Anglo Asian Mining PLC
27 October 2005
For immediate release on 27 October 2005
AIM: AAZ
ANGLO ASIAN MINING PLC
('Anglo Asian')
First drilling results from Azerbaijan
The company has almost completed three deep drill holes in the area believed to
be the location of DDH-1, a drill hole sunk during the Soviet era of occupation
in the Ordubad fault zone, close to Piyazbashi in Nakhchivan and outside the 8
properties identified with Inferred Resources set out in the AIM Admission
Document. It has received the assay results from the first new deep drill hole,
which was sunk 4 metres away from DDH-1 to a depth of 360 metres. Samples of
the core from this hole have been assayed at an approved independent laboratory
and have returned an average gold content of below 0.1 g/t, which compares with
Soviet data averaging 3.2 g/t over 298 metres in DDH-1.
The directors of Anglo Asian are not yet convinced that these results reflect
correctly the expected mineralogy of the area around DDH-1. There are a number
of reasons that could have led to the discrepancies between the Soviet era
results and those from the new hole:
1. Although only 4 metres from a Soviet era deep drill hole believed to be
DDH-1, the first new vertical drill hole could have missed what may be a
steeply dipping vein;
2. The preparation of the samples may have been unrepresentative; and
3. The presumed location of DDH-1 may have been mis-identified. Since DDH-1
was beyond the detailed maps of the nearby Piyazbashi property, in common
Soviet practice, the latitude and longitude of DDH-1 was not set out on
the drill log. Its expected location was found by anecdotal evidence.
The following actions are underway on this series of three drill holes, which
are in similar rock formations:
1. The samples from the second new drill hole that has been sunk 25 metres
south of the first new hole have been split 50 per cent. for retention and
the balance is being tested by two different approved laboratories;
2. The location of the DDH-1 is in the process of being verified; and
3. The third new hole is being drilled a further 25 metres to the south of
the second new drill hole, which is approximately 30 per cent. complete.
Charles Hancock, Chief Executive of Anglo Asian, said, 'Whilst we are
disappointed that the assay results from this first hole appear unsatisfactory,
it is only the first of an extensive drilling campaign over the next two years
covering areas including 8 properties with Inferred Resources. Samples by Anglo
Asian's reporting consultants, Behre Dolbear, prior to the flotation of the
company, supported the high gold values reported by Azeri and Soviet geologists
in the eight separate properties in Ordubad, Gosha and Gedebek.'
As no value was attributed at the time of the flotation to the Ordubad fault
zone, these assay results do not affect the 15.6 Moz Au eq. Inferred Resources
cited by Behre Dolbear in the AIM Admission Document. Anglo Asian will continue
its drilling, resampling and refurbishing campaign across a number of its
properties in Azerbaijan with a view to updating reserve and resource figures to
Western Standards. Two further drill rigs are arriving in Azerbaijan within the
next 7 days. Further commentary on these and other activities underway towards
gold production are contained in the statement accompanying the company's
interim results announced today.
-Ends-
For further details, please contact:
Anglo Asian Mining PLC Charles Hancock, Chief Executive +44 20 7409 3232
Numis Securities Limited John Harrison +44 20 7776 1590
Parkgreen Communications Justine Howarth +44 20 7493 3713
This information is provided by RNS
The company news service from the London Stock Exchange