Q4 2019 Gedabek exploration report - Anglo Asian Mining ... · Q4 2019 Gedabek Exploration...

Anglo Asian Mining PLC., For enquires, use “Contact” form at: 7 Devonshire Square, www.angloasianmining.com Cutlers Garden, London,

EC2M 4YH, United Kingdom

February 2020

AIM: AAZ

RNS Announcement-Linked Report

Corporate Directory

Directors

Non-Executive Chairman

Mr Khosrow Zamani

President and CEO

Mr Reza Vaziri

Non-Executive Directors

Mr Richard Round

Governor John H Sununu

Professor John Monhemius

Senior Management

Vice President, Government

Affairs

Dr. Abduljabar Ahmadov

Vice President, Technical

Services

Mr Farhang Hedjazi

Chief Financial Officer

Mr William Morgan

Director of Geology and

Mining

Dr. Stephen Westhead

Nominated Advisor and

Broker

SP Angel Corporate Finance

LLP

Q4 2019 Gedabek Exploration Activities and Results

Highlights

Objectives of the Exploration Programmes in Q4 2019

Significant greenfield exploration activity was carried out during Q4 2019 over

the Gedabek Contract Area (“Gedabek CA”). The main greenfield exploration

objective of Q4 2019 was to commence rapid initial evaluation of both the

Avshancli and Gilar targets by means of first-pass diamond (“DD”) drilling. This

will help evaluate the potential for the development of an operation at either

site. Additional outcrop (“OC”) sampling was carried out at Parakend Bugor

(Zs14) whilst underground DD drilling continued at the Gadir underground

(“UG”) mine, with the aim of expanding mineable ore reserves.

Overview of Exploration Activity in Q4 2019

During Q4 2019, 8,510.95 m of surface DD drilling was completed over the

Gedabek CA whilst 2,937.15 m was drilled from UG platforms at Gadir. During

Q4, a total of 471 OC samples were obtained and 1,695.80 linear metres of

trenching (“TR”) dug over the Avshancli district.

A small-scale ground-based geophysics (magnetic) study was completed over

Avshancli-1 to test the viability of conducting such surveys over other local

targets. Results were positive and similar studies will be completed at other

locations during 2020.

Tunnelling continues from Gadir to access Gedabek UG.

Main Results of the Exploration Programmes in Q4 2019

The drilling results continue to yield extensions to the Gadir UG mine. Positive

assay results have emerged from the drilling at Avshancli and the dataset will

now be evaluated as a whole in order to construct a preliminary geological

model. The creation of this will help determine appropriate next steps in the

evaluation and potential development of the project.

Outlook for Exploration in Q1 2020

Allocations for the 2020 Exploration budget have been completed and the next

year of the rolling three-year strategy developed. Work defining the lateral and

down-dip definition at Gadir UG is ongoing and the development of tunnelling

towards Gedabek UG is advancing at pace.

Whilst study will continue over the ZTEM targets described in previous reports

[3; 7-9], historic data evaluation and further exploration activity is planned

over known mineralisation occurrences during 2020; namely Söyüdlü (Au),

Maarif (Cu) and Bittibulag (Cu/Au).

Anglo Asian Mining PLC., For enquires, use “Contact” form at: 7 Devonshire Square, www.angloasianmining.com Cutlers Garden, London,

EC2M 4YH, United Kingdom

Contract Areas and Projects

Gedabek Contract Area:

Gedabek Open Pit

Gadir Underground Mine

Ugur Open Pit

Sӧyüdlü Exploration

Korogly Exploration

Avshancli Exploration

Gedabek Regional Exploration

Gosha Contract Area:

Gosha Underground Mine

Asrikchay Exploration

Ordubad Contract Area:

Shakardara Exploration

Destabashi Exploration

Aylis Exploration

Ordubad Regional Exploration

Anar Valiyev Exploration ManagerExploration Programme

Management

Katherine Matthews Project GeologistData Interpretation, Report

Compilation and Review

Stephen Westhead Director of Geology and Mining Management

Lead Competent Person and Technical Specialists Declaration

Lead Competent Person

Stephen Westhead has a minimum of 5 years relevant experience to the type

and style of mineral deposit under consideration and to the activity which is

being undertaken to qualify as a Competent Person (“CP”) as defined in the

JORC Code [1]. Stephen Westhead consents to the inclusion in the Report of

the matters based on this information in the form and context in which it

appears.

