Anglo Asian Mining PLC Regulatory News (AAZ)

27 Oct 2005 07:01

Anglo Asian Mining PLC27 October 2005 For immediate release on 27 October 2005 AIM: AAZ ANGLO ASIAN MINING PLC ("Anglo Asian") First drilling results from Azerbaijan The company has almost completed three deep drill holes in the area believed tobe the location of DDH-1, a drill hole sunk during the Soviet era of occupationin the Ordubad fault zone, close to Piyazbashi in Nakhchivan and outside the 8properties identified with Inferred Resources set out in the AIM AdmissionDocument. It has received the assay results from the first new deep drill hole,which was sunk 4 metres away from DDH-1 to a depth of 360 metres. Samples ofthe core from this hole have been assayed at an approved independent laboratoryand have returned an average gold content of below 0.1 g/t, which compares withSoviet data averaging 3.2 g/t over 298 metres in DDH-1. The directors of Anglo Asian are not yet convinced that these results reflectcorrectly the expected mineralogy of the area around DDH-1. There are a numberof reasons that could have led to the discrepancies between the Soviet eraresults and those from the new hole: 1. Although only 4 metres from a Soviet era deep drill hole believed to be DDH-1, the first new vertical drill hole could have missed what may be a steeply dipping vein; 2. The preparation of the samples may have been unrepresentative; and 3. The presumed location of DDH-1 may have been mis-identified. Since DDH-1 was beyond the detailed maps of the nearby Piyazbashi property, in common Soviet practice, the latitude and longitude of DDH-1 was not set out on the drill log. Its expected location was found by anecdotal evidence. The following actions are underway on this series of three drill holes, whichare in similar rock formations: 1. The samples from the second new drill hole that has been sunk 25 metres south of the first new hole have been split 50 per cent. for retention and the balance is being tested by two different approved laboratories; 2. The location of the DDH-1 is in the process of being verified; and 3. The third new hole is being drilled a further 25 metres to the south of the second new drill hole, which is approximately 30 per cent. complete. Charles Hancock, Chief Executive of Anglo Asian, said, "Whilst we aredisappointed that the assay results from this first hole appear unsatisfactory,it is only the first of an extensive drilling campaign over the next two yearscovering areas including 8 properties with Inferred Resources. Samples by AngloAsian's reporting consultants, Behre Dolbear, prior to the flotation of thecompany, supported the high gold values reported by Azeri and Soviet geologistsin the eight separate properties in Ordubad, Gosha and Gedebek." As no value was attributed at the time of the flotation to the Ordubad faultzone, these assay results do not affect the 15.6 Moz Au eq. Inferred Resourcescited by Behre Dolbear in the AIM Admission Document. Anglo Asian will continueits drilling, resampling and refurbishing campaign across a number of itsproperties in Azerbaijan with a view to updating reserve and resource figures toWestern Standards. Two further drill rigs are arriving in Azerbaijan within thenext 7 days. Further commentary on these and other activities underway towardsgold production are contained in the statement accompanying the company'sinterim results announced today. -Ends- For further details, please contact: Anglo Asian Mining PLC Charles Hancock, Chief Executive +44 20 7409 3232 Numis Securities Limited John Harrison +44 20 7776 1590 Parkgreen Communications Justine Howarth +44 20 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange