Anglo Asian Mining Exploration Update

26 October 2011
Anglo Asian Mining Exploration Update

Gedabek Gold/Copper Mine - Exploration Update, Positive Infill Drilling Results

Anglo Asian Mining plc, the AIM listed gold producer, announces positive results from its 5,460m Phase 1 drilling campaign at its flagship Gedabek gold/copper mine ('Gedabek') in Azerbaijan.

Overview

  • 5,460m infill drilling programme undertaken to re-classify the current mineral resources and ore reserves categories and assess the spatial continuity and metallurgy of the existing resource to consider future mineral processing options
  • Drilling concentrated on the existing resource pit boundaries at Gedabek - results demonstrated consistent gold, silver and copper grades and spatial continuity of mineralisation
  • Best intersections of 3.2m at 29.47 g/t gold ('Au'), 11.76 g/t silver ('Ag') and 0.61% copper ('Cu') and 17.3m at 11.57 g/t Au, 46.52 g/t Ag and 0.88% Cu
  • CAE Mining conducting review of all drilling programmes completed at Gedabek - new three dimensional orebody interpretation and modelling expected to be completed by the end of 2011
  • Phase 2 drilling underway concentrating on outside the boundaries of the existing pit
  • Upgraded JORC resource report targeted for Q1 2012 followed by a JORC compliant reserve estimate later in 2012

Anglo Asian CEO Reza Vaziri said, "These latest drilling results covering the existing pit continue to demonstrate consistent solid gold, silver and copper grades and continuity of mineralisation at Gedabek. With a current resource base of 791,000oz of gold, 49,300t of copper and 7,597,000oz of silver for all categories, it is our intention to continue both infill and exploration drilling at Gedabek. This is focussed on expanding the existing resource outline in order to announce an increased and upgraded resource by Q1 2012 and in turn, a JORC compliant reserve estimate thereafter. Additionally the latest drilling programme has enabled the Company to gain a better understanding of the metallurgy of the current resource at Gedabek to help assess future mineral processing options and ensure an accurate evaluation of the proposed agitation leaching plant, which would potentially enable an increase in Gedabek's mine life and thereby further improving the economic fundamentals of the mine.

"In addition, with gold and copper production continuing to perform solidly at Gedabek we remain confident of realising our production target of 58,000 to 60,000oz of gold and 525 tonnes of copper for FY 2011."

Detailed Information
The latest infill drilling programme at Gedabek comprised 59 holes over 5,460m across a 90,000 sq m area and concentrated within the boundaries of the existing pit at Gedabek. The drilling campaign was undertaken with a view to increasing and upgrading Gedabek's JORC compliant resource, which currently stands at 791,000oz of gold, 49,300t of copper and 7,597,000oz of silver for all categories. Drilling was also carried out to increase the confidence of the spatial variability of the already known gold, silver and copper mineralisation; to assess the metallurgy of the existing resource and in turn future mineral processing options.

The link to Table 1 shows the average grades of gold, silver and copper of each infill drill hole with grades greater than or equal to 0.3 g/t Au from the fourth drilling programme. The colour in each drill hole interval highlights the classification of the mineralisation, as follows:

  • Yellow highlighted results - 0.3 <= Au g/t < 1.5
  • Orange highlighted results - 1.5 <= Au g/t < 3.0
  • Red highlighted results - 3.0 <= Au g/t < 30.0

Link to Table 1
http://www.rns-pdf.londonstockexchange.com/rns/7564Q_-2011-10-24.pdf

Best intersections from this drilling programme at Gedabek include:

  • SGSDD02 - 19m at 3.61 g/t Au, 10.52 g/t Ag and 0.18% Cu
  • SGSDD16 - 17.3m at 11.57 g/t Au, 46.52 g/t Ag and 0.88% Cu
  • SGSDD22A - 3.2m at 29.47 g/t Au, 11.76 g/t Ag and 0.61% Cu
  • SGSDD31 - 2.3m at 16.05 g/t Au, 73.54 g/t Ag and 3.45 % Cu
  • SGSDD33 - 2.1m at 9.35 g/t Au, 23.26 g/t Ag and 0.42 % Cu

A designated competent person from the mining consultants, CAE Mining, has carried out a detailed review of the latest drilling programme results and of those collated from the previous three drilling campaigns. These data include plan and cross section views, together with mineral resource models for Gedabek compiled by mining consultants SRK in 2007 and SGS Geostat in 2010. The review has confirmed the continuity of the gold, silver and copper mineralisation and geological structures across the Gedabek deposit. The new three dimensional orebody interpretation and modelling is expected to be completed by the end of 2011 with a view to announcing an upgraded JORC resource estimate by the first quarter of 2012 and a JORC compliant reserve estimate thereafter.

With the completion of this latest drilling programme the drilling grid in the north area of the existing resource at Gedabek has been reduced to 20 x 20 m in order to improve the classification and increase the confidence of the spatial distribution of gold, silver and copper grades across the mineral resource.

In addition to Phase 1 drilling, the Company commenced Phase 2 of the exploration and development programme of Gedabek in the first quarter of 2011. Drilling is focussed on increasing the existing resource base and is concentrated on exploring outside of the existing pit boundary. So far 55 drill holes for a total of 8,300m of drilling have been completed and some of the assays have been received. Further drill holes have been planned as the ore body shows extensions towards the south of the existing pit boundary.

Other exploration activities continue within the Gedabek Contract Area, namely at the Maarif target. To date, 1,520m of the planned 3,000m drilling programme has been completed at Maarif, and the samples have been sent for independent assay. Remote sensing has also commenced and is being conducted across the entire Gedabek Contract Area with several potential anomalies detected for further investigations, which are planned for 2012.

Qualified Person

This announcement has been reviewed by Mr Gerard Evans the Competent Person at mining consultants CAE Mining Inc, who has more than 20 years of relevant experience in the field of activity concerned. He has a B.Sc (Hons) in Geology, SACNASP registered (reg. no: 400015/08), member of GSSA and GASA, and has consented to the inclusion of the material in the form and context in which it appears.