“I am not aware of any material fact or material change with respect to the

subject matter of the Report, which is not reflected in the Report, the omission

of which would make the report misleading. At the time this Report was written

and signed off, to the best of my knowledge, information and belief, the Report

contains all scientific and technical information that is required to be disclosed

to make the Report not misleading”

Technical Specialists

The following Technical Specialists were involved in the preparation of the

Exploration Report and have the appropriate experience in their field of

expertise to the activity that they are undertaking and consent to the inclusion

in the Report of the matters based on their technical information in the form

and context in which it appears.

Anglo Asian Director of Geology and Mining, Dr. Stephen Westhead, commented: “Significant intersections of gold (26.9m @ 2.18g/t; drillhole 19GDD08) from Gedabek, continuing high grade from Gadir with sample grades in 10’s of g/t gold and copper, and promising showings of copper at Ugur (25m @ 1.93% Cu; drillhole UGDD06), help provide confidence of extensions to the current mining operations. Underground tunnelling continues under the Gedabek open pit to construct drill chambers to test the down-dip extensions. Additionally, regional exploration work continues to find both gold and copper near-surface. Avshancli covers a large area and both trenching and drilling has identified zones of good grade mineralisation. It is intended to carry out ground-based geophysics to better understand the 3D geometry and continuity of the system to target drilling for resource estimation. A reinterpretation of the ZTEM data is providing the geological field data to better correlate anomalies with actual sample data. This work will be correlated with the WorldView-3® satellite images to focus on areas that geologically can host mineralisation. The Gedabek area continues to be a “treasure trove” to be understood and to provide further resources to grow shareholder value.”

Gedabek CA Exploration Report Q4 2019 1

Glossary of Terms and Abbreviations

AAM Anglo Asian Mining PLC.; the AIM-listed company with a portfolio of gold, copper and silver production and exploration assets in Azerbaijan

AAZ ticker for Anglo Asian Mining PLC., as listed on the AIM trading index

ppm parts per million

AIMC Azerbaijan International Mining Company Limited; a subsidiary of AAM

PSA Production Sharing Agreement

CA Contract Area Q4 ‘Quarter 4’ – fourth quarter of the financial year

CP Competent Person, as defined in [1] TR trench

DD diamond drilling UG underground

g/t grams per tonne

ZTEM Z-axis Tipper Electromagnetic geophysical system HS

high-sulphidation; a classification of epithermal system that describes Gedabek

LS low-sulphidation; a classification of epithermal system that describes Gadir

Au chemical symbol for gold

MENR Azerbaijan Ministry of Ecology and Natural Resources

Ag chemical symbol for silver

OC outcrop Cu chemical symbol for copper

OP open pit Zn chemical symbol for zinc

Contents Introduction ................................................................................................................................ 2

Mineral Tenement and Land Tenure Status ................................................................................... 2

Exploration Summary ................................................................................................................... 3

Gedabek Contract Area ................................................................................................................ 4

Exploration Activities Q4 2019 ...................................................................................................... 4

Gadir Underground .................................................................................................................. 4

Deposit Overview ................................................................................................................. 4

Exploration Summary ........................................................................................................... 6

Ugur Open Pit .......................................................................................................................... 9

Deposit Overview ................................................................................................................. 9

Exploration Summary ........................................................................................................... 9

Gedabek Flanks and Duzyurd .................................................................................................. 11

Deposit Overview ............................................................................................................... 11

Exploration Summary ......................................................................................................... 12

Avshancli ............................................................................................................................... 13




Gilar ....................................................................................................................................... 22



ZTEM Anomalies .................................................................................................................... 24

Overview ............................................................................................................................ 24

Parakend Bugor – Zs14 ....................................................................................................... 25

