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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Anglo Asian Mining Plc | LSE:AAZ | London | Ordinary Share | GB00B0C18177 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-1.00 | -1.41% | 70.00 | 69.00 | 71.00 | 72.50 | 70.00 | 71.50 | 211,962 | 16:18:48 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Miscellaneous Metal Ores,nec | 84.72M | 3.66M | 0.0320 | 21.88 | 79.97M |
TIDMAAZ
RNS Number : 8283N
Anglo Asian Mining PLC
14 August 2017
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
14 August 2017
Anglo Asian Mining plc
Ugur Gold Deposit - JORC Mineral Resource and Reserves
Anglo Asian Mining plc ("Anglo Asian" or "the Company"), the AIM listed gold, copper and silver producer, is pleased to announce the Mineral Resource and Mineral Reserves estimated in accordance with the JORC (2012) code for the Ugur gold deposit ("Ugur") located at the Company's Gedabek licence area ("Gedabek") in Western Azerbaijan. The resource estimate, which has exceeded the Company's initial expectations, will provide significant upside to the current production from Gedabek. Ugur is on track to commence production in September 2017.
Ugur JORC (2012) Mineral Resource and Reserves
-- Total Mineral Resource of 199,000 ounces of gold and 1,049,000 ounces of silver
-- 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
Development Update
-- Road between the Ugur deposit and the Company's processing facilities is complete -- Top soil pre-strip and storage commenced late July 2017 -- Condemnation drilling completed for final siting of surface infrastructure
-- Mining and haulage of ore to the processing facility stockpile planned to commence before end August 2017
-- Commencement of processing ahead of schedule with first production planned in September 2017
Anglo Asian CEO, Reza Vaziri, said "I am very pleased that the JORC total mineral resource estimate for Ugur of 199,000 ounces of gold is in excess of our initial estimates of 195,000. This mineral resource is a valuable addition to our mineral resources at Gedabek. The mineral reserves of 147,000 ounces of gold, or over 70 per cent. of the total mineral resource, is also highly encouraging. Development work is continuing well and I look forward to reporting the first production of gold from the Ugur deposit which is targeted for next month."
Anglo Asian Group Director of Geology & Mining, Stephen Westhead, said "The anticipated commencement of mining and processing of Ugur ores in September 2017 represents a significant step in the development programme of Gedabek. This is an excellent achievement given that the first exploration drill hole at Ugur was only completed in September 2016. It demonstrates the ability of Anglo Asian to leverage its adaptable on-site processing facilities with Gedabek's significant exploration potential. The completion of the Ugur JORC resource and reserves estimates forms part of the development strategy of the resource base for the deposits and exploration assets of Gedabek."
Background to the Ugur deposit
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 at Gedabek. Since the discovery of Ugur, the Company has extensively explored the deposit to define its resource and reserves.
The deposit comprises an oxide gold-rich zone to a depth varying between 50 to 60 metres. The area covered by this drilling and proposed open pit outline is 350 metres (east-north-east) by 250 metres (north-north-west).
JORC (2012) Mineral Resources and Ore Reserves Statements
The mineral resource and reserves are prepared in accordance with JORC (2012), which is the current edition of the JORC Code. After a transition period, the 2012 edition came into mandatory operation from 1 December 2013.
Mineral Resource
Mineral Resource Tonnage Gold Silver (millions) Grade Grade Gold Silver (g/t) (g/t) (ounces) (ounces)* Measured 4.12 1.2 6.3 164,000 841,000 Indicated 0.34 0.8 3.9 8,000 44,000 Measure and Indicated 4.46 1.2 6.2 172,000 884,000 Inferred 2.50 0.3 2.1 27,000 165,000 Total 6.96 0.9 4.7 199,000 1,049,000
* does not add due to rounding.
Mineral Reserves
Tonnage Gold Silver Gold Silver (millions) Grade Grade (ounces) (ounces) Mineral Reserves (g/t) (g/t) Proved 3.37 1.3 7.2 142,000 779,000 Probable 0.22 0.8 4.1 5,000 29,000 Proved and probable 3.59 1.3 7.0 147,000 808,000
The Proved and Probable Ore Reserves estimate is based on that portion of the Measured and Indicated Mineral Resource of the deposit within the scheduled mine designs that may be economically extracted, considering all "Modifying Factors" in accordance with the JORC (2012) Code.
Mineral Resource and Ore Reserve Estimation
Anglo Asian, together with the mining and geological consulting group Datamine International ("Datamine"), prepared the JORC (2012) resource and reserves estimation of the Ugur deposit. This was following the completion of 55 "phase one" reverse circulation ("RC") drill holes totalling 1,842 metres, 50 core drill holes totalling 6,355 metres, and 33 infill RC drill holes totalling 2,766 metres that supplemented initial surface outcrop and channel sampling. The detailed mineral resource and reserves estimates are set out in Appendix 1. A glossary of terminology related to the mineral resource and reserves estimate and other information is set out in Appendix 2. A full JORC report will be available on the Company website by end September 2017.
Note that the diagrams presented as part of Appendix 1 (JORC 2012, Table 1 - Ugur deposit) can be accessed via the following link: http://www.rns-pdf.londonstockexchange.com/rns/8283N_-2017-8-11.pdf
Ugur Mine Development
Condemnation drilling to prove the absence of mineralisation below proposed areas of infrastructure, including the waste dump areas, soil storage areas and lay down area for office facilities and mechanical workshops is now complete. Work is progressing as planned on constructing all necessary infrastructure. This includes mine/geology/medical and HSEC offices, hygiene facilities, mechanical workshop, lubricants and spares stores, a weighbridge and diesel store. The weighbridge will be located at the intersection of the mine access road and the haul road to the plant, while other building infrastructure will be located about 500 metres from the open pit boundary designated in accordance with blasting regulations.
The construction of a 4.6 kilometre road between the Ugur deposit and the Company's processing facilities that commenced in May 2017 is complete.
Pre-stripping of the top soil has commenced. Mining by conventional shovel and truck haulage to an Ugur stockpile near the processing facilities is planned to start mid-August 2017, with processing commencing in September 2017.
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.
**S**
For further information please visit 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.
APPIX 1
The following table provides a summary of assessment and reporting criteria used at the Ugur deposit for the reporting of exploration results, Mineral Resources and Ore Reserves in accordance with the JORC Table 1 checklist in The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012 Edition).
JORC Code, 2012 Edition - Table 1 report: Ugur Deposit (Anglo Asian Mining plc)
Mineral Resource and Ore Reserve statement date: 14 August 2017
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary ------------- --------------------------------------------------------------- ----------------------------------------------------------------- Sampling techniques * Nature and quality of sampling (eg cut channels, * Full core was split longitudinally 50% using a rock random chips, or specific specialised industry diamond saw and half-core samples were taken at standard measurement tools appropriate to the typically 100centimetre intervals or to rock contacts minerals under investigation, such as down hole gamma if present in the core run for both mineralisation sondes, or handheld XRF instruments, etc). These and wall rock. The drill core was rotated prior to examples should not be taken as limiting the broad cutting to maximise structure to core axis of the cut meaning of sampling. core. * Include reference to measures taken to ensure sample * Reverse Circulation (RC) drill samples were collected representivity and the appropriate calibration of any via a cyclone system in calico sample bags following measurement tools or systems used. on site splitting using a standard riffle "Jones" splitter attached to the RC drill rig cyclone, and into plastic chip trays for every one metre interval. * Aspects of the determination of mineralisation that are Material to the Public Report. * To ensure representative sampling, diamond drill core was marked considering mineralisation and alteration * In cases where 'industry standard' work has been done intensity, after ensuring correct core run marking this would be relatively simple (eg 'reverse with regards recovery. circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more * RC samples were routinely weighed to ensure sample is explanation may be required, such as where there is representative of the metre run. coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed * Sampling of drill core and RC cutting were systematic information. and unbiased. * RC samples varies from 3kg to 6kg, the smaller weight sample related to losses where water was present. The average sample size was 4.7kg, and pulverized to produce a 50g sample for routine Atomic Absorption analysis and check fire assaying. * Handheld XRF (model THERMO Niton XL3t) was used to assist with mineral identification during field mapping and core logging procedures. ------------- --------------------------------------------------------------- ----------------------------------------------------------------- Drilling techniques * Drill type (eg core, reverse circulation, open-hole * Both diamond core drilling and reverse circulation hammer, rotary air blast, auger, Bangka, sonic, etc) (RC) drilling were completed. and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by * Upper levels ofcore drilling from collar to an what method, etc). average depth of 35metres at PQ (85.0 mm) core single barrel wireline, stepping down to HQ (63.5mm) when necessary. * Diamond Core Drilling with HQ (63.5mm) core single tube barrel, steeping down to NQ (47.6mm) core barrel when necessary * Diamond Core drilling with NQ (47.6mm) core single tube barrel * The proportions of PQ:HQ:NQ drilling were 17:60:23 percentage.
* Oriented drill coring was not used. * Reverse Circulation drilling using 133 millimetre diameter face sampling drill bit. * Downhole surveying was carried out on 92% of core drillholes utilizing Reflex EZ-TRAC equipment at a downhole interval of every 9 metres. * Drilling penetration speeds were also noted to assist with rock hardness indications. ------------- --------------------------------------------------------------- ----------------------------------------------------------------- Drill sample * Method of recording and assessing core and chip * Core recovery (TCR - total core recovery) was recovery sample recoveries and results assessed. recorded at site, verified at the core logging facility and subsequently entered into the database. The average core recovery was 93%. Recovery * Measures taken to maximise sample recovery and ensure measurements were poor in fractured and faulted rocks, representative nature of the samples. however the contract drill crew maximized capability with use of drill muds and reduced core runs to enure best recovery. In these zones where oxidised friable * Whether a relationship exists between sample recovery mineralisation was present, average recovery was 86%. and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. * RC recovery was periodically checked by weighing the sample per metre for RC drill cuttings and compared to theoretical weight. * Geological information was passed to the drilling crews to make the drillers aware of areas of geological complexity, to maximise recovery of sample through the technical management of drilling (downward pressures, rotation speeds, water flushing, use of clays). * Zones of faulting and presence of water resulted in variable weights of RC sample, suggesting losses of fines. Historical drilling at adjacent deposits with similar situations tended to underestimate the in-situ gold grades. * There is no direct relationship between recovery and grade variation, however in core drilling, losses of fines is believed to result in lower gold grades due to washout of fines in fracture zones. This is likely to result in an underestimation of grade, which will be checked during production. ------------- --------------------------------------------------------------- ----------------------------------------------------------------- Logging * Whether core and chip samples have been geologically * Drill core was logged in detail for lithology, and geotechnically logged to a level of detail to alteration, mineralisation, geological structure, and support appropriate Mineral Resource estimation, oxidation state by Anglo Asian Mining geologists, mining studies and metallurgical studies. utilising logging codes and data sheets as supervised by the competent person. * Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. * RC cuttings were logged for lithology, alteration, mineralisation, and oxidation state. * The total length and percentage of the relevant intersections logged. * Logging was considered sufficient to support Mineral Resource estimation, mining studies and metallurgical studies. * Rock Quality Designation (RQD) logs were produced for all core drilling for geotechnical purposes. Fracture intensity and fragmentation proportion analysis was also used for geotechnical information. * Additionally, two "geotechnical" core drillholes were targeted and drilled to pass through mineralisation into wall rocks of the "planned" backwall to the open pit. This ensured geotechnical data collected related to open pit design work. * Point load testing and unconfined compressive strength (UCS) tests were conducted on all major rock (mineralised and wall rock) types. This data was utilised in establishing the open pit deign parameters. * Independent geotechnical studies have been completed by the environmental engineering company, CQA International Limited (CQA), to assess rock mass strength and structural geological relationships for mine design parameters. * Logging was both quantitative and qualitative in nature. All core wasphotographed in the core boxes to show the core box number, core run markers and a scale, and all RC chip trays were photographed.
