News alert from Anglo Asian Mining PLC

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

14 March 2022

Anglo Asian Mining plc

H2 2021 Geological Exploration Activities

Zafar Drilling intercepted excellent results

Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM-listed gold, copper and silver producer focused on Azerbaijan, is pleased to provide a summary of its extensive geological exploration activities from 1 July to 31 December 2021 ("H2 2021").

Highlights

·    New sub-vertical gold vein, "Hasan", discovered at Gosha

o Bonanza gold intersections returned of up to 229.5 grammes of gold per tonne

·    Extensive drilling continued at Zafar for the preparation of the final Mineral Resource and Ore Reserves

o One drill hole encountered abundant sulphide mineralisation with a thickness of 133 metres and grading 0.85 per cent. copper, 1.35 per cent. zinc and 0.58 grammes of gold per tonne

o 40 core drill holes totalling 20,113 metres were drilled with 34 drill holes returning grades above reportable limits

o Bench scale X-Ray diffraction (XRD) now in use to enable "real time" geochemical analysis of core samples

o Maiden Mineral Resource of Zafar published 16 August 2021

·    Core drilling programme at Gilar continued into H2 2021

o Discovery of a new mineralisation body, a south-west continuation of the Gilar deposit

o 17 surface core drill holes were completed totalling 9,882 metres

o Gold grades returned of up to 10.33 grammes of gold per tonne

·    Near mine exploration continues at the Gedabek open pit and at the Gedabek and Gadir underground mines, which continue to identify mineable extensions

o 24 reverse circulation infill drill holes of total length 1,969 metres completed in pit 5 and pit 9 of the Gedabek open pit with copper grades of up to 3 per cent.

o 22 core drill holes of total length 2,360 metres completed in the Gedabek/Gadir underground mines with grades returned of up to 13.06 grammes of gold per tonne 

·    No geological field work was carried out at Ordubad during the period due to COVID-19 restrictions

o Geological logging and re-analysis of previously drilled core samples continued 

·    No impact on exploration activities in Azerbaijan is expected as a result of Russia's invasion of Ukraine.

Anglo Asian Vice-President, Stephen Westhead commented: "We continued to make solid progress with our exploration campaign in the second half of last year, with the exciting discovery of the Hasan vein at Gosha. In addition, we pursued our exploration programmes at Gilar, Gedabek and Gadir with a view to strengthening our reserves base and identifying new targets.

"Our drilling programme at Zafar has continued to demonstrate very encouraging results and we plan to commence production next year, following the publication of the final mineral resource estimate and subsequent mineral reserves estimate and mine design."

Detailed Reports on the Geological Work at Gedabek and Gosha

Further details about the geological work carried out at Gedabek in H2 2021 can be found below.

https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2022/03/H2-2021_Exploration_Activities-Gosha_FINAL.pdf

Further details about the geological work carried out at Gosha in H2 2021 can be found below.

https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2022/03/Gedabek-exploration-report-H2-2021-FINAL.pdf

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 September 2021, the Company announced a transaction with the Government of Azerbaijan which grants it three additional concessions with a combined area of 882 square kilometres, including the Garadagh porphyry copper deposit, with a Soviet classified resource of over 300,000 tonnes of copper. The transaction is subject to ratification by the parliament of Azerbaijan.

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.    

https://www.angloasianmining.com/

Gedabek geological work

Gedabek open pit

In H2 2021, 24 reverse circulation infill drill holes were completed for a length of 1,969 metres in pit 5 and pit 9. Good copper grades in these copper-rich areas were encountered with notable intersections as follows:

Zafar Deposit

The maiden Mineral Resource estimate for the Zafar deposit was published on 16 July 2021. The final Mineral Resource will be published by the end of April 2022.

40 core drill holes totalling 20,113 metres were completed with 34 drill holes returning grades above reportable limits. One drill hole encountered abundant sulphide mineralisation with a thickness of 133 metres and grading 0.85 per cent. copper, 1.35 per cent. zinc and 0.58 grammes of gold per tonne. Bench scale X-RAY diffraction (XRD) analysis commenced in H2 2021. This uses a portable machine to undertake geochemical analysis of core samples. The results are obtained in "real time" without the need to wait for laboratory analysis, facilitating a better focused drill programme.

Notable drill intersections were as follows:

Gedabek and Gadir underground mines

The Gedabek and Gadir underground mines are now connected and form one continuous underground network of tunnels accessible from both the Gadir and Gedabek portals. Both underground drilling and mapping continued in H2 2021. The underground drilling was conducted along the tunnelling connecting the Gedabek and Gadir portals. 22 core drill holes with a total length of 2,360 metres were completed.

Notable intersections were as follows:

Gilar

The core drilling programme which commenced in the first half of the year continued in H2 2021. Seventeen surface core drill holes were completed for a total length of 9,881 metres. The drilling is allowing the determination of zone continuity and has revealed a new mineralisation body, which is a south-west continuation of the deposit. The Company continues to assess the economic feasibility of tunnelling for exploration to allow for underground drilling and bulk sampling. Notable intersections comprised 3.1 metres at 8.22 grammes of gold per tonne, 3.1 metres at 7.87 grammes of gold per tonne and 1.85 metres at 10.33 grammes of gold per tonne. 

Avshancli

92 reverse circulation drill holes with a total length of 2,176 metres were completed at Avshancli-1 and 9 reverse circulation drill holes with a total length of 1,022 were completed at Avshancli-2 in H2 2021. The geological work to date at Avshancli-1 shows discontinuous surface mineralisation with gold grades dropping off from the surface as the structures narrow with depth. Given the distribution of mineralisation, economic volumes of ore are likely to be small. It is unlikely further drilling will take place at Avshancli-1.  Avshancli-2 and Avshancli-3 are not now priority targets.

Gosha geological work

The Gosha contract area is situated close to the border with Armenia. There was no geological exploration in H1 2021 due to the conflict between Armenia and Azerbaijan. However, geological exploration was restarted in H2 2021.

Geological exploration mainly comprised of surface core drilling, together with some outcrop and trench sampling. The surface core drilling resulted in the discovery of a new sub-vertical high gold grade mineralised vein ("Hasan"), after surface mapping suggested the presence of gold at this location.

The Gosha mine was previously thought to consist of two narrow gold veins, zone 13 and zone 5 to the south. Mining has previously taken place from both these veins. Hasan is located immediately south of zone 5 and intersects it at one point. The host rock mostly exhibits silicification and kaolinisation alteration which changes to quartz-haematite alteration in andesite.

During H2 2021, a total of 4,618 metres of core drilling was completed. Bonanza grades of up to 229.5 grammes of gold per tonne were returned, with significant drill intersections as follows:

The new gold vein can be accessed via a short tunnel from the existing tunnelling at Gosha. The vein is currently being evaluated further and mining of the vein planned.

Ordubad geological work

No geological field work was carried out at Ordubad during H2 2021 as the COVID-19 restrictions prevented drill access to the area. A small geological team remained active at the location and geological re-logging of previously drilled core samples continued.

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 Geological Society of 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 Edition of the '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 mineral resources included in this announcement.

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