Anglo Asian Mining Share Discussion Threads

[jeanesy] 17/10/2016 07:53

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

[cyberbub] 17/10/2016 07:51

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

[csmwssk12hu] 17/10/2016 07:49

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

[cyberbub] 17/10/2016 07:49

Very encouraging!

[catsick] 17/10/2016 07:39

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

[homebrewruss] 17/10/2016 07:39

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

[timberwolf3] 17/10/2016 07:25

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

[catsick] 17/10/2016 07:24

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

[ferries5] 17/10/2016 07:17

Some good news.

[bleepy] 17/10/2016 00:27

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

[mattjos] 16/10/2016 22:00

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

[mattjos] 16/10/2016 21:47

Bleepy, I assume the differential between estimated metal content & reported recovery is simply that no recovery process is 100% efficient.I think it best to forward project based on actual recovery rates, as just reported.I'd forgotten the silver content.The recoverable gold, copper & silver content of this sulphide ore (for which cost of blasting & transport to processing site has already been expensed) exceeds the current market capitalisation of the company .. & that is after applying the PSA.It is a useful low-cost feedstock that may now be crushed (thanks to new SAG mill) & added to the flotation process in conjunction with the agitation tailings stream.I assume the combination of the two will now 100% utilise the flotation plant capacity, which was not running at full utilisation before.

[zhockey] 16/10/2016 21:34

Stockpiled sulphide ore has now been used as feedstock for the flotation plant. The ore was crushed and then milled by the flotation plant before treatment. From 1 September to 10 October, 4,600 tonnes of ore grading 0.8 per cent. copper and 1.5 grammes per tonne of gold was treated by the flotation plant.

[bleepy] 16/10/2016 20:40

Q4/14
The Company currently has a stockpile of sulphide ore with a high copper content totalling 379,000 tonnes. The ore has an estimated average metal content of 2.12 grammes per tonne of gold, 20.2 grammes per tonne of silver and 0.61 per cent. copper.

Mattjos, their estimate for Au is 2.12 g/t, that's 41% higher than the 1.5g/t you used.
$18.9 x 1.41 = $26.7m , a substantial increase in gold alone not counting the copper and silver contribution.

[mattjos] 16/10/2016 10:23

Ok, fair point jeansey. We will have to wait and see what they produce between now and end year to determine whether or not they hit the revised targets. As CSM notes, debt repayment is the priority & I am sure everyone agrees that knocking off that debt should be the priority for management.I do not believe Stephen Westhead would have taken up the position of Director of Geology unless he was persuaded there was some significant exploration (& subsequent mine development) to be done at Gedabek.I'm sure Reza and his team well understand what is required to both bring in new investors & maintain the current investors.

[jeanesy] 16/10/2016 08:50

Mattjos, the company was significantly undervalued when i bought at 4.75p. I do think its still undervalued which is why i still hold , but im disappointed that we still seem unable to produce the gold that is promised each month. Yes i understand the complexity of the gold mix we are mining but we have already reduced our yearly estimate, with an explanation, and now it seems that we will not hit the new revised target either. The company will lose credibility in the city, which is one of the reasons why our shareprice sunk so low , as we kept missing targets, if we cant hit the production figures we promise. The company would be far better off lowering its production targets in the first place if the monthly figures are going to be erratic and unpredictable.

Lets hope we get some positive news on our resource soon !

[csmwssk12hu] 15/10/2016 22:57

I think they are focusing on getting debt down, once they have debt down to more manageable levels then they may start looking at other things they were spending 6m dollars a year last year on interest that's now in the just over 4 million mark and still falling

[zhockey] 15/10/2016 22:00

Matt,

The upside at Gedebek and beyond is why most folk here are holding I believe, but you can understand the frustration that progress on exploring this upside has been rather slow. Lets hope the recent enthusiasm around exploration comes up with something meaty that the market can get behind.

[mattjos] 15/10/2016 21:53

header updated with latest production chart, courtesy of Brasso
(Brasso .. made a few formatting changes to make it easier to read)

No further scheduled news items now until mid-Jan 17 although, some form of exploration/reserves update is expected at any time between now and then.

[wimbled] 15/10/2016 20:20

SP increase by 3 1/2 fold in eight months. Natural to have a minor correction with no news flow due short term.

[mattjos] 15/10/2016 19:40

Jeanesy,Do you agree the company is significantly undervalued?We know that the ore body at Gedabek is not straightforward. That is both a frustration but, also a 'moat' .... if it was simple, arguably AAZ would not have it.The fact that we have the official PSA with the government & the relationships between the BOD and the govt of Az puts us in an enviable position.There is plenty of evidence to suggest that at the heart of Gedabek (where we have not yet reached) lies a significantly richer ore body.Am sure we'll get to it. In the meantime, each and every new piece of plant requires a bedding-in phase. Give it time. The business is getting stronger and more experienced with each passing week. Each passing week further highlights how stupidly cheap the valuation is

[jeanesy] 15/10/2016 18:31

Not sure if you are replying to the above or just stating a fact Mattjos. The fact is that September's production figure was really disappointing and we have not had an explanation as to why that was.

[mattjos] 15/10/2016 18:26

The mkt cap of the company does not even reflect the value of the Gold & the Copper in the stacked Sulphide ore!Let alone what has gone over the wall into the tailings dam over previous years, when recovery rates were much lower & which may be re-processed starting next year with the new plat.Buying at current valuation therefore gives the investor the Gedabek resource, the Gadir resource & the rest of the estate for free!Whether or not the company hits 65, 68, 70 or 72k oz this year pales into insignificance when you consider what ownership of the shares truly represents today

[mattjos] 15/10/2016 18:17

We were told end Q4 14 that they had stockpiled 379,000t of high sulphide ore ... could not cost effectively process at the time due to high Cu content taking up the Cyanide & therefore flotation plant was necessary. That ore is still there.This last RNS, they advised processing 4,600t of this ore between 1/9 & 10/10, containing 0.8% Cu and 1.5g/t Au.That is daily run rate of 115t/day.That therefore leaves 374,000t of the sulphide ore to process. At those reported grades = 2,992t of Cu and 561,000g of Au (561000/31.1 = 18,000 Troy ounces of Gold.18,000 * 0.875*$1,200 = $18.9m in Gold alone.

[jeanesy] 15/10/2016 17:31

Having had more time to look through the results I can see why the market has reacted unfavourably. We were told that everything was back on track with production and the new SAG mill was fully operational. Many including me were looking forward to record production figures for September. We got nowhere near that, if my calculations are correct. Why was that ? We have not been told. We need to produce around 19,000 to reach the lower end of our already reduced yearly production figures. With the snowy season just around the corner i really dont think that is going to be possible. As i have said before the company has a past record of not meeting targets so the market will not want anymore missed targets. Yes it is great that we are reducing debt , and I am hoping for some positive news about drilling and hopefully an increased resource but for some on here to say that production figures do not matter are wrong imo. The company needs to meet its targets if the market is going to take the company to a higher level than this.