REG - Anglo Asian Mining - Zafar mine design complete and construction starts

Anglo Asian MiningAnnouncement

21/02/2023 07:00

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RNS Number : 5010Q  Anglo Asian Mining PLC  21 February 2023

21 February 2023

Anglo Asian Mining PLC

Mine Design completed and start of construction at Zafar

 

Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM listed gold,
copper and silver producer focused in Azerbaijan, is pleased to announce it
has completed a Mining Scoping Study (the "Mining Study") for the Zafar
underground mine. Development work and the construction of two portals has
also started.

 

The Mining Study included a review of geotechnical conditions, optimal mining
methods and mine scheduling and design. The mine will be constructed using
sub-level caving ("SLC") supplemented by sub-level open stoping ("SLOS") on
the margins of the mineralised zone. A primary haulage decline to access the
ore body and a parallel ventilation decline are being constructed. The
ventilation decline can be used as an escapeway which reduces risk. A
schematic of the proposed design is shown in Figure 1.

 

The Zafar mine has JORC Mineral Resources of 28,000 tonnes of copper, 73,000
ounces of gold and 36,000 tonnes of zinc. The design is based on ore
production of 700,000 tonnes per annum and a 0.5 per cent. copper equivalent
cut-off grade.

 

The Mining Study was compiled by Mining Plus Pty Ltd and is available at
https://www.angloasianmining.com/operations/zafar/
(https://www.angloasianmining.com/operations/zafar/) and

http://www.rns-pdf.londonstockexchange.com/rns/5010Q_1-2023-2-20.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5010Q_1-2023-2-20.pdf)

 

Figure 1: Isometric view of the Zafar mine- dual decline mine design. Looking
north-east

Construction has started on the two portals which are about 850 metres away
from the Company's existing processing facilities and about 1,000 metres from
the mineralisation with a design gradient of 1:11. Earthworks for the twin
portals, power and compressor areas and a large laydown area for equipment
have been completed. The Company is in the process of establishing a mine
office, a workshop and heavy equipment maintenance facilities. Images of the
portals and the surrounding area are shown in Figure 2.

Figure 2: Images of the portal and surrounding area (see key below)

A: Zafar portal area and building for workshop facilities

B: Location of twin portals

C: Portals under construction

D: Building housing the workshop

 

The Mining Study has modelled the costs for the mine. Analysis showed a
positive net present value for the project. Sensitivity studies using higher
than expected mining costs also produced a positive net present value.

 

Anglo Asian Vice-President, Stephen Westhead commented: "Completing the study
provides confidence in our ability to profitably extract an initial 2 million
tonnes of ore from the total 5.5 million tonnes as referenced in the JORC
report. Once nearing the orebody, underground drilling will be conducted to
further evaluate the growth potential of this copper-zinc deposit. The team
look forward to updating the market on the developments at Zafar and its
contribution to future production."

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

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.

 

Notice to editors

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer
in south-west Asia with a broad portfolio of production and exploration
assets in Azerbaijan. The Company produced 57,618 gold equivalent ounces
("GEOs") for the year ended 31 December 2022.

 

In December 2021, the Company undertook a private placement which acquired
19.8 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. Two further follow-on investments have been made
in Libero to maintain the Company's shareholding at 19.8 per cent.

 

On 5 July 2022, the Parliament of Azerbaijan ratified amendments to the
Company's Production Sharing Agreement, which granted it legal title to three
additional concessions with a combined area of 882 square kilometres,
including the Garadagh porphyry copper deposit, with a Soviet classified
resource of over 300,000 tonnes of copper. https://www.angloasianmining.com/
(https://www.angloasianmining.com/)

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