Anglo Asian Mining Share Discussion Threads

[slavy] 14/8/2017 10:50

I get a value of £37M for Ugur based on average gold property acquisition costs of
20.8% measured, 11.4% indicated and 2.4% inferred:
This is probably a conservative valuation since no account is made for the proximity to existing plant and the shallow depth of the resource.

[bleepy] 14/8/2017 10:48

Some missed the boat here but still early days and only a fraction of Gedabek prospects explored with more news to come of recent exploration of Gedabek open pit and deep mine, Gadir underground mine and extension toward Gedabek open pit and Bittibulag. With those results we will have the bigger picture going forward.

We also have stockpiled ore, recently tested plant reconfiguration and ever decreasing debt.

Patient buyer in the wings picking up the stock of those who have jumped ship and trading for short term gain.

Still plenty of opportunity going forward for potential growth and profit for both company and shareholder.

[zhockey] 14/8/2017 10:32

Haha you can't value it like that!

[bleepy] 14/8/2017 10:23

150,000 x $1250 = $187,500,000 of gold

Not to be sniffed at all wouldn't you say.

1,000,000 x $17 =. $17,000,000 of silver

Hmmm....+$200mln deposit

We are awaiting exploration results from Gedabek open pit and deep mine, Gadir underground mine and Bittibulag.

What's not to like, nothing to moan about me thinks.

[bleepy] 14/8/2017 10:18

Ore body delineation in the open pit and Gadir underground mines;

Drilling of the Gedabek open pit area to target further copper-gold mineralisation for future production;

Ore body delineation in the Gadir mine for future production;

Staff development in the use of advanced software for exploration and mine planning.

Production flexibility, expansion and further opportunities will result from this exciting phase in the Company's development that will provide a platform for future growth.

[zhockey] 14/8/2017 10:07

Catsick, less that 150k oz though and very low grade.

[bleepy] 14/8/2017 09:53

Excellent achievement considering the commencement of mining at Ugur is 6wks ahead of schedule and processing from September.

Installation of water treatment and commissioning completed.

Strategy
Anglo Asian is undertaking an extensive exploration and production optimisation programme during 2017 with the aim of creating future flexibility and growth at its Gedabek Licence.

"Key components of this strategy for the current year are the extensive exploration and production optimisation of the main open pit and the Gadir underground mines and the start of production of the newly discovered Ugur gold ore body.


216 metres of a planned 465 metres tunnel between the Gadir underground mine and the down dip extension of the main Gedabek open pit now completed. These drill holes intersected Gadir style mineralisation and confirm the extended resource potential.

Further exploration in the main Gedabek open pit mine underway with 61 RC and two core drill-holes completed.
This will allow the Company to assess the extent of the higher-grade gold mineralisation below the Gedabek open pit as found in exploration drill holes. The future project plan is to construct a tunnel following the mineralisation under the Gedabek open pit and to carry out underground fan drilling to assess the future underground mining potential.

[goodgrief] 14/8/2017 09:22

Bet the directors feel mugged after those recent sale of shareholdings!

[mattjos] 14/8/2017 09:11

UGUR is so close to Gedabek that I would be surprised if it is not proven to be contiguous in some way.
Further exploration will help determine that but, well done AAZ for getting this up & running so quickly. Really terrific achievement by all in the team.

[bleepy] 14/8/2017 08:48

Given the geometry of the mineralised zone, the fact the central part is exposed at surface, and a very low forecast waste ratio, an open pit mining method is selected.


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.

[bleepy] 14/8/2017 08:39

Excellent news.

The section listed "Further Work" reads.....

Exploration will continue in the Ugur area to test for extensions of the mineralised zones and for other "centres" of mineralisation.

[ilostthelot] 14/8/2017 08:30

Nice one. Thanks for the information Catsick. Easy money. 😊

[catsick] 14/8/2017 07:53

Should be good , the road is the main capex and is done, the strip ratio of the new pit is less than 1 which is really low, its close to 4 on the main pit so the costs are really low, this is going to turbo charge the pnl, just need to find more nice ore !

[redtrend] 14/8/2017 07:53

Amazing achievement to be ready for processing ore Sept 2017 after first drill only Sept 2016.

However what is still missing for me (not specific to Ugur but all operations) is visibility on a revised AISC estimate based on the new "Gold Equivalent Ounces" (GEO) reporting, unless I missed it from one of the quarterlies? As silver and copper are no longer "by-product credits", it would push up the AISC on a "per GEO" basis.

