TIDMAAZ
RNS Number : 6004Q
Anglo Asian Mining PLC
13 September 2017
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
13 September 2017
Anglo Asian Mining plc
Commencement of Gold and Silver Production from the Ugur Open
Pit Mine at Gedabek licence area, Azerbaijan
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM
listed gold, copper and silver producer, is pleased to announce the
commencement of production at the Company's latest mine, the Ugur
Open Pit Mine ("Ugur"), located at its Gedabek licence area
("Gedabek") in Western Azerbaijan.
The Directors are pleased to report that Ugur is already making
a highly significant contribution to Anglo Asian's production. The
average daily gold production in the form of gold doré for the
period from 1 to 10 September 2017 was 212 ounces which is 116 per
cent. higher than the average daily production for the previous
eight months. This average daily production is expected to increase
further as Ugur moves into full production.
Highlights
-- Significantly increased average daily gold production from
Ugur - average daily gold doré production for first 10 days of
September has more than doubled compared to the average daily
production of the previous eight months
-- Mining conducted by conventional shovel and truck haulage
before crushing and agitation leaching treatment
-- Ugur ore treated only by agitation leaching - flotation plant
is now independently processing mainly high sulphide stockpiled
ore
-- Production at Ugur being conducted in parallel with
optimisation and expansion initiatives across Gedabek to deliver a
long-term, sustainable and profitable mining operation
Anglo Asian CEO, Reza Vaziri, said "Progressing from discovery
to production in a year is a significant achievement and underlines
Anglo Asian's confidence that the Ugur deposit will be an important
contributor to the Company's future production. Indeed, the impact
on gold doré production has already been significant. The average
daily ounces of gold produced as doré has more than doubled so far
in September compared to the previous eight months.
"Bringing Ugur into production now, whilst we undertake the
previously reported optimisation and expansion initiatives across
our wider Gedabek licence area, will offset the anticipated
decrease in gold production from our main Gedabek open pit due to
the changing composition of the ore. With this in mind, we are
pleased to reconfirm our production forecast of 64,000 to 72,000 of
gold equivalent ounces in 2017 and building on this in 2018 and
beyond."
Further Information
Anglo Asian's in-house exploration team defined a new mineral
occurrence in 2016 named "Ugur" (meaning "good luck" or "success"
in the Azeri language) from geological mapping and surface sampling
methods. Ugur is located three kilometres north-west from the
Company's processing facilities within its Gedabek Licence.
The deposit comprises an oxide gold-rich zone to a depth varying
between 50 to 60 metres. The area covered by drilling and the
proposed open pit outline is 350 metres (east-north-east) by 250
metres (north-north-west).
The Company initiated extensive exploration activities in Q4
2016 to define the resource and reserves potential of the deposit.
This work resulted in the completion of a JORC (2012) resource in
August 2017 which delineated a total Mineral Resource of 199,000
ounces of gold and 1,049,000 ounces of silver that includes a
Measured plus Indicated Mineral Resource of 172,000 ounces of gold
and 884,000 ounces of silver. Proven plus Probable Reserves of
147,000 ounces of gold and 808,000 ounces of silver, comprising
over 70 per cent. of the total Mineral Resource, was also declared.
For more information regarding the Mineral Resource and Reserve
statement, see the announcement dated 14 August 2017.
In conjunction with the exploration activities conducted at
Ugur, development work was undertaken which included the
construction of a 4.6-kilometre road between the Ugur gold deposit
and the Company's processing facilities. Work is nearing completion
on constructing all necessary infra-structure. This includes the
mine, geology and medical and HSE offices, hygiene facilities,
mechanical workshop, lubricants and spares stores, a weighbridge
and diesel store.
The Company is processing the Ugur ore only by agitation
leaching. The Ugur oxide-rich ores do not contain copper and
therefore the tailings of the agitation leaching plant are not
treated by flotation. The flotation plant is now independently
processing 300 to 400 tonnes per day of mainly high sulphide
stockpiled ore using its own mills. This is another configuration
of the Company's processing facilities and again demonstrates the
flexibility of the processing routes available to Anglo Asian.
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.
The information in this announcement that relates to Exploration
Targets, Exploration Results, Mineral Resources or Ore Reserves is
based on information compiled by Dr Stephen Westhead, a Competent
Person who is a Member or Fellow of a 'Recognised Professional
Organisation' (RPO) included in a list that is posted on the ASX
website from time to time (Chartered Geologist and Fellow of the
Geological Society and Member of the Institute of Material,
Minerals and Mining). Dr Stephen Westhead is a full-time employee
of the company.
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
http://www.angloasianmining.com or contact:
Anglo Asian Mining Tel: +994 12 596
Reza Vaziri plc 3350
-------------------- ------------------- ------------------
Anglo Asian Mining Tel: +994 502 910
Bill Morgan plc 400
-------------------- ------------------- ------------------
Anglo Asian Mining Tel: +994 502 916
Stephen Westhead plc 894
-------------------- ------------------- ------------------
Ewan Leggat SP Angel Corporate Tel: +44 (0) 20
Finance LLP 3470 0470
Nominated Adviser
and Broker
-------------------- ------------------- ------------------
Soltan Tagiev SP Angel Corporate Tel + 44 (0) 20
Finance LLP 3470 0470
-------------------- ------------------- ------------------
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
-------------------- ------------------- ------------------
Susie Geliher St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
-------------------- ------------------- ------------------
Notes: About Anglo Asian Mining plc
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 developed Azerbaijan's first operating
gold/copper/silver mine, Gedabek, which commenced gold production
in May 2009. Gedabek 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.
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.
Gold production for the year ended 31 December 2016 from Gedabek
totaled 65,394 ounces with 1,941 tonnes of copper also produced.
Gedabek is a polymetallic deposit and its ore has a high copper
content, and as a result the Company produces copper concentrate
from its Sulphidisation, Acidification, Recycling, and Thickening
(SART) plant. Anglo Asian also produces a copper and precious metal
concentrate from its flotation plant, which is processing tailings
from the agitation leach 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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