* 100% of the core drilling was logged with a total of6,354.75 metres of core and 100% of RC drilling with a total of 4,608.00 metres, that is included in the resource model. ------------- --------------------------------------------------------------- ----------------------------------------------------------------- Sub-sampling techniques * If core, whether cut or sawn and whether quarter, * Full core was split longitudinally 50% using a rock and sample half or all core taken. diamond saw and half-core samples were taken at preparation typically 100centimentre intervals or to rock contacts if present in the core run for both * If non-core, whether riffled, tube sampled, rotary mineralisation and wall rock. The drill core was split, etc and whether sampled wet or dry. rotated prior to cutting to maximise structure to core axis of the cut core. * For all sample types, the nature, quality and appropriateness of the sample preparation technique. * Half core was taken for sampling for assaying, and one half remains in the core box as reference material. * Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. * Reverse Circulation (RC) drill samples were collected in calico sample bags following on site splitting using a standard riffle "Jones" splitter, and into * Measures taken to ensure that the sampling is plastic chip trays for every one metre interval. representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. * Where RC samples were wet, the total sample was collected for drying at the laboratory, following which, sample splitting took place. Primary * Whether sample sizes are appropriate to the grain duplicates have also been retained as reference size of the material being sampled. material. * RC field sampling equipment was regularly cleaned to reduce the chance of sample contamination by previous samples, on a metre basis by compressed air. * Both core and RC samples were prepared according best practice, with initial geological control of the half core or RC samples, followed by crushing and grinding at the laboratory sample preparation facility that is routinely managed for contamination and cleanliness control. Sampling practice is considered as appropriate for Mineral Resource Estimation. * Sample preparation at the laboratory is subject to the following procedure. Ø After receiving samples at the laboratory from the geology department, all samples are cross referenced with the sample order list. Ø All samples are dried in the oven at 105-110 degree centigrade temperature Ø First stage sample crushing to -25mm size Ø Second stage sample crushing to -10mm size. Ø Third stage sample crushing to -2mm size. Ø After crushing the samples are split and 200-250 gramme sample taken. Ø A 75 micron sized prepared pulp is produced that is subsequently sent for assay preparation. * Quality control procedures were used for all sub-sampling preparation. This included geological control over the core cutting, and sampling to ensure representativeness of the geological interval. * 127 Field duplicates of the reverse circulation (RC) samples were collected, representing 2.6% of the total RC metres drilled. * Sample sizes are considered appropriate to the grain size of the material and style of mineralisation being sampled, by maximizing the sample size, hence the total absence of any BQ drill core. ------------- --------------------------------------------------------------- ----------------------------------------------------------------- Quality of assay * The nature, quality and appropriateness of the * Laboratory procedures and assaying and analysis data and assaying and laboratory procedures used and whether methods are industry standard. They are well laboratory the technique is considered partial or total. documented and supervised by a dedicated laboratory tests team. The techniques of Atomic Absorptionand Fire Assay were utilised, and as such both partial and * For geophysical tools, spectrometers, handheld XRF total techniques were employed.
instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their * Handheld XRF (model THERMO Niton XL3t) was used to derivation, etc. assist with mineral identification during field mapping and core logging procedures. * Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory * Commencement of drilling was 23/09/2016 and checks) and whether acceptable levels of accuracy (ie completion was 15/07/2017 being 295 days, during lack of bias) and precision have been established. which period 4,928 RC samples and 6,447 core drill samples (a total of 11,375 samples) were taken. A total of 1,740 QA/QC samples were measured, equivalent to 15.3%. * QA/QC procedures included the use of field duplicates of RC samples, blanks, certified standards or certified reference material (CRMs) from OREAS (Ore Research & Exploration Pty Ltd Assay Standards, Australia), in addition to the laboratory control that comprised pulp duplicates, check samples, and replicate samples. This QA/QC system allowed for the monitoring of precision and accuracy of assaying for the Ugur deposit. * The quality of the QA/QC is consideredadequate for resource and reserve estimation purposes. * Pulp duplicates analysis showed the largest error in waste or very higher grade samples (see below), Note: with silver classified by gold grade: Pulp Duplicates for gold and silver Au Ag Ag Gold Au (1) (2) (1) (2) Grade Average Average Average Average Range g/t g/t g/t g/t g/t Au Au Ag Ag Average 1.46 1.48 1.86 1.77 0.0 to <=0.3 0.10 0.21 1.86 1.77 0.3 to <=1.0 0.64 0.69 4.51 4.33 1.0 to <=2.0 1.44 1.44 8.10 7.93 2.0 to <=5.0 2.82 2.74 13.62 13.52 5.0 to <=20.0 7.27 7.23 32.09 29.91 * External check assay was carried out by ALS Minerals (OMAC) based in Ireland. The following analytical work was conducted for each sample: Ø Sample login / pulverize split to 85% < 75 micron / pulverizing QC test / Received sample weight Ø Ore grade for Gold 30g AA finish Ø 35 Element Aqua Regia ICP-AES analysis (to include the following elements: Ag, Al, As, B, Ba, Be, Bi, Ca, Cd, Co, Cr, Fe, Ga, Hg, K, La, Mg, Mn, Mo, Ni, P, Pb, S, Sb, Sc, Sr, Th, Ti, TI, U, V, W, Zn. * Comparison of average gold grades between the on-site laboratory and ALS shows a general bias towards the on-site laboratory under-estimating grade with the exception of high grade (as presented below): AAZ ALS Average Average Gold Grade g/t g/t Range Au Au Average 0.83 0.90 0.0 to<=0.3 0.08 0.08 0.3 to <=1.0 0.60 0.70 1.0 to <=2.0 1.31 1.36 2.0 to <=5.0 2.97 3.76 5.0 to <=20.0 12.21 11.16 * Based on QA/QC work, and instances of poor repeatability, it is recommended to carry out thorough QA/QC of all samples during the extraction process and assess laboratory capacities.
------------- --------------------------------------------------------------- ----------------------------------------------------------------- Verification of sampling * The verification of significant intersections by * Significant intersections were verified by a number and assaying either independent or alternative company personnel. of company personnel within the management structure of the Exploration Department. Intersections were defined by the exploration geologists, and * The use of twinned holes. subsequently verified by the Exploration Manager. Further, independent verification was carried out as part of the due diligence for resource estimation. * Documentation of primary data, data entry procedures, Assay intersection were cross validated with drill data verification, data storage (physical and core visual intersections. electronic) protocols. * An initial programme of RC drilling was followed up * Discuss any adjustment to assay data. by a core drilling programme where two drillholes were twinned and validated the presence of mineralisation.Reverse circulation drilling as compared with the core showed a positive grade bias of up to 10%. It is suspected that losses may have occurred during the core drilling process especially in very strongly oxidised mineralised zones due to drilling fluid interaction. * Data entry is supervised by a data manager, and verification and checking procedures are in place. The format of the data is appropriate for direct import into "Datamine"(R) software. All data is stored in electronic databases within the geology department and backed up to the secure company electronic server that has limited and restricted access. Four main files are created relating to "collar", "survey", "assay" and "geology". Laboratory data is loaded electronically by the laboratory department and validated by the geology department. Any outlier assays are re-assayed. * Independent validation of the database was made as part of the resource model generation process, where all data was checked for errors, missing data, misspelling, interval validation, and management of zero versus no data entries. * All databases were considered accurate for the Mineral Resource Estimate. * No adjustments were made to the assay data. ------------- --------------------------------------------------------------- ----------------------------------------------------------------- Location of data * Accuracy and quality of surveys used to locate drill * The exploration area was initially surveyed by high points holes (collar and down-hole surveys), trenches, mine resolution drone survey. Five topographic base workings and other locations used in Mineral Resource stations were installed and accurately surveyed using estimation. high precision GPS, that was subsequently tied into the local mine grid using ground based total station surveying (LEICA TS02) equipment. All trench, drill * Specification of the grid system used. holes collars were then surveyed using total station survey equipment. * Quality and adequacy of topographic control. * Downhole surveying was carried out on 92% of core drillholes utilizing Reflex EZ-TRAC equipment at a downhole interval of every 9 metres. * The grid system used is Universal Transverse Mercator (UTM)84WGS zone 38T (Azerbaijan) * The adequacy of topographic control is adequate for the purposes of resource and reserve modeling (having been validated by both aerial and ground based survey techniques), with a contour interval of 2m metres. ------------- --------------------------------------------------------------- ----------------------------------------------------------------- Data spacing and * Data spacing for reporting of Exploration Results. * Drill hole spacing carried out was from 20 metres distribution over the main mineralised zone to 45 metres on the periphery of the resource. * Whether the data spacing and distribution is sufficient to establish the degree of geological and * The data spacing and distribution (20 x 20 metre grade continuity appropriate for the Mineral Resource grid) over the mineralised zones is sufficient to and Ore Reserve estimation procedure(s) and establish the degree of geological and grade classifications applied. continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. The depth and spacing is * Whether sample compositing has been applied. considered appropriate for defining geological and grade continuity as required for a JORC Mineral Resource estimate. * No physical sample compositing has been applied for assay purposes, however for some metallurgical tests,
4 to 5 metre composites were applied. ------------- --------------------------------------------------------------- ----------------------------------------------------------------- Orientation of data * Whether the orientation of sampling achieves unbiased * Detailed surface mapping and subsequent drilling has in relation sampling of possible structures and the extent to provided the characteristics of the deposit. The to which this is known, considering the deposit type. orientation of the drill grid to NNE was designed to geological maximise the geological interpretation in terms of structure true contact orientations. * If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this * The Ugur gold deposit is considered as a high should be assessed and reported if material. sulfidation gold deposit located in rocks ranging from Bajocian (Mid-Jurassic) to Tithonian (Upper-Jurassic) in age. The gold mineralisation is hosted by Upper Bajocian age sub-volcanic rocks, that comprise rhyo-dacitic breccias. These rocks have been intruded into a sub-volcanic sequence that was subsequently subjected to strong hydrothermal alteration. * The Ugur primary mineralisation is hosted in acidic volcanic rocks, that consists of haematite-barite-quartz-kaolin veins-veinlets and breccia, pyritic stock-stockwork and quartz-sulphide veins. The central surface expression of the mineralisation exhibit accumulations of hydrous ferric oxides cementing breccias of silica with vein-veinlets barite-haematite mineralisation. * The deposit was emplaced at the intersection of NW, NE, N and E trending structural systems regionally controlled by a first order NW transcurrent fault structure. The fault dips between 70 to 80deg to the north-west. The faults of the central zone control the hydrothermal metasomatic alteration and gold mineralisation. * Given the geological understanding and the application of the drilling grid orientation, grid spacing and vertical drilling, no orientation based sample bias has been identified in the data which resulted in unbiased sampling of structures considering the deposit type. ------------- --------------------------------------------------------------- ----------------------------------------------------------------- Sample security * The measures taken to ensure sample security. * Regarding drill core: at the drilling site which was supervised by a geologist, the drill core is placed into wooden core boxes that are sized specifically for the drill core diameter. Once the box is full, a wooden lid is fixed to the box to ensure not spillage. Core box number, drill hole number and from/to metres are written on both the box and the lid. The core is then transported to the core storage area and logging facility, where it is received and logged into a data sheet. Core logging, cutting, and sampling takes place at the secure core management area. The core samples are bagged with labels both in the bag and on the bag, and data recorded on a sample sheet. The samples are transferred to the laboratory where they are registered as received, for laboratory sample preparation works and assaying. Hence, a chain of custody procedure has been followed from core collection to assaying and storage of reference material. * Reverse Circulation samples are bagged at the drill site and sample numbers recorded on the bags. Batches of 10 metre samples are boxed for transport to the logging facility where the geological study and sample preparation for transfer to the laboratory take place. * All samples received at the core facility are logged in and registered with the completion of an "act". The act is signed by the drilling team supervisor and core facility supervisor (responsible person). All core is photographed, subjected to geotechnical logging, geological logging, samples interval determinations, bulk density, core cutting, and sample preparation (size 3-5 centimetre). * Daily, all samples are weighed and Laboratory order prepared which is signed by the core facility
supervisor prior to release to the laboratory. On receipt at the laboratory, the responsible person countersigns the order. * After assaying all reject duplicate samples are received from laboratory to core facility (recorded on a signed act). All reject samples are placed into boxes referencing the sample identities and stored in the core facility. * In the event of external assaying, Anglo Asian Mining utilsed ALS-OMAC in Ireland. Samples selected for external assay are recorded on a data sheet, and sealed in appropriate boxes for shipping by air freight. Communication between the geological department of the Company and ALS monitor the shipment, customs clearance, and receipt of samples. Results are sent electronically by ALS and loaded to the Company database for study. ------------- --------------------------------------------------------------- ----------------------------------------------------------------- Audits or reviews * The results of any audits or reviews of sampling * Reviews on sampling and assaying techniques were techniques and data. conducted for all data internally and externally as part of the resource and reserve estimation validation procedure. No concerns were raised as to the procedures or the data results. All procedures were considered industry standard and well conducted. QA/QC tolerance concerns of some of batches of assaying has been raised. ------------- --------------------------------------------------------------- -----------------------------------------------------------------
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary --------------------------------------------------------------- Mineral tenement * Type, reference name/number, location and ownership * The project is located within a current contract area and land including agreements or material issues with third that is managed under a "PSA" production sharing tenure parties such as joint ventures, partnerships, agreement. status overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. * The PSA grants the Company a number of periods to exploit defined licence areas, known as Contract Areas, agreed on the initial signing with the * The security of the tenure held at the time of Azerbaijan Ministry of Ecology and Natural Resources reporting along with any known impediments to ('MENR'). The exploration period allowed for the obtaining a licence to operate in the area. early exploration of the Contract Areas to assess prospectivity can be extended. * A 'development and production period' commences on the date that the Company issues a notice of discovery, which runs for 15 years with two extensions of five years each at the option of the Company. Full management control of mining in the Contract Areas rests with Anglo Asian Mining. * Under the PSA, Anglo Asian is not subject to currency exchange restrictions and all imports and exports are free of tax or other restriction. In addition, MENR is to use its best endeavours to make available all necessary land, its own facilities and equipment and to assist with infrastructure. * An extract of the contract area boundary is shown via the pdf link at the end of the Press Release. * The deposit is not located in any national park. * At the time of reporting no known impediments to obtaining a licence to operate in the area exist and the contract (licence) area agreement is in good standing. --------------- --------------------------------------------------------------- ----------------------------------------------------------------------------------- Exploration done by * Acknowledgment and appraisal of exploration by other * The "Ugur" deposit, renamed the "Reza" deposit is other parties. located within the locally defined Ugur area. The parties Reza gold deposit was discovered in 2016 by the Gedabek Exploration Group of Anglo Asian Mining who worked on the regional area of Ugur from 2014 year. * Historical work on the area included regional mapping and large scale regional geophysical programmes (magnetic and gravity) by Soviet geologists. * Prior to the drill programme for resource estimate, Anglo Asian Mining carried out the following work: Ø Stream sediment sampling 7 samples (2014), 16 samples (2016),
Ø Stream Grab sampling 37 samples (2016) Ø Geological mapping, 90 000m2 1:10 000 (2014-2015), 35 000m2 1:1 000 (2016) Ø Outcrop sampling 1,460 samples (2016) Ø Trenching & shallow pits 610 samples (2016) --------------------------------------------------------------- Geology * Deposit type, geological setting and style of * The Reza gold deposit is located in Gedabek Ore mineralisation. District of the Lesser Caucasus in NW of Azerbaijan, 48 kilometres East of the city of Ganja, and 4.7 kilometres north west of Gedabek open-pit gold copper mine. * The exploration "centre" of the project is the outcrop, independently located on Google Earth at Latitude 40deg37'13.10"N and Longitude 45deg46'15.34"E. The known gold mineralisation has an estimated north-south strike length of 400 m and a total area of approximately 20 hectares or 0.2 km(2). The deposit was found based on gold-silver assays of surface outcrop rock chip samples over an area of 2.5 kilometres North-South by 2 kilometres East-West, with the Reza gold deposit located on the central part. * Secondary quartzites were formed under the influence of Atabek-Slavyanka plagiogranite intrusion with exposures observed to the north from the gold mineralisation area. The area in tectonic attitude is confined to Gyzyldjadag fault of Northeastern sub-latitudinal strike 080deg with a vertical dip. * Rocks in the alteration zone area crumpled, argillic altered, brecciated, with strongly limonite and haematite alteration, where crystalline haematite is observed. Intensive barite and barite-hematite vein and veinlets, also gossan zones are present in outcrop. The main mineralisation zones have been sampled in three trenches with a total length of 270metres(trenches #1, #2 and #3) and received positive results for gold and silver. About 550 samples from main outcrops #1 and #2 were taken. * The main mineralised zone comprises secondary quartzites with vein-veinlets barite-haematite mineralisation over which remain accumulations of hydrous ferric oxides cementing breccias of quartz and quartzites. Erosion surfaces exhibit "reddish mass" being anoxidation product of stock and stockwork haematite ores. * A Lithological-structural map of the Gedabek Ore District is presented via the pdf link at the end of the Press Release. * The Ugur gold deposit is considered as a high sulfidation gold deposit located in rocks ranging from Bajocian (Mid-Jurassic) to Tithonian (Up-Jurassic) in age. The gold mineralisation is hosted by an Upper Bajocian age sub-volcanic rocks, that comprise rhyo-dacitic breccias. These rocks have been intruded into a sub-volcanic sequence that was subsequently subjected to strong hydrothermal alteration. * The Ugur primary mineralisation is hosted in acidic volcanic rocks, that consists of haematite-barite-quartz-kaolin veins-veinlets and breccia, pyritic stock-stockwork and quartz-sulphide veins. The central surface expression of the mineralisation exhibit accumulations of hydrous ferric oxides cementing breccias of silica with vein-veinlets barite-haematite mineralisation. * The deposit was emplaced at the intersection of NW,
NE, N and E trending structural systems regionally controlled by a first order NW transcurrent fault structure. The fault dips between 70 to 80deg to the north-west. The faults of the central zone control the hydrothermal metasomatic alteration and gold mineralisation. --------------- --------------------------------------------------------------- ----------------------------------------------------------------------------------- Drill hole * A summary of all information material to the * A summary of the type and metres of drilling Information understanding of the exploration results including a completed is shown below: tabulation of the following information for all Material drill holes: Type Type Start Finish Number Length of drill-hole date date of drill o easting and northing of the drill holes hole collar ---------------- -------------- ----------- ----------- ------- o elevation or RL (Reduced Level (metres) - elevation above sea level in metres) ---------------- -------------- ----------- ----------- ------- --------- of the drill hole collar Reverse Reverse o dip and azimuth of the hole circulation circulation 23-Sep-16 14-Nov-16 56 1,842 o down hole length and interception ---------------- -------------- ----------- ----------- ------- --------- depth Core Diamond 04-Oct-16 25-Jun-17 50 6,355 o hole length. ---------------- -------------- ----------- ----------- ------- --------- * If the exclusion of this information is justified on Geotechnical Diamond 16-Apr-17 27-Apr-17 2 164 the basis that the information is not Material and ---------------- -------------- ----------- ----------- ------- --------- this exclusion does not detract from the Reverse Reverse understanding of the report, the Competent Person circulation circulation 19-Mar-17 09-Jul-17 33 2,766 should clearly explain why this is the case. ---------------- -------------- ----------- ----------- ------- --------- TOTAL DRILLING 141 11,127 ---------------------------------------------------------- ------- --------- * Coordinates and RL of the drill collars and depth to end of drill hole are presented below: Ø DD drillholes are diamond core drillholes Ø RC drillhole are reverse circulation drillholes hole_id x y z max_depth hole_type GTDD01 565173.423 4496827.437 1,907.03 76.5 DD GTDD02 565238.685 4496871.059 1,886.89 87.25 DD RGRC01 565226.845 4496897.396 1,885.51 84 RC RGRC02 565188.902 4496909.231 1,896.80 82 RC RGRC03 565199.867 4496885.521 1,895.03 120 RC RGRC04 565175.67 4496873.255 1,902.65 102 RC RGRC05 565212.099 4496857.204 1,895.82 111 RC RGRC06 565187.095 4496847.644 1,902.83 90 RC RGRC07 565201.521 4496946.672 1,888.80 113 RC RGRC08 565227.273 4496960.209 1,879.43 80 RC RGRC09 565240.567 4496934.862 1,874.38 81 RC RGRC10 565264.685 4496947.009 1,867.17 54 RC RGRC11 565278.053 4496920.284 1,866.33 68 RC RGRC12 565254.444 4496916.843 1,872.04 69 RC RGRC13 565264.942 4496883.101 1,878.37 85 RC RGRC14 565233.946 4496857.616 1,890.95 90 RC RGRC15 565250.738 4496845.542 1,890.14 90 RC RGRC16 565176.519 4496936.975 1,899.80 96 RC RGRC17 565218.676 4496980.836 1,883.64 75 RC RGRC18 565151.143 4496921.426 1,910.78 104 RC RGRC19 565161.878 4496899.425 1,907.12 87 RC RGRC20 565254.44 4496973.287 1,870.34 75 RC RGRC21 565208.569 4496903.57 1,890.33 91 RC RGRC22 565218.709 4496942.994 1,884.00 76 RC RGRC23 565195.134 4496866.565 1,898.72 79 RC RGRC24 565182.973 4496953.864 1,896.01 120 RC RGRC25 565196.049 4496992.538 1,887.24 78 RC RGRC26 565278.344 4496984.036 1,862.07 61 RC RGRC27 565239.013 4496998.68 1,878.43 80 RC RGRC28 565310.589 4496952.217 1,854.41 103 RC
