Anglo Asian discovers new gold vein, continues work at Vejnaly

2nd Mar 2022 15:16

(Sharecast News) - Azerbaijan-focussed gold, silver and copper producer Anglo Asian Mining announced the discovery of a new sub-vertical gold vein, 'Hasan', to the south of the main Gosha gold mine on Wednesday.

The AIM-traded firm said an evaluation of the existing Vejnaly mine and plant in the restored contract area in Zangilan was also progressing "at pace".

It said ore production from the new gold vein at Gosha, and the Vejnaly mine, was expected in the second half of 2022.

The new 'Hasan' vein, the company said, was discovered by surface drilling to the south of the main Gosha mine.

It said the vein could be "easily accessed" from existing underground mine workings, adding that bonanza gold intersections of up to 229.5 grams per tonne were returned.

Activity at Vejnaly, meanwhile, was steadily ramping up, with landmine clearance activities now complete, and safe access available to the site and the underground mine.

Staff were now permanently based on site, and the mine camp was undergoing refurbishment.

The company added the site's assets had been transferred to its ownership by the Azerbaijan government at no cost to it.

Gold production at both Hasan and Vejnaly was expected to begin in the second half, with the amounts achievable by the end of the year currently being evaluated.

Current full-year 2022 metal production from existing Gedabek operations was forecast to be between 54,000 and 58,000 gold equivalent ounces, which would be supplemented by production from Vejnaly and Gosha.

Total production guidance for 2022, Anglo Asian said, would be released later in the first half.

"We are highly encouraged by the discovery of the promising Hasan vein, which looks to be an exciting addition to the Gosha mine," said chief executive officer Reza Vaziri.

"We are now planning the mining of the vein, whilst our ongoing assessment work at Vejnaly continues to progress.

"We continue to produce from our existing mines at Gedabek, and we look forward to providing an update on full year production guidance once the assessments at Hasan and Vejnaly have been completed."

At 1455 GMT, shares in Anglo Asian Mining were up 6.7% at 106.7p.