DGAP-News: Anglo-African Minerals plc: Anglo African Minerals Plc acquires a 74% interest in a 1.7 million ounce Gold Equivalent resource in Armenia
(firmenpresse) - Anglo-African Minerals plc / Acquisition/Mergers&Acquisitions
09.08.2010 11:32
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Company: Anglo-African Minerals plc
Symbol: FSE: AMQ,
ISIN: IE00B66ML191
WKN A0N9YH
Release Date: 09 August 2010
Anglo-African Minerals Plc acquires a 74% interest in a 1.7 million ounce
Gold Equivalent resource in Armenia
The Directors of Anglo-African Minerals plc (FSE: AMQ), the special
situations mining investment company, are pleased to announce that the
company has signed an agreement with Caspian Resources Development Pte
Limited, a Sistema associate company, to acquire all of the shares in issue
of Belgrave Mining Corporation which holds a 74% interest in Azatekgold
CJSC, an Armenian company which owns the Azatek mining licence, which is
valid until October 2030.
The Azatek Project
The 2km2 Azatek licence area is centred in the valley of the Arpa River
near the town of Vayk in the Vayots Dzor Marz administrative district. The
licence area has been extensively drilled and sampled and hosts a vein
system with a C1+C2 reserve of 560,000 oz gold and 12.65 million oz of
silver, plus base metal credits and antimony. On a gold equivalent basis,
this equates to about 1.7 million oz. Vayk is small town with good access
by road and basic infrastructure, including power, water and gas. The 130km
journey to the deposit from Yerevan takes approximately 2.5hrs on the
tarred and well maintained route that leads to Azerbaijan.
History and Scope of the Deposit
The Azatek deposit was originally explored as an antimony and lead deposit.
By 1955 it had been confirmed that the deposit was polymetallic with gold
and silver present in all the ore bodies, albeit with relatively low gold
grades. Until 1974 the deposit was further investigated for antimony, lead,
gold and silver. Thereafter exploration was focused solely on gold, silver
and copper.
The Mining Licence hosts a C1+C2 ore reserve of 6.8 million tonnes, with
average grades of 2.6g/t gold, 55.43g/t silver, 0.19% copper, 0.55% lead,
0.28% zinc. Four distinct ore types have been identified. Antimony grades
of about 2% occur in two of the ore bodies. Metallurgical test work has
indicated recoveries of about 84% for gold, 90% for silver and 97% for
antimony. The economic viability of producing a base metals concentrate
will be evaluated.
Azatek Development Plan
The development of the project will be managed by AAM, assisted by an
experienced local team which is based in Yerevan. A number of the local
professional staff have been involved in the project for many years and
were involved in the exploration drilling and geological work. Linatex
Limited and mining equipment suppliers that are part of the Sistema Group,
will be involved in an EPCM contract to develop the mine, supply process
equipment and construct the processing plant. The company believes that,
by forming an early close working relationship with these companies, the
project can be fast tracked to production with significant saving on
capital equipment.
In broad terms, the programme for the development of the Azatek deposit
entails the following:
* A review of existing geological data and design of in-fill/duplicate
sampling programme to define a JORC-compliant resource estimate for the
deposit (Wardell Armstrong International has been appointed to do this
work)
* A review of existing metallurgical data and further metallurgical test
work to determine best process route and preparation of pre-feasibility
engineering study (GBM Minerals Engineering Consultants appointed)
* Preparation of an environmental impact assessment and base-line
environmental report (Digby Wells&Associates appointed)
* Completion of duplicate/in-fill drilling as required by the geological
consultants (local drilling contractor to be appointed)
An initial estimate for the proposed 1Mtpa processing plant is some US$
40million. Based on an initial metallurgical assessment, it is envisaged
that a twin stream plant will be constructed, possibly on a modular basis.
AAM is raising funding for the initial work programme with a target of
completing an upgrade of the Soviet reserves to a JORC compliant resource
statement, and an NI 43-101 pre-feasibility study, by the end of November
2010. It is envisaged that the project will be fast tracked with
construction of the plant commencing by mid-2011. Production from Azatek
is expected by the third quarter of 2012.
Mr Michael Smith, Chairman and CEO of AAM said that; 'This challenging but
highly prospective project offers considerable upside to the investor with
an appetite for gold, but with a strong underpinning from the silver and,
notably, antimony credits which provide a hedge against any potential falls
in precious metal prices. Azatek will make an important contribution to
the local community, in terms of employment creation, and indeed the local
and national economy.'