Natural History Museum (London) site visit ............................................................................ 27

Overview ............................................................................................................................ 27

Planned Exploration Activities Q1 2020 ...................................................................................... 28

References ................................................................................................................................. 29

Appendix A: Minimum Reporting Limits for Exploration Results .................................................. 29

Appendix B: DD Details .............................................................................................................. 30

Appendix C: Significant Intersections – Gadir UG DD ................................................................... 33

Appendix D: ZTEM Target Codes ................................................................................................. 41

Appendix E: JORC Table 1 – Gedabek CA ..................................................................................... 42

Introduction

Azerbaijan International Mining Company Ltd. (“AIMC” or the “Company”), a wholly owned subsidiary of Anglo Asian Mining PLC. (“AAM”, London Stock Exchange ticker “AAZ”) is pleased to report exploration activity and results from 1st October to 31st December 2019 (“Q4 2019”) for the Gedabek CA.

Significant progress was made in advancing greenfield exploration activities over the Gedabek CA during Q4 2019. Drill programmes commenced at both Avshancli and Gilar (two new targets identified during the previous quarter) with the aim of identifying any potential sub-surface continuation of the grade anomalies. Work continued over Zs14 (a high-priority ZTEM target), consisting of OC sampling. Near-mine activity continued at both the Gadir UG and Ugur OP operations.

Mineral Tenement and Land Tenure Status

Exploration activities carried out in Q4 2019 by AIMC occurred over three of the held Contract Areas; these are the Gedabek, Gosha and Ordubad CAs (Figure 1). All three of these CAs are each governed under a Production Sharing Agreement (“PSA”), as managed by AIMC and the Azerbaijan Ministry of Ecology and Natural Resources (“MENR”).


Figure 1 - Locations of the CAs held by AAM and managed by AIMC.

The PSA grants AAM a number of ‘time periods’ to exploit defined CAs, as agreed upon during the initial signing. The period allowed for early-stage exploration of the CAs to assess prospectivity can be extended if required.

A ‘development and production period’ of fifteen years commences on the date that the Company holding the PSA issues a notice of discovery, with two further extensions of five years each, available at the option of the Company. Full management control of mining and exploration activities rests with AIMC. The Gedabek CA currently operates under this title.

Under the PSA, AAM is not subject to currency exchange restrictions and all imports and exports are free of tax or other restrictions. In addition, MENR is to use its best endeavours to make available all necessary land, its own facilities and equipment and to assist with infrastructure.

The CA does not lie within any national park and at the time of reporting, no known impediments to obtaining a licence to operate in the area exist. The PSA covering the Gedabek CA is in good standing.

Exploration Summary

A summary of the exploration activities carried out during Q4 2019 is provided below in Table 1. Minimum reporting grades for exploration results are provided in Appendix A, the DD collar details can be found in Appendix B and the significant intersections for UG drilling from Gadir can be found in Appendix C. ZTEM anomaly I.D.’s and names can be found in Appendix D and the JORC Table 1 is presented in Appendix E.


Table 1 - Gedabek CA Exploration statistics Q4 2019.

Note: Total samples have only been tallied if assay results have been returned for a complete drill hole. Tally includes samples returned for holes drilled in Q3 but not reported in Q3 exploration report [3].

Gedabek Contract Area

The Gedabek CA is approximately 300 km2 in size and hosts the Gedabek open pit (“OP”),

Gadir underground (“UG”) mine and Ugur OP. Exploitation of the ore at Gedabek is reported

to have started as far back as 2,000 years ago. During the 1990s, exploration work significantly

ramped up at Gedabek and in 2005, AAM successfully acquired the project. AAM developed

the deposit into an open pit operation in 2009, marking the Company as the first Au-Cu

producer in Azerbaijan in recent times. The mines of Ugur and Gadir were later discovered by

AIMC geologists and developed into mining operations.

The Gedabek CA extents, with the deposits and mineral occurrences mentioned within this

report, are shown in Figure 2.

