Anglo Asian Mining PLC (AIM: AAZ) announced that drilling at its Gedabek copper/gold prospect in Azerbaijan is progressing well and on plan.
To date 19 diamond drill holes and 12 reverse circulation holes (RC) have been drilled on an 80 metre grid. The holes completed and available assays indicate the presence of significant copper and gold mineralisation at Gedabek. Assay results received to date are summarised in the table attached. A gold equivalent cut-off grade of 0.50 grams per tonne (g/t) was used to define the intervals. Gold equivalent conversion is based on a ratio of 1g/t gold to 60 g/t silver and 1% copper to 2.3g/t gold.
The Company plans to complete further infill and boundary drilling to supplement the current 80 metre spacing. The current evaluation programme includes a further 22 drill-holes, making a total of 53 holes, and is expected to be complete by the end of August 2006. Completion of this drill programme and receipt of the assay data will allow Anglo Asian and their consultants SRK Consulting to develop a resource estimate for Gedabek.
So far the companies have spent approximately $28m in exploration out of $51m allocated in this respect. All work in this direction will be complete in August 2006.
The contract for development of six goldfields in Southwest Azerbaijan, Gedabek, Ordubad, Gosha Bulag, Gyzyl Bulag, Vejnali and Soyutlu, was signed August 1997. 49% stock in the contract belong to RV Investment Services GrouСЂ LLC and 51% to Ministry of Ecology and Natural Resources of Azerbaijan