Anglo Asian Mining Share Discussion Threads

[s0lis] 19/12/2016 12:03

I wish there was a mining engineer on the bb to explain the big difference in grades between the different drilling methods.

I think they used the circulation drilling as the ground was soft, but to use this method they need to pump down liquids that are then sucked back to surface into a settling pond. If I am correct where there is not much water they could use the liquid in the settling pond to pump back down into the drill area. Could this cause the difference in grades ??

I think that Stephen Westhead would not be putting his reputation on the line so early in his career with AAZ as to use the words "significant oxide zone" and "exciting prospect".

He has obviously discarded any further circulation drilling as future drilling will be done by core drilling.

I expect some clarification in the New Year with clearer and better news for the non mining pi's.

[ferries5] 19/12/2016 11:34

Fall of precious metals production does not slow down in Azerbaijan



56,604 + flotation production + December production = About 66000 ??? troy oz for the year.

Whatever a few Doubting Thomas's say, this company has had a great year. They have now given us a Christmas bonus of added resources and added value. as Stephen West head says the policy at the moment is to add resources, not necessarily to mine it

One slight disappointment was not obtaining any interest in Aimrocs assets, Not sure why, as I think the company were interested.

But next year if they can get reasonable production with a reasonable gold price (Still risk with the debt), This time next year it could look like a entirely different company. It should have the free money to fully explore its licence area, after all it is a production and Exploration company.

[zhockey] 19/12/2016 11:02

You mean to make it sound better than it was? :)

[timberwolf3] 19/12/2016 10:48

I think that the main thing that was wrong with the last RNS was that it could of been worded considerably better. imo

[zhockey] 19/12/2016 09:02

$60m if you include the debt

[mattjos] 19/12/2016 08:55

mkt cap is just below $30m ... that seems like giveaway price on what is known.
Don't think anyone can argue there is any speculative aspect in the valuation now

[scottishfield] 19/12/2016 08:52

Agreed Celeritas. Happy holder & happy to continue to be so.

[celeritas] 19/12/2016 08:50

The resource will be increased, let them drill the bloody grid. Does anyone have any idea of how huge aaz licenses are.

[jeanesy] 19/12/2016 08:39

Until the company proves up some 'proper' new resource then this will drift imo. Ugur was supposed to be the area most likely to do that in the short term, which is why it was drilled. Now we are left with guessing how much of a resource it is going to be .The market does not like speculation so we will just have to wait and see and hope that the next drilling news is better. With the weather so very very cold im not sure that is going to happen any time soon

[zhockey] 19/12/2016 08:32

Brasso,

I have been a holder here for a long while. One thing I have learned over the years is to maintain a balanced view and requires the digestion of good and bad news. I do not think the last RNS was bad news but it does limit the potential upside of Ugur and one has to adjust their model accordingly.

Ugur = 2moz = £1 is no longer a viable model and this is why the market sold off. Am I disappointed, yes of course. If others choose to be happy with this news then that is their business.

[jeanesy] 19/12/2016 08:11

Quite a few sales going through this am so far, price holding up so far.

[brasso3] 19/12/2016 00:40

Zhockey

has not been invested here for the past 4 - 6 weeks. It has been very obvious from his recent posting style.

[celeritas] 19/12/2016 00:05

You can easily tell who wants it to fall to make them feel right after selling.

[zhockey] 18/12/2016 23:21

If this was positive why release on "bad news Friday"?

[mattjos] 18/12/2016 22:36

I've concluded that what is causing a problem is that, unlike most other AIM listed explorers, AAZ is simply being open and straight with investors about exactly what they are doing and finding on this new resource.Most other penniless explorers on AIM are rather less straightforward with their news releases of this sort - it's almost a novelty here.We should surely be applauding this approach.Anyway, contrary to others here, I see this news as positive and look forward to hearing more.

[bleepy] 18/12/2016 21:44

And again....

