JOHANNESBURG (miningweekly.com) – Aim-listed gold, copper and silver producer Anglo Asian Mining on Tuesday said that it would shortly embark on a $6-million three-year rolling exploration programme of near mine, brownfield and greenfield areas at its operations in Azerbaijan, to replace mined ounces.
The miner noted that it planned a total of 43 500 m of surface and underground drilling, with one reverse circulation and two core drill rigs to be purchased as part of the programme.
The exploration programme would further seek to extend Anglo Asian’s projects’ current mine life to a ten-year minimum, increasing the company's inventory of resources and discovering new mineral deposits similar to the Ugur openpit mine, which have the potential to be quickly developed into operating mines.
The programme covers the company's three operating contract areas, including the 300 km2 Gedabek gold, copper and silver contract area in western Azerbaijan, which holds the Gedabek and Ugur mines and the Gadir underground mine; the Gosha contract area which is located 50 km from Gedabek; and the Ordubad contract area which is located in Nakhichevan, in south-west Azerbaijan.
"There are numerous known mineral occurrences at Gedabek and our existing mines have further development potential. We have also made significant finds of commercially exploitable minerals in the previous few years.
“Taken together, this leads us to believe this programme has the potential to significantly add value to your company especially given our proven ability to convert mineral exploration results into resources and reserves and fast track mine construction,” Anglo Asian Group geology and mining director Stephen Westhead said in a statement to shareholders.
The company produced 71 461 oz gold equivalent for the year ended December 31, 2017.