RNS Number : 1614C

Anglo Asian Mining PLC

14 October 2015



Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

14 October 2015

Anglo Asian Mining plc

Q3 2015 operations and production update - Gedabek gold, copper and silver mine, Azerbaijan

Anglo Asian Mining plc ('Anglo Asian' or 'the Company'), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide an operations and production update from its Gedabek gold, copper and silver mine ('Gedabek') in western Azerbaijan for the three months to 30 September 2015 ('Q3 2015'). Note that all references to '$' are to United States dollars.

Production overview

· Gold production for Q3 2015 remained on track with 18,165 ounces produced, of which 11,795 ounces was from the agitation leach plant, 6,363 ounces from heap leach operations and 7 ounces from SART processing (Q2 2015: total 18,745 ounces)

· Copper production for Q3 2015 totalled 216 tonnes from SART processing (Q2 2015: 236 tonnes)

· Silver production for Q3 2015 totalled 4,439 ounces with 588 ounces from the agitation leach plant, 319 ounces from heap leach operations and 3,532 ounces from SART processing (Q2 2015: total 4,527 ounces)

· Cumulative production in the nine months to 30 September 2015 ('Cumulative Q3 2015') was as follows:

o Gold - 54,103 ounces (25 per cent. higher than the same period of the previous year)

o Silver - 10,916 ounces

o Copper - 634 tonnes

· On target to achieve between 70,000 to 75,000 ounces of gold for the year to 31 December 2015 ('FY 2015') which represents an increase of approximately 16 to 24 per cent. compared to the FY 2014 production of 60,285 ounces of gold

Operational update

· Small scale flotation plant (the fourth processing line to be added at Gedabek) has been commissioned and is now in production

· 6,944 tonnes of ore with average gold content of 8.69 grammes per tonne from the Gadir underground mine was processed by the agitation leach plant in Q3 2015

Sales

· Q3 2015 gold sales of 14,871 ounces at an average of $1,123 per ounce - Cumulative Q3 2015 gold sales of 48,165 ounces at an average of $1,179 per ounce

· Q3 2015 copper concentrate shipments to the customer totalled 460 dry metric tonnes ('dmt'), containing 246 tonnes of copper - sales of copper concentrate were $0.9 million

Company financials

· Net debt, being interest-bearing loans and borrowings less cash and cash equivalents, totals $51.0 million at 30 September 2015 ($48.9 million at 30 June 2015) following completion of the flotation plant

Anglo Asian CEO Reza Vaziri commented, 'We are pleased to report continuation of the exceptional gold, copper and silver production from Gedabek, as seen in our H1 2015 results. The final quarter of the year has historically been our best performing quarter and we are confident of meeting our original production target for 2015 of between 70,000 and 75,000 ounces of gold.

'I am also delighted to report that our small scale flotation plant has now been successfully commissioned. It is now processing the tailings of the agitation leach plant with the objective of increasing Gedabek's gold, copper and silver production profile.

'Our production target for 2015 represents a significant increase compared to the FY 2014 production and as such we expect our total sales for the year to increase. In tandem with increasing our production and sales, we have been continually working to lower our production costs which at H1 2015 were $736 per ounce of gold. I look forward to providing further updates in due course as we continue to improve our production performance in order to deliver the utmost value for shareholders.'

Full details

Gedabek is a polymetallic deposit from which Anglo Asian produces gold, copper and silver from its open pit mining operation and its co-located Gadir underground mine. The Company also processes ore from its Gosha mine, approximately 50 kilometres away from Gedabek. Three different processing methods, agitation leaching, heap leaching and Sulphidisation, Acidification, Recycling, and Thickening ('SART') are used to produce precious metal and copper with a fourth processing line of flotation now commencing production.

During Q3 2015, the Company produced 18,165 ounces of gold at Gedabek; 11,795 ounces from the agitation leach plant, 6,363 ounces from heap leach operations and 7 ounces from SART processing. Anglo Asian completed gold sales of 14,871 ounces of gold at an average of $1,123 per ounce.

The Company's SART plant has been performing well producing copper concentrate and for Q3 2015 copper production totalled 216 tonnes. Anglo Asian has a strategic three year sales partnership in place with Industrial Minerals (SA) which commenced in May 2014 for the sale of Anglo Asian copper concentrates. Sales of copper concentrate for Q3 2015 totalled 460 dmt.

Silver production for Q3 2015 totalled 4,439 ounces; with 588 ounces from the agitation leaching plant, 319 ounces from heap leaching operations and 3,532 ounces from SART.

The following table summarizes metal production and sales at Gedabek for Q3 2015:

* including Government of Azerbaijan's share

** excludes Government of Azerbaijan's share

As previously reported, low grade ore (less than 1.5 grammes per tonne of gold) is being treated by heap leaching, whilst higher grade ore (more than 1.5 grammes per tonne of gold) is being processed through the agitation leach plant.

During Q3 2015, Anglo Asian stacked 72,817 (Cumulative Q3 2015: 292,913) tonnes of dry crushed ore on to heap leach pads with an average gold content of 1.48 (Cumulative Q3 2015: 1.47) grammes per tonne. The Company also heap leached uncrushed (Run of Mine - 'ROM') ore. During Q3 2015, Anglo Asian stacked 135,731 (Cumulative Q3 2015: 514,708) tonnes of ROM ore on to heap leach pads with an average gold content of 1.07 (Cumulative Q3 2015: 0.96) grammes per tonne.

During Q3 2015, the Company processed 150,370 (Cumulative Q3 2015: 428,639) tonnes of ore with an average gold content of 3.27 (Cumulative Q3 2015: 3.42) grammes per tonne through the agitation leach plant.

There was a 75 per cent. gold recovery in agitation leaching for Q3 2015, the same as the previous two quarters. Gold doré is produced from both heap and agitated leach intermediate solutions, which are combined for final processing and also recirculated around the plant, heap leach pads and tailings dam. Heap leaching is also a long term process and recoveries are therefore only estimates calculated from available metallurgical statistics.

The Company's small scale flotation plant has now been commissioned. It is now producing a concentrate from the tailings of the agitation leach plant with a throughput of around 90 tonnes per hour. The Company is currently optimising the metal recovery rates and quality of the concentrate produced.

The Company had net debt at 30 September 2015 of $51.0 million, a reduction of $1.4 million since 31 December 2014. The net debt at 30 September 2015 was as follows:

**ENDS**

For further information please visitwww.angloasianmining.comor contact:

Notes:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 square kilometre portfolio, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement modelled on the Azeri oil industry.

The Company developed Azerbaijan's first operating gold/copper/silver mine, Gedabek, which commenced gold production in May 2009. Gold production for the year ended 31 December 2014 from Gedabek totaled 60,285 ounces with 784 tonnes of copper also produced. The Company has a second mine, Gosha, which is 50 kilometres from Gedabek, and the ore produced at Gosha is processed at Anglo Asian's Gedabek plant. The Company is also developing the Gadir underground mine which is co-located at the Gedabek site. The Company's production target for full year 2015 is between 70,000 ounces and 75,000 ounces of gold. Gedabek is a polymetallic deposit and its ore has a high copper content, and as a result the Company produces copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant. Anglo Asian has also commenced production of a copper and precious metal concentrate using a small scale, low capital expenditure flotation plant which it has just commissioned. This will initially process tailings from its agitation leach plant.

Anglo Asian is also actively looking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company.

The company news service from the London Stock Exchange

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