Exploration Activities Q4 2019

Gadir Underground

Deposit Overview

Gadir is interpreted as a low-sulphidation (“LS”) epithermal orebody, which is located

approximately 400 m northwest of the current Gedabek OP limits.

Exploration Activity Units Q4 2019 Total

Outcrop Sampling No. samples 471

Location Avshancli-1

Total Area (km2) 0.15

No. trenches 4

Total m 2,129.55

Total samples 2,099

No. holes 29

Total m 8,510.95

Total samples 4,318

No. holes 25

Total m 2,132.90

Total samples 2,175

No. holes 37

Total m 804.25

Total samples 822

Surface

Gedabek Contract Area

Ground-Based Geophysics (MAG)

Underground DD Drilling (HQ/NQ)

Underground DD Drilling (BQ)

Underground

Trench Sampling

Surface DD Drilling


Figure 2 – A map highlighting the near-mine (red) and ZTEM exploration targets over the Gedabek CA (green) studied during Q4 2019. New mineral occurrences are highlighted in yellow. Image from [2].

Whilst carrying out geological exploration in 2012, AIMC geologists discovered an outcrop of subvolcanic rhyolite displaying silica and propylitic alteration (showing close similarities with the rhyolites found at the nearby open pit) on the northwest flank of the Gedabek operation. Samples were subsequently taken and assayed – anomalous results were returned, justifying follow-up. Campaigns to develop the resource (including surface drilling, a soil geochemistry study and detailed geological and structural mapping) were completed between 2012 and 2015, with the aim of determining the extent of the potentially economic minerals. The


drilling identified a series of vertically stacked, shallow-dipping mineralised lenses within an area of approximately 50 x 100 metres over about 150 m height.

The ore body is located at the contact between volcanic rocks and the quartz porphyry (rhyolite-rhyodacite subvolcanic formation). There are disseminated breccias and ore-hosting hydrothermal structures (predominantly vein and stockwork systems) in the quartz porphyry.

Exploration Summary

A considerable amount of exploration activity was completed at Gadir during Q4 2019, comprising surface and underground drilling.

A total of 5 surface holes were drilled (for 2,375.50 m) and various underground platforms were used to complete 62 DD holes (37 in BQ diameter and 25 HQ/NQ diameter), for a total of 2,937.15 m. Examples of lithologies and mineral associations from the HQ/NQ programme are provided at the end of this section; a summary of the significant intersections is provided in Appendix C whilst the surface results are presented below in Table 2. Complete results are still awaited for 19GDD07/10 – these will be reported as part of the next exploration update.

This work has resulted in defining ores that extend the current Gadir mineralisation footprint both laterally and down-dip. Additionally, the BQ and HQ/NQ drilling continues to help constrain ore body models around production stoping fronts, so that tonnages and grades can be more accurately determined. These positive results demonstrate the expansion potential of the underground mine at Gadir.

Collar locations for the surface holes are shown in Figure 3.

Table 2 - Drill hole intersections summary, including significant grades – Gadir Surface DD.

Hole I.D.

Intersection Weighted Average Grades

Depth From

Depth To

Downhole Length

Au Ag Cu Zn

m m m g/t g/t % %

19GDD06 152.00 153.00 1.00 0.06 5.00 0.44 0.01

19GDD08

405.00 406.00 1.00 0.46 5.00 0.08 0.00

427.10 454.00 26.90 2.18 5.26 0.07 0.03

with notable intersections

427.10 428.10 1.00 10.05 5.00 0.02 0.02

437.10 438.10 1.00 2.81 5.00 0.61 0.02

447.10 449.10 2.00 10.78 8.50 0.05 0.02

19GDD09

391.00 393.00 2.00 0.38 0.87 0.03 0.22

405.00 406.00 1.00 0.46 1.66 0.03 0.02

418.00 421.00 3.00 0.42 2.60 0.05 0.14

434.50 435.50 1.00 0.97 0.96 0.05 0.09

436.55 441.50 4.95 1.08 1.57 0.18 0.08

with notable intersection

438.50 439.50 1.00 2.02 2.88 0.39 0.10

442.50 443.40 0.90 0.37 0.38 0.04 0.06

448.00 450.00 2.00 0.54 3.03 0.06 0.12

520.00 521.00 1.00 0.03 17.00 0.10 0.04


19GUD70 – 0.00-16.00 m – pyrite, chalcopyrite and sphalerite mineralisation identified within silicified host rock

8.00-9.00 m – Au = 6.84 g/t; Ag = 154.00 g/t; Cu = 0.11%; Zn = 3.04%


19GUD58 – 121.10-127.00 m – high-grade gold intercept in quartz porphyry; pyrite and chalcopyrite identified.

124.00-125.50 m – Au = 19.00 g/t; Ag = 5.00 g/t; Cu = 0.12%; Zn = 0.02%

Figure 3 – A map showing the location of the drill holes completed as part of Q4 2019. Image from [2].


Ugur Open Pit

Deposit Overview

The operating Ugur open pit (“OP”) and surrounding exploration area is located along the

regional Gedabek-Bittibulag Deep Fault system. It is understood that the majority of the Au

mineralisation developed during the Upper Bajocian tectonic-magmatic cycle. During this

period, the central tectonic zone formed a right-lateral strike-slip fault; this is represented by

a number of subparallel-trending faults (between 55-85°), with a combined length of around

1.5 km.

The Ugur oxide Au deposit was emplaced at the intersection of NW-, NE-, N- and E-trending

structural systems, which are thought to have been controlled on a regional scale by first-

order NW-transcurrent structures. The fault dips between 70-80° to the NW. The faults found

around this ‘central zone’ appear to control the hydrothermal alteration and Au

mineralisation, in addition to the emplacement of the Upper Bajocian Atabek-Slavyanka

plagiogranite massive intrusion.

In cross-section, the geological sequence is dominated by secondary quartzites that were

formed under the influence of this plagiogranite intrusion – this body can be identified in

exposures to the north of the Ugur mineralisation area.

Ugur is currently being exploited via OP extraction methods and dominantly involves free

digging of the ore. This oxide mineralisation zone varies in thickness from between 80-120 m

and exploration activity has been focused over and around the OP to assess the potential for

extensions to this valuable deposit, as well as regional studies.

Exploration Summary

Four surface DD holes were completed around the Ugur OP during Q4 2019 (for 1,509.50 m),

continuing from the programme started in Q3. Collar locations are shown in Figure 4. These

holes were collared around the eastern edge of the pit, targeting down-dip extents.

Only complete assay results have been returned for 19UGDD03/06 and these are reported in

Table 3 below. 19UGDD06 returned particularly positive results for Cu, Ag and Zn and is shown

in Figure 5. Holes 19GDD04/05 were drilled during Q3 but assay results were not previously

reported – these are also included below. The outstanding data will be reported as part of the

next exploration update.

Ugur OP is currently mined as a gold-only deposit – as such, the anomalous Ag and Cu hits are

of interest and further study is underway.

Table 3 - Drill hole intersections summary, including significant grades – Ugur regional DD.

Hole I.D.


Depth From

Depth To Downhole

Length Au Ag Cu Zn

m m m g/t g/t % %

19UGDD03 356.30 357.00 0.70 0.03 48.00 0.01 0.03

19UGDD06 309.40 334.40 25.00 0.06 124.80 1.93 1.47



310.40 315.40 5.00 0.04 68.60 2.78 3.87

321.40 326.40 5.00 0.07 182.20 2.50 0.83

19GDD04 63.00 63.45 0.45 0.03 15.00 0.89 0.00

366.00 367.00 1.00 0.03 16.00 0.02 0.00

19GDD05

216.00 217.80 1.80 0.03 18.00 0.02 0.01

365.20 366.10 0.90 0.03 5.00 0.60 0.07

507.20 508.20 1.00 0.57 5.00 0.02 0.01

518.10 519.30 1.20 0.46 5.00 0.02 0.01

524.60 525.60 1.00 0.74 5.00 0.04 0.03

538.50 539.50 1.00 5.63 5.00 0.02 0.02

544.50 545.50 1.00 0.53 5.00 0.02 0.01

555.50 556.40 0.90 1.25 5.00 0.03 0.02

562.00 564.00 2.00 0.03 17.50 0.02 0.01

566.00 567.00 1.00 0.03 17.00 0.02 0.02

568.70 569.60 0.90 1.74 5.00 0.02 0.02



Figure 5 – A series of images showing a cross-section through 19UGDD06 and UGDD51 (historic hole). Grades shown are for Cu%. Top left: Plan view. Top right: Cross-section along trace shown in top left image. Bottom image: Zoom of high-grade intersections of 19UGGD06 and UGDD51.

