Anglo Asian Mining PLC 29% Increase in Resource - Gedabek (Replacement) (9714I)

TIDMAAZ

RNS Number : 9714I

Anglo Asian Mining PLC

05 June 2014

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

5 June 2014

Anglo Asian Mining plc ('Anglo Asian' or 'the Company')

29% Increase in Resource at Flagship Gedabek Gold/Copper/Silver Mine in Azerbaijan (Replacement)

This announcement replaces the announcement that was made by the Company today at 7.00 a.m. with RNS No.8785I. The changes relate to the table which summarises the updated resources and in particular the quantity of silver and copper products. In addition, the sixth bullet point under the table, which was incorrect, has been amended to:

-- An additional 700,000 tonnes of 6 grammes per tonne inferred resources recently found at the Gadir discovery immediately north of Pit 4. CAE has noted that this can be changed to indicated ounces with more structural interpretation that is in progress;

All other details in the announcement remain the same. The full amended text is shown below.

Anglo Asian Mining, the AIM listed gold producer in Azerbaijan, is pleased to announce a 29% increase in its JORC compliant gold resource at its flagship Gedabek gold/copper/silver mine in western Azerbaijan ('Gedabek') to 61,795,775 tonnes at 0.730 g/t of gold ('Au') for 1,449,537 oz in the Measured and Indicated categories. This latest resource update is primarily due to new drilling results at Gedabek leading to a reinterpretation of the mine model and accordingly the JORC resource has been adjusted for any depletion to December 2013. Gedabek's JORC reserve base currently stands at 744,038oz Au.

 
  Model of April 2014                     0.3g/t Au Cut-off                           Cell Size: 10x10x2.5 
---------------------------------------  ----------------------  ---------  -------  --------------------------------- 
 Oxide Material                                                    Grades                          Products 
                                            Tonnes     Au (g/t)   Ag (g/t)   Cu (%)    Au (Oz)     Ag (Oz)     Cu (t) 
                                         -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Measured                  12,020,215     0.75       6.06      0.14     289,817    2,342,022    16,790 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Indicated                 6,169,672     0.602      5.139     0.154     119,508    1,019,331     9,520 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
          Measured & Indicated            18,189,888     0.7       5.748     0.145     409,326    3,361,353    26,310 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Inferred                  4,436,283     1.201       4.79     0.101     171,262     683,196      4,489 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
 
 Transitional 
 Material 
                                            Tonnes     Au (g/t)   Ag (g/t)   Cu (%)    Au (Oz)     Ag (Oz)     Cu (t) 
                                         -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Measured                  4,714,927     0.691      4.705     0.135     104,804     713,166      6,385 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Indicated                 2,717,196     0.602      4.044     0.143     52,599      353,244      3,892 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
          Measured & Indicated            7,432,124     0.659      4.463     0.138     157,403    1,066,410    10,278 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Inferred                   617,313      1.243      4.405     0.106     24,679       87,426       654 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
 
 Sulphide Material 
                                            Tonnes     Au (g/t)   Ag (g/t)   Cu (%)    Au (Oz)     Ag (Oz)     Cu (t) 
                                         -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Measured                  20,454,539    0.894      6.088     0.334     587,676    4,003,615    68,226 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Indicated                 15,719,225    0.584      4.012     0.249     295,131    2,027,436    39,083 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
          Measured & Indicated            36,173,764    0.759      5.186     0.297     882,807    6,031,051    107,309 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Inferred                  4,391,322     0.692      4.733     0.173     97,736      668,225      7,586 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
 
 
 Total 
 Mineralisation 
                                            Tonnes     Au (g/t)   Ag (g/t)   Cu (%)    Au (Oz)     Ag (Oz)     Cu (t) 
                                         -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Measured                  37,189,682    0.822      5.904     0.246     982,298    7,058,803    91,401 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Indicated                 24,606,093    0.591      4.298     0.213     467,239    3,400,011    52,495 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
          Measured & Indicated            61,795,775     0.73      5.264     0.233    1,449,537   10,458,814   143,896 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
                Inferred                  9,444,918     0.967      4.739     0.135     293,678    1,438,847    12,729 
 --------------------------------------  -----------  ---------  ---------  -------  ----------  -----------  -------- 
 

