Anglo Asian Mining Share Discussion Threads

[2sporrans] 22/7/2017 10:32

Thanks for pointing out the handy IPO link here Mattjos; I'd not spotted it.
Though I read through much of these documents a few years back, I hadn't revisited them much since, though I ought to have.
An amazing potential at Ordubad in particular.

The IPO picture seems to have been one where the Ordubad area was intended for intensive exploration and indeed the first developments for production. However the focus shifted to the Gedabek/Gosha areas.
Do you know the reason for this; was it much to do with potential conflict with Armenia?

Basically, I first invested into AAZ just when Gedabek was coming into full production and the POG very ascendant. Back then the focus was very much on how this played out; Ordubad had almost gone off radar.

Understanding the Production Sharing Agreement and its dynamics is of course also key to a full and proper evaluation of AAZ. Something else I ought to revisit to review/refresh on say an annual basis.

So wrt to the Ordubad Contract Area and the PSA:
We have a "Notice of discovery [NoD]disclosed for one target comprising several targets" and a period of exploration underway.
I don't know when the NoD was disclosed.
As it has, AAZ must be eating up time wrt to PSA and:
"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."
So the dynamic of the PSA wrt Ordubad dictate that AAZ must want to target one or more of "Shakardara, Piyazbashi, Misdag, Agyurt, Shalala and Diakchay, which are all located within a 5 kilometre radius." sooner rather than later, with a view to development/production.
AAZ says "preliminary remote sensing study, adit cleaning and re-sampling of adits in two regions, Pyazbashi and Agyurt" which makes sense with X-ref. to the Bere Dolbear report. These are the 2 prospects with clear evidence of high grade gold resource, probably on a scale at least as big as say at Gosha.
Though Shalala's gold/copper potential is reckoned to be vast, no high grade ores have as yet been discovered as even the Soviets exploration was somewhat superficial.

They did do more at Misdag though, where although little in the way of gold has been evidenced, there is clearly a lot of copper and the grades may be good:
From the Bere Dolbear Report:
"Soviet geologists estimated a P1 resource of 686Mt resource grading 0.43%Cu.
Based on the data and cross sections, Behre Dolbear believes that this large resource estimate would require extrapolation to greater depths than the surface trenching and limited underground workings would reasonably allow. Behre Dolbear has tabulated a P1 resource of 350Mt at a grade of 0.43%Cu". This is in partially leached out shallow deposits.
"Metallurgical tests indicated that 93% of the copper could be recovered by flotation and a gold value of 2.1g/tin the concentrate produced was reported by Soviet professionals. This indicates that excellent recovery of both copper and gold can be made by standard flotation processes.
Note also: "The large Kadjaran Cu-Mo deposit in Armenia is located about 15km to the northeast of Misdag on the extension of the Misdag fault" NOTED!!

Getting back to the gold and Pyazbashi and Agyurt, where the current exploration focus is, Bere Dolbear Report::
Agyurt: "A resource estimate on Zones 3, 3a, the Parallel Zone and Zone 5 was completed in 1985. Soviet geologists estimated a C2+P1 [i.e. pretty intensive adits etc at different levels] resource of 1.13Mt at a grade of 6.39g/tAu, 23.4g/tAg and 1.28%Cu.
Pyazbashi: "Exploration at Piyazbashi has been sporadic over the period from 1961 to 1997. Work consisted of surface trenching, mapping and sampling and underground development on three levels to a depth of 300m". The main finding the Soviets made:
"Azergyzil estimated resources on eight of the quartz veins that have been evaluated in greater detail and reported a resource estimate of C2+P1 of 890,000t at 6.6g/tAu for a total of 5.87t of contained gold.

So, a lot of potential for fast track exploration and maybe even development at Ordubad. Providing of course the capital is raised and the 'Political' risks are acceptably low.

More immediately, focus is of course Ugur + Main pit / Gadir re-evaluation/modelling, followed by Bitibulag I guess, where Bleepy points out there is maybe substantial and readily [flotation] processable copper; perhaps even moreso than gold.

When exactly does the 15 year development/production period expire under the PSA for Gedabek/Gosha, anyone? And any thoughts on prospects [terms] for a 5 year extension?

[wrighty46] 22/7/2017 00:25

Thanks all. Feel even happier here about my top up a couple of days ago. Glad I'm getting it before the marten catches on. GLA

[mattjos] 21/7/2017 22:58

2sporrans ... the IPO docs are a 'must read' as far as I am concerned & in particular the Behre Dolbear report. There are many, many little nuggets in the report that most casual investor will be completely unaware of but which a few of us (bleepy being one) have read and re-read and re-read again.

By all account, Bashirov had a solid inside tip on the resources in the area and that is why he bought such a large holding. Things didn't pan for him & he became a forced/distressed seller - unable to stay the course here as a consequence of getting in a pickle elsewhere.

If you can find the time, I do strongly suggest you read the IPO docs .. link in the header. Indeed the thread title is lifted straight from the Behre Dolbear management summary.

