Anglo Asian Mining Share Discussion Threads

[ferries5] 17/10/2016 09:15

From Proactive

Anglo Asian Mining Plc (LON:AAZ) says it has enhanced the future production potential at its Gedabek mine in Azerbaijan with the discovery of a new gold target.

The prospect was found 3 km north-west of the miner's agitation plant and heap leach facilities and has been called 'Ugur', which means 'good luck' or 'success in Azeri.

Early testing after sampling and drilling has shown the oxide zone is amenable to leaching, with average gold recovery of 87%.

READ - Anglo Asian Mining on road to profitability

The firm said: "This prospect is very exciting given its close proximity to the Gedabek processing facilities and the initial positive drill and metallurgical testwork results."

Chief executive Reza Vaziri added that Ugur had the potential to add significantly to the group's gold resources and reserves and hence future production at Gedabek.

"Having recently returned to profitability, and following the completion of several operational initiatives to improve efficiencies and lower costs at Gedabek, I believe Anglo Asian is now well positioned to expand its mineable reserves which will lay the foundations for long term and sustainable production from multiple deposits at Gedabek."

Twenty reverse circulation (RC) holes were sunk for 360 metres, with highlights including 34 metres at 0.39 grams per tonne (g/t), including 13 metres at 0.83 g/t, and another hole, which showed 34 metres at 5.45 g/t.

Significantly, a further exploration target has been defined in the expanded Ugur area located about 1,500 metres to the south of the current Ugur drilling area.

Anglo Asian said an initial Phase II core drilling programme has now started to determine overall depth and style of mineralisation with a view to increase resources.

Last week, the firm revealed that a delay to commissioning of a second mill hit production in the third quarter but it repeated its full year gold production target.

Gold output in the period was down at 16,497 ounces compared to 19,375 ounces in the second quarter, while copper production came in at 485 tonnes, compared to 497 tonnes in the second quarter

The firm produced 33,899 ounces of silver compared to 52,214 ounces the previous quarter.


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[gutterhead] 17/10/2016 08:58

Yes just topped up at 19.9

[jbe81] 17/10/2016 08:55

Playing games or a large sell will appear, all buy so far,either way not important. Good buying opportunity

[gutterhead] 17/10/2016 08:46

Mm's taking the P, while they still can I guess.
Would hope that 20p is put behind us now

[jeanesy] 17/10/2016 08:38

despite the flurry of small buys the mm's are moving the price downwards after the initial mark up - strange reaction to great news. We now have a resource that is not going to run out for a while. The final piece in the jigsaw for me. Low costs, reducing debt and now a much larger resource. All we need now is to get the production figures right !

[ferries5] 17/10/2016 08:33

Never noticed this part of the Rns.

Additional exploration target defined in the expanded Ugur area

* Based on similar alteration and geomorphological position to the Ugur deposit located approximately 1,500 metres south of the current Ugur drilling area

* Further evaluation planed as part of the 2017 field work programme

[brasso3] 17/10/2016 08:22

Had a top up at 20.05p.

[catsick] 17/10/2016 08:21

They will not double production , they will increase a bit by using the best ore to start but it will go on the same leach pad they are putting 1.2g per ton stuff on at the moment, the thing it will do is increase the mine life to the point where it will not matter any more , the mine life was allways the issue, now it looks like they are surrounded with gold and the business will last far into the future and all debt quickly repaid ...

[jeanesy] 17/10/2016 08:17

I was just thinking the same myself timberwolf. Although most of the gold seems pretty low grade it will surely be cheaper to mine if it is without copper ?

[timberwolf3] 17/10/2016 08:12

Interesting that the assays returned no results for copper, does that make the processing of the ore cheaper?

[jbe81] 17/10/2016 08:07

Just a small part of a much larger picture. Good news.

[1madmarky] 17/10/2016 08:00

It's definitely a large deposit, but it is low grade. So they will have to work to balance out the good and not so good bits but it's at surface so should give them a long term outlook. GLA

[csmwssk12hu] 17/10/2016 07:56

Going with it could double production this is what should get us to 34p short term now imho dyor

[brasso3] 17/10/2016 07:54

Agree that the grams/tonne is low to modest. But encouraging that it is shallow.

[jeanesy] 17/10/2016 07:53

Would normally be at work but have a hospital appointment this morning. Some great news to cheer me up. Onwards and upwards here! I wonder how the market will react to this news?

[cyberbub] 17/10/2016 07:51

I suppose the grade isn't that high, but it appears to be shallow, so costs should be reasonable. And they will identify the best mining reserves from the overall target area.

[csmwssk12hu] 17/10/2016 07:49

Omg this is what we have been waiting for when says significantly increase gold and your already doing 70,000 plus oz per year that is serious money if it's another 80,000 per month that's more than double the size of company don't forget more silver and copper aswell happy days

[cyberbub] 17/10/2016 07:49

Very encouraging!

[catsick] 17/10/2016 07:39

30 meters deep * 1000m by 500m at 2.5 tonne per cubic meter * 1g per ton should = 1m oz gold easily

[homebrewruss] 17/10/2016 07:39

Might also go some way to explain recent lower production if they've been testing leach extraction rates for the exploration samples.

[timberwolf3] 17/10/2016 07:25

Great stuff, developing nicely, goes to show how the grade varies greatly .

[catsick] 17/10/2016 07:24

Awesome results , a huge find that will keep the plant going another 10 years , high grafe right at the surface over a large area, very cheap to exploit via a big pit and straight onto the heap leach ! Drills of 30m at 5g with the bottom of the orebody not hit is huge, they can use the high grade stuff first and it will make a ton of cash !!

[ferries5] 17/10/2016 07:17

Some good news.

[bleepy] 17/10/2016 00:27

Just maybe the flotation plant has needed some tweaking since this is the first introduction of sulphide ore through the plant plus blending it with the agitation tailings stream. No doubt the chemicals,process and blending will be fine tuned to maximise throughput. Role on next month.

[mattjos] 16/10/2016 22:00

Post PSA .. it's over $3m in silver in that sulphide ore.The results may have disappointed some but, they have also given us further empirical data on which to help value the business & confirmed that the company is now in a position to start processing this ore, for the first time in two years.There is a stack of sulphide ore sat at Gedabek, its mined cost has already been expended, that is worth (combined Au, Ag & Cu) 30-50% more than the entire market capitalisation of the company.If this was a property company it would, on that basis, trade at a premium to its NAV.I think the main thing holding this back is a general 'it's so cheap there must be something wrong' mentality.I still think it's a gifthorse.