Anglo Asian Mining Share Discussion Threads

[unionhall] 16/12/2016 14:09

The outstanding loans are still significant ...

From the interim Balance sheet.....


June 2015 50m

Dec 2015 49m

Jun 2016 44m

IF the gold price does not increase post hedging (December?) the payback will be quite slow....

[ferries5] 16/12/2016 13:54

from proactive.


Anglo Asian Mining Plc’s (LON:AAZ) newly discovered oxide zone, Ugur, within its Gedabek licence area in western Azerbaijan, is deeper than originally thought.

Early results from a core drilling programme have indicated the depth of the oxide is 60m with significant expansion potential.

Six core drill holes have been completed totalling 1,221 metres and will continue based on a 40-metre grid system to allow for resource and reserve estimation.

Stephen Westhead, Anglo Asian’s director of geology, added: "With core drilling results having determined a significant oxide zone containing gold, it is planned to continue core drilling on a grid in the central area to allow for three-dimensional modelling for resource and reserve estimation of this exciting prospect.

“In conjunction with this, we will also drill the flanks of the area targeted by surface alteration mapping to expand the gold potential.”

Reza Vaziri, chief executive, added Ugur was only three kilometres from its processing facilities at the main Gedabek site, highlighting the clear strategic value of developing this deposit.

Shore Capital noted that all of the early shallow drilling had been carried out utilising just one drill bit, which suggests the oxide material at Ugur is comparatively soft and not abrasive.

"That should mean minimal blasting and high comminution productivity. Preliminary bottle roll test work results yielded an average gold recovery of 87% with “low” cyanide consumption."

Shares dropped 11% to 20.38p.

--update for broker comment and share price --

[unionhall] 16/12/2016 13:46

I wish they would include a map of Ugur on their presentations/website so we could be clear where each of the drilling series are taking place and how much they overlap or dont.

I find it hard to be definite from the wording in the RNS.

[zhockey] 16/12/2016 13:28

Well I have been holding for 8 years and I'm disappointed. Ugur was hailed as significant and based on today's news my view is that it is not.

More drilling may change that view but why put out a release based on only 6 out of 30 drills being a successful. The market has a different view of significant, as do I.

[jbe81] 16/12/2016 13:17

People seem to ignore the fact AAZ have hedged part of their production, see what happens to the POG when Trump starts printing money next year

[jbe81] 16/12/2016 13:15

Zhockey, agreed much better to focus on whats happening here and now that what might happen with AZERGOLD, it's fill your boots time.

The best thing about today's RNS is it is less than 2 months after the last drilling news, AAZ are exploring and have a QP on board enabling RNS to be released. I wasn't expecting fireworks from these drilling results (but they did find some gold and helps in mapping the ore body), BUT I do expect them from some drilling results next year. Stephen is very excited about the amount of gold at Gedabek. A few new posters been talking rubbish here recently in an obvious attempt to drive the price down.

[zhockey] 16/12/2016 13:08

What's not to like?

Mineralised zone is 250 by 130 by 60. Plug in those grades and calculate the volume and what do you get?

[bleepy] 16/12/2016 12:27

-- Phase II drilling programme commenced in October 2016 to expand the potential resource at the Gedabek Licence - provides significant potential upside to the Company's future gold production

-- Core drilling commenced with six drill holes completed totalling 1,221 metres

-- Initial Phase II core drilling programme has now confirmed an oxide zone to depth of about 60 metres

[bleepy] 16/12/2016 12:09

The 29 RC drill holes, completed since the last release and not reported above, had results to a depth of 34 metres.

Holes 1-6 show high/higher grades when drilled to deeper levels than the RC drilling (34mtr depth)to date.

It follows that the higher grades are being found at depth ( deeper than the 34 mtr RC drilling).

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

The ongoing 3D mapping at core drill depth will provide fuller detailed findings.

They have said that the oxide ore is soft making for easy/faster drilling and very amenable to blasting at depth. With a bonus of 87% recovery rate.

What's not to like about that update the full potential unfolding as core drilling to deeper levels progress.

[zhockey] 16/12/2016 12:00

Why all this nonsense about an Azergold bid???

This is completely baseless and misleading.

[celeritas] 16/12/2016 11:50

Its all about the mix zhockey.
Makes no sense matt, Azergold will offer 80p+ but I expect the share price will probably slip.

[zhockey] 16/12/2016 11:26

Matt,

The company should have had the foresight to see how this would be taken. Only 6 out of 32 drill holes had mineralisation, that is not good news is it?

[mattjos] 16/12/2016 11:16

peculiar reaction today.
Folk have been moaning that the company has not been exploring .... debt repayment has very sensibly been a higher priority this last year.

Now we are past the half way point on the ATB debt payments, the company is back exploring in the region.
They have discovered what appears to be a very useful, on their doorstep, new resource that they are fleshing out with further drilling.
Looks to be easily accessible and a straightforward ore type.

Yet the market, in its wisdom, decides to make the company down 13%.

This is not the only additional resource that the company is exploring either. On the logic of today's reaction, perhaps the valuation will be marked down on each new exploration update.

[zhockey] 16/12/2016 10:53

I'm not so sure, Ugur had potential to be huge but today's news suggests it isn't in my view. Also production at Ged looks weak and will they hedge to protect debt at these low levels?

[deanroberthunt] 16/12/2016 10:47

anyhow looks like a W Formation possible, one of the most bullish patterns......some people just don't know when they're looking a gift horse....

[deanroberthunt] 16/12/2016 10:43

Silver at $50, some stocks will 20-50 bag+

[deanroberthunt] 16/12/2016 10:43

we are long overdue a bull market, 12 months long and counting....+inflation is coming.

[ilostthelot] 16/12/2016 10:39

Charting wise we're right at support. If 20p goes sub 10p is possible. Reckon we'll see a strong bounce from here tomorrow.

The drill results aren't great but it's the POG and poor sentiment that is driving this now which could well turn in a week. Gold is taking a right beating and the big banks will want it to finish down for the year.

At some point gold will go back into a bull market that's when we will make a fortune.

[deanroberthunt] 16/12/2016 10:26

we are now 62 months into a Gold and Silver bear market, the norm is 50 months....so we are well long and overdue a move to a bull market......

[deanroberthunt] 16/12/2016 10:20

you need to play the long game, sometime in the next 3-7 yrs, Silver could be $50 and Gold $3000

[basem1] 16/12/2016 10:07

I took 20000 at 19.975. Sold some at 25.65 yesterday so a good bit of business. Too early to add loads as gold not bottomed yet.

[zhockey] 16/12/2016 10:06

Why is it a strong buy? Off the back of a disappointing RNS

[deanroberthunt] 16/12/2016 10:04

ye[, topped up again at 20p and 20.35p

[celeritas] 16/12/2016 09:59

Anyone manage to grab some at 20p, no online trade with my limit ignored.

[scottishfield] 16/12/2016 09:51

Indeed robo21