Anglo Asian Mining PLC Regulatory News (AAZ)

21 Apr 2009 09:45



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

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

Extension of Exploration Licences

Anglo Asian Mining plc, the AIM listed mining development company with gold and copper properties in Azerbaijan, is pleased to announce that the Azeri Government has granted the Company a two year extension to continue exploration for precious and base metals on the Company's 300km² Gosha and 462km² Ordubad Contract Areas. The exploration period relating to the Gosha and Ordubad Contract Areas will now continue until 13 April 2011. These development properties form part of Anglo Asian's gold-copper focussed portfolio in Azerbaijan, which includes the 300km² Gedabek development property expected to begin gold production in Q2 2009. The Notice of Discovery in respect to the Gedabek Contract Area was submitted on 26 February 2007 and automatically allows further exploration and development for a minimum period of 15 years on this Contract Area.

The Gosha Contract Area, situated 50 km north-west of Gedabek, contains the Gosha prospect as well as the Itkirlan and Munduglu prospects. Previous plans envisaged that the Gosha prospect would be exploited by open pit mining. However recent studies indicate that any development at this property is now likely to be by way of underground mining. 

The Company has prepared an expansive exploration programme based on the new studies through which it aims to define a new resource for the Gosha Contract Area. Anglo Asian has received all necessary exploration approvals from the Azeri Government and the programme is expected to be funded out of the Company's cashflow from the Gedabek gold mine.

The Ordubad Contract Area in the Nakhchivan region contains numerous targets including Shakardara, Piyazbashi, Misdag, Agyurt, Shalala and Diakhchay, which are all located within a 5km radius. Exploration work will be centred primarily on the three copper prospects at Agyurt, Shalala and Diakhchay, which the Company believes also have the potential to contain gold and molybdenum. The remaining properties in the Contract Area are Yashiling, Goyhundur, Keleki and Kotam.

Anglo Asian CEO Reza Vaziri said, "We are delighted to have secured a two year extension to continue exploration work at these two key Contract Areas. In addition to Gedabek, 2008's exploration strategy focused on prospective targets in Ordubad and Gosha. Through an extensive drilling and evaluation programme we aim to assess the feasibility and production potential of these areas and look forward to updating the market in due course.

"Exploration is key to our long-term future. We control an extensive portfolio of prospective properties, which we believe have the potential to replicate our success at Gedabek where we expect gold production later this quarter."

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