Last checked at 13 Apr 2010 08:00
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
13 April 2010
Anglo Asian Mining plc ('Anglo Asian' or 'the Company')
Resource Upgrade - Gedabek
Anglo Asian Mining plc, the AIM listed emerging gold producer, is pleased to announce the initial results of Phase I of the Realistic Mineral Resources Model Report ('the Report') produced by SGS Canada Incorporated Geometallurgy Group ('SGS') on behalf of the Company.
With the benefit of information and data derived from the Company's successful exploitation of the Gedabek gold/copper mine in Azerbaijan ('Gedabek') together with additional drilling information gathered by SGS at Gedabek, the Report reassesses the data employed in making the JORC Code compliant mineral resources statement provided by SRK in 2006. It indicates upgrades for the measured, indicated and inferred gold, copper and silver metal contents of at least 50%.
The mineral resources were estimated by accessing, reviewing, validating and processing the whole geological and chemical information from 141 exploration diamond and reverse circulation (29 diamonds, 34 reverse circulation and 78 combined) drillholes and 262 production blastholes.
Important notice
This announcement is being made by Anglo Asian pursuant to AIM Rule 11 and the Guidance Note for Mining, Oil and Gas Companies dated June 2009 ('the Guidance Note') issued by the London Stock Exchange. The Report has been prepared in accordance with JORC Code standards but has yet to be signed off by a JORC Qualified Person. A report which complies with the JORC Code is expected within the next four weeks and a further announcement will be made at that time.
It should also be noted that the Report represents the first phase of SGS's work; the second phase of the project will involve in-fill drilling to increase the reliability of the results obtained from the original drill holes. This work is expected to be completed in late 2010 and will increase the confidence of the Anglo Asian Board in the new resource evaluations. The results of the Report are therefore subject to revision.
Professor John Monhemius, a director of Anglo Asian, has reviewed and approved the information contained in this press release as a qualified person for the purposes of Part Two of the Guidance Note. Professor Monhemius is Fellow of the Institute of Materials, Minerals and Mining.
Anglo Asian CEO Reza Vaziri said, "These upgraded numbers are very good news for Anglo Asian and increase our confidence in the rising value of the Gedabek mine. The plant is now running well and with the Report providing initial indications of a significantly larger resource, we are increasingly confident of achieving our objective of becoming a mid-tier gold and base metal production company in Azerbaijan."
**ENDS**
For further information please visit www.aamining.com or contact:
| Reza Vaziri | Anglo Asian Mining plc | Tel: +994 12 596 3350 |
| Andrew Herbert | Anglo Asian Mining plc | Tel: +994 12 596 3350 |
| John Harrison | Numis Securities Limited, as Nominated Adviser | Tel: +44 (0) 20 7260 1000 |
| James Black | Numis Securities Limited, as Corporate Broker | Tel: +44 (0) 20 7260 1000 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
| Felicity Edwards | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Notes:
Anglo Asian Mining plc (AIM:AAZ) is an emerging gold producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 sq km prospective exploration portfolio, assembled on the back of analysis of historic Soviet geological data and held under a Production Sharing Agreement ('PSA') based on the Azeri oil industry. The Company developed Azerbaijan's first operating gold/copper mine, Gedabek, which commenced gold production in May 2009.
Anglo Asian is actively looking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in Central Asia and Caucasia in order to fulfil its expansion ambitions and become a mid-tier gold and base metal production company focussed in these regions.