Anglo Asian Mining Share Discussion Threads

[jailbird] 08/3/2018 13:57

Yep LefreneI keeping thinking the same. Ppl must be trading this as well.

[lefrene] 08/3/2018 13:44

I can't help but wonder who the sellers here are? If I win the lottery tomorrow I'll buy the whole thing! :¬) Just as some dreadful things on AiM defy all rational gravity, so AAZ defies all normal logic, just what is it doing at this ridiculous price?

[jbe81] 08/3/2018 12:54

Fingers crossed, doesnt look like MMs have any shares. A chance gold could take a big move up tomorrow pm as well. If gold breaks towards $1400 can see the share price doubling.

[goldrush] 08/3/2018 12:48

I too took advantage this morning with a 20k top up to round off my holding.Steady as she goes.

[terropol] 08/3/2018 12:45

Is this the start of the new leg up and over 50p??

News must be due any time, and if the market likes it, we will fly.

Valuation Valuation Valuation way undervalued here....

[terropol] 08/3/2018 09:48

Hurry wile stocks last...
39p bargain this morning. could not resist a few more.
Good morning all.

[catsick] 08/3/2018 06:54

I think the main aim of this exploration program is going to be to replace the reserves faster than they are mining them and extend the life of the mine to 10 years plus, so they need to find another 200-300k oz of gold plus associated copper, once they have done that then gedabek just becomes a cash cow, Ordubad has potential and maybe they will start that up in a similar way to what they did at gedabek with a 20m usd heap leach set up and then expand that over time into the all singing and dancing plant they have at gedabek.

[davidspringbank] 07/3/2018 19:04

2sporrans, thanks, I've already read it, mate. I've got the picture. Credit is due to Reza for putting all this together and keeping his finger on the pulse. I understand why he tries to play this thing down to prevent any takeover problems. A lot of people will be looking over his shoulder watching what's going on. They've got massive reserves that others would die for. Very low operating costs and they've nearly paid off debt. This year they start winding up production and talk about a dividend. It's all kicking off to coincide with stronger commodity prices.

Gold and silver are due for a re-rating and the long-term chart of copper is looking good.

That's why I hold 300,000 shares. This is my biggest holding!

[2sporrans] 07/3/2018 17:24

ORDUBAD

David
Seems you've not read the main IPO doc.
Nor a few others to judge by the thumbs totes for info. within this

All the excerpts posted above by Celeritas and FZ are contained within the main admissions doc. of 2005.

Go to top of this bb: there's a button linking to this; it's the full doc.

If you only read PART 1 [pages 11-27] You'll gain pretty much what you ought to know.
The first few pages from 11 onwards contain the Behre Dolbear resource assessment, with all the Ordubad info. posted above + a bit more.

A handy summary of the Production Sharing Agreement on p 14 btw.

[celeritas] 07/3/2018 15:47

As for a target price, its worth over £3 should the drilling prove up half of what the Russians found.

[celeritas] 07/3/2018 15:30

The difference with AAM is the organic method of growth. Most companies come to the mkt time and time again to raise money to fund further exploration or to fund plant.
The problem being is shareholders are left eventually with a much smaller piece of the pie with the never ending dilution.

Yeah AAM's method is a little slow for most investors appetites hence the lean times. Its muted that exploration is going into overdrive over the next 3 years. This is a huge deal as AAM have never had the funds before as Reza was reluctant to dilute. We now have the funds ready after years of budget constraints have come to an end to go on a huge drilling program to prove up what AAM know is there. Bottlenecks have been ironed out and once the new crusher is in place we'll be all ready to process much more ore.

Along with a dividend, fingers crossed this will be one hell of a company.

[davidspringbank] 07/3/2018 15:14

This discussion is very interesting and shows what they originally knew years ago. The target of 250,000 oz is a gamechanger for me. I've just raised a lot of cash which I have put aside to buy HOC, but I need to rethink on that in the light of this information.

From the RNS above posted by Friendzarin:

"Behre Dolbear International Limited, the minerals industry consultant, describes the Azerbaijan properties as 'a potential source of copper and gold of world class importance'. Behre Dolbear considers that the eight properties contain an inferred resource of some 2.4 million tonnes of contained copper and 7.6 million ounces of gold. Behre Dolbear also project potential for an additional 10 million tonnes of contained copper and 45 million ounces of gold which was calculated from existing Soviet era data."

By my simple calcs: 7.6 + 45 = 52.6 million ounces of gold and 2.4 + 10 = 12.4 million tonnes of contained copper.

[friendzarin] 07/3/2018 15:04

The admissions RNS is located here

dated July 2005

This is a quote from its content

The net proceeds of the Placing will be used primarily:

• to re-classify Soviet era resources - using infill drilling and re-sampling
of adits to prove scale of further potential to Western standards;

• to start production - fast track one deposit to production at 250,000 oz
gold p.a., choosing from two mature possibilities;

• to develop properties - conducting full bankable feasibility studies on two
further major properties.

[friendzarin] 07/3/2018 14:41

Terrapol.I think petrusgazin's reference of 250k is certainly one I recognise. We are dealing with the history of the company now in which I appreciate you have considerable experience and expertise but this goes back as I understand it to the admissions document and when I looked back on historic posts on this and other boards some time ago now I found the reference to AAZ's ambition to get to mid-tier status focused sole in Azerbaijan? within the admissions document.

“expectation of producing gold at an annual rate of 250,000 oz within 18 to 24 months of Admission and pre-feasibility studies at two further sites”.

The sites noted at that time were Gedabek, Gosha and Ordubad combined.

Now obviously a lot of time has elapsed and events moved against this ambition and it has never been realised for a whole raft of developments over the years but when petrusgazin says "The plan from the start was to get to 250,000 oz a year, there is no reason we can't get there in the future " I think this must be from where the comment originates.

[goodgrief] 07/3/2018 14:20

That's a money pit, not a gold mine!

[lefrene] 07/3/2018 13:24

Tsk, TERROPOL just burst my bubble! :¬)

I agree crazycoops, the managers here have done their job very professionally, they deserve market recognition. Once they are finished with aaz, I think they should be appointed to sort out the NHS!

[crazycoops] 07/3/2018 13:04

petru, thanks for that post. One of the major attractions (for me) of AAZ is the way management have built the business without diluting shareholders. As you infer, the progress has been quite spectacular when placed in context of how capital and debt have been so effectively managed. 250k pa would be amazing but it would still be a great investment if 100k pa can be achieved and maintained over the long-term.Much to look forward to!

[celeritas] 07/3/2018 10:56

I expect the same is also going on with AAM.


7-Mar-Mar-2018, 11:44

The delegation of CJSC AzerGold takes part in the international conference PDAC 2018 (Prospectors & Developers Association of Canada 2018), taking place in the Canadian city of Toronto. Within the framework of the conference, representatives of AzerGold CJSC actively participate in platforms for discussing issues of geological exploration, metallurgy, technological achievements in the extractive industry, as well as attracting investments and corporate social responsibility.

The delegates examined in detail the various approaches and modern trends in these areas. In addition, bilateral meetings were held and new business ties were established. In particular, meetings were held with well-known mining companies, including Golder Associates, FLSmidth, Outotec, Metso, Vale, Newmont, BHB Billiton and Teck.

The companies expressed their interest in developing business relations with AzerGold CJSC, and also noted the great potential for expanding cooperation.

The information stand of AzerGold placed in the exhibition part of the conference presented information about the non-ferrous metallurgy of Azerbaijan and the potential for expanding cooperation. Numerous visitors of the stand showed great interest in the achievements of ZAO achieved in a short time.

The annual international conference PDAC is one of the most prestigious events in the world for professionals, organizations and companies engaged in mining. In the current forum, which will be held from 4 to 7 March, approximately 25,000 specialists from 130 countries of the world participate.