Gedabek Flanks and Duzyurd

Deposit Overview

The Gedabek high-sulphidation deposit (“HS”), which hosts the main Gedabek open pit mine,

is part of the largest known “porphyry”-epithermal ore field in Azerbaijan. It is situated in the

Lesser Caucasus mountain range and, geologically, is in the central zone of the Tethyan

Tectonic Belt, one of the world’s significant copper-/gold-bearing (“Cu”, “Au”) ore belts.

The Gedabek ore deposit is located within the large Gedabek-Garadag volcanic-plutonic

system. This system is characterised by a complex internal structure indicative of repeated

tectonic movement and multi-cyclic magmatic activity, leading to various stages of

mineralisation emplacement. The ore deposit is located at the contact between Bajocian

(Mid-Jurassic) volcanic rocks and a later-stage Kimmeridgian intrusion (Late Jurassic). The

mineralisation is dominantly hosted in the local rhyolitic porphyry (known onsite as the

‘quartz porphyry’ unit), bounded by the volcanics (mainly andesites) in the west and a diorite

intrusion to the east.


The three principal hydrothermal alteration styles found at Gedabek are propylitic alteration

(encompassing the orebody) with silica-adularia-pyrite alteration (forming the deposit) and

argillic alteration (confined to the centre of the orebody). It is interpreted that the deposit

resulted from fluids (predominantly gases such as SO2, HF, HCl) channelled directly from a hot

magma (the ‘Gedabek Intrusion’). Acids from the magmatic fluids dissolved the country rock

when interacting with groundwater, leaving only silica behind, often in a sponge-like

formation known as vuggy silica. Au-rich, and sometimes Cu-rich, brines that also ascended

from the magma, precipitated metals within the vuggy silica bodies. The shape of the mineral

deposit is generally determined by the distribution of vuggy silica. The ore body has a

porphyritic texture formed by quartz grains in a micro-crystalline matrix.

The Duzyurd area is located on the south-western flanks of the Gedabek mine. The occurrence

is comprised of effusive and pyroclastic formations of Lower Bajocian age, represented by

andesitic tuffs and secondary quartzites. The quartzites are typically strongly-altered dacites

or rhyolites; the hydrothermal alteration comprises overprinting haematite-silica. The rocks

are light-grey in colour and have a reddish tint (due to the haematitic alteration). Stringers

hosting supergene minerals (dominantly Cu-bearing minerals, such as malachite) also

penetrate the sequence. Structural mapping over the region identified a steeply-dipping

quartz vein, striking northeast and up to 1.5 m thick, hosting disseminated pyrite. Epidote,

chlorite and leached vugs were also observed in the propylitic alteration zone.

Exploration Summary

A total of six DD holes were completed from surface around Gedabek (for 1,475.40 m) whilst

one DD hole was drilled at Duzyurd (for 727.25 m). Both the diamond hole at Duzyurd and

one at Gedabek (19GBD09) were designed to explore the geology at depth and test for

mineralisation – 19GBD09 was drilled to over 1,000 m depth and collar locations are shown

in Figure 6.

Only complete assay results have been returned for 19DYDD01 and these are reported in

Table 4 below. The outstanding data will be reported as part of the next exploration update.

Table 4 - Drill hole intersections summary, including significant grades – Duzyurd DD.

Hole I.D.


Depth From

Depth To Downhole

Length Au Ag Cu Zn

m m m g/t g/t % %

19DYDD01

146.50 147.50 1.00 0.03 18.00 0.01 0.01

211.50 212.30 0.80 0.03 16.00 0.02 0.01

216.70 217.50 0.80 0.03 16.00 0.02 0.02

290.00 291.00 1.00 0.03 16.00 0.03 0.01

389.00 390.00 1.00 0.03 15.00 0.04 0.01

414.00 415.00 1.00 0.11 16.00 0.02 0.02

430.00 431.00 1.00 0.03 20.00 0.02 0.02

434.00 435.00 1.00 0.03 15.00 0.02 0.01

443.00 444.00 1.00 0.03 16.00 0.01 0.01


445.00 446.00 1.00 0.03 20.00 0.01 0.01

447.00 448.00 1.00 0.03 15.00 0.02 0.01

453.00 454.00 1.00 0.03 15.00 0.04 0.01

456.00 457.00 1.00 0.06 15.00 0.02 0.02

494.50 495.50 1.00 0.32 0.38 0.01 0.01

503.50 504.50 1.00 0.03 15.00 0.01 0.01

Figure 6 – A map showing the location of the drill holes completed as part of Q4 2019. Duzyurd is the left image; Gedabek Flank collars are on the right. Images from [2].

Avshancli

Deposit Overview

Avshancli is a new mineral district that was discovered during Q3 2019 [3-4], whilst fieldwork

was being conducted over the region.

It covers an area approximately 10 km2 in size and is located approximately 10.5 km NE of the

Gedabek open pit (Figure 2). The district was initially identified by regional mapping and

outcrop sampling, through expansion of exploration activities outside of ZTEM target areas

(in this case, Zs18 and Zs19). As further outcrop sampling was being completed over the

district, 3 favourable zones emerged and these have been initially called Avshancli-1, -2 and -

3. Whilst regional work is continuing over the district, exploration activities have now been

focused around these three areas.

The region predominantly comprises of Bajocian volcaniclastic strata, typically andesitic tuffs

and breccias (teal on map in Figure 7). Towards the south-east of the region, minor quartz-


plagioclase porphyritic intrusions (pink) can be found, with Quaternary sediments (yellow)

overlying unconformably.

Structurally complex, the main series of faults (red) trend in a NW-direction, with intrusive

dykes also emplaced in this general orientation (dark blue). Alteration mapping over the

region has identified various styles, including clay alteration (predominantly kaolin),

haematitic and limonitic alteration and silicification. There is a clear structural association

with the alteration, as parallel systems have also been found to trend in a NW-direction.

Favourable mineralisation identified during OC sampling includes malachite and azurite,

commonly found along fracture planes in outcrop.

Figure 7 - An overview of the Avshancli ore district, with the regional geology overlain. Image from [2].

Exploration Summary

A significant amount of exploration activity occurred over Avshancli during Q4, comprising OC

and TR sampling. In addition, an ongoing DD programme commenced, and a ground-based

geophysics survey was completed and interpreted.

OC Sampling

A total of 128 samples were collected over the Avshancli district in Q4, predominantly around

Avshancli-1. Significant grades are presented below in Table 5. Assaying was completed over

the standard Au-Ag-Cu-Zn suite, with reportable grades returned for 32 samples. Quartz was

noted as the lithology for a number of samples, with weak to moderate haematitic and

limonitic alteration identified in the majority.


Table 5 – Reportable assay grades from OC sampling over Avshancli.

Sample I.D.

Zone I.D.

