20 February 2024
Anglo Asian Mining
plc
Xarxar maiden JORC (2012)
Mineral Resource Estimate completed
25 million tonnes of copper
mineralisation at average grades of 0.48 per
cent.
Anglo Asian Mining plc ("Anglo
Asian" or the "Company"), the AIM-listed gold, copper and silver
producer focused on Azerbaijan, is pleased to announce the
completion of a maiden JORC (2012) Mineral Resource Estimate
for its Xarxar copper deposit (the "Xarxar Deposit"), confirming
24.9 million tonnes of mineralisation with average grades of 0.48
per cent. copper.
Xarxar Deposit
· 24.9 million tonnes of mineralisation with average grades of
0.48 per cent. copper
· 22.0 million tonnes of mineralisation containing 106,000
tonnes of copper within the Measured plus Indicated JORC
categories
· Total in-situ
mineral resource of 119,100 tonnes of copper
· 66 drill holes with a total length of 21,707 metres used for
the maiden Mineral Resource Estimate
·
A 470 metre exploration adit was excavated for
underground drilling and sampling
Stephen Westhead, Vice-President of Anglo
Asian, commented:
"The maiden JORC Mineral Resource Estimate for the Xarxar
Deposit demonstrates that this is a substantial resource,
containing over 100,000 tonnes of copper. We are confident
that the Xarxar mine will be a significant contributor to our
future production, enabling the Company to deliver future growth
and attractive returns to shareholders.
"To further expand the current mineral resources estimate,
work will include surface infill drilling to the east of the
deposit, deposit geotechnical and hydrogeological drilling, and
drilling to supply samples for further metallurgical testwork.
Additional core drill samples will also be subject to external
quality assurance and control. This will enable mineral resources
to be reclassified from Indicated to Measured in preparation for
the full mining study."
Mineral Resource Estimate ("MRE") for the Xarxar Deposit at
January 2024
Reporting cut-off >= 0.2
per cent. copper
Mineral resources estimate
for the Xarxar Deposit by oxidation domain - January
2024
|
Domain
|
Indicated
|
Inferred
|
Indicated and
inferred(i)
|
Tonnes
(Mt)
|
Grade
(%)
|
Metal
(kt)
|
Tonnes
(Mt)
|
Grade
(%)
|
Metal
(kt)
|
Tonnes
(Mt)
|
Grade
(%)
|
Metal
(kt)
|
Oxide
|
5.2
|
0.55
|
28.5
|
0.8
|
0.66
|
5.2
|
5.9
|
0.57
|
33.7
|
Sulphide
|
16.8
|
0.46
|
77.9
|
2.1
|
0.35
|
7.6
|
18.9
|
0.45
|
85.5
|
Total
|
22.0
|
0.48
|
106.3
|
2.9
|
0.44
|
12.8
|
24.9
|
0.48
|
119.1
|
(i) Note that Measured
Resources were nil due to insufficient third-party quality
assurance and quality control ("QAQC") drill core assays being
carried out. Further QAQC drill core assays will be carried
out.
Note that all tonnages
reported are dry metric tonnes. Totals may not add due to
rounding.
The mineral resources estimate in
the above table was prepared using a copper selling price of $9,000
per tonne to determine the amount of copper under the Reasonable
Prospects for Eventual Economic Extraction ("RPEEE") criteria of
JORC.
Further details about the Xarxar
Deposit, the mineral resource estimation and the current work being
carried out at Xarxar can be found below in Appendix
one.
Additional exploration potential of the Xarxar
Deposit
In addition to the MRE stated above,
Xarxar still has significant additional exploration potential. The
parameters of an open pit were also determined at a copper selling
price of $20,000 to calculate a "maximum" pit floor depth. This
maximum depth was used to define two zones, one above the
calculated pit floor level that may be minable by open pit mining
(the "Upper Zone") and one below this level, which may be
accessible by underground mining (the "Lower Zone"). The range of
increase in mineralisation in the Upper Zone and Lower Zone is
shown in the following table:
Zone
|
Range
|
Upper Zone
|
5.04Mt to 10.2Mt at 0.2% to 0.3%
copper
|
Lower Zone
|
0.5Mt to 9.71Mt at 0.3% to 0.6%
copper
|
Interactive presentation on the Xarxar
Deposit
An interactive 3-D presentation on
the Xarxar Deposit including details of its maiden JORC Mineral
Resource is available at https://xarxar-jorc-mre-2024feb.jalnext.com/.
This presentation also includes various depictions of the local
topography of the Xarxar Deposit, details of drill holes, block and
shell models and the location of the exploration adit.
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:
Anglo Asian Mining plc
|
|
Reza Vaziri, Chief Executive
Officer
|
Tel: +994 12 596 3350
|
Bill Morgan, Chief Financial
Officer
|
Tel: +994 502 910 400
|
Stephen Westhead, Vice
President
|
Tel: +994 502 916 894
|
|
|
SP
Angel Corporate Finance LLP (Nominated Adviser and
Broker)
Ewan Leggat
Adam Cowl
|
Tel: +44 (0) 20 3470 0470
|
Hudson Sandler (Financial PR)
Charlie Jack
Harry Griffiths
|
Tel: +44
(0) 20 7796 4133
|
Notes to Editors:
Anglo Asian Mining
plc (AIM:AAZ) is a gold, copper and silver producer with a
high-quality portfolio of production and exploration assets
in Azerbaijan. The Company produced 31,821 gold equivalent
ounces ("GEOs") for the year ended 31 December
2023.
On 30 March 2023, the Company
published its strategic plan for growth which shows a clearly
defined path for the Company to transition to a multi-asset,
mid-tier, copper and gold producer by 2028, by which time copper
will be the principal product of the Company, with forecast
production of around 36,000 copper equivalent tonnes. It plans to
achieve this growth by bringing into production four new mines
during the period 2024 to 2028 at Zafar, Gilar, Xarxar and
Garadag.
https://www.angloasianmining.com/about-us/group-strategy/
Competent Person Statement
The information in the announcement
that relates to exploration results and Mineral Resources is based
on information compiled by Sean Lapham, who is a full-time employee
of Mining Plus UK Ltd with the position of Senior Geology
Consultant. Mr Lapham is a registered member of The Australasian
Institute of Mining and Metallurgy (AUSIMM number 318874) and the
Geological Society of London (Fellowship number
1030350).
Sean Lapham 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'. Sean Lapham consents to the inclusion in the
announcement of the matters based on his information in the form
and context in which it appears.
Sean Lapham has extensive
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. Sean Lapham has reviewed the Mineral Resources
included in this announcement.
APPENDIX ONE
FURTHER INFORMATION REGARDING THE XARXAR DEPOSIT AND THE JORC
(2012) MINERAL RESOURCE ESTIMATE
Xarxar Deposit
The detailed JORC ('Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code) 2012
Edition') "JORC" Mineral
Resource Estimate for the Xarxar Deposit has been published on the
Company's website and is available at:
https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2024/02/UPG12005-XARXAR_JORC_MRE_REPORT_FINAL.pdf
The Table One report accompanying
the JORC Mineral Resource Estimate is available at:
https://wp-angloasianmining-2020.s3.eu-west-2.amazonaws.com/media/2024/02/UPG12005-XARXAR_JORC_TABLE1_FINAL.pdf
The initial announcement about the
Xarxar Deposit, dated 13 March 2023 - "Significant copper mineralisation identified at Xarxar /
Development of Geological Block Model and Open Pit Mining
Study are underway" which gives the background to the Xarxar
property and a subsequent announcement provides information on the
deposit potential; "Targeting 10,000 tonnes of annual copper
production at Xarxar following geological modelling and open pit
optimisation study" dated 16 March 2023 is available on the
Company's website.
Current work at the Xarxar Deposit
Prior to the completion of this JORC
Mineral Resources Estimate, the Company announced on 25 January
2024 the results of its drilling programme and identification of
resource potential titled "Significant copper resource confirmed
at Xarxar" which is available on the Company's website.
Further infill and extension
drilling is now being planned, along with a metallurgical testwork
programme and geometallurgical modelling. Technical drilling will
include programmes for geotechnical investigation, hydrogeological
studies and drilling to supply further metallurgical
samples.
Further exploration targets adjacent
to this deposit have been identified, that will be subject to
geological mapping, surface geological exploration and follow-up
drilling if results are positive.
A mining trade-off study including a
mine design and a production plan will also be prepared.
Xarxar mineral resources - supporting work and independent
expert opinion
The Company contracted Mining Plus
UK Ltd (Mining Plus) to estimate the Mineral Resources of the
Xarxar Deposit. This work incorporated all the data from the most
recent drilling campaign and was designed to increase resource
confidence in the deposit with the aim to convert the majority of
mineralised material to or above an Indicated classification under
the JORC (2012) code, together with the use of inclined holes to
better understand the ore body geometry.
APPENDIX TWO
GLOSSARY OF TERMS AND ABBREVIATIONS
The following definitions are
extracted from the JORC Code, 2012 Edition
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.
|