[celeritas] 07/3/2018 10:30

6(a) The Ordubad Contract Area
The Ordubad Contract Area approximates a parallelogram in shape, is roughly 21 km by 18 km in size and covers an area of about 462 km2
. The Ordubad area is a part of the Mikhmana-Zangezur tectonic subzone
hosting a number of known porphyry copper and molybdenum deposits. The region is sharply distinguished from other zones of the Lesser Caucasus and includes the known copper-molybdenum belt part of which is observed in the Nakhchivan region.
Porphyry copper deposits of the Ordubad ore region were localised within the western part of the MegriOrdubad granitoid massif, where the Paragachay, Diakhchay, Misdag, Gey-gel, Geydag, Goyhundur, Shalala and other deposits were found. The Ordubad Contract Area is serviced by a paved road into the north central part of the Contract Area to the town of Keleki. A main rail siding is located some 15 km due south of Keleki. All the Ordubad properties can be easily accessed from Keleki by four wheel drive vehicle. Misdag is located
about 8 km north-east of Keleki. All the other properties are closer to Keleki. Electric power and an ample
supply of water are also available in the Contract Area. A summary description of the six key projects within the Ordubad Contract Area is set out below.
Further information on this area is set out in Part 2 of the Competent Person’s Report.
15

(i) Shakardara deposit
Exploration at Shakardara originally targeted several 1 to 3 m wide quartz veins that contained several grams
of gold per tonne and about 1 per cent. copper. Adits driven to explore these veins at depths of 70 to 140 m
below the surface encountered wide zones of porphyry-style gold-copper mineralization. The Shakardara
deposit is located about 4 km northwest of the village of Keleki at an elevation of 1,600 to 2,000 m. The
deposit lies in steep terrain and can be accessed by about 6 km of four-wheel-drive road, which could be easily upgraded.
Anglo Asian and Behre Dolbear took grab samples from a 1,000 m2 area of the dump at adit 12 in November 2004 and January 2005. These samples of dark green chloritized andesite with minor quartz-pyrite veinlets
and 2-5 per cent. fine disseminated pyrite returned values of 33.6 and 14.88 g/t gold, respectively. Adit 10 encountered 86 m of 1.0 g/t gold and 1.1 per cent. copper and an additional 15 m of 0.93 g/t gold and 0.83 per cent. copper at the face.
Mineralization visible on the dump consists of more typical porphyry-style stockwork of oxidized sulphides in strongly argillized and sericitized volcanics. This style of mineralization is well exposed in the roadcut adjacent to the portal of Adit 10 and yielded a value 4.28 g/t gold across four metres in sample SHAKRW3.
Similar style mineralization extends for more than 30 m on either side of this location. Chloritized and pyritized volcanics similar to that encountered in Adit 12 are also visible on the Adit 10 dump. Anglo Asian’s sample of this dump showed 10.0 g/t gold and 2.4 per cent. copper. Chloritized and pyritized volcanics similar to that encountered in Adit 12 are also visible on the Adit 10 dump.


(ii) Misdag deposit
Misdag is a classic porphyry-copper disseminated and stockwork pyrite chalcopyrite mineralization is hosted in swarms of north-east-trending structural zones. The Misdag deposit is located about 7 km north-west of the village of Keleki at an elevation of about 3400 m. The deposit is hosted by quartz monzonites, which are
a late phase of the intrusions making up the Megri-Ordubad massif.
The Misdag deposit was originally discovered in 1966 and most of the exploration work was conducted before 1980. The deposit has been explored by numerous trenches and a number of adits and drill holes.
Significant trench intercepts at Misdag include 145 m of 0.83 per cent. copper and 327 m of 0.40 per cent. copper.
Molybdenum values of 50 to 100 ppm have also been noted. Behre Dolbear has seen only isolated analyses for gold at Misdag. Additional work may reveal that gold adds considerable value to the mineralization. Some of the mineralization in the adits appears higher grade than the overlying mineralization in trenches.
Behre Dolbear considers that it is reasonable to expect that copper values have been leached in the surface trenches and the grade of copper at depth may be greater than that indicated by the trenches.


(iii) Shalala deposit
The deposit is characterized by zones of stockwork mineralization up to 300 m wide along 2000 m of a north-north-west-trending structural zone that dips steeply to the east. The Shalala prospect is located about 5 km northeast of the village of Keleki at an elevation of 2,200 to 2,600 m. Access is by 8 km of four-wheeldrive road. The prospect is located in steep rocky terrain with abundant outcrop. Vegetation consists of grass and scattered low bushes. Behre Dolbear has commented that “At Shalala …… the ultimate potential may be ten times that shown by the estimates.”
Few of the workings and none of the drill holes were sampled for gold. In February 2005, Behre Dolbear took a 4 m wide sample from a 30 m wide zone of stockwork mineralization in a previously unsampled roadcut that showed 6.28 g/t gold. Behre Dolbear believes that gold values will add significantly to the potential, and the ultimate potential of Shalala may be an order of magnitude larger than what has presently been estimated.



(iv) Piyazbashi deposit
The deposit is hosted in Eocene andesitic to dacitic volcanics. Piyazbashi is located about 5 km north of the
village of Keleki at an elevation of 2,200 to 2,600 m. Access is by about 9 km of four-wheel-drive road. Behre Dolbear believes that there is excellent exploration potential contained in wide zones of alteration at Piyazbashi. As noted in the CPR, one zone in Adit 17 showed 6.39 g/t gold across 41 m.
Two deep drill holes (DDH-1 and DDH-2) were completed in the Ordubad fault zone approximately 1 km both north and south of Piyazbashi. These two holes targeted zones of pyritization, sericitization and
kaolinitization. This type of alteration is widespread for tens of kilometres along both the Ordubad and Mazra faults.
According to several Azeri geologists interviewed by Behre Dolbear, one of the drill holes (DDH-1 (TD474m))
returned excellent gold values including 12 m of 24.7 g/t gold and 14.7 g/t silver from 89 m to 101 m and an average of 3.2 g/t gold from 12 m to 310 m.
In November 2004, Behre Dolbear took two samples consisting of grabs at 10 m intervals that were composited into two 200 m samples along stretches of roadcut in the Piyazbashi area. Sample PY3 showed 12.32 g/t gold and 7.6 g/t silver and sample PY7 showed 11.8 g/t gold and 10.6 g/t silver along a total of 400 m of roadcut. Behre Dolbear panned the pulps from samples PY3 and PY7. This panning of approximately 100 grams of pulp showed more than 10 leafy flakes of light yellow (~700 fine) gold. These samples show essentially the same gold to silver ratio as Azeri geologists reported for the high-grade interval in DDH-1,
located approximately 300 m from samples PY3 and PY7 suggesting they are within the same hydrothermal system. Significant intercepts in the area show 560 m by 0.55 m at 10.12 g/t gold and 73 m by 0.45 m at 15.6 g/t gold.
Behre Dolbear states that all of these observations suggest that there is excellent potential to discover a large, high-grade gold deposit in the Piyazbashi area.


(v) Agyurt deposit
The Agyurt deposit is located on the northern extension of the Shalala deposit, between the Shalala and Misdag deposits. The Agyurt deposit is a series of steeply north-west-dipping, north-east-trending quartzsulphide-carbonate veins hosted in a dioritic pluton. The contact of the host pluton with granodiorites of the Megri-Ordubad massif is formed by the north-east-trending Misdag fault, which also lies close to the Misdag and Kadjaran, Armenia copper- molybdenum deposits, which are located 2 and 15 km to the north-east
respectively.


(vi) Diakhchay deposit
The Diakhchay deposit is located on the Ordubad regional fault. A zone of feldspathization, biotitization, silicification, and sericitization is up to 1.2 to 1.5 km wide. Pyrite, chalcopyrite and molybdenite fill a stockwork of fractures in zones along a strike length of 2 km. A Soviet style C2 resource of 14.4 Mt at 0.44
per cent. copper and 0.015 per cent. molybdenum has been estimated. This resource has been accepted by Behre Dolbear.
At least four other prospects have been identified in the Ordubad Contract Area. However, Behre Dolbear has not properly reviewed or valued these properties

[yasx] 07/3/2018 09:37

Lefrene,

Let us not get ahead of ourselves.

Let us have the explo plans and will take it from there.

[2sporrans] 07/3/2018 07:57

Excellent perspective PG and good point FZ.

[friendzarin] 07/3/2018 06:48

Much food for thought once again from your post Petrusgazin. If Ordubad’s development is to feature heavily in the 3 year plan the increased complexity involved might explain the rather later delivery of news of the plan than we may have initially been led to expect. Certainly would be a great rabbit to pull out of the hat :)

[jbravo2] 07/3/2018 06:26

20?
Wow. I didn't know that, thank you petrus for the info.
That materially changes my recently held view on how soon Ordubad could be worked up.
Fabulous.
:)