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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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1.50 | 2.44% | 63.00 | 60.00 | 66.00 | 63.00 | 61.50 | 61.50 | 43,986 | 16:11:49 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Miscellaneous Metal Ores,nec | 84.72M | 3.66M | 0.0320 | 19.22 | 70.26M |
From Apr 2019 to Apr 2024
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
Hot Features
Premium
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
END
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