Most people do not understand that the Siemens Brothers & the Soviet Geologists have long ago done most of the necessary exploration & that data is still available to the company. No, it may not meet modern JORC standards but, they knew what they were about & several of today's technical staff employed by AAZ have a handle on this data. The data is quite valid & this is some of what Bashirov became aware of.
Modern exploration and data modelling will for sure flesh out what they already have on-hand + today's processing techniques will enable the company to extract more of the metals & use a lower grade cut-off point than was historically viable.
Don't forget that AAZ was the first mining company to utilise the SART methodology at Gedabek

[2sporrans] 21/7/2017 22:42

Enticing exhumation Bleepy; thanks m8.

Re. Behre Dolbear samples, Piyazbashi, Shakardara and Shalala are all within Ordubad.
DDH-1 is a Drilling company.

"It appears that the extensive underground workings in the Ordubad and Gedabek contract areas can be easily rehabilitated, remapped and resampled. This will greatly expedite future exploration work. These underground workings will also enable more geologically definitive and cost-effective drill definition of further resources and provide access to valid bulk sampling sites for metallurgical testing and enable movement to feasibility studies in a shorter time frame."

Admit I wasn't aware of these underground workings in the Ordubad area and hadn't imagined the old Siemens passages at Gedabek could/would be utilised for fast track exploration.

?Does this bear any relationship to this wee nugget released within the latest results update [under "Production ans Sales Details sub-heading]]:
"9,591 tonnes of ore with an average grade of 5.17 grammes per tonne was also mined, in conjunction with its exploration programme, from the Gadir underground mine in Q2 2017." ?
When I first read that, my thoughts were something like:
1. Jolly good.
2. How the heck did they dig out 5.17 g/t grade Gold ore from exploration workings; as good as they bested from recent production.?
3. Was this some kind of development work, like an extension to the Gadir tunnels to facilitate fresh drilling sampling?
4. Or maybe just badly written passage; like the ore was the very end of the production run.
5. Then again didn't Gadir cease production by end of Q1 and Q2 is indeed all exploration work? I believe this is true.

Might it be that exploration work is in fact utilising one of the old Siemens passages?

Whatever, I get the smell that there is indeed a lot of very commercially viable resource to be unveiled, both in the accessible contract areas and eventually in the 2 dormant ones in the NK disputed territory.

Well, with the AAZ price ticking up - presumably in anticipation of next week's Ugur update [JORC or nay] - and both Gold and copper holding their gut to confound the bears I wish all an enjoyable weekend to complement this.

[bleepy] 21/7/2017 20:08

From admissions documents 2005......we have just the man in top geologist Stephen Westhead to evaluate where Dolbear left off.

3.8 BEHRE DOLBEAR’S OBSERVATIONS
During Behre Dolbear’s brief visit many prospective-looking zones of stockwork fracturing and alteration were noted that had apparently never been systematically sampled. Modest gold and, especially, copper values in these leached outcrops could be strongly indicative of economically significant mineralization at depth where significant leaching has not taken place.
The wide zones of gold mineralization indicated by Anglo Asian’s very preliminary sampling of roadcuts, the underground exposures and reports of broad zones of high grade in DDH-1 at Piyazbashi are also very encouraging. Behre Dolbear’s subsequent samples from Piyazbashi, Shakardara and Shalala confirm this potential. The samples taken by Behre Dolbear at the Gosha and Gedabek properties also confirm the presence of potentially significant open pit mineable deposits.
There is a great deal of geologic information in the Azerbaijani geologic archives, which Behre Dolbear has not viewed due to time constraints. This information will have considerable value in expediting future work on the above mentioned projects and is expected to suggest other good exploration targets.
It appears that the extensive underground workings in the Ordubad and Gedabek contract areas can be easily rehabilitated, remapped and resampled. This will greatly expedite future exploration work. These underground workings will also enable more geologically definitive and cost-effective drill definition of further resources and provide access to valid bulk sampling sites for metallurgical testing and enable movement to feasibility studies in a shorter time frame.
In conclusion Behre Dolbear believes that thorough exploration will reveal significantly more potentially economic mineralization than is presently known, especially in the Ordubad and Gedabek Contract Areas.

[el_duderino_7885] 21/7/2017 18:17

Yep chart looks good for AAZ and gold possibly breaking out too.

Been a nice week for my leveraged silver positions too.

Great end to a busy week!

[jbravo2] 21/7/2017 18:04

As Tony Hadley would sing...

Gold
Always believe in your soul
You've got the power to know
You're indestructible
Always believe in, because you are
Gold

[mattjos] 21/7/2017 17:44

free stock charts from uk.advfn.com

[mattjos] 21/7/2017 17:30

good to see some folk digging things out .. always much appreciated by everyone here - thanks 2sporrans and bleepy

First weekly close over 19p for the last 14 weeks

Good weekend all & lets hope for a belting Ugur update next week

[bleepy] 21/7/2017 16:58

From admission documents (p65 sect 3.6.2)

Gyzildzhadag Ore Field (approx 3km north of Gedabek mine)
• Bittibulagh – Siemens is reported to have mined about 16,000t of 2%Cu ore; 50m by 60m area with disseminated pyrite-enargite mineralization; poor outcrop.

• Gyzildzhadag – Gossanous breccias of “secondary quartzites” with remnants of disseminated stockwork and massive sulphides. Tested by only two drill holes, which showed up to 50m of 0.4 to 1.4g/tAu, 0.1to 1.2%Cu and 100 to 300 ppm Zn and Pb.

[2sporrans] 21/7/2017 16:43

More on Sungun:

hxxps://financialtribune.com/articles/economy-business-and-markets/11328/sungun-copper-mine-capacity-doubles

150k tons pa copper concentrate plant production capacity doubled to 300k in Feb 2015 ..... so its no tiddler.

[bleepy] 21/7/2017 16:30

From memory Bittibulag is copper rich (from constitutional documents). They are awaiting exploration results.
Perhaps another reason for the switch round of processes favouring copper rich ore for the last two qtrs.

[mattjos] 21/7/2017 16:25

great find 2sporrans! Thanks for sharing :-)

[2sporrans] 21/7/2017 16:15

Ordubad - Big Copper Prospect?

Fortified by the latest results which at least show AAZ are proceeding to plan with Ugur, Main Pit + Gadir exploration [+some extended production] and debt paydown, I trawled the net for any morsel of evidence that "Copper Mountain" might be replicated, even in a modest way, elsewhere in AAZ's licenced areas.
It's always struck me as likely there will be further big lodes in the region; the geomorphology can hardly be unique at Gegdabek.

Found this:



"The Sungun copper mine is located in East Azarbaijan, Iran, in Varzaqan county, 75 km north west of the provincial town of Ahar. It is the most important geologic and industrial feature in the area and is the largest open-cast copper mine in Iran and is in the primary stages of extraction.

The reserves are estimated to be as much as 995 million tons of copper ore. The ore is processed directly at a concentration plant at the mine. The capacity of the concentration plant is 170,000 tons of copper concentrates, with plans to expand to 300,000 tons."

But TS you fool, I anticipate you thinking: This is in Iran; nowhere near AAZ's prospects.

Look closely at a detailed map and you will see that in fact the Ordubad contract area is centred maybe 50 miles NW of the Iranian border and the Sungun Copper mine is [75km NW of Ahar] no more than 50 miles SE of that same border point.
So, Sungun is ~100m distant from Ordubad [near Nakhichevan].

Just saying....

[mattjos] 21/7/2017 14:37

assuming(! :-)) Gold does now breakout, as it has been threating to do for last 4 months, the combination of $1,300 Gold and $6,000 Copper will have a very pronounced +ve effect on the cash-flow here.
Despite the debt reduction to date, we remain a significantly leveraged productive miner.

The neck line on Gold from the Jul 16 peak & the Trump election evening has been challenged, breached for a while and now being re-challenged.
Usually indicative of a resilient uptrend in play.
$1,490 becomes the target as/when it finally falls.

[el_duderino_7885] 21/7/2017 14:18

Haha no such thing.

It's back in the small triangle now within the longer term pennant.

Looking like it wants to break out of both isn't it especially with the dollar yen falling fast and still over 111!

[jbe81] 21/7/2017 14:16

Gold heading towards a triple top?!?!

[el_duderino_7885] 21/7/2017 13:28

Glad to have bought some under 19p.

Gold daily chart looking extremely interesting now.

[mattjos] 21/7/2017 13:13

also been adding today ... very nice rising wedge now printed on the chart & trades also just now starting to appear for over the 19p ceiling:


free stock charts from uk.advfn.com

[goodgrief] 21/7/2017 12:58

Oh well, I'm not moving for a KFC ! :(

[el_duderino_7885] 21/7/2017 12:12

I'd be very surprised if it was a JORC this soon.

[el_duderino_7885] 21/7/2017 12:12

Well I just bought a few of these so back in but only a small amount for now.

[mattjos] 21/7/2017 11:52

that would be terrific news if it proves to be the case catsick. With Stephen Westhead on board now, we wont have to wait anything like as long as we did in 2010

[catsick] 21/7/2017 11:35

From mays rns it does actually sound like we are getting a jorc next week as it is due during q3 and it wont be worth updating if a jorc is only a few weeks away, I would be very surprised if its less than 100k oz and with all the ore right at the surface it will be easy and very cheap to dig out, another interesting article in the ft today was talking up the big rise in copper prices and the fact a tesla needs 138 kg of copper per car and if the world wants to transition to electric cars then copper will be in very short supply .... The 50p party will be hosted at a very large not fine dining place in the center of Nottingham, we also have one in Derby but I am not an owner of that one ...