Gosha Gold Project Update, Azerbaijan

RNS Number : 4102S

Anglo Asian Mining PLC

21 November 2011

 



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

21 November 2011

Anglo Asian Mining plc ('Anglo Asian' or 'the Company')

Gosha Gold Project - Development and Production Programme Submitted

Anglo Asian Mining plc, the AIM listed gold producer, has submitted the Development and Production Programme for its 300 sq km Gosha Contract Area ('Gosha') in western Azerbaijan to the Government of Azerbaijan.  It is the Company's intention to develop a small, profitable, high grade underground gold mine at Gosha, producing gold at an average rate of 10,000 to 15,000 ounces per annum for a period of up to five years, with first production anticipated H1 2013.

The Development and Production Programme has been submitted following a Notice of Discovery made in February 2011 at Gosha, after an active exploration programme in 2010, which included 3,000 metres of drilling and 300 metres of adit and sample work.  Under the terms of the Production Sharing Agreement, the Government of Azerbaijan has thirty days to request further information that it may reasonably need to evaluate the Development and Production Programme.  If the Government of Azerbaijan has not made any requests to change the Development and Production Programme in writing within ninety days of receipt, then the Programme is deemed acceptable to the Government.

To date, the Company has only explored some of the known areas of mineralisation at Gosha and at present no JORC compliant information on Gosha's resource is available. However if the Development and Production Programme is accepted, Anglo Asian plans to implement further drilling campaigns in order to increase the economics of the proposed mine.  Further information regarding the progress of the Development and Production Programme for Gosha, together with a summary of the proposed work programme, if accepted, will be made in due course.

Anglo Asian CEO Reza Vaziri said, "The development of Gosha will be another significant step for Anglo Asian as we look to become a leading mid-tier gold producer in Caucasia and Central Asia.   Gosha has the potential to increase our gold production profile and replicate, on a smaller scale, the success of our flagship Gedabek gold/copper mine, which is targeted to produce circa 58,000 to 60,000 ounces of gold for FY 2011.  I look forward to updating shareholders on the progress of the Production and Development Programme in due course as we look to establish our second mining operation in Azerbaijan."

**ENDS**

For further information please visit www.aamining.com or contact:

Reza Vaziri	Anglo Asian Mining plc	Tel: [phone]
Andrew Herbert	Anglo Asian Mining plc	Tel: [phone]
Stuart Skinner	Numis Securities Limited, as Nominated Adviser	Tel: [phone]
James Black	Numis Securities Limited, as Corporate Broker	Tel: [phone]
Felicity Edwards	St Brides Media & Finance Ltd	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]

Glossary

Production Sharing Agreement: a revenue sharing contract modeled on Azerbaijan's internationally renowned oil industry, which ensures the country benefits from its natural resources wealth.

Notes:

Anglo Asian Mining plc (AIM:AAZ) is a gold producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan.  The Company has a 1,962 sq km prospective exploration portfolio, assembled on the back of analysis of historic Soviet geological data and held under a Production Sharing Agreement ('PSA') based on the Azeri oil industry.  The Company developed Azerbaijan's first operating gold/copper mine, Gedabek, which commenced gold production in May 2009.  Gold production for the year ended 31 December 2010 totalled 67,267 oz of gold.

Anglo Asian is actively looking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in Central Asia and Caucasia in order to fulfil its expansion ambitions and become a mid-tier gold and base metal production company focussed in these regions.

 

END

 

 

MSCDVLFFFFFFFBE