Anglo Asian Mining PLC AGM 2021 - Responses to Submitted Questions (3875D)

TIDMAAZ

RNS Number : 3875D

Anglo Asian Mining PLC

29 June 2021

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

29 June 2021

Anglo Asian Mining PLC

Annual General Meeting 2021 - Responses to Questions submitted to the Company

Prior to the Meeting

Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM-listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide responses to questions it has received from shareholders prior to its Annual General Meeting for 2021.

 
 SHAREHOLDER QUESTION                 COMPANY RESPONSE 
 What are the Company's plans         Short-term (next two years) 
  to advance any increase in           The Company is planning to 
  production?                          increase production by bringing 
                                       the Zafar deposit into production 
                                       as follows: 
                                        *    July 2021 - Maiden JORC mineral resource estimate. 
 
 
                                        *    Q4 2021 - Final JORC mineral resource estimate. 
 
 
                                        *    H1 2022 - JORC mineral reserve estimate and commence 
                                             tunnelling. 
 
 
                                        *    H2 2022 - Large scale underground construction 
                                             begins. 
 
 
                                        *    H1 2023 - Production begins. 
 
 
                                       Some ore extraction is expected 
                                       in 2022 during development 
                                       as the mine moves towards full 
                                       scale production. 
                                       The Company is also planning 
                                       to produce ore from Avshancli 
                                       in Q4 2021/Q1 2022. 
                                       Long-term (after two years) 
                                       The Company plans to increase 
                                       production from further deposits 
                                       identified by its current geological 
                                       exploration programme at Gedabek, 
                                       Gosha and Ordubad and existing 
                                       deposits in the newly restored 
                                       contract areas. 
                                     ------------------------------------------------------------ 
 Exactly when will the Board          The Company will share its 
  be in a position to expand           short-term production plans 
  on its growth ambitions with         as follows: 
  much more detailed metrics            *    Avshancli - by end of 2021. 
  and timescales, against which 
  its performance may be more 
  objectively judged by investors?      *    Zafar - 2022 when the JORC mineral reserve estimates 
                                             are published. 
 
 
                                       Shareholders will also be updated 
                                       about additional production 
                                       from the restored contract 
                                       areas and from further deposits 
                                       identified by the current exploration 
                                       programme as the Company's 
                                       plans develop. 
                                     ------------------------------------------------------------ 
 What level of production would       +100,000 gold equivalent ounces 
  be classified by the Company         per annum. 
  as "mid-tier"? 
                                     ------------------------------------------------------------ 
 If the Company cannot advance        The Company will return surplus 
  its production to mid-tier           funds to shareholders if there 
  level and there is no call           is no call on those funds. 
  on the Company's funds, can          However, given the development 
  they be returned to shareholders?    costs of Zafar and other opportunities, 
                                       the Company believes its current 
                                       funds will be required for 
                                       investment in its business. 
                                     ------------------------------------------------------------ 
 

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

**ENDS**

For further information please contact:

 
 Reza Vaziri        Anglo Asian Mining plc          Tel: [phone] 
 Bill Morgan        Anglo Asian Mining plc          Tel: [phone] 
                   ------------------------------  ---------------------- 
 Stephen Westhead   Anglo Asian Mining plc          Tel: [phone] 
                   ------------------------------  ---------------------- 
 Ewan Leggat        SP Angel Corporate Finance      Tel: [phone] 
                     LLP                             0470 
                     Nominated Adviser and Broker 
                   ------------------------------  ---------------------- 
 Adam Cowl          SP Angel Corporate Finance      Tel + 44 (0) 20 3470 
                     LLP                             0470 
                     Nominated Adviser and Broker 
                   ------------------------------  ---------------------- 
 Megan Ray          Blytheweigh Financial           Tel: + 44(0) 20 7138 
                                                     3224 
                   ------------------------------  ---------------------- 
 

Notes:

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 at its active Gedabek, Gosha and Ordubad contract areas assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement ("PSA") modelled on the Azeri oil industry. The Company also has three recently restored contract areas in the formerly Occupied Territories and Karabakh under its PSA and which the Company has started to preliminary evaluate.

The Company's main operating location is the Gedabek contract area ("Gedabek") which is a 300 square kilometre area in the Lesser Caucasus mountains in western Azerbaijan. The Company developed Azerbaijan's first operating gold/copper/silver mine at Gedabek which commenced gold production in May 2009. Mining at Gedabek was initially from its main open pit which 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.

The Company produced 67,249 gold equivalent ounces ("GEOs") for the year ended 31 December 2020. Gedabek is a polymetallic ore deposit that has gold together with significant concentrations of copper in the main open pit mine. The Company therefore employs a series of flexible processing routes to optimise metal recoveries and efficiencies. The Company produces gold doré through agitation and heap leaching operations, copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant and also a copper and precious metal concentrate from its flotation plant.

The Company has a production target for the year to 31 December 2021 of 48,000 ounces to 54,000 ounces of gold and 2,500 tonnes to 2,800 tonnes of copper. This total production target expressed as gold equivalent ounces ("GEOs") at budgeted prices is between 64,000 GEOs and 72,000 GEOs.

Anglo Asian is also actively seeking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for properties in other jurisdictions in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCDKFBNABKDBAB

(END) Dow Jones Newswires

June 29, 2021 02:00 ET (06:00 GMT)