(Sharecast News) - Anglo Asian Mining reported promising drill results from the Gilar deposit in Azerbaijan on Monday, confirming an expansion of mineralisation compared to previous findings.
The AIM-traded firm said the drilling efforts unveiled up to 21 metres of continuous gold and copper mineralisation.
It said the Gilar deeper zone, rich in gold, copper, and zinc, now exhibited an intercept thickness exceeding 20 metres.
Additionally, two step-out drill holes reinforced the potential for extending that mineralisation.
Given its depth, Anglo Asian said it intended to continue drilling from underground locations.
In preparation for accessing the mineralisation, the company said it was progressing with the construction of the main decline and a ventilation tunnel, while an area had also been designated for rock storage, and plans for a haul road from the mine to the processing plant were finalised.
A temporary heavy earthworks equipment workshop was set to start construction at the portal area.
Critical support measures were implemented at the portal pushback area, including geotechnical wire mesh and shotcrete.
Further infrastructure enhancements, such as a boundary fence, lighting, and auxiliary equipment, including compressors and generators, had now been installed.
Anglo Asian said it was also working on a Joint Ore Reserves Committee (JORC) mineral resource estimate (MRE) for the Gilar deposit.
The company said its independent geological consultants, Mining Plus UK, had completed a site visit in September as part of the due diligence process.
It was expecting the release of the maiden JORC MRE for the Gilar deposit in November.
"The drilling results have further confirmed the extension potential of the deeper mineralisation, which will form an important component of the upcoming JORC report and prove once again the significance of the Gilar deposit," said the company's vice-president, Stephen Westhead.
"We look forward to continuing to develop the Gilar deposit, culminating in the first production in the first half of 2024.
"The Gilar mine will be an important contributor to the future production of the company given the high grades of both gold and copper."
At 0919 BST, shares in Anglo Asian Mining were up 1.26% at 44.56p.
Reporting by Josh White for Sharecast.com.
Anglo Asian (AAZ)