Gedabek Resource Estimate

1 Dec 2006 07:01

Anglo Asian Mining PLC01 December 2006 ANGLO ASIAN MINING PLC ('Anglo Asian' or 'the Company') GEDABEK RESOURCE ESTIMATE Anglo Asian Mining PLC (AIM: AAZ), the gold and copper development company withprojects in Azerbaijan, is pleased to announce a resource estimate for itsGedabek project: Highlights • JORC compliant resource of 702,000 oz of gold, 37,500 t of copper and 6,100,000 oz of silver at Gedabek, as confirmed by the Company's independent geological consultants, SRK Consultants ("SRK") • The combined estimate results in a gold equivalent resource of 1,081,000 oz • Resource based on 15,507 metres of drilling in 129 diamond core and reverse circulation drillholes • Potential for expanding the resource in a number of directions • On-going metallurgical testwork continues to indicate amenability to heap leaching Gedabek Resources The Company has now completed drilling and received assay results from 15,507metres of drilling in 129 diamond core and reverse circulation drill holes onthe Gedabek gold, copper and silver project in north-west Azerbaijan. Drillresults were detailed in three previous announcements available on the Company'swebsite www.aamining.com. The resource, tabulated at a cut-off of 0.3 g/t gold,is summarised in the table below: Gedabek Resource Tonnes Au Cu Ag (millions) g/t % g/t Indicated 12.4 1.5 0.26 13.0 Inferred 3.2 1.0 0.16 9.1 Total 15.6 1.4 0.24 12.2 The following tables show the resource at additional gold cut-off grades: Indicated Au cutoff Tonnes Au Cu Ag g/t (millions) g/t % g/t 0.3 12.4 1.4 0.26 13.0 0.5 9.3 1.9 0.28 15.1 1.0 5.2 2.9 0.32 19.1 Inferred Au cutoff Tonnes Au Cu Ag g/t (millions) g/t % g/t 0.3 3.2 1.0 0.32 9.1 0.5 2.4 1.2 0.17 10.4 1.0 1.1 1.8 0.19 13.5 Notes 1. A gold grade shell was created based on 0.2 g/t gold, using 2metre composites 2. An indicator at 0.1% copper was used to define a copper grade shell 3. Variograms were calculated for gold, copper and silver 4. The drillhole database was composited on 5m lengths with breaks at the gradeshell. The assays were cut at 20 g/t gold, 135 g/t silver and 4% copper beforecompositing 5. Gold and silver were estimated separately in the gold grade shell and copperwas estimated in the copper grade shell 6. The resource was calculated using volumes and grades inside the gold gradeshell only 7. Indicated blocks are those where the nearest composite is within 35 metres ofthe centre of the block. Inferred blocks are the remainder. 8. Mined out portions from Siemens previous copper mining were estimated anddeducted from the overall tonnage within the grade shell 9. g/t=grams per tonne; Au=gold; Cu=copper; Ag=silver The combined estimates above result in a total gold equivalent resource of1,081,000 oz (assuming gold, copper and silver prices of US$600/oz, $2.00 perpound and $10/oz respectively). The resource remains open in a number of directions, in particular 400m to thenorth, indicating that the size of the resource may increase in the future.Gold bearing dump material and the mineralized area to the south east identifiedby Russian drilling have not been included in the above estimates. In light of this resource estimate, the Company is now preparing a "Notice ofDiscovery and its Commerciality" Report for Gedabek to submit to the Ministry ofEcology and Natural Resources of Azerbaijan, which under the terms of theProduction Sharing Agreement will initiate the fifteen year Development andProduction Period (with the potential for two five year extensions).Information required for this Notice will be drawn from project informationbeing developed for a currently ongoing scoping study for the project, which isdue for completion in January 2007. The Company indicated in the 11 October 2006 announcement that a high proportionof the resource could be amenable to heap leaching. Column tests are underwayat SGS Lakefield laboratories in Canada and indications to date continue tosupport this low cost processing alternative. Previous bottle roll testsalready carried out by Lakefield and Wardell Armstrong in the UK also confirmamenability to heap leaching. The Company has also initiated an induced polarisation geophysical survey atGedabek to assist in identifying potential further extensions to the ore body. In view of the positive drilling results and the encouraging metallurgical testwork at Gedabek, the Company continues to direct its financial and humanresources towards this project. Corporate The cost reduction programme put in place by the Company throughout theorganisation is taking effect, with the aim of ensuring that the current cashresource is sufficient to provide working capital for the Company through to theend of 2007. As part of this programme, some of the administrative functionshave been moved to the office in Baku, Azerbaijan, eliminating the need for aLondon office which will close in January 2007. Nigel Jenner has been appointedGroup Financial Controller and will be based permanently in Baku alongside ChiefExecutive Gordon Lewis. Nigel brings further substantial experience of workingin Azerbaijan. Richard Round, Finance Director, will move to a part timearrangement with effect from 1 January 2007. Anglo Asian's Chief Executive Officer, Gordon Lewis said: "I am very encouragedby this resource estimate which I believe will lead to the development ofGedabek as the Company's flagship project for its activities in Azerbaijan." Ms. L Mach of SRK Consulting has reviewed and approved the information containedin this press release for the purposes of Part Two of the "Guidance Note forMining, Oil and Gas Companies" dated March 2006 issued by the London StockExchange. Ms. Mach is a Certified Professional Geologist (American Institute ofProfessional Geologists) and is considered a Qualified Person within the meaningof NI 43-101 and JORC. SRK Consulting is an international minerals consultancygroup, independent of Anglo Asian. -Ends- For further details, please contact: Anglo Asian Mining PLC Gordon Lewis, Chief Executive +44 20 7409 3232 Richard Round, Finance Director +44 20 7409 3232 Numis Securities Limited John Harrison +44 20 7776 1590 Parkgreen Communications Victoria Thomas +44 20 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange