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(Sharecast News) - Anglo Asian Mining, a gold, copper, and silver producer based in Azerbaijan, announced on Thursday that it has completed an initial geological block model and open pit optimisation study at the Xarxar deposit.
The AIM-traded firm said it was expecting to mine and process three million tonnes of ore per year, with a production target of 10,000 tonnes of copper metal per annum over a seven-year period.
It said the Xarxar deposit had been the focus of an extensive geological exploration programme since July last year, which targeted the central copper mineralisation zone.
The programme involved surface drill holes, which intercepted significant high-grade and continuous grades of copper mineralisation.
Anglo Asian said the base case open pit optimisation study was carried out using a copper price of $8,000, and showed more than 93,000 tonnes of economically-extractable copper.
The company said it intended to carry out JORC-compliant reporting on completion of the ongoing drilling and exploration programme.
It added that it was planning to carry out an underground mining method trade-off study to assess the economics of underground mining.
The board said that would enable the preparation of the optimum mining plan for a combined open pit and underground mine.
An alternative approach, using the option of in-situ recovery, was also being studied.
Meanwhile, exploration was continuing in the central mineralisation zone, and further resource estimation would be carried out.
"These results represent an important step in our strategy of transitioning to a mid-tier miner, as Xarxar is expected to contribute a considerable amount of annual copper production to our portfolio," said Anglo Asian's vice-president Stephen Westhead.
"The initial study and exploration have delivered significant upside potential.
"The company is enthused by the positive results and potential for advancing a 100,000 tonne plus copper metal project towards the production target."
Westhead said the project's development options, including mining, processing and in-situ recovery, were being assessed.
"The rock mass properties, the presence of copper and molybdenum minerals and the geological setting suggest a porphyry formation."
At the close on Thursday, shares in Anglo Asian Mining were up 7% at 107p.
Reporting by Josh White for Sharecast.com.
