Hot Features
Premium
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
Gedabek Gold, Copper and Silver Mine JORC Measured and Indicated Mineral Resources Increase to 1.12 Moz of gold
Anglo Asian Mining (LSE:AZZ), a gold producer in Azerbaijan, has announcds an increase in its JORC compliant gold resource at its flagship Gedabek gold/copper/silver mine (‘Gedabek’) located in the Republic of Azerbaijan to 44,644,658 tonnes at 0.783 g/t of gold (‘Au’) for 1,123,767 ounces in the Measured and Indicated categories.
This is in accord with the company’s strategy to further increase the life of mine and ore reserves, which stand at 744,038 ounces of gold, at its producing Gedabek mine.
Overview:
- Resource update following the completion of 26,842 meters of drilling (99 holes) as part of an on-going exploration programme in order to increase the mineral resources, ore reserves and life of mine at the producing Gedabek mine
- Achieved increased geological knowledge and confidence in the quantity and quality of the mineral resources and ore reserves within the current economic open pit limit at Gedabek
- Measured and Indicated gold resources (including mined ore) increased by circa 20% over that announced in March 2012, with an increase in ore tonnage from 37.11 million tonnes to 44.64 million tonnes at an average grade of 0.78 g/t
- Total JORC compliant resource of 51,591,901 tonnes at 0.754 g/t Au for 1,250,043 ounces Au; 0.155 % Cu for 80,036 tonnes; and 5.915 g/t Ag for 9,811,719 ounces (at a cut-off grade of 0.3 g/t of gold)
- Increased mineral resources of the southern regions and discovery of extension of the gold, copper and silver mineralisation in the west, northwest and northern regions
- 394 drill holes (c.61,714 meters) completed to date at Gedabek
- Updated resource does not include the 145,000 ounces of gold extracted from Gedabek between 1 January 2012 and 31 August 2013, which resulted in the production of 81,500 ounces of gold, with the remainder contained in stockpiled ore
- Exploration programme is on-going in order to further increase the potential at Gedabek where production is expected to increase to 60,000 ounces for FY 2013 and cash costs have decreased to US$450-500 per ounce following the commissioning of the Agitation Leaching Plant in June 2013
Anglo Asian CEO Reza Vaziri said, “We are delighted to announce a JORC compliant resource update at Gedabek of 1.12 million ounces of gold in the Measured and Indicated category, which further underpins the production potential and the inherent value of Gedabek. With gold production at Gedabek reaching record highs since the commissioning of the new Agitation Leaching Plant and a target of 60,000 ounces on the horizon for FY 2013, our position as a profitable and cash generative production company is strengthening.
“It is now our plan to conduct further exploration and development work with a view to continuing to increase Gedabek’s resource and reserves and improving the geological understanding of our flagship Gedabek deposit and in turn increasing the life of mine of the operation.”
Anglo Asian’s mining consultants CAE Mining carried out an updated estimation of the mineral resources of the Gedabek mineral deposit. The updated estimation consisted of an extension of the previous estimations done by SRK Consulting Incorporated (2007), SGS Canada Incorporated (2010) and CAE Mining (2012) and it was completed in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee, 2012).
The updated mineral resources estimation took into consideration the combined sources of information of the previous (2006, 2007, 2009, 2010 and 2011) and recent (2011, 2012 and 2013) exploration drilling campaigns, which totalled 61,714 metres with 27,623 samples taken. An integrated and validated drillhole database was generated from these data.
The latest exploration drilling campaign which concluded in Q1 2013 totalled 26,842 meters over 99 holes with 9,338 samples taken. The main objectives of this campaign were to increase the level of geological knowledge and confidence of the tonnage and grade of the Gedabek deposit. As a result, CAE mining calculated an increased Measured and Indicated JORC compliant resource of 44,644,658 tonnes at 0.783 g/t of gold (‘Au’) for 1,123,767 ounces; and a total JORC compliant resource of 51,591,901 tonnes at 0.754 g/t Au for 1,250,043 ounces Au; 0.155 % Cu for 80,036 tonnes; and 5.915 g/t Ag for 9,811,719 ounces (at a cut-off grade of 0.3 g/t of gold).
