News alert from Anglo Asian Mining PLC

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

14 July 2022

Anglo Asian Mining plc

Q2 & H1 2022 Production and Operations review

Production of 15,052 gold equivalent ounces in Q2 2022

Parliamentary ratification granted for three new Contract Areas

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide a production, sales and operations review for the three months to 30 June 2022 ("Q2 2022") and six months to 30 June 2022 ("H1 2022").

Note that all references to "$" are to United States dollars.

Operational update

·   On 5 July 2022, amendments to the Company's Production Sharing Agreement were signed into law granting the Company three new Contract Areas as announced on 29 September 2021

oXarxar, Garadagh and Demirli, the three new Contract Areas, cover a combined area of 882 square kilometres

Q2 2022 Production update

·   Gold production totalled 10,866 ounces (Q2 2021: 12,340 ounces)

·   Copper production totalled 715 tonnes (Q2 2021: 695 tonnes)

·   Silver production totalled 48,810 ounces (Q2 2021: 43,565 ounces)

·   Total production of 15,052 GEOs (Q2 2021: 16,740 GEOs)

H1 2022 Production update

·   Gold production totalled 20,906 ounces (H1 2021: 24,247 ounces)

·   Copper production totalled 1,283 tonnes (H1 2021: 1,333 tonnes)

·   Silver production totalled 99,499 ounces (H1 2021: 78,980 ounces)

·   Total production of 28,772 GEOs (H1 2021: 32,171 GEOs)

Q2 2022 sales and cash update

·   Cash of $21.1 million at 30 June 2022 (31 March 2022:$29.4 million)

·   Inventory valued at $15.6 million as at 30 June 2022 (7,000 ounces of gold valued at $12.7 million and copper concentrate valued at $2.9 million)

Reza Vaziri, Chief Executive Officer of Anglo Asian, commented:

"We are delighted to have received Parliamentary Ratification for the new contract areas in early July, allowing our team access to the Garadagh and Xarxar sites. We are now working on our three-year production plan and to summarise our resources. The three new contract areas transform our asset base, and we are excited to begin our transition into a copper focused miner.

"We are also pleased to have reported solid rates of production during quarter two and the first half of 2022, with quarter two being slightly above quarter one and both generally being consistent with last year. This is despite lower grades at Gedabek due to the resource nearing the end of its life.

"The Company remains focused on developing Vejnaly and the Hasan vein at Gosha, both of which we anticipate entering production in H2 2022,as well as bringing the major new mine at Zafer into production in 2023."

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, which was incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement.

For further information please contact:

Notes to editors:

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 produced 64,610 gold equivalent ounces ("GEOs") for the year ended 31 December 2021.  

In December 2021, the Company undertook a private placement which acquired 19.8 per cent. of Libero Copper & Gold Corporation ("Libero"). The transaction was completed in January 2022. Libero is listed on the TSX Venture Exchange in Canada and owns, or has the option to acquire, several copper exploration properties in North and South America, including Mocoa in Colombia, one of the world's largest undeveloped copper-molybdenum resources.    

On 5 July 2022, the Government of Azerbaijan ratified amendments to its Production Sharing Agreement, granting Anglo Asian three additional concessions totalling a combined area of 882 square kilometres. This includes the Garadagh porphyry copper deposit, with a Soviet classified resource of over 300,000 tonnes of copper. The acquisition of these concessions is transformational to Anglo Asian's asset portfolio and underpins the strategic target of transitioning into a mid-tier copper focused miner.

https://www.angloasianmining.com/

Appendix

Q2 2022 Production Overview

·   Total production of 15,052 GEOs (Q2 2021: 16,740 GEOs)

·   Gold production totalled 10,866 ounces (Q2 2021: 12,340 ounces):

o 10,137ounces contained within gold doré

o 14ounces from SART processing

o 715 ounces from flotation

·   Copper production totalled 715 tonnes (Q2 2021: 695 tonnes):

o 168 tonnes from SART processing

o 547 tonnes from flotation processing

·   Silver production totalled 48,810 ounces (Q2 2021: 43,565 ounces):

o 7,620 ounces contained within gold doré

o 25,548ounces from SART processing

o 15,642ounces from flotation

H1 2022 Production Overview

·   Total production of 28,772 GEOs (H1 2021: 32,171 GEOs)

·   Gold production totalled 20,906 ounces (H1 2021: 24,247 ounces):

o 19,100ounces contained within gold doré

o 26ounces from SART processing

o 1,780 ounces from flotation

·   Copper production totalled 1,283 tonnes (H1 2021: 1,333 tonnes):

o 356 tonnes from SART processing

o 927 tonnes from flotation processing

·   Silver production totalled 99,499 ounces (H1 2021: 78,980 ounces):

o 15,194 ounces contained within gold doré

o 50,656ounces from SART processing

o 33,649ounces from flotation

Operations Review

The Company mined the following ore in the six months ended 30 June 2022:

The Company processed the following amounts and grades of ore by leaching forFY 2021 and H1 2022:

* includes previously heap leached ore.

The Company processed the following amounts of ore and contained metal by flotation forFY 2021 and H1 2022:

The following table summarises gold doré production and sales at Gedabek for FY 2021 and H1 2022:

* including Government of Azerbaijan's share

** excluding Government of Azerbaijan's share

Gold and silver productionfrom agitation and heap leaching for H1 2022 is as follows:

The following table summarises copper concentrate production from both the Company's SART and flotation plants at Gedabek for FY 2021 and H1 2022:

Note

* including Government of Azerbaijan's share.

Certain amounts for SART and flotation production may differ to those previously disclosed due to final reconciliation of production.

The following table summarises total copper concentrate production and sales for FY 2021 and H1 2022.Note that sales of concentrates are initially recorded at provisional amounts until agreement of final assay:

* including Government of Azerbaijan's share

** excludes Government of Azerbaijan's share

==