The 29 RC drill holes, completed since the last release and not reported above, had results to a depth of 34 metres which were either barren or only showed mineralisation below the 0.3 grammes per tonne cut-off grade. They were located in an area of about 250 metres by 70 metres extending west-south-west from the main central mineralised zone.

It is planned to test this area by core drilling to deeper levels to ascertain its mineralisation.

[bleepy] 18/12/2016 21:38

Read again....

a central mineralised zone of 225 metres (east-north-east) by 130 metres (north-north-west) has been defined with six core drill holes completed in this area.

[bleepy] 18/12/2016 21:35

The Ugur deposit area was defined from mapping and is a significant surface alteration rock assemblage with the presence of barite, barite-haematite, and limonite in gossan-style zones along with vuggy silica in brecciated volcanic rocks. These findings were established by 500 chip samples taken from outcrop, many of which contained gold. This alteration zone extends over an area of 1,000 metres (east-north-east by west-south-west) by 500 metres (north-west by south-east)

An initial Phase II core drilling programme designed on a grid for resource estimation has commenced, and will establish the overall depth and style of mineralisation.

A further geological exploration target has been defined in the expanded Ugur area based on similar alteration and geomorphological position to the Ugur deposit that is located about 1,500 metres to the south of the current Ugur RC drilling area. This will be further evaluated as part of the 2017 programme of field work.

[csmwssk12hu] 18/12/2016 20:38

Well that was a close test of 20p, still on the 20p to 34p trading range, rns wasn't liked for a simple reason, the size of find over area was far too small to sustain a long term operation, the issue here is declining production coupled with a declining gold price, only positive is declining local currency however if you think gold costs are now at $700 an ounce on last rns with costs what do you think costs will be with less production? If you tell the market you are going to deliver 77,000 ounces a year, then you are only going to produce under 70,000 ounces, more concerning the monthly rate of 4500-5000 ounces is only 54k to 60k what are your new cost per ounce going to be? The danger that the market seems to be waking up to is by the time current pit is exhausted will they have found enough minerals elsewhere to continue production? After Friday announcement that is looking less likely, even a gap of twelve months between production ending and production elsewhere starting could be devastating, it may not happen and everything may be fine, but that doubt is now out there imho dyor

[zhockey] 18/12/2016 20:37

That's plain wrong, the barren holes were on the margin and not just vein free within the main body! Read the RNS again. The upshot is that the areal extent is much less than it could have been, a mineralised core 225 by 130m

[obbig60] 18/12/2016 18:19

I'm no mining engineer, but I don't suppose anyone else here is either. So suppose you think there is some gold under your feet, how do you find out where it is? You drill lots of holes. The gold runs in veins, so if you are lucky some of your holes might intersect the vein. Most of them won't and will return nothing - but you now have a much clearer idea how much gold is down there and where it is.
So I don't find it surprising that 29 out of 35 holes returned no gold.

[zhockey] 18/12/2016 17:06

Robo,

The point is how much will we be producing in two years when the reserves are starting to deplete. Bill said a couple of times in interviews early this year that they can sustain the current gold production for 2-3 years. So that's two more years which would be consumed paying off debt. Beyond that, without and increase in reserves I'm not sure what level of production we would see.

Ugur was a great hope as AAZ need oxide ore to feed through the AL plant. The company are right to keep shareholders informed, however my interpretation is that they have focused on a small zone to get oxide ore into the plan as soon as possible. The upshot of that is that the prospective size is now less that expected/hoped by the market.

Hopefully they will find more economic mineralisation next year but you can understand why the market sold off as it now feels that based on the RNS Ugur is not going to be a major multi-million oz deposit.

[robo21] 18/12/2016 16:37

Lot of negativity on here this weekend.
Can someone remind me of the cash this
Is throwing of with all production costs
At 700 dollar an ounce ?

[zhockey] 18/12/2016 16:27

Guys come on, 29 barren holes out of 35, released on a Friday. It's a disappointment.