ADDITIONAL INFORMATION
The topography and terrain at Azatek restricted the use of surface drilling
so the mineralised zones at Azatek were explored from the surface by
trenches, clearings and shafts at an average interval of 40m down to the
Arpa River. A comprehensive underground system of adits and cross cuts was
developed, with the adits tending to run across the mineralised structures.
The total thickness of the mineralised zones was estimated from cross-cuts
which were driven from the adits at 30-40m intervals.
The lower horizons of the deposit (below the level of the Arpa River) were
explored with boreholes drilled in profiles across strike of the
mineralised zones. Several inclined boreholes were usually drilled from the
same point to intersect the mineralised zones at different depth.
A summary of the exploration work carried out at Azatek since 1951 follows.
Department of Geology of Armenian SSR
(1951-67) Geological Department Exploration Trust
1968-1972 1972-1977 1978-1980 1981-1994
Item Unit Total for 1951-1994 Prospecting Stage Prospecting Stage Sb
Exploration Au Exploration Detailed Au Exploration
Trench tm3 93.8 48.2 - 14.0 16.6 15.0
Drill Holes m 6,446 4,482 - 265 723 976
Adits m 50,025 9,290 6,581 1,560 6,358 13,242
Core Drilling m 116,148 2,331 16,166 30,768 167 50,184
Scope and Type of Exploration Undertaken at Azatek (1951-1994)
Geology and Mineralisation
The geology of the Azatek region comprises volcanogenic and
volcanogenic-sedimentary units with post Eocene granitic intrusions,
diorite porphyry dykes and diabase. Along the contact zones of the
intrusive and Eocene units, 'dendritic' quartz-biotite-sericite,
quartz-biotite tourmaline hornfels and secondary quartz were formed.
The deposit lies within an anticlinal fold, with a northeast strike axis
and shallow limbs dipping between 15 and 25°. The structure also features
localised mineralisation at the juncture of intrusive margins, structural
displacements and vein structures.
Large scale faulting (5 to 20m wide) passes to the north of the deposit
along an axis of another anticline fold. The fault surface dips steeply at
an angle of 70 to 85°. A second series of faults, with similar
characteristics, is traced to the east and strikes at 310-320°with a
sub-vertical plunge of 85-88°. The primary vein structures at Azatek dip
steeply at 75 to 85°with an attitude of approximately 155°. Numerous
secondary veins form a dendritic network of secant veins that are generally
inconsistent and irregular forming a stockwork-like formation.
Along strike the veins are traced from 20-30m to between 1,000 and 2,000m,
with a width of between 1.2 and 1.5m and up to 3.0m at its widest. This
variation in thickness may suggest boudinage structures as a result of post
intrusive deformation. In addition to the 'main' mineralised veins a
secondary series of interstitial veins are present but do not constitute
part of the resource. There is thought to be a vertical zonation whereby
the presence of Cu and Au increases with depth.
Resources and Reserves
In 1974 the following reserves of the deposit were approved by the Central
Committee of Reserves of the Ministry of Non-Ferrous Metallurgy (Protocol
933 of 13.03.74):
1974 Reserves
Contained Metal
Category Ore (kt) Sb(t) Pb(kt) Au(kg) Ag(t)
B + C1 1,512 27,707
C2 3,036 73,564
C1 863 20.5 4,224
B + C1 963 983 303.6
Original (1974) Azatek Resource
In 1997 a new 'reserve' was approved by the State Territorial Commission of
Geological Department of Armenia. These data are also referred to in the
25-year licence issued to ARMANYAK LLC in 2005. The licence has an approved
reserve of 6.8Mt and permits an annual production of 300kt.
1977 Reserves Contained Metal
Category Ore (kt) Au (kg) Au (oz) Ag (t) Cu (t) Pb (t) Zn (t)
C1 2,842 7,601 244,378 157.6 5,300
- -
C2 3,976 9,879 317,617 236.0 7,900
37,200 18,800
C1 + C2 6,818 17,480 561,995 393.6 13,200
37,200 18,800
Average Grade n/a 2.6g/t 2.6g/t 55.43g/t 0.19% 0.55% 0.28%
Latest (1977) Azatek Resource
Contact:
Mr Michael Smith - Chairman of Anglo-African Minerals plc Tel: +44 20
73185383
St Andrews Securities
Harri Huuskonen - Anglo-African Minerals Broker
T +44 207 718 0060
M +44 773 928 6880
09.08.2010 11:32 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Datum: 09.08.2010 - 11:32 Uhr
Sprache: Deutsch
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