RGRC29 565302.606 4496935.639 1,859.11 90 RC RGRC30 565297.765 4496915.477 1,863.32 48 RC RGRC31 565284.229 4496897.028 1,869.72 75 RC RGRC32 565282.66 4496876 1,875.81 80 RC RGRC33 565313.5 4497022.3 1,849.60 103 RC RGRC34 565165 4496956.9 1,900.40 120 RC RGRC35 565179.9 4497001.7 1,884.40 100 RC RGRC36 565140.1 4496950.3 1,899.00 100 RC RGRC37 565157.4 4496879.7 1,908.00 106 RC UGDD01 565277.6 4496960.5 1,863.00 285.5 DD UGDD02 565214.3 4496923.1 1,887.90 401.3 DD UGDD03 565293.8 4496996.2 1,857.20 138.5 DD UGDD04 565260.1 4496900.9 1,875.10 123.5 DD UGDD05 565241.1 4496828.3 1,895.20 139 DD UGDD06 565220.8 4496877.3 1,890.40 133.35 DD UGDD07 565228.2 4496919.9 1,883.00 130 DD UGDD08 565242.7 4496955.5 1,874.00 124 DD UGDD09 565196.9 4496931.4 1,891.90 126.2 DD UGDD10 565179.6 4496888.9 1,901.70 122.15 DD UGDD11 565729 4496925.5 1,820.70 151.5 DD UGDD12 565166.9 4496852.5 1,908.00 125 DD UGDD13 565611 4496922.5 1,827.40 151 DD UGDD14 565163.6 4496937 1,905.20 132 DD UGDD15 565771.7 4497040 1,803.80 250 DD UGDD16 565147.4 4496903.4 1,912.40 134 DD UGDD17 565130.3 4496869.2 1,919.70 110 DD UGDD18 565220.2 4497005.4 1,883.00 125.4 DD UGDD19 565253.1 4496998.2 1,873.30 117 DD UGDD20 565249.9 4496873.2 1,884.10 125 DD UGDD21 565207.6 4496970.2 1,885.90 104.5 DD UGDD22 565269.9 4497031 1,867.20 136 DD UGDD23 565299.8 4496844.4 1,880.50 117 DD UGDD24 565236.6 4497043.7 1,869.20 134 DD UGDD25 565305.5 4496888.3 1,870.80 120 DD UGDD26 565324.4 4496926.9 1,854.10 135 DD UGDD27 565284.6 4496933 1,863.70 124 DD UGDD28 565311 4496997.8 1,849.70 119.3 DD UGDD29 565313.6 4497059 1,846.70 130 DD UGDD30 565297.8 4496975.7 1,854.60 126 DD UGDD31 565210 4496841.9 1,898.40 109 DD UGDD32 565171.9 4496986.5 1,890.20 113 DD UGDD33 565335.4 4496965 1,842.90 122 DD UGDD34 565119.6 4496957.4 1,898.90 133 DD UGDD35 565109.4 4496919.1 1,916.20 130.5 DD UGDD36 565351.1 4497001.9 1,833.40 122.5 DD UGDD37 565115.5 4496831.8 1,930.20 103.5 DD UGDD38 565197.6 4497052.6 1,866.50 122 DD UGDD39 565094.7 4496884.3 1,925.80 126.5 DD UGDD40 565075.5 4496842.1 1,932.60 150 DD UGDD41 565087 4496754.7 1,913.90 121.5 DD UGDD42 565115.4 4496878.5 1,924.90 80 DD UGDD43 565130.9 4496909.9 1,916.40 61.75 DD UGDD44 565188.4 4496977.7 1,890.00 61.8 DD UGDD45 565194.1 4497020.6 1,878.80 71 DD UGDD46 565228.9 4497023.8 1,878.00 70 DD UGDD47 565262.6 4497016.5 1,870.40 71.5 DD UGDD48 565298.4 4497007.9 1,856.90 67 DD UGDD49 565167.4 4496915.1 1,905.60 61 DD UGDD50 565140.6 4496999.8 1,882.60 67 DD UGRC01 565169.7 4496819.6 1,908.80 33 RC UGRC02 565146.5 4496867.7 1,913.20 34 RC UGRC03 565305.8 4496888.9 1,871.10 34 RC UGRC04 565275.6 4496958.6 1,863.30 27 RC UGRC05 565309.2 4496928.2 1,858.00 13 RC UGRC06 565343 4496922.9 1,850.30 32 RC
UGRC07 565320.4 4496969.7 1,847.30 34 RC UGRC08 565347.6 4497022.1 1,833.50 31 RC UGRC09 565336.7 4497000.4 1,837.60 22 RC UGRC10 565266.6 4496930 1,867.20 34 RC UGRC11 565290.5 4496997.6 1,857.70 34 RC UGRC12 565267.4 4497018.4 1,869.10 34 RC UGRC13 565234.9 4496976.4 1,877.70 34 RC UGRC14 565212.8 4496921.8 1,888.00 34 RC UGRC15 565222.6 4497010.3 1,882.50 34 RC UGRC16 565184.4 4496970.7 1,892.90 34 RC UGRC17 565204.8 4496869.1 1,896.00 34 RC UGRC18 565244.7 4496887.2 1,882.10 34 RC UGRC19 565090.1 4496843.9 1,931.90 34 RC UGRC20 565163.8 4496916.4 1,905.70 30 RC UGRC21 565240.9 4497048 1,867.10 34 RC UGRC22 565284.2 4497058.9 1,854.60 34 RC UGRC23 565295.5 4496849 1,880.00 34 RC UGRC24 565106.9 4496906.4 1,921.20 34 RC UGRC25 565140.8 4496976.5 1,891.60 25 RC UGRC25A 565144.7 4496977.5 1,891.60 34 RC UGRC26 565173.9 4497025.1 1,875.20 31 RC UGRC27 565229.9 4496839.6 1,895.30 34 RC UGRC28 565355 4496609.9 1,921.10 34 RC UGRC29 565303.1 4496611.9 1,915.40 34 RC UGRC30 565318.5 4496657.4 1,915.50 34 RC UGRC31 565190.3 4496748.9 1,906.10 34 RC UGRC32 565209.5 4496795.3 1,904.00 34 RC UGRC33 565147.3 4496776.7 1,914.30 34 RC UGRC34 565126.2 4496745 1,909.80 34 RC UGRC35 565057 4496754 1,915.30 34 RC UGRC36 565104.5 4496793.5 1,923.80 34 RC UGRC37 565058.9 4496793.8 1,923.90 34 RC UGRC38 565027.4 4496748.3 1,918.40 34 RC UGRC39 564988.8 4496778.9 1,921.70 34 RC UGRC40 565022.2 4496827.5 1,922.50 34 RC UGRC41 565045.5 4496870.5 1,922.00 34 RC UGRC42 565057.2 4496912.7 1,913.60 34 RC UGRC43 564979 4496851.6 1,912.40 34 RC UGRC44 564948.3 4496808.5 1,919.60 34 RC UGRC45 564909.6 4496841.8 1,912.60 34 RC UGRC46 564883.7 4496797.6 1,925.90 34 RC UGRC47 564921.3 4496775.2 1,926.50 34 RC UGRC48 564852.4 4496758.8 1,929.80 34 RC UGRC49 564810.6 4496782.7 1,932.90 34 RC UGRC50 564840.8 4496824.2 1,921.10 34 RC UGRC51 564765.9 4496810.9 1,933.80 34 RC UGRC52 564743.3 4496771.6 1,942.90 34 RC UGRC53 565702.2 4497046.2 1,785.40 34 RC UGRC54 565794.7 4497051 1,803.50 34 RC UGRC55 565770.8 4497019.6 1,807.90 34 RC * Regarding dip and azimuth data of the core drill holes, all drill holes were vertical. The largest variation of all drill holes was 3.2 degrees off the vertical confirmed by downhole surveying. The full data set will be presented in the final JORC Mineral Resources and Ore Reserves report. * Intercept information has been previously provided in regulatory announcements (see section "substantive exploration data" below). * The diameter of the drill core for each drill hole is presented below: hole_id from to length diameter UGDD01 0.00 127.00 127.00 HQ UGDD01 127.00 285.50 158.50 NQ --------- ------- ------- ------- --------- UGDD02 0.00 72.50 72.50 PQ UGDD02 72.50 184.00 111.50 HQ
UGDD02 184.00 401.30 217.30 NQ --------- ------- ------- ------- --------- UGDD03 0.00 42.00 42.00 PQ UGDD03 42.00 138.50 96.50 HQ --------- ------- ------- ------- --------- UGDD04 0.00 40.00 40.00 PQ UGDD04 40.00 123.50 83.50 HQ --------- ------- ------- ------- --------- UGDD05 0.00 42.00 42.00 PQ UGDD05 42.00 139.00 97.00 HQ --------- ------- ------- ------- --------- UGDD06 0.00 43.00 43.00 PQ UGDD06 43.00 133.35 90.35 HQ --------- ------- ------- ------- --------- UGDD07 0.00 60.15 60.15 PQ UGDD07 60.15 130.00 69.85 HQ --------- ------- ------- ------- --------- UGDD08 0.00 70.00 70.00 PQ UGDD08 70.00 124.00 54.00 HQ --------- ------- ------- ------- --------- UGDD09 0.00 49.00 49.00 PQ UGDD09 49.00 126.20 77.20 HQ --------- ------- ------- ------- --------- UGDD10 0.00 63.00 63.00 PQ UGDD10 63.00 122.15 59.15 HQ --------- ------- ------- ------- --------- UGDD11 0.00 65.00 65.00 PQ UGDD11 65.00 151.50 86.50 HQ --------- ------- ------- ------- --------- UGDD12 0.00 57.70 57.70 PQ UGDD12 0.00 125.00 125.00 HQ --------- ------- ------- ------- --------- UGDD13 0.00 58.00 58.00 PQ UGDD13 58.00 151.00 93.00 HQ --------- ------- ------- ------- --------- UGDD14 0.00 40.00 40.00 PQ UGDD14 40.00 132.00 92.00 HQ --------- ------- ------- ------- --------- UGDD15 0.00 60.00 60.00 PQ UGDD15 60.00 250.00 190.00 HQ --------- ------- ------- ------- --------- UGDD16 0.00 48.00 48.00 PQ UGDD16 48.00 134.00 86.00 HQ --------- ------- ------- ------- --------- UGDD17 0.00 59.50 59.50 PQ UGDD17 59.50 110.00 50.50 HQ --------- ------- ------- ------- --------- UGDD18 0.00 35.50 35.50 PQ UGDD18 35.50 125.40 89.90 HQ --------- ------- ------- ------- --------- UGDD19 0.00 33.00 33.00 PQ UGDD19 33.00 117.00 84.00 HQ --------- ------- ------- ------- --------- UGDD20 0.00 41.50 41.50 PQ UGDD20 41.50 125.00 83.50 HQ --------- ------- ------- ------- --------- UGDD21 0.00 30.00 30.00 PQ UGDD21 30.00 104.50 74.50 HQ --------- ------- ------- ------- --------- UGDD22 0.00 37.00 37.00 PQ UGDD22 37.00 136.00 99.00 HQ --------- ------- ------- ------- --------- UGDD23 0.00 34.00 34.00 PQ UGDD23 34.00 117.00 83.00 HQ --------- ------- ------- ------- --------- UGDD24 0.00 37.00 37.00 PQ UGDD24 37.00 134.00 97.00 HQ --------- ------- ------- ------- --------- UGDD25 0.00 16.00 16.00 PQ UGDD25 16.00 120.00 104.00 HQ --------- ------- ------- ------- --------- UGDD26 0.00 22.00 22.00 PQ UGDD26 22.00 135.00 113.00 HQ --------- ------- ------- ------- --------- UGDD27 0.00 37.00 37.00 PQ UGDD27 37.00 124.00 87.00 HQ
--------- ------- ------- ------- --------- UGDD28 0.00 24.00 24.00 PQ UGDD28 24.00 119.30 95.30 HQ --------- ------- ------- ------- --------- UGDD29 0.00 11.00 11.00 PQ UGDD29 11.00 130.00 119.00 HQ --------- ------- ------- ------- --------- UGDD30 0.00 34.00 34.00 PQ UGDD30 34.00 126.00 92.00 HQ --------- ------- ------- ------- --------- UGDD31 0.00 14.00 14.00 PQ UGDD31 14.00 109.00 95.00 HQ --------- ------- ------- ------- --------- UGDD32 0.00 7.00 7.00 PQ UGDD32 7.00 113.00 106.00 HQ --------- ------- ------- ------- --------- UGDD33 0.00 20.50 20.50 PQ UGDD33 20.50 122.00 101.50 HQ --------- ------- ------- ------- --------- UGDD34 0.00 20.60 20.60 PQ UGDD34 20.60 122.00 101.40 HQ --------- ------- ------- ------- --------- UGDD35 0.00 26.50 26.50 PQ UGDD35 26.50 130.50 104.00 HQ --------- ------- ------- ------- --------- UGDD36 0.00 31.00 31.00 PQ UGDD36 31.00 122.50 91.50 HQ --------- ------- ------- ------- --------- UGDD37 0.00 27.00 27.00 PQ UGDD37 27.00 79.00 52.00 HQ UGDD37 79.00 103.50 24.50 NQ --------- ------- ------- ------- --------- UGDD38 0.00 9.00 9.00 PQ UGDD38 9.00 122.00 113.00 HQ --------- ------- ------- ------- --------- UGDD39 0.00 45.00 45.00 PQ UGDD39 45.00 126.50 81.50 HQ --------- ------- ------- ------- --------- UGDD40 0.00 22.00 22.00 PQ UGDD40 22.00 150.00 128.00 HQ --------- ------- ------- ------- --------- UGDD41 0.00 21.00 21.00 PQ UGDD41 21.00 121.50 100.50 HQ --------- ------- ------- ------- --------- UGDD42 0.00 21.00 21.00 PQ UGDD42 21.00 80.00 59.00 HQ --------- ------- ------- ------- --------- UGDD43 0.00 21.00 21.00 PQ UGDD43 21.00 61.75 40.75 HQ --------- ------- ------- ------- --------- UGDD44 0.00 21.00 21.00 PQ UGDD44 21.00 61.80 40.80 HQ --------- ------- ------- ------- --------- UGDD45 0.00 29.00 29.00 PQ UGDD45 29.00 71.00 42.00 HQ --------- ------- ------- ------- --------- UGDD46 0.00 22.00 22.00 PQ UGDD46 22.00 70.00 48.00 HQ --------- ------- ------- ------- --------- UGDD47 0.00 24.00 24.00 PQ UGDD47 24.00 71.50 47.50 HQ --------- ------- ------- ------- --------- UGDD48 0.00 18.00 18.00 PQ UGDD48 18.00 67.00 49.00 HQ --------- ------- ------- ------- --------- UGDD49 0.00 20.00 20.00 PQ UGDD49 20.00 61.00 41.00 HQ --------- ------- ------- ------- --------- UGDD50 0.00 7.00 7.00 PQ UGDD50 7.00 67.00 60.00 HQ --------- ------- ------- ------- --------- --------------------------------------------------------------- Data aggregation * In reporting Exploration Results, weighting averaging * Drilling results have been reported using methods techniques, maximum and/or minimum grade truncations intersection intervals based on a gold grade above (eg cutting of high grades) and cut-off grades are 0.3 gramme per tonne, and internal waste greater or usually Material and should be stated. equal to 1 metre thickness. Grade of both gold and
silver within the intersections have been state. The results are presented to 2 decimal places. * Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation * No data aggregation and no sample compositing was should be stated and some typical examples of such performed. aggregations should be shown in detail. * Drill sample intervals are based on a 1 metre sample * The assumptions used for any reporting of metal interval, unless stated in the table of drill equivalent values should be clearly stated. intersections as previously reported (see the section "other substantive exploration data" below). * No metal equivalent values have been reported. --------------- --------------------------------------------------------------- ----------------------------------------------------------------------------------- Relationship between * These relationships are particularly important in the * The relationship between mineralisation widths and mineralisation reporting of Exploration Results. intercept lengths in the case of the Reza deposit is widths less critical as the mineralisation dominantly forms and intercept a broad scale oxide zone. The mineralisation does lengths * If the geometry of the mineralisation with respect to show trends of grade distribution as determined in the drill hole angle is known, its nature should be the block modelling process. reported. * All intercepts are reported as down-hole lengths. All * If it is not known and only the down hole lengths are drilling for the resource and reserve estimate were reported, there should be a clear statement to this vertical (see section "Diagrams"). effect (eg 'down hole length, true width not known'). --------------------------------------------------------------- Diagrams Schematic plan of trench, core and * Appropriate maps and sections (with scales) and RC drill holes tabulations of intercepts should be included for any showing section lines for interpretationare significant discovery being reported. These should shown via the pdf link at the end include, but not be limited to a plan view of drill of the Press Release. hole collar locations and appropriate sectional