🕐13.04.10 - 10:04 Uhr
Anglo Asian Mining - Gedabek Gold Mine Resource Upgrade Azerbaijan- Numis note (
Buy, TP: 24p) Significant resource increase
Numis: Anglo Asian Mining (Buy, TP: 24p) Significant resource increase
Following on from yesterdays positive production update, the company
today advise that a forthcoming revised resource estimate for the
Gedabeck mine in Azerbaijan is anticipated to increase the total gold,
copper and silver metal contents by at least 50%.
In our view the
outlook for Anglo Asian has changed markedly for the better over the
last 6 months and we retain our Buy recommendation.
In light of the
recent updates, our 24p target price is likely overly conservative and
we intend to re-visit our valuation once the new resource numbers are
out and we have discussed any consequent revisions to the mine plan with
management.
Resource update: The official JORC resource report is awaiting sign-off
from the Competent Person and is expected to be released within the next
four weeks.
Following this, it is likely that any significant increase
in estimated reserves will feed through to an increase in either the
forecast annual production or the total mine life (beyond the current 6
years) or, most likely in our view, a combination of both.
In this case,
we would expect an uplift to our base-case NPV valuation and thus target
price.
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 Companys
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
SGSs 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 Azerbaijans
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.
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