As per the April Strategy Update RNS, the annual GEO estimate was 64-72K Oz, of which Gold is 52-58K Oz and Copper 2,000-2,400Tn. Not sure about Silver, but Copper + Silver therefore add up to 14K GEO. The GEO estimate was calculated based on prices of $1,200oz Gold, $17oz silver and $5,900tn for copper.

Without knowing the specific original calculation, as not clear how Copper and Silver equated to 20% of GEO, hard to know how the current increased spot prices of $1,285oz, $17oz and $6,350tn impact the GEO calculation.

[jeanesy] 14/8/2017 07:45

Was not expecting JORC to be out this early ! All looks good, how will the market react ?

[catsick] 14/8/2017 07:41

As I was suspecting the mining costs of this deposit are amazingly low, they quote a cost to mine of 1.75 usd per ton of ore and then 5.22 usd to process on the heap initially they will be mining the 2+ g per ton stuff which will have over 100 usd per ton of gold/silver in it , this deposit is going to be amazingly profitable !!

[catsick] 14/8/2017 07:10

Jorc out , 199k oz , all looks in line , slightly better, road is done and producing this month, all looks good

[mattjos] 13/8/2017 11:24

We've got the Ugur maiden JORC due to be released at any point in the next 6 weeks, that remain of Q3.Would be terrific if the company's early guidance is exceeded by the JORC statement ... that would be a great example of an intent to under-promise and over-deliver.The interim results are 8 weeks away and that should once again confirm the debt reduction continues to plan, if not ahead of plan.12 weeks time it's Q3 operations & production update & we should get some early indications on Ugur production & the restart from Gedabek & Gadir.There is plenty of newsflow to keep this front and centre and with gold and copper trading as they are, the debt is very soon going to dwindle into a non-issue. At what level will the majority decide the remaining debt is simply no longer a red-flag?

[andrewsr] 13/8/2017 10:42

I think charts still work quite well for companies and your charts for AAZ are very useful, thanks.
Perhaps the manipulation of the gold market will change if traders change their strategy. Placing stop losses just below 'support levels' must be consistently losing money to algorithms, so perhaps counter algorithms?

[mattjos] 13/8/2017 10:28

The next level to overcome and consolidate on is the 27p level. Let's see if that proves to be the case

[mattjos] 13/8/2017 10:26

That has to be some merit in charts.When this was 30p and falling and I said then it was going to close the gap at 4p, there were plenty who dismissed that as nonsense.Yet, that is exactly what happened.The chart theory (EW retracement) suggested 15.25p would the more recent low & that too proved to be the case.The same theory suggested 22.75 would be the next level to overcome and then consolidate for briefly & that too looks to be the case.It may seem like gibberish to many but, there are merits in the theory & not wise to completely ignore it.

[andrewsr] 13/8/2017 10:12

I think most other markets are liable to a near-term serious correction or crash in which IMHO gold will fair reasonably well. At some point when volume increases manipulation will or should be overwhelmed.
I agree charts provide a useful picture, but I don't think support levels can be relied on, particularly in quiet markets.

[el_duderino_7885] 13/8/2017 09:42

I agree that charting is less useful than in the past due to the zombie manipulated markets of today.

However they aren't useless. They encapsure everything including the manipulations. If you believe that markets are ultimately bigger than the entities trying to controlling them then they absolutely have use.

If you think the algos are in full control and always will be then why even invest in precious metals?

Plenty of other, less manipulated markets around.

[andrewsr] 13/8/2017 08:57

Charts may show behaviours but if that market isn't free they're not going to work very well. Support levels aren't going to work if they're underlain by stop losses being gamed by high speed algorithms or massive naked shorts by parties controlling the market when most traders are asleep.
IMHO the price will depend more on the behaviour of 2 megalomaniacs/lunatics, the Dow, dollar, even/maybe the Dow/Yen, although the latter doesn't seem very rational.

[el_duderino_7885] 12/8/2017 00:10

Hedgehog the charts show behaviours. In all behaviours in nature there are patterns. The charts are a visual representation of market behaviours, feelings,emotions and ultimately decisions.

We are interested in behaviour changes, because when they change, decisions changes and then ultimately price down or up.

No one can predict with 100% accuracy but the longer the pattern is seen the more accurate you can be when you notice the change.

What we are seeing here is a fundamental change in a very long term pattern in the gold market.

This indicates now that different forces are at work and gold is likely to head in a different direction.

History demonstrates that when such clear, long term, patterns like this are broken you can expect violent moves in the opposite direction.

Go read my posts when I called a generational top in the dollar earlier this year. It is almost 10% down since that call. Am I a genius? No I'm not but the charts clearly told me that we were about to witness a breakdown in the dollar and we did.

This coming move in gold in a 6 - 12 month time frame will surprise a lot of people.