views. --------------- --------------------------------------------------------------- ----------------------------------------------------------------------------------- Balanced reporting * Where comprehensive reporting of all Exploration * All sampled intervals have been previously reported Results is not practicable, representative reporting by Anglo Asian Mining via regulated news service of both low and high grades and/or widths should be (RNS) announcements of the London Stock Exchange practiced to avoid misleading reporting of (AIM). These data are available on the Anglo Asian Exploration Results. Mining website. --------------- --------------------------------------------------------------- Other substantive * Other exploration data, if meaningful and material, * Previous Anglo Asian Mining announcements on the AIM exploration should be reported including (but not limited to): that report on exploration data of the Ugur deposit data geological observations; geophysical survey results; include: geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock Ø 17 October 2016; New Gold characteristics; potential deleterious or Discovery at its Gedabek Licence contaminating substances. Area Ø 16 December 2016; Significant oxide zone drilled at newly discovered Ugur deposit Ø 18 April 2017; Strategy update and Q1 2017 review - Gedabek gold, copper and silver mine, Azerbaijan Ø 8 May 2017; Ugur Gold Deposit Development & 2017 Strategy Update Ø 24 July 2017; Ugur Gold Deposit Development and Gedabek Exploration Update * Additional information including photographs of the Ugur area can be viewed on the Anglo Asian Mining website, http://www.angloasianmining.com --------------- --------------------------------------------------------------- ----------------------------------------------------------------------------------- Further work * The nature and scale of planned further work (eg * No further exploration drilling is planned at the tests for lateral extensions or depth extensions or Reza deposit of Ugur. Exploration will continue in large-scale step-out drilling). the Ugur area to test for extensions of the mineralised zones and for other "centres" of mineralisation. Details of this work has not been * Diagrams clearly highlighting the areas of possible planned yet. The intent is to initially produce JORC extensions, including the main geological Mineral Resources and Ore Reserves (see Section 3 and interpretations and future drilling areas, provided Section 4 of this document) and to bring the deposit this information is not commercially sensitive. into production. * No diagrams to show possible extensions are presented in this document as the work is yet to commence. =============== =============================================================== ===================================================================================
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria JORC Code explanation Commentary --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Database integrity * Measures taken to ensure that data has not been * The Ugur database is stored in Excel (R) software. A corrupted by, for example, transcription or keying dedicated database manager has been assigned and errors, between its initial collection and its use checks the data entry against the laboratory report for Mineral Resource estimation purposes. and survey data. * Data validation procedures used. * Geological data is entered by a geologist to ensure no confusion over terminology, while laboratory assay data is entered by the data entry staff. * A variety of checks are in place to check against human error of data entry. * All original geological logs, survey data and laboratory results sheets are retained in a secure location. * Independent consultants "Datamine" who carried out the resource estimation also carried out periodic database validation during the period of geological data collection, as well as on completion of the database. * The validation procedures used include random checking of data as compared the original data sheet, validation of position of drillholes in 3D models, and targeting figures deemed "anomalous" following statistical analysis. Hence there are several level of control. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Site visits * Comment on any site visits undertaken by the * The CP is an employee of the company and as such has Competent Person and the outcome of those visits. been actively in a position to be fully aware of all stages of the exploration and project development. The CP has worked very closely with the independent * If no site visits have been undertaken indicate why resource and reserve estimation staff of Datamine, this is the case. both on site and remotely, to ensure knowledge transfer of the geological situation, to allow geological "credibility" to the modelling process. Extensive visits have been carried out by two staff of Datamine over the last year and have been fully aware of the Ugur project development. All aspects of the data collection and data management has been observed. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Geological interpretation * Confidence in (or conversely, the uncertainty of ) * The geological interpretation is considered robust. the geological interpretation of the mineral deposit. Geological data collection includes surface mapping, stream sediment and outcrop sampling, RC and core drilling. This has amassed a significant amount of * Nature of the data used and of any assumptions made. information for the deposit. Various software have been used to model the deposit, including Leapfrog (R), Surpac(R) and Datamine (R), using dynamic * The effect, if any, of alternative interpretations on anisotropy to develop the mineralised shells which Mineral Resource estimation. were subsequently verified. * The use of geology in guiding and controlling Mineral * The geological team have worked in the licence area Resource estimation. for many years and the understanding and confidence of the geological interpretation is considered high. * The factors affecting continuity both of grade and geology. * No alternative interpretations of the geology have had any effect on the resource model. * The geology has guided the resource estimation, especially the structural control, where for example faulting has defined "hard" boundaries to mineralisation. The deposit structural orientation was used to control the orientation of the drilling grid and the resource estimation search ellipse orientation. * Grade and geological continuity has been established by the extensive 3D data collection. The deposit is relatively small (300 metres by 200 metres), and the continuity is well understood, especially in relation to structural effects. * A geological interpretation of main mineralised bodywas completed utilising geological sections typically at spacings of about 20m. These interpretations were used to form a wireframe (solid) in Datamine, that was subsequently used as the main domain/mineralised zones for resource estimation. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Dimensions * The extent and variability of the Mineral Resource * The footprint of the whole mineralisation is about
expressed as length (along strike or otherwise), plan 300metres by 200 metres, with about 110 metres width, and depth below surface to the upper and lower overall thickness. The main mineralised domain is 230 limits of the Mineral Resource. metres by 170 metres in plan and about 100metres thickness. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Estimation and modelling * The nature and appropriateness of the estimation * A geological interpretation of main mineralised body techniques technique(s) applied and key assumptions, including was completed utilising geological sections typically treatment of extreme grade values, domaining, at spacings of about 20m. These interpretations were interpolation parameters and maximum distance of used to form a wireframe (solid) in Datamine, that extrapolation from data points. If a computer was subsequently used as the main domain/mineralised assisted estimation method was chosen include a zone for resource estimation. Estimation process description of computer software and parameters used. includes: * The availability of check estimates, previous * Drill holes data were flagged as inside and outside estimates and/or mine production records and whether of main zones of mineralisation. Outlier study of the Mineral Resource estimate takes appropriate gold and silver showed a few samples out of range. A account of such data. top-cut grade of 16 g/t for gold and 108 g/t for silver was applied for data inside the main mineralised zone. * The assumptions made regarding recovery of by-products. * Drill holes data composited by 2m along the holes. * Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for * Variogram analyses of gold data has been carried out acid mine drainage characterisation). using Datamine software. The ranges of variograms at major and semi-major direction are 30 metres and 23 metres. Minor directions show poor continuity and it * In the case of block model interpolation, the block considered as 10m. The major Azimuth is 040 degrees size in relation to the average sample spacing and with 20 degree dip. the search employed. * Three estimation passes were used; the first search * Any assumptions behind modelling of selective mining was based upon the variogram ranges in the three units. principal directions(30x25x10). The second search was 1.5 times and third search was 2 times of first search. Min and Max of samples were 4 and 14 for * Any assumptions about correlation between variables. first and second search and 1 and 14 for third search. * Description of how the geological interpretation was used to control the resource estimates. * Estimation was carried out using ordinary kriging at the parent block. * Discussion of basis for using or not using grade cutting or capping. * More than 90% of blocks inside the main domain/mineral zoneare estimated in first search as they fall in the dense drilling area, being the main * The process of validation, the checking process used, zone of mineralisation. the comparison of model data to drill hole data, and use of reconciliation data if available. * The estimated gold block model grades were visually validated against the input drillhole data. Comparisons were carried out against the drillhole data by bench. * The resource estimation was carried out using Datamine Studio RM software. * No previous mining has occurred to allow for check estimates. This will be a requirement on production startup. * The deposit contains gold and silver mineralisation, with minor copper, and other base metal were tested, and full multi-element analysis was carried out at external laboratories. Results showed no other by-products. * Deleterious non-grade elements were checked and the situation of ARD studies. However, given the extraction dominantly of oxide ores (87% oxide, 3% sulphide, 0.1% transition, 9.9% unclassified within the samples zone) and the processing at a current facility, there are no immediate concerns. Should future mining of the sulphide zone occur or sulphide be released, independent on-site environmental engineers will monitor and recommend mitigation of ARD situations. * A block model was created with parent size of 5x5x5 metres. Sub-blocking is not allowed in X and Y but in Z direction minimum to 1/2 of block height. This is considered optimum with regards the data spacing and for the planned extraction design, with 5 metre open pit benches in "ore". --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Moisture * Whether the tonnages are estimated on a dry basis or * Tonnage has been estimated on a dry basis with natural moisture, and the method of
determination of the moisture content. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Cut-off parameters * The basis of the adopted cut-off grade(s) or quality * Continuity of grade was assessed at a range of parameters applied. cut-offs between 0.1 g/t gold and 1.0 g/t gold in 0.1 g/t increments. A tonnage-Grade table and graph was prepared based on different cut-off. Following interrogation of data and continuity, the resources area reported above 0.2 g/t gold grade cut-off. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Mining factors * Assumptions made regarding possible mining methods, * Given the geometry of the mineralised zone, the fact or assumptions minimum mining dimensions and internal (or, if the central part is exposed at surface, and a very applicable, external) mining dilution. It is always low forecast waste ratio, an open pit mining method necessary as part of the process of determining is selected. Mining dilution and mining dimensions reasonable prospects for eventual economic extraction are referenced in Section 4 (Estimation and Reporting to consider potential mining methods, but the of Ore reserves). assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this * Other mining factor are not applied at this stage. should be reported with an explanation of the basis of the mining assumptions made. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Metallurgical factors * The basis for assumptions or predictions regarding * The Company currently operates an agitated leach or assumptions metallurgical amenability. It is always necessary as plant, a flotation plant, a crushed heap leach part of the process of determining reasonable facility, and a run-of-mine dump leach facility. As prospects for eventual economic extraction to such, the basis for assumptions and predictions of consider potential metallurgical methods, but the processing routes and type of "ores" suitable for assumptions regarding metallurgical treatment each process available are well understood. processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation * Metallurgical testwork has been carried out to assess of the basis of the metallurgical assumptions made. the amenability of the Ugur mineralisation to cyanidation and leaching processes. The results showed a high level of amenability. The mineralisation is an "oxide" type, that is relatively soft, and requires comparatively low levels of processing reagents for recovery. * Metallurgical testwork was carried out on samples with a mean of a range of gold grades; 3.6g/t, 2.5g/t, 1.5g/t and 1.0g/t. The results for a 48 hour bottle roll test showed high gold recovery and low cyanide usage (see below). Leaching, % -------------- Au Ag ------ ------ 88.5 82.8 ------ ------ 85.7 62.0 ------ ------ 95.0 60.5 ------ ------ 83.8 73.2 ------ ------ * No metallurgical factors assumptions have been used in mineral resource estimate. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Environmen-tal factors * Assumptions made regarding possible waste and process * The Ugur deposit is located within a mining contract or assumptions residue disposal options. It is always necessary as area in which the company operates two other mines. part of the process of determining reasonable As part of the initial start-up, environmental prospects for eventual economic extraction to studies and impacts were assessed and reported. This consider the potential environmental impacts of the includes the nature of process waste as managed in mining and processing operation. While at this stage the tailings management facility (TMF). Other waste the determination of potential environmental impacts, products are fully managed under the HSEC team of the particularly for a greenfields project, may not company (including disposal of mine equipment waste always be well advanced, the status of early such as lubricants and oils). consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an * An independent environmental engineering company CQA explanation of the environmental assumptions made. International Ltd (CQA) has carried out a study of Ugur including installing baseline monitoring systems, and will be integral to the extraction and processing of the ores. * No environmental assumptions have been used in mineral resource estimation. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Bulk density * Whether assumed or determined. If assumed, the basis * Bulk density measurements have been determined. A for the assumptions. If determined, the method used, total of 538 samples were tested from selected core whether wet or dry, the frequency of the measurements samples, that comprised both mineralisation and wall , rocks. The density was tested by rock type, extent of the nature, size and representativeness of the alteration and depth.The method used was hydrostatic samples. weighing.
* The bulk density for bulk material must have been * Of the 538 samples, 426 density measurement samples measured by methods that adequately account for void are insidemineralisation wireframes. The average spaces (vugs, porosity, etc), moisture and density of these samples is 2.62 t/m(3) and has been differences between rock and alteration zones within used for resource calculation. the deposit. * Density data are considered appropriate for Mineral * Discuss assumptions for bulk density estimates used Resource and Mineral Reserve estimation. in the evaluation process of the different materials. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Classification * The basis for the classification of the Mineral * The Mineral Resource has been classified on the basis Resources into varying confidence categories. of confidence in the continuity of mineralised zones, as assessed by the geological block model based on sample density, drilling density, and confidence in * Whether appropriate account has been taken of all the geological database. Depending on the estimation relevant factors (ie relative confidence in parameters (number of samples per search volume), the tonnage/grade estimations, reliability of input data, resources were classified as Measured, Indicated or confidence in continuity of geology and metal values, Inferred Mineral resources, as defined by the quality, quantity and distribution of the data). parameters below:. * Whether the result appropriately reflects the Ø Blocks inside the mineralised Competent Person's view of the deposit. zonethat capture samples with at least 2 drill holesin first search volume were considered as Measured Resources. Ø Blocks inside the mineralised zonethat capture samples from at least 2 holes data in second search volume are considered as Indicated Resources. Ø Blocks inside the mineralised zone which fall within with in third search volume are considered as Inferred Resources. Ø All blocks outside of main central mineralised zone are considered as Inferred. * The results reflect the Competent Person's view of the deposit. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Audits or reviews * The results of any audits or reviews of Mineral * Datamine company developed and audited the Mineral Resource estimates. Resource block model. Two Datamine engineers worked on the resources and reserves and were able to verify work and procedure. * Datamine have been involved with other mining projects of the company within the same licence area as Ugur and as such are familiar with the processing methods available, value chain of the mining and cost structure. The data has been audited and considered robust for Mineral Resource estimates. * Internal company and external reviews of the Mineral Resources yield estimates that are consistent with the Mineral Resource results. The methods used include sectional estimation, and three-dimensional modelling utilising both geostatistical and inverse distance methodologies. All results showed good correlation. * A final report is expected to suggest recommendations includingupgrading laboratory and management systems, and the future implementation of a laboratory information management system. The grade control data produced during mining should be correlated back into the resource model to check for consistency or variation. --------------- ------------------------------------------------------------ ----------------------------------------------------------------- Discussion of relative * Where appropriate a statement of the relative * Statistical and visual checking of the block model is accuracy/ accuracy and confidence level in the Mineral Resource as expected given the geological data. The confidence estimate using an approach or procedure deemed mineralisation is tightly constrained geologically, appropriate by the Competent Person. For example, the and the level of data acquired and the resource application of statistical or geostatistical estimation approach is to international best procedures to quantify the relative accuracy of the practice. The application of both statistical and resource within stated confidence limits, or, if such geostatistical approaches results in high confidence an approach is not deemed appropriate, a qualitative of the resource resulting in the appropriate relative discussion of the factors that could affect the amounts of Measured, Indicated and Inferred Mineral relative accuracy and confidence of the estimate. resources. The periphery of the deposit where sample density was not as high as over main mineralised zone, yielded much of the Inferred category resource. * The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to * The drilling grid and sample interval is sufficient
technical and economic evaluation. Documentation to assign Measured and Indicated Mineral Resources. should include assumptions made and the procedures used. * The Mineral Resource statement relates to a global estimate for the Ugur deposit. * These statements of relative accuracy and confidence of the estimate should be compared with production data, where available. * The Ugur deposit has not been previously mined, so no production data is available for comparison. It is recommended that on commencement of extraction of mineralisation, grade control and mining data are used to compare with the Resource model. --------------- ------------------------------------------------------------ -----------------------------------------------------------------
Section 4 Estimation and Reporting of Ore Reserves
(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)
Criteria JORC Code explanation Commentary --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Mineral Resource * Description of the Mineral Resource estimate used as * Refer to Section 3 (Estimation and Reporting of estimate a basis for the conversion to an Ore Reserve. Mineral Resources) for conversion to Ore Reserves * Clear statement as to whether the Mineral Resources * A JORC resource estimate comprising Measured, are reported additional to, or inclusive of, the Ore Indicated and Inferred Resources has been made for Reserves. the Ugur Deposit (as tabulated below): Mineral Resources Tonnage Gold Silver (Mt) Grade Grade (g/t) (g/t) Measured 4.12 1.2 6.3 Indicated 0.34 0.8 3.9 Measured+Indicated 4.46 1.2 6.2 Inferred 2.50 0.3 2.1 Total 6.96 0.9 4.7 * The contained metal in ounces of gold and silver is presented below: Mineral Resources Silver Gold ('000 ('000 ounces) ounces) Measured 164 841 Indicated 8 44 Measured+Indicated 172 884 Inferred 27 165 Total 199 1,049 * The relative % of contained metal shows a very high % of Measured Resource and Indicated Resource that can be tested for Reserve estimation. Mineral Resources % gold % silver ounces ounces Measured 82% 80% Indicated 4% 4% Measured+Indicated 87% 84% Inferred 13% 16% Total 100% 100% * The Ore Reserve statement is inclusive (not additional to) of the Resource statement. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Site visits * Comment on any site visits undertaken by the * The Competent Person is an employee of the company Competent Person and the outcome of those visits. and as such has been actively in a position to be fully aware of all stages of the exploration and project development including the estimation of * If no site visits have been undertaken indicate why Mineral resources and Ore Reserves. The Competent this is the case. Person has worked very closely with the independent resource and reserve estimation staff of Datamine company, both on site and remotely, to ensure knowledge transfer of the geological situation, to allow geological "credibility" to the modelling process. Extensive visits have been carried out by two staff of Datamine (one of whom estimated the resources and one estimate the reserves) over the last year and have been fully aware of the Ugur project development. All aspects of the data collection and data management has been observed. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Study status * The type and level of study undertaken to enable * Study undertaken to enable Mineral Resources to be Mineral Resources to be converted to OreReserves. converted to Ore Reserves are considered as being Feasibility level. The ore will be mined utlising the current mining fleet and will be processed in the * The Code requires that a study to at least current processing facilities of the Company which Pre-Feasibility Study level has been undertaken to operates two other mines in the same licence/contract convert Mineral Resources to Ore Reserves. Such area. The Ugur deposit is considered to part of the studies will have been carried out and will have same geological terrain. determined a mine plan that is technically achievable and economically viable, and that material Modifying
