Exploration Results & Update

17 Jan 2006 07:01

Anglo Asian Mining PLC17 January 2006 17 January 2006 AIM: AAZ ANGLO ASIAN MINING PLC ("Anglo Asian" or "the Company") Further exploration results from Azerbaijan and trading update Anglo Asian reports on the further preliminary exploration work carried outwithin the Gosha property and the Ordubad Contract Area, which includes thePiyazbashi, Shakardara and Misdag properties, in accordance with its ongoingexploration programme. The initial results from the Gosha and Piyazbashiproperties have been encouraging and confirm the original Soviet data. Theresults from the first of three adits at Shakardara have been disappointing. Gosha Results from the first 100 continuous channel samples over 200 metres from adits5 and 7 of the Gosha property give an average of 3.02 grams per tonne ("g/t") ofgold, including 48 metres averaging 5.18g/t gold in adit 5 and 20 metres at14.84g/t gold in adit 7. These results confirm two of the large vein-likestructures as described in the AIM Admission Document and are in line with theSoviet data. Results from a further 218 samples from adits 5 and 7 are expectedby the end of January 2006. Ordubad Anglo Asian has carried out preliminary sampling and drilling at its Piyazbashiproperty and sampling at its Shakardara and Misdag properties within the OrdubadContract Area. Piyazbashi Results have been received from the first two deep diamond drill holes on thePiyazbashi property along with 28 samples from adit 1. The preliminary resultsreceived to date confirm the presence and gold grade of the veins, which isbroadly in line with the Soviet data. Full detailed results will be publishedin the near future together with the results of continuing further drilling. Areas outside the defined Piyazbashi property have also been investigated by theuse of trenching and reverse circulation drilling. The results from thesestep-out areas showed minimal gold content. These areas did not include anyinferred resources. Shakardara At Shakardara, although a single sample result yielded 2.1 g/t gold, the averageof the preliminary channel sampling of adit 12 was 0.09 g/t of gold, as opposedto the Soviet classified grade in that adit of an average of 1.1 g/t gold over380 metres. Retesting and resampling of the dump outside adit 12 (although anunrepresentative method of sampling) gave two results around 1 g/t, in contrastto the significantly higher grades of two samples taken by the Company'sconsultants, which were included in the AIM Admission Document of 14.88 and 33.6g/t gold. Those two high grade samples were not used to calculate the inferredresource but contributed to the estimation of the upside potential. The copper inferred resource of Shakardara stated in the AIM Admission Documentis not based on adit 12 but mainly from results from other parts of the deposit,including adit 10. Sampling will commence on adits 10 and 11, the other mainadits at Shakardara, following the clearance of blockages. Results from theseadits are therefore not expected until at least the end of March 2006.Continued sampling at Shakardara will help to establish the reasons for the goldgrade shortfall in and around adit 12 and to gain further information on thisproperty. Misdag Forty reconnaissance composite samples at 10 metre intervals have been taken atadits 12 and 13 at the Misdag property, which gave an average of 0.64% copper,including one sample at 3.78% copper. The Soviet data gave an average grade forMisdag of 0.43% copper. More extensive sampling work is due to commence in lateMarch. Going forward The Company has retained SRK Consulting to assist in the prioritisation of itsproperties. The CIL plant acquired by the Company in Australia is currently beingdismantled, put into containers and transported to the port of Mackay,Queensland. This is expected to be completed by late February, with a largepart of the plant already in the port vicinity. The Company will then be ableto store the plant at the port, maintaining flexibility for it to be moved atshort notice. A new portable modular analytical laboratory, capable of processing 300 samplesper day, is presently en route to Azerbaijan from the USA. This is expected tobe fully operational within three months. The exploration programme will be extended to the Gedebek property, whereextensive cleaning of adits and establishment of some infrastructure has alreadybeen carried out. Further sampling will be carried out at Misdag, Agyurt and Shakardara in orderto optimise the drilling programme planned for these properties. The Company had cash resources of $21.3 million at 31 December 2005, at whichpoint an estimated $5 million was outstanding on the plant and for completion ofthe dismantling contract. Once these obligations have been discharged, theCompany will own the containerised asset at the port in Australia. Reza Vaziri, Executive Chairman of Anglo Asian, commented, "The Gosha andPiyazbashi results give the Company comfort and encouragement in contrast to ourdisappointment with the first adit result at Shakardara. The full impact ofthis initial adit result on Shakardara will not be established until samplingfrom adits 10 and 11 have been analysed." -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 / Victoria Thomas +44 20 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange