The underground haulage mining fleet for the Gilar mine has now arrived at the
Gedabek site. The equipment is being supplied by Caterpillar as notified in
the announcement of 22 February 2023. This will be the first Caterpillar
underground equipment to be deployed in Azerbaijan. A ceremony will be held at
Gedabek on the afternoon of Monday 11 December 2023 to mark the arrival of the
equipment.

 

Gilar mineral resources - supporting work and independent expert opinion

The Company contracted Mining Plus UK Ltd (Mining Plus) to estimate the
Mineral Resource of the Gilar deposit. This report incorporated all the data
from the most recent drilling campaign and was designed to increase resource
confidence in the deposit with the aim to convert the majority of mineralised
material to or above an Indicated classification under the JORC (2012) code,
alongside using inclined holes to better understand the ore body geometry.

 

Competent Person Statement

The information in the announcement that relates to exploration results and
Mineral Resources is based on information compiled by Sean Lapham, who is a
full-time employee of Mining Plus UK Ltd with the position of Senior Geology
Consultant. Mr Lapham is a registered member of The Australasian Institute of
Mining and Metallurgy (AUSIMM number 318874) and the Geological Society of
London (Fellowship number 1030350).

 

Sean Lapham 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'. Sean Lapham consents to the inclusion in
the announcement of the matters based on his information in the form and
context in which it appears.

 

Sean Lapham has extensive 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. Sean Lapham has reviewed the Mineral Resources included in this
announcement.

 

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 57,618 gold equivalent ounces ("GEOs") for the year
ended 31 December 2022.

 

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 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.

 

The Company owns approximately 17.4 per cent. of Libero Copper & Gold
Corporation ("Libero"). Libero is listed on the TSX Venture
Exchange in Canada and owns, or has the option to acquire, several copper
exploration properties in North and South America, including Mocoa
in Colombia, one of the world's largest undeveloped copper-molybdenum
resources.

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

 

APPENDIX

GLOSSARY OF TERMS AND ABBREVIATIONS

 

The following definitions are extracted from the JORC Code, 2012 Edition

 

 Indicated Mineral Resource        An 'Indicated Mineral Resource' is that part of a Mineral Resource for which
                                   quantity, grade (or quality), densities, shape and physical characteristics
                                   are estimated with sufficient confidence to allow the application of Modifying
                                   Factors in sufficient detail to support mine planning and evaluation of the
                                   economic viability of the deposit. Geological evidence is derived from
                                   adequately detailed and reliable exploration, sampling and testing gathered
                                   through appropriate techniques from locations such as outcrops, trenches,
                                   pits, workings and drill holes, and is sufficient to assume geological and
                                   grade (or quality) continuity between points of observation where data and
                                   samples are gathered. An Indicated Mineral Resource has a lower level of
                                   confidence than that applying to a Measured Mineral Resource and may only be
                                   converted to a Probable Ore Reserve.
 Inferred Mineral Resource         An 'Inferred Mineral Resource' is that part of a Mineral Resource for which
                                   quantity and grade (or quality) are estimated on the basis of limited
                                   geological evidence and sampling. Geological evidence is sufficient to imply
                                   but not verify geological and grade (or quality) continuity. It is based on
                                   exploration, sampling and testing information gathered through appropriate
                                   techniques from locations such as outcrops, trenches, pits, workings and drill
                                   holes. An Inferred Mineral Resource has a lower level of confidence than that
                                   applying to an Indicated Mineral Resource and must not be converted to an Ore
                                   Reserve. It is reasonably expected that the majority of Inferred Mineral
                                   Resources could be upgraded to Indicated Mineral Resources with continued
                                   exploration.
 JORC                              JORC stands for Australasian Joint Ore Reserves Committee (JORC). The Code
                                   for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the
                                   JORC Code) is widely accepted as the definitive standard for the reporting of
                                   a company's resources and reserves. The latest JORC Code is the 2012
                                   Edition.
 Measured Mineral Resource         A 'Measured Mineral Resource' is that part of a Mineral Resource for which
                                   quantity, grade (or quality), densities, shape, and physical characteristics
                                   are estimated with confidence sufficient to allow the application of Modifying
                                   Factors to support detailed mine planning and final evaluation of the economic
                                   viability of the deposit. Geological evidence is derived from detailed and
                                   reliable exploration, sampling and testing gathered through appropriate
                                   techniques from locations such as outcrops, trenches, pits, workings and drill
                                   holes, and is sufficient to confirm geological and grade (or quality)
                                   continuity between points of observation where data and samples are gathered.
                                   A Measured Mineral Resource has a higher level of confidence than that
                                   applying to either an Indicated Mineral Resource or an Inferred Mineral
                                   Resource. It may be converted to a Proved Ore Reserve or under certain
                                   circumstances to a Probable Ore Reserve
 Mineral Reserves or Ore Reserves  An 'Ore Reserve' is the economically mineable part of a Measured and/or

                                 Indicated Mineral Resource. It includes diluting materials and allowances for
                                   losses, which may occur when the material is mined or extracted and is defined
                                   by studies at Pre-Feasibility or Feasibility level as appropriate that include
                                   application of Modifying Factors. Such studies demonstrate that, at the time
                                   of reporting, extraction could reasonably be justified.
 Mineral Resource                  A 'Mineral Resource' is a concentration or occurrence of solid material of
                                   economic interest in or on the Earth's crust in such form, grade (or quality),
                                   and quantity that there are reasonable prospects for eventual economic
                                   extraction. The location, quantity, grade (or quality), continuity and other
                                   geological characteristics of a Mineral Resource are known, estimated or
                                   interpreted from specific geological evidence and knowledge, including
                                   sampling. Mineral Resources are sub-divided, in order of increasing geological
                                   confidence, into Inferred, Indicated and Measured categories.

 

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