Factors have been considered. * A technically achievable mine plan that is economically viable has been designed taking into consideration the JORC resources and modifying factors. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Cut-off parameters * The basis of the cut-off grade(s) or quality * Financial factors included in the cut-off grade parameters applied. estimates are process and overhead costs, mining dilution, payable gold and silver price, and processing recovery and used in the basis for cut-off grade calculation. * The ore from Ugur can be processed by three different available processing methods within the Gedabek contract area, namely agitation leach (AGL), heap leach of crushed material (HLC) and heap leach of blasted material or run-of-mine (ROM). * The acceptable gold headgrade in grammes per tonne gold for AGL, HLC and ROM is 1.8g/t ,0.8g/t and 0.47g/t respectively. * Further to the gold cut-off grade calculations, after long term scheduling the mill cut-off grade resulted in 0.3g/t gold. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Mining factors * The method and assumptions used as reported in the * On establishing the modifying factors, the Mineral or assumptions Pre-Feasibility or Feasibility Study to convert the Reserve has been optimized using the Datamine NPV (R) Mineral Resource to an Ore Reserve (i.e. either by software. This resulted in the economic open pit application of appropriate factors by optimisation or shell and contained mineable material in that pit by preliminary or detailed design). shell. Subsequently, this was further optimized in the mine design process, where bench toe and crest, catch benches and haul road layout was designed. The * The choice, nature and appropriateness of the final mineable material comprised the Ore Reserves. selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc. * The mining method selected is by open pit method given the orebody geometry and the position relative to topographic surface. The central part of the * The assumptions made regarding geotechnical orebody is exposed at surface, and over the remaining parameters (eg pit slopes, stope sizes, etc), grade 70% surface area of the orebody there is a top soil control and pre-production drilling. cover varying in thickness between zero and 50 centimetres. Access to the orebody is from surface.The open pit mining method is considered * The major assumptions made and Mineral Resource model appropriate, and will comprise conventional truck and used for pit and stope optimisation (if appropriate). shovel. * The mining dilution factors used. * Pit slope angles have been determined based on independent geotechnical investigation taking into account geological structure, rock type and design * The mining recovery factors used. orientation parameters. The overall pit slope angle is 38 degrees containing an average bench angle of 58 degree. * Any minimum mining widths used. * Based on the geotechnical findings further to the * The manner in which Inferred Mineral Resources are independent report by CQA, the overall pit slope utilised in mining studies and the sensitivity of the angle is maximum 38degrees, berm width 6 metres and outcome to their inclusion. after each 5 benches (50 metre height), a catch bench of 10 metre width should be considered for the open pit design. * The infrastructure requirements of the selected mining methods. * Mining dilution used in the Datamine NPV Scheduler software for reserve estimation is 5%. * Ore mining recovery factor used in the Datamine NPV Scheduler software for reserve estimation is 95%. * A minimum mining width of 20m has been used. * The total tonnage of inferred material in the final pit design was 87,100 tonnes which represents about 2.37% of total ore tonnage in the pit and contains 0.76% (1,134 ounces) of contained gold in the pit. * The inferred material was excluded from economic model in NPV Scheduler so it had no impact on the total reserve. * Infrastructure required for the open pit mining method include haul road access (completed to the mine area), offices for geology/mining department, mining workshop, fuel storage, weighbridge and medical/HSEC facilities. Explosives will be transported from another mine operating within the contract area. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Metallurgical factors * The metallurgical process proposed and the * The proposed metallurgical processes are well tested
or assumptions appropriateness of that process to the style of being processing facilities of current mining mineralisation. operations in the contract area. The processing facilities include agitation leach by conventional methods, crushed heap leach, and run-of-mine dump * Whether the metallurgical process is well-tested leach. AGL process comprises comminution (crushing technology or novel in nature. and grinding), Knelsen concentration, thickening, agitation leaching, resin-in-pulp extraction, and elution and electrowinning to produce gold dore. The * The nature, amount and representativeness of final product will be shipped off site for refining. metallurgical test work undertaken, the nature of the Tails from the process will be transferred via metallurgical domaining applied and the corresponding gravity pipeline to the existing tailings management metallurgical recovery factors applied. facility (TMF) that has enough capacity to manage the ore from the Ugur deposit. * Any assumptions or allowances made for deleterious elements. * The processing algorithm is shown via the pdf link at the end of the Press Release. * The existence of any bulk sample or pilot scale test work and the degree to which such samples are * Metallurgical testwork has been conducted in the form considered representative of the orebody as a whole. of bottle roll testing and column leach tests. The amount of testwork is considered representative of the processing technology to be employed. * For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications? * Deleterious elements were not detected in analytical tests and assaying utilised for the resource estimate. * No pilot scale testwork has been conducted. However, given the nature of the ore type and its close relationship with existing ore bodies being processed, the metallurgical testwork carried out is considered representative of the orebody as a whole. * The ore reserve estimation has been based on the appropriate mineralogy to meet the specification. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Environmen-tal * The status of studies of potential environmental * Previous ESIA (Environmental Social Impact impacts of the mining and processing operation. Assessment) has been carried out by Amec Foster Details of waste rock characterisation and the Wheeler(2012) and TexEkoMarkazMMC (2012) (submitted consideration of potential sites, status of design to Government authorities). The Ugur deposit is options considered and, where applicable, the status located within the Gedabek Contract Area for which of approvals for process residue storage and waste the ESIA is valid, hence the most recent ESIA is dumps should be reported. applicable to Ugur. Processing and tailings storage reported in the ESIA is the same as will be utilised for Ugur ores. * Environmental and geotechnical consultants, CQA International Ltd of the UK (CQA), have on-site representation, and carried out both geotechnical and environmental assessments of the Ugur mine area. Baseline environmental monitoring has been carried out on receptors downstream of the mine site, due to an additional catchment being located in the vicinity of the Ugur mine. * The waste rock has a low potential for acid rock drainage due to the absence of sulphide bearing mineralisation. Watercourses downstream of stockpiles will be monitored on a routine basis for pH and heavy metals. * A topsoil management plan is in place, that has been reviewed by a CQA consultant deemed in accordance with the storage principles of the Ministry of Ecology and Natural Resources of the Republic of Azerbaijan and European Union (EU) guidelines. Topsoil removal will take place in August 2017, and be stockpiled in a dedicated locationwith specific design parameters. Stockpiling of materials will be carried out following the soil management plan. * A stockpile area for waste rock has been identified following condemnation drilling verifying the absence of mineralisation beneath the proposed stockpile. The top soil at the planned site will be removed, and the hill terraced to "key" in the waste dump for maximum stability. * The tailings management facility (TMF) has the capability for the additional storage requirements for Ugur process waste. The design and operations of the TMF have been reviewed by CQA along with a visit by the Ministry of Ecology and Natural Resources of
the Republic of Azerbaijan. Regular environmental monitoring is carried out at the TMF, along with monitoring all receptors associated with the TMF. * All approvals for conducting the mining fall under the management "PSA" agreement. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Infrastructure * The existence of appropriate infrastructure: * Infrastructure is considered excellent to the availability of land for plant development, power, deposit. The deposit is located within the Company's water, transportation (particularly for bulk contract/licence area with extraction rights commodities), labour, accommodation; or the ease with according to the Government contract. Ore can be which the infrastructure can be provided, or processed at the Company's current facilities, with accessed. ore being delivered by truck from the mine to processing via the newly constructed haul road over a distance of about 6 kilometres. Land availability for the mine and associated infrastructure is approved. Offices and mechanical workshop buildings are available within the company and will be relocated to Ugur. Power for the offices and weighbridge will be initially via diesel generators, although solar power is also under consideration. Labour is readily available as the operation is relatively small and only additional mine site labour will be required. G&A and process labour are part of the existing company compliment of staff. Regarding accommodation, canteen facilities and associated services, the Ugur deposit can be considered a "satellite" deposit to the current mining operations and will be serviced by the current infrastructure. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Costs * The derivation of, or assumptions made, regarding * Project capital costs are "minimal" given that no projected capital costs in the study. processing facilities or manpower camps are required. The costs in relations to the facilities already referenced above are based on actual quotations and * The methodology used to estimate operating costs. capital construction experience at the licence area and sustaining capital projects are based on operational experience locally. * Allowances made for the content of deleterious elements. * Operating costs are estimated based on current mining and processing operations within the licence area, as * The derivation of assumptions made of metal or the processing will be carried out at the same plants, commodity price(s), for the principal minerals and and the mining contract and haulage costs are the co- products. same as current contracts. * The source of exchange rates used in the study. * No allowances have been made for deleterious elements. * Derivation of transportation charges. * Commodity pricing is based on forecasts by reputable market analysts. * The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc. * Local Azeri exchange rates are pegged to the United States $. The source of exchange rates used in the study is the Central Bank of the Republic of * The allowances made for royalties payable, both Azerbaijan. Government and private. * Transportation charges are based on current contracts that will be extended to include haulage of ore from Ugur deposit to the processing facilities. All other transport costs will be per the current contracts for the operating mines. * Treatment and refining costs are based on current contracts, as the ore will be treated in the operating processing plants and refined under the current agreement. * Royalties have been considered as part of the cost structure for the company to operate under the Government Contract. * The estimated operating costs per tonne used in NPV Scheduler are: Parameters used in NPV Scheduler Processing cost (includes G&A) per tonne of ore AGL $ 29.22 HL Crushed $ 6.37 HL_ROM $ 5.22 Other costs Total G&A $ 3.22 Mining cost $ 1.75 Haulage cost (per Manat
