11 November 2024

Anglo Asian Mining plc

Access to Demirli and assessments to ascertain next steps

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM-listed gold, copper and silver producer focused on Azerbaijan, is pleased to announce an update about its Demirli mine and plant (the "Demirli Property").

Located in the Karabakh region (formerly Nagorno Karabakh) of Azerbaijan (see Appendix one), the Demirli contract area was acquired by the Company in 2022. The Demirli Property comprises two contiguous open pits and a six million tonnes per annum flotation plant to produce copper concentrate, together with a smaller molybdenum flotation plant. There is good access to Demirli from Baku over mainly metalled roads.

The mine and plant were opened approximately ten years ago and operated until 2022. Further details about the property are given in Appendix two with accompanying images in Appendix three.

Condition of the Demirli Property and current work

Access was acquired to the Demirli Property this summer and the Company has since conducted a number of preliminary assessments. An office has been set up at the property and the accommodation block and canteen facilities refurbished. A small laboratory, which can carry out limited assays, has also been established.

The plant is intact and in reasonable order. However, some electrical and mechanical equipment within the plant has been removed. Tailings were discharged into a tailings dam of upstream construction, sited immediately adjacent to the plant, and which is close to full capacity. The Company has commissioned a study of the tailings dam to ascertain its serviceability and suitability for a further wall raise. The Company is also evaluating the options for the provision of reliable power and water supplies to the operations.

The Company has recovered only partial details of the mineral resources of the deposit. In addition, the current block model is incomplete. Considerable drilling of the deposit has been carried out previously and drill core is stored at site. However, the drill core has not yet been matched to drill holes. Based on incomplete data, the Company has estimated there are approximately 58 million tonnes of residual ore containing 239,000 tonnes of copper*. Of these 58 million tonnes of ore, 22 million tonnes have been reported as reserves and suitable as feed for flotation. However, it is not known whether the remainder of this mineralisation is suitable for flotation.

A drone survey of the entire site has recently been carried out to determine the topology of the deposit. Reverse Circulation ("RC") drilling, to a depth of ten metres, is also being carried out to identify ore blocks of sufficient size to commission the plant and operate it for one year. The Company plans to produce a JORC mineral resources estimate of the remaining ore deposit. Near mine exploration targets are also being explored.

The Company is also conducting an initial benchmark environmental study, with a local provider currently being commissioned to carry out a more detailed benchmark and baseline study and an Environmental and Social Impact Assessment ("ESIA"). The Company will need to identify any damage to the environment caused by the previous operations and ensure it has no liability in respect of any damage identified.

The Company continues to conduct the necessary analysis on the Demirli Property. It will provide an update on the timing and cost of reopening the plant when these are ascertained.

\* The ore and contained copper figures are not compliant with any recognised mining code and represent company estimates.

Competent Person Statement

The information in the announcement that relates to exploration results, minerals resources and ore reserves is based on information compiled by Dr Stephen Westhead, who is a full-time employee of Anglo Asian Mining with the position of Vice-President, who is a Fellow of The Geological Society of London, a Chartered Geologist, Fellow of the Society of Economic Geologists, Fellow of the Institute of Materials, Minerals and Mining and a Member of the Institute of Directors.

Stephen Westhead has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Stephen Westhead consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

Stephen Westhead has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as a "competent person" as defined by the AIM rules. Stephen Westhead has reviewed the mineral resources included in this announcement.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014, which was incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement.

For further information please contact:

Notes to Editors:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer with a high-quality portfolio of production and exploration assets in Azerbaijan. The Company produced 31,821 gold equivalent ounces ("GEOs") for the year ended 31 December 2023.

On 30 March 2023, the Company published its strategic plan for growth which shows a clearly defined path for the Company to transition to a multi-asset, mid-tier, copper and gold producer by 2028, by which time copper will be the principal product of the Company, with annual forecast production of around 36,000 copper equivalent tonnes. It plans to achieve this growth by bringing into production four new mines during the period 2024 to 2028 at Zafar, Gilar, Xarxar and Garadag. 

https://www.angloasianmining.com/

Appendix one

Location of the Demirli Property together with Gedabek for comparison

Appendix two

About the Dermirli Property

The Dermirli Property consists of an open pit mine comprising a contiguous central and western pit, a six million tonnes per annum comminution plant, a copper flotation plant, a secondary molybdenum flotation plant and a tailings dam. The plant appears to have been professionally constructed and components used are generally from suppliers considered to be of high quality, including, the mills and flotation system manufactured by F L Smidth, gears by CMD ERMaster (a French engineering supplier) and electrical components by ABB. Dimet supplied the magnet system, lab furnaces were supplied by SNOL, and many other recognised international suppliers were also used.

The open pit mine comprises a central and western open pit. It has been mined for about the last 10 years. Ore is transported from the mine to the plant in a fleet of Caterpillar 55.5 tonne and Komatsu 91 tonne trucks, which are parked by the plant.

The plant contains a generally straightforward comminution circuit of a SAG and ball mill,  banks of flotation cells and a dewatering press to produce a copper concentrate. Ore is fed through a hopper and then transported to the main body of the plant via a conveyor belt. The ore is highly fractured and does not require any crushing. It is fed directly into the SAG mill then to the ball mill to produce ground ore. This is treated by flotation to produce a copper concentrate, which is de-watered on a filter press.

Tailings from the plant are sent to an upstream tailings dam, immediately adjacent to the plant. The dam has had five wall raises and is almost full.

There is a small tailings water decant pond next to the plant for the storage of water with an associated pumping station. Water is collected in the pond from several sources in the surrounding region including a reservoir approximately 14 kilometres from the plant. There is an electrical substation and the plant is connected to the grid.

Appendix three

Gallery

Panoramic view of the Demirli plant

View of open pit mine at Demirli

Mining fleet at Demirli

Ball mill at Demirli

Flotation cells at Demirli

Tailings dam

Accommodation block at Demirli

Reverse circulation drilling rig working at Demirli