The main differences from the last JORC compliant resource upgrade in October 2013 are related to additional drilling since August 2013 (cut-off date for October 2013 update), extensive confirmatory RC drilling in the pit area in November and December 2013 and a new discovery known as Gadir immediately north of the Gedabek mine. Geologic interpretation and recent computer modelling by CAE Mining reveals:

   --    An increase of 325,400 measured and indicated  to 1,449,537 gold ounces ; 
   --    An increase of 167,400 inferred  to 293,678 gold ounces; 
   --    A significant increase in low grade oxide ore; 
   --    A two-fold increase in transition (i.e. mixed oxide and sulphide) ore; 
   --    A 9% drop in sulphide ore due to reclassification as transitional ore; 

-- An additional 700,000 tonnes of 6 grammes per tonne inferred resources recently found at the Gadir discovery immediately north of Pit 4. CAE has noted that this can be changed to indicated ounces with more structural interpretation that is in progress;

   --    A near doubling of the measured resources from October 2013 due to infill RC drilling; 
   --    A drop in average grades in all categories excepting inferred resources; and, 
   --    A tripling in the amount of copper resources. 

Mine planning is currently underway for an updated calculation of the reserves for the life of mine (LOM). CAE Mining will issue an updated JORC report during Q3 2014.

Anglo Asian CEO Reza Vaziri said, "The significant addition of resources at Gedabek indicates that continued exploration and development in the immediate Gedabek area may result in the discovery of additional resources in 2014 and hopefully a resource of 'district size' proportion. We are delighted that this resource expansion has the potential to extend the life-of-mine for several additional years and look forward to reporting further on the exploration and development of Gedabek in the coming year."

This JORC compliant resource update has been prepared by the independent consultants, CAE. The principal Competent Person (CP) under JORC is Gerard Evans, P.Geo. from CAE Mining's Johannesburg office. This estimate has also been reviewed by Anglo Asian's CP Sean Muller, P.Geo. to ensure that the determination of oxide, transition and sulphide mineralization has been designated in accordance to process amenability.

**ENDS**

For further information please visit www.angloasianmining.com or contact:

 
 Reza Vaziri           Anglo Asian Mining plc       Tel: [phone] 
--------------------  ---------------------------  ---------------------- 
 Sean Duffy            Anglo Asian Mining plc       Tel: [phone] 
--------------------  ---------------------------  ---------------------- 
 Ewan Leggat           SP Angel Corporate Finance   Tel: [phone] 
                        LLP                          2260 
--------------------  ---------------------------  ---------------------- 
 Laura Harrison        SP Angel Corporate Finance   Tel: [phone] 
                        LLP                          2260 
--------------------  ---------------------------  ---------------------- 
 Felicity Edwards      St Brides Media & Finance    Tel: [phone] 
                        Ltd                          1177 
--------------------  ---------------------------  ---------------------- 
 Lottie Brocklehurst   St Brides Media & Finance    Tel: [phone] 
                        Ltd                          1177 
--------------------  ---------------------------  ---------------------- 
 

*The Company has a Production Sharing Agreement ('PSA') in place with the Government of Azerbaijan which governs how the production of each of the Company's Contract Areas under the PSA is divided between the Company and the Government of Azerbaijan. Currently, the Company takes ownership of 87.25% of the production at Gedabek, which accounts for the difference between the total gold produced at Gedabek and the amount of gold sold by the Company. It should also be noted that there will always be short-term timing differences between gold production and sales.

Notes:

Anglo Asian Mining plc (AIM:AAZ) is a gold producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 sq km prospective exploration portfolio, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement ('PSA') based on the Azeri oil industry. The Company developed Azerbaijan's first operating gold/copper mine, Gedabek, which commenced gold production in May 2009. Gold production for the year ended 31 December 2012 totalled 50,215 oz of gold and FY 2013 gold production was 52,068 oz. Projections for 2015 are 62-67,000 ounces of gold, following the commissioning of a new agitation leaching plant at Gedabek in 2013 and the recent start-up of the Gosha mine.

Anglo Asian is actively looking 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 base metal production company

This information is provided by RNS

The company news service from the London Stock Exchange

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