tonne km) 0.1 --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Revenue factors * The derivation of, or assumptions made regarding * Revenue is based on the US$ gold price and US$ silver revenue factors including head grade, metal or price. commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc. * The price of gold in the reserve model is $1250 per troy ounce and the price of silver in the reserve model is $18.66 per troy ounce. * The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Market assessment * The demand, supply and stock situation for the * The market for gold and silver is well established. particular commodity, consumption trends and factors The metal price is fixed externally to the Company, likely to affect supply and demand into the future. however, the Company has reviewed a number of metal forecast documents from reputable analysts and is comfortable with the market supply and demand * A customer and competitor analysis along with the situation. identification of likely market windows for the product. * A specific study of customer and competitor analysis has not been completed as part of this project. * Price and volume forecasts and the basis for these forecasts. * Price and volume forecasts have been studied in reports from reputable analysts, based on metal * For industrial minerals the customer specification, supply and demand, US$ forecasts and global testing and acceptance requirements prior to a supply economics. contract. * Industrial minerals do not form part of this study. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Economic * The inputs to the economic analysis to produce the * Prices for gold and silver used in NPV Scheduler are: net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc. Gold: $41.19 per gramme Silver: $6.00 per gramme * Processing Recovery (for gold / silver) % * NPV ranges and sensitivity to variations in the significant assumptions and inputs. Agitation Leach 90% / 66% Crushed Heap Leach 70% / 7% Run-of-mine (ROM) 40% / 7% * Costs used in NPV are show below: Parameters used in NPV Scheduler Processing cost (includes G&A) per tonne of ore AGL $ 29.22 HL Crushed $ 6.37 HL_ROM $ 5.22 Other costs Total G&A $ 3.22 Mining cost $ 1.75 Haulage cost (per Manat tonne km) 0.1 Selling Cost %0.05 of revenue of Gold Selling Cost %0 of revenue of Silver * Sensitivity analysis has been used at a range of gold prices. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Social * The status of agreements with key stakeholders and * To the best of the Competent Person's knowledge, matters leading to social licence to operate. agreements with key stakeholders and matters leading to social licence to operate are valid and in place. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Other * To the extent relevant, the impact of the following * There are no material naturally occurring risk on the project and/or on the estimation and associated with theOre Reserves. classification of the Ore Reserves: * Anglo Asian Mining plc is currently compliant with * Any identified material naturally occurring risks. all legal and regulatory agreements, and marketing arrangements. * The status of material legal agreements and marketing arrangements. * The project is located within a current contract area that is managed under a "PSA" production sharing agreement. * The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory * The PSA grants the Company a number of periods to approvals. There must be reasonable grounds to expect exploit defined licence areas, known as Contract that all necessary Government approvals will be Areas, agreed on the initial signing with the received within the timeframes anticipated in the Azerbaijan Ministry of Ecology and Natural Resources Pre-Feasibility or Feasibility study. Highlight and ('MENR'). The exploration period allowed for the discuss the materiality of any unresolved matter that early exploration of the Contract Areas to assess is dependent on a third party on which extraction of prospectivity can be extended. the reserve is contingent. * A 'development and production period' commences on the date that the Company issues a notice of
discovery, which runs for 15 years with two extensions of five years each at the option of the Company. Full management control of mining in the Contract Areas rests with Anglo Asian. * Under the PSA, Anglo Asian is not subject to currency exchange restrictions and all imports and exports are free of tax or other restriction. In addition, MENR is to use its best endeavours to make available all necessary land, its own facilities and equipment and to assist with infrastructure. * The PSA is valid for the forecast life of mine. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Classification * The basis for the classification of the Ore Reserves * Measured Mineral Resources have been converted to into varying confidence categories. Proved Reserves after applying the modifying factors. * Whether the result appropriately reflects the * Indicated Mineral Resources have been converted to Competent Person's view of the deposit. Probable Ore Reserves after applying modifying factor. * The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if * The resultant Ore Reserves are appropriate given the any). level of understanding of the deposit geology and reflects the Competent Person's view of the deposit. * The inferred material was excluded from economic model in NPV Scheduler so it had no impact on the total reserve, and no Probable Ore Reserves have been derived from Measured Mineral Resources. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Audits or reviews * The results of any audits or reviews of Ore Reserve * Datamine company developed and audited the Mineral estimates. Resource and Mineral Reserve block models. Two Datamine engineers worked on the resources and reserves and were able to verify work and procedure. * Datamine have been involved with other mining projects of the company within the same licence area as Ugur and as such are familiar with the processing methods available, value chain of the mining and cost structure. The data has been audited and considered robust for Ore Reserve estimates. * Internal company and external reviews of the Ore Reserves yield estimates that are consistent with the Ore Reserve results. The in-situ Ore Reserves classified by process type is presented below: Ore Reserves Tonnage Gold Silver Gold Silver (Process (Mt) Grade Grade ('000 ('000 & Class) (g/t) (g/t) ounces) ounces) Proved-AGL 1,604,200 1.94 10.26 99.99 529.06 Proved-HLC 1,261,813 0.84 4.95 34.22 200.74 Proved-ROM 504,400 0.48 3.05 7.85 49.45 Total Proven 3,370,413 1.31 7.19 142.06 779.25 Probable-AGL 23,238 1.42 5.12 1.06 3.83 Probable-HLC 120,413 0.80 4.56 3.12 17.65 Probable-ROM 71,988 0.47 3.10 1.09 7.16 Total Probable 215,639 0.76 4.13 5.27 28.64 Proved+Probable 3,586,052 1.28 7.01 147.33 87.89 * The reference point for the Ore Reserve is where the ore is delivered to the processing plant. * The amount of waste material calculated inside the pit shell is about 3.05 million tonnes, resulting in a strip ratio (ore:waste) of 1:0.83. --------------- ------------------------------------------------------------ -------------------------------------------------------------------------- Discussion of relative * Where appropriate a statement of the relative * The Ore Reserve has been completed feasibility accuracy/ accuracy and confidence level in the Ore Reserve standard with the data being generated from a tightly confidence estimate using an approach or procedure deemed spaced drilling grid, thus confidence in the appropriate by the Competent Person. For example, the resultant figures is considered high. application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such * Extraction of ore from the Ugur deposit will commence an approach is not deemed appropriate, a qualitative in August 2017, and processing of the ores will discussion of the factors which could affect the commence in September 2017. As on date of this relative accuracy and confidence of the estimate. release, top soil pre-strip has commenced. * The statement should specify whether it relates to * Mining costs and haulage costs will be as per the global or local estimates, and, if local, state the current contracts in place being utilised at other relevant tonnages, which should be relevant to mines in the contract area. technical and economic evaluation. Documentation should include assumptions made and the procedures used. * Project capital is well managed, and certain
infrastructure facilities are available from with the Anglo Asian Mining group, thus minimizing capital * Accuracy and confidence discussions should extend to requirements. specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of * The global Mineral Resource estimates have been uncertainty at the current study stage. estimated by using a sectional (polygonal) method, and by 3D modelling using both inverse distance and kriging methods. All results are within 5% of each * It is recognised that this may not be possible or other. appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where * The Modifying Factors for mining, processing, available. metallurgical, infrastructure, economic, gold price, legal, environmental, social and governmental factors as referenced above have been applied to the pit design and Ore Reserves calculation on a global scale and data reflects the global assumptions. * No mine production data is available at this stage for reconciliation and/or comparative purposes. --------------- ------------------------------------------------------------ --------------------------------------------------------------------------
Section 5 Estimation and Reporting of Diamonds and Other Gemstones
(Criteria listed in other relevant sections also apply to this section. Additional guidelines are available in the 'Guidelines for the Reporting of Diamond Exploration Results' issued by the Diamond Exploration Best Practices Committee established by the Canadian Institute of Mining, Metallurgy and Petroleum.)
Estimation and Reporting of Diamonds and Other Gemstones in not applicable to this Statement of Resources and Reserves
APPIX 2
GLOSSARY AND OTHER INFORMATION
1. GLOSSARY OF JORC CODE TERMS
The following definitions are extracted from the JORC Code, 2012 Edition
Cut-off grade The lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit. May be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification. ------------------- ------------------------------------------ Indicated Mineral An 'Indicated Mineral Resource' Resource is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to assume geological and grade (or quality) continuity between points of observation where data and samples are gathered. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Ore Reserve. ------------------- ------------------------------------------ Inferred Mineral An 'Inferred Mineral Resource' Resource is that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to an Ore Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. ------------------- ------------------------------------------ JORC JORC stands for Australasian Joint Ore Reserves Committee (JORC). The Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) is widely accepted as the definitive standard for the reporting of a company's resources and reserves. The latest JORC Code is the 2012 Edition. ------------------- ------------------------------------------ Measured Mineral A 'Measured Mineral Resource' Resource is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to confirm geological and grade (or quality) continuity between points of observation where data and samples are gathered. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proved Ore Reserve or under certain circumstances to a Probable Ore Reserve ------------------- ------------------------------------------ Mineral Reserves An 'Ore Reserve' is the economically or Ore Reserves mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. ------------------- ------------------------------------------
Mineral Resource A 'Mineral Resource' is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. ------------------- ------------------------------------------ Modifying Factors 'Modifying Factors' are considerations used to convert Mineral Resources to Ore Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors. ------------------- ------------------------------------------ Probable Ore A 'Probable Ore Reserve' is Reserve the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Ore Reserve is lower than that applying to a Proved Ore Reserve. ------------------- ------------------------------------------ Proved Ore Reserve A 'Proved Ore Reserve' is the economically mineable part of a Measured Mineral Resource. A Proved Ore Reserve implies a high degree of confidence in the Modifying Factors. ------------------- ------------------------------------------ 2. GLOSSARY OF ABBREVIATIONS Abbreviation Definition of term ------------- ----------------- Ag Chemical symbol for silver ------------- ----------------- Au Chemical symbol for gold ------------- ----------------- g/t Gramme per tonne ------------- ----------------- M Meters ------------- ----------------- Oz Ounces ------------- ----------------- t Tonnes ------------- ----------------- 3. SOFTWARE USED IN THE MINERAL RESOUCE AND RESERVES ESTIMATE
"Datamine Studio RM" and "NPV Scheduler"software was used in the estimate of Mineral Resources and the calculation of Ore Reserves.
"NPV Scheduler" is computer software that uses the Lerch-Grossman algorithm, which is a 3-D algorithm that can be applied to the optimisation of open-pit mine designs. The purpose of optimisation is to produce the most cost effective and most profitable open-pit design from a resource block model to define the reserve.
This information is provided by RNS
The company news service from the London Stock Exchange
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