Anglo Asian Mining : Gedabek Open Pit - JORC Resources and Reserves

RNS Number : 0124B

Anglo Asian Mining PLC

18 September 2018

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

18 September 2018

Anglo Asian Mining plc

Gedabek Main Open Pit - JORC Mineral Resources and Reserves

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer, is pleased to announce updated Mineral Resources and Mineral Reserves, estimated in accordance with the JORC (2012) code, for the Gedabek open pit located at the Company's Gedabek licence area ("Gedabek") in Western Azerbaijan. The resource estimate is based on a robust geological model, which benefits from information gathered during the mining of the deposit, recent geological work and exploration drilling.

Gedabek JORC (2012) Mineral Resource and Reserves

· Total gold and copper Mineral Resource (at a cut-off grade of 0.3 grammes per tonne of gold) containing 985,697 ounces of gold, 63,375 tonnes of copper and 8,171,626 ounces of silver

· Gold and copper Measured plus Indicated Mineral Resource containing 796,269 ounces of gold, 53,676 tonnes of copper and 6,810,813 ounces of silver

· Gold and copper Proved plus Probable Reserves containing 343,160 ounces of gold, 36,011 tonnes of copper and 3,457,030 ounces of silver

· Additional copper-only Mineral Resource (gold grade below 0.3 grammes per tonne and copper grade above 0.3 per cent.) containing 24,914 ounces of gold, 32,606 tonnes of copper and 426,453 ounces of silver

Development update

· A significant amount of targeted drilling was carried out in 2017 and 2018 to date to infill areas where mineralisation continuity was less certain, to provide the required data for resource estimation.

· The geological interpretation of the type of mineralisation style has changed from the previously released JORC resources and reserves. This has resulted in a much tighter control of resource estimation parameters in relation to the geology and structure of the deposit.

· The latest geological model has identified areas where copper mineralisation remains open. Such areas will be subject to further exploration drilling with the objective of increasing resources and reserves.

· Pushback of the backwall to the Gedabek open pit is ongoing. This is exposing ore in the floor of the open pit.

Anglo Asian CEO, Reza Vaziri, said"I am delighted to announce that, after more than nine years of mining at Gedabek, during which time Anglo Asian has produced over half a million ounces of gold, this latest JORC estimate tells us that the Gedabek ore body still contains a surface accessible resource of almost one million ounces of gold and over ninety thousand tons of copper. The economically mineable ore reserves remaining in the open pit mine amount to over 343,000 ounces of gold and more than 36,000 tonnes of copper, which will extend the life of the main pit for a further five to six years. This will give us sufficient time to complete our on-going underground explorations to determine the size and quality of the down dip extensions of the Gedabek ore body. In due course, we will have a JORC estimate of the underground resource and reserves to announce, together with a lifetime estimate for the current underground mining operations."

Anglo Asian Group Director of Geology & Mining, Stephen Westhead, said"This resource update forms part of the geological strategy to formalise all the resources and reserves of the Company and classify them according to the JORC Code of reporting. This will allow us to optimise the blend of ore feed from our various mines to the processing plants at Gedabek. A total gold resource of over one million ounces is significant. In addition, this resource and reserve study identifies areas of mineralisation extension for further exploration. Importantly, the reserves provide sufficient mine life for a study of the open pit to be undertaken to enable a smooth transition of the Gedabek deposit to underground methods, should underground mining be proved economic."

JORC (2012) Mineral Resources and Ore Reserves Statements

The mineral resource and reserves are prepared in accordance with JORC Code (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. The resources and reserves stated below are in-situ.

