RNS Number : 8471E
Anglo Asian Mining PLC
07 June 2012
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
7 June 2012
Anglo Asian Mining plc ('Anglo Asian' or 'the Company')
Maiden JORC Ore Reserve Statement at Gedabek of 744,038 ounces of gold
Anglo Asian Mining plc, the AIM listed gold producer, announces a JORC-compliant Ore Reserve statement at its Gedabek gold/copper/silver mine ('Gedabek') located in the Republic of Azerbaijan.
-- Total mineable Reserve of 20,312,879 tonnes at 1.139 g/t gold for 744,038 ounces, 0.293% copper for 59,479 tonnes, and 9.456 g/t silver for 6,175,531 ounces as at 30 December 2011
-- Reserve report represents a significant increase from the Company's internal estimate of 311,000 ounces of recoverable gold over a six year mine life announced in 2007 prior to the construction of Gedabek mine
-- Ore Reserve has been derived from the estimated total Mineral Resource which stands at 37.1 million tonnes at 0.884 g/t gold for 1,054,382 ounces; 0.220% of copper for 81,765 tonnes; and 7.215 g/t of silver for 8,608,551 ounces in the Measured and Indicated categories
-- Proved and Probable Ore Reserve for product once mined, processed and marketed totals 532,607 ounces of gold, 11,305 tonnes of copper and 1,711,075 ounces of silver as at 1 January 2012
-- 532,607 ounces of recoverable gold to be processed through existing heap leaching operation, through agitation leaching by H2 2013 and potentially flotation later in Gedabek's mine life for best gold recovery rates
-- Reserve report does not include estimated 90,000 ounces of gold that is currently either stacked on the leach pad or unrecovered ore from the heap leach process
Anglo Asian CEO Reza Vaziri said, "We are delighted to announce this ore reserve report which has significantly exceeded our previous internal estimate of recoverable ounces of gold at Gedabek and in turn has increased the life of mine. Importantly, in addition to the 532,607 ounces of recoverable gold at Gedabek we have an estimated 90,000 ounces of gold which is currently stacked on the leach pad or in unrecovered ore from the heap leach process, which will also be processed. Whilst we have been utilising a heap leach operation to recover gold since our first gold pour in 2009, we are committed to building an agitation leaching plant, which we believe will significantly improve gold recovery rates at the mine and therefore improve the life of mine and economic fundamentals of Gedabek.
"An extensive 24,567 m drilling programme is also underway targeting the extension of the existing mine at Gedabek with the aim of further increasing the mineral reserves and resources, which currently stand at over 1 million ounces of gold in the Measured and Indicated categories, of the Gedabek deposit as part of our ongoing exploration and development programme. We look forward to reporting on this in due course."
CAE Mining International Ltd was requested by the Company to update the Ore Reserves estimation of the Gedabek Mineral Deposit. This update was based on the recent JORC compliant Measured and Indicated mineral resources estimation at Gedabek of 37,111,577 tonnes at 0.884 g/t of gold for 1,054,382 ounces; 0.220% of copper for 81,765 tonnes; and 7.215 g/t of silver for 8,608,551 oz, which was completed by CAE Mining International Ltd. earlier in the year (see press release 3 April 2012). The ultimate optimal open pit Ore Reserves was estimated by applying the Lerchs-Grossman open pit optimisation algorithm and taking into consideration an extensive sensitivity analysis of several technical and economic corporate scenarios.
The updated Ore Reserves estimation considered the following mineral processing options for the extraction of gold, copper and silver from the mineral resource: heap leaching for oxide mineralisation at 0.3