This ore reserve statement is based on the latest mineral resource estimate announced in June 2014 following the completion of an extensive drilling programme at Gedabek.
Overview
• Total JORC ore reserve for the Gedabek open pit as of 1 September 2014 is 20.5 million tonnes of ore grading 1.03 grammes per tonne of gold (682 thousand ounces), 0.50 per cent. copper (117 thousand tonnes); and 7.35 grammes per tonne of silver (4.84 million ounces)
• The ore reserve estimate, when compared to the previous estimate of May 2012 (20.3 million tonnes at 1.14 grammes per tonne of gold, 9.46 grammes per tonne of silver and 0.29 per cent. copper), indicates an increase of approximately 3.9 million tonnes of ore, after allowing for mining depletion between 31 December 2011 and 1 September 2014
• The ore reserve estimate is based on the latest resource statement of May 2014 of 61.8 million tonnes of ore grading 0.73 grammes per tonne of gold (1.45 million ounces), 0.23 per cent. copper (144 thousand tonnes); and 5.26 grammes per tonne of silver (10.46 million ounces) in the Measured and Indicated categories
• The contained copper in the ore reserve estimate has increased by 96 per cent. to 117 thousand tonnes and the recoverable copper increased by over 500 per cent. to 68 thousand tonnes compared to 11 thousand tonnes in the May 2012 ore reserve statement. This is a result of including ore with high copper grades that can be economically recovered by flotation
• The increase in recoverable copper is a result of the Company’s evolving strategy to turn Gedabek into a poly-metallic mine by introducing a flotation plant to process sulphide ore with a high copper content which is currently being mined
• The ore reserve estimate does not include an estimated 70 thousand ounces of gold, which is either stacked in leach pads, included in the Company’s stockpiles or in circuit in the Company’s agitated leach plant
Anglo Asian CEO Reza Vaziri said, "We are delighted to announce this ore reserve statement which shows an increase of approximately 3.9 million tonnes of ore, after allowing for depletion due to mining. Significantly, the high copper content reflected in this updated ore reserve statement reflects what we are seeing on the ground at Gedabek. With an increase of over 500 per cent. in recoverable copper by introducing flotation compared to the ore reserve statement in 2012, it is clear that Gedabek is suited to transition from a mine predominantly focused on gold production to a poly-metallic mine producing gold, copper and silver.
"Whilst we are still focused on increasing the recovery of gold where we have 682 thousand ounces in the ore reserves, we are aiming to take advantage of the significant copper content we are seeing at Gedabek. Consequently, as previously announced, we are in the final stage of assessing the construction of a small scale flotation plant suited to process this type of ore to produce a copper and precious metals concentrate. I look forward to providing further updates with regards to this in due course."
Further Information
CAE Mining was requested by Anglo Asian to estimate the ore reserves for the existing open pit operation of the Gedabek mineral deposit, located in western Azerbaijan. The resulting ore reserve report is based on the latest resource statement of May 2014 of 61.8 million tonnes of ore grading 0.73 grammes per tonne of gold (1,450,000 ounces), 0.23 per cent. copper (144,000 tonnes); and 5.26 grammes per tonne of silver (10,459,000 ounces) in the Measured and Indicated categories.
This latest resource estimate ("table 1") was based on previous exploration drilling campaigns (2006 to 2011), plus the most recent drilling campaign (2011 to 2013), which included an additional 99 holes to give a total of 394 drillholes to date, giving a total of 61,715 meters drilled and 27,623 samples taken to date.
It should be noted that the mineral resource statement includes an area to the west of the open pit Gedabek called Gadir. This inferred resource will be mined by underground methods, and has been excluded when estimating the reserve base.
The ore reserve statement assumes a direct correlation between Proven and Probable, and Measured and Indicated, and excludes Inferred Resources. It is also assumed that all material types (oxide, sulphide and transition) can be processed through a combination of process routes that include the current heap leach and agitation leach plants and a potential future flotation plant.