Mineral Resources

Gold (+ Copper) Mineral Resources(cut-off 0.3g/t gold)
Mineral Resource	Tonnage	Gold	Copper	Silver	Gold	Copper	Silver
	(Mt)	Grade (g/t)	Grade (%)	Grade (g/t)	('000 ounces)	('000 Tonnes)	('000 ounces)
Measured	18.0	0.9	0.2	8.3	532	38.0	4,800
Indicated	11.1	0.7	0.1	5.6	264	15.7	2,011
Measured+Indicated	29.1	0.9	0.2	7.3	796	53.7	6,811
Inferred	8.5	0.7	0.1	5.0	189	9.7	1,361
Total	37.6	0.8	0.2	6.8	986	63.4	8,172
Copper Mineral Resource (Additional to Gold Mineral Resource)(gold <0.3g/t and copper >0.3%)
Mineral Resources	Tonnage	Gold	Copper	Silver	Gold	Copper	Silver
	(Mt)	Grade (g/t)	Grade (%)	Grade (g/t)	('000 ounces)	('000 Tonnes)	('000 ounces)
Measured	5.3	0.1	0.5	2.1	21	26.3	356
Indicated	0.9	0.1	0.5	1.6	3	4.4	48
Measured+Indicated	6.2	0.1	0.5	2.0	24	30.7	404
Inferred	0.5	0.1	0.4	1.5	1	1.9	23
Total	6.7	0.1	0.5	2.0	25	32.6	426

Ore Reserves

Ore Reserves	Tonnage	Gold	Copper	Silver	Gold	Copper	Silver
	(Mt)	Grade (g/t)	Grade (%)	Grade (g/t)	('000 ounces)	('000 Tonnes)	('000 ounces)
Proved	10.9	0.9	0.3	8.8	311	31.9	3,084
Probable	1.2	0.8	0.3	9.5	32	4.1	373
Proved+Probable	12.1	0.9	0.3	8.9	343	36.0	3,457

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 Reserve Estimation

Anglo Asian, together with the mining and geological consulting group Datamine International, prepared the resource and reserves estimation of the Gedabek deposit. This wasfollowing the completion of the recent reverse circulation ("RC") drill holes and core drill holes that supplemented surface outcrop and channel sampling. The total number of exploration drillholes drilled by the Company, since the commencement of exploration in 2007, is 738 with a total of 104,967 metres drilled. The detailed Mineral Resources and Ore Reserve estimation parameters per Table 1 of the JORC code are set out in Appendix one. A glossary of terminology related to the mineral resource and reserves estimate and other information is set out in Appendix two.

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 GeologicalSocietyof 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 Editionofthe '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.

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.

**ENDS**

For further information please visit or 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 LLP Nominated Adviser and Broker	Tel: [phone]
Soltan Tagiev	SP Angel Corporate Finance LLP	Tel + 44 (0) 20 3470 0470
Lottie Wadham	St Brides Partners Ltd	Tel: [phone]
Susie Geliher	St Brides Partners Ltd	Tel: [phone]

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'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,In September 2017, production commenced at the Ugur open pit mine, a recently discovered gold ore deposit at Gedabek. 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 71,461 gold equivalent ounces ('GEOs') for the year ended 31 December 2017. Gedabek is a polymetallic ore deposit that has gold together with significant concentrations of copper in the main open pit mine, and an oxide gold-rich zone at Ugur. 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, which is processing tailings from the agitation leach plant. A second dedicated crusher line has recently been commissioned and is now in operation for the flotation plant to enable it to operate independently of the agitation leaching plant.

The Company has forecast production for FY 2018 of between 78,000 to 84,000 GEOs an increase for the mid-point of this guidance of over 13 per cent. compared to FY 2017 production of 71,461 GEOs.

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.

GLOSSARY OF TERMS AND ABBREVIATIONS

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 Resource	An 'Indicated Mineral 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 Resource	An 'Inferred Mineral 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 Resource	A 'Measured Mineral 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 or Ore Reserves	An 'Ore Reserve' is the economically 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 Reserve	A 'Probable Ore Reserve' is 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.

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

To view a copy of the announcement with relevant JORC Code, 2012 Edition Table 1 appendix, click here

http://www.rns-pdf.londonstockexchange.com/rns/0124B_1-2018-9-17.pdf

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