Xarxar maiden JORC Mineral Resource Estimate

Anglo Asian Mining PLC

20 February 2024

 

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: [phone]
Bill Morgan, Chief Financial Officer	Tel: [phone]
Stephen Westhead, Vice President	Tel: [phone]
SP Angel Corporate Finance LLP (Nominated Adviser and Broker) Ewan Leggat Adam Cowl	Tel: [phone]
Hudson Sandler (Financial PR) Charlie Jack Harry Griffiths	Tel: [phone]

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.

 

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