Au Ag Cu Zn

g/t g/t % %

ZSD-483 Av-1 0.39 5.00 0.11 0.01

ZSD-484 Av-1 0.37 5.00 0.03 0.00

ZSD-485 Av-1 0.34 5.00 0.03 0.00

ZSD-486 Av-1 1.92 5.00 0.05 0.00

ZSD-487 Av-1 2.30 5.00 0.02 0.00

ZSD-491 Av-1 0.95 5.00 0.04 0.01

ZSD-492 Av-1 2.59 5.00 0.13 0.02

ZSD-493 Av-1 0.47 5.00 0.06 0.02

ZSD-495 Av-1 1.27 5.00 0.05 0.01

ZSD-498 Av-1 0.44 5.00 0.04 0.02

ZSD-499 Av-1 0.80 5.00 0.05 0.02

ZSD-500 Av-1 2.35 5.00 0.09 0.05

ZSD-505A Av-1 0.39 5.00 0.09 0.02

ZSD-506 Av-1 0.64 5.00 0.07 0.02

ZSD-506A Av-1 0.70 5.00 0.05 0.01

ZSD-507 Av-1 0.45 5.00 0.04 0.01

ZSD-508 Av-1 0.40 5.00 0.03 0.03

ZSD-509 Av-1 0.35 5.00 0.07 0.01

ZSD-509A Av-1 0.98 5.00 0.02 0.01

ZSD-510 Av-1 0.43 5.00 0.06 0.01

ZSD-511 Av-1 0.91 5.00 0.09 0.02

ZSD-512 Av-1 1.83 5.00 0.04 0.06

ZSD-513 Av-1 3.80 5.00 0.16 0.02

ZSD-514 Av-1 0.66 5.00 0.03 0.01

ZSD-524 Av-1 1.65 5.00 0.07 0.01

ZSD-574 Av-1 0.38 12.00 0.02 0.01

ZSD-576 Av-1 2.00 29.00 1.49 0.04

ZSD-577 Av-1 1.07 26.00 0.20 0.09

ZSD-584 Av-1 6.07 5.00 0.07 0.03

ZSD-585 Av-1 0.69 5.00 0.03 0.01

ZSD-590 Av-1 0.17 5.00 0.32 0.01

ZSD-597 Av-1 5.53 5.00 0.01 0.00

TR Sampling

Trenching has been carried out over all three high priority zones; two trenches have been dug

and sampled in Avshancli-1, with one each in Avshancli-2 and -3. Figure 8 shows the location

of each of the trenches.

Two trenches have been completed in Avshancli-1 for a total of 295.80 m (Trench #1 = 172.30

m; Trench #2 = 123.50 m). Assays have been returned for all samples and those returning

assays above reportable limits are presented below (Table 6). One trench has been completed


in Avshancli-2 for a total of 704.50 m and one in Avshancli-3 for 1129.25 m (extended from

original plan).

Figure 8 – A map showing the location of the trenching completed during Q4 over Avshancli. Base map from [2].

Table 6 – Reportable assay grades from trench sampling over the Avshancli district.

Trench I.D.


From To Length Au Ag Cu Zn

m m m g/t g/t % %

AV1TR1

2.00 27.00 25.00 1.13 6.65 0.37 0.06


4.00 5.00 1.00 5.27 28.00 0.30 0.02

5.50 10.00 4.50 4.29 8.33 0.49 0.03

13.00 14.00 1.00 0.05 5.00 0.44 0.05

19.00 27.00 8.00 0.05 5.00 0.55 0.11

88.00 89.00 1.00 0.30 5.00 0.08 0.04

91.50 93.50 2.00 1.06 5.00 0.07 0.04


110.50 111.50 1.00 0.32 5.00 0.03 0.01

117.10 118.10 1.00 0.34 5.00 0.06 0.00

119.10 121.70 2.60 0.60 5.00 0.02 0.01

137.30 137.75 0.45 0.03 5.00 0.37 0.04

146.75 147.75 1.00 0.03 5.00 0.51 0.01

152.75 153.75 1.00 0.35 5.00 0.18 0.00

161.80 162.80 1.00 8.85 5.00 0.14 0.01

AV1TR2

15.45 16.55 1.10 0.10 5.00 0.34 0.02

58.60 59.70 1.10 0.34 5.00 0.08 0.01

78.40 79.50 1.10 0.30 5.00 0.12 0.00

82.80 87.20 4.40 0.62 5.00 0.03 0.00

AV2TR1

141.56 142.58 1.02 0.74 5.00 0.08 0.01

324.05 326.08 2.03 0.40 5.00 0.09 0.01

365.39 367.42 2.03 0.43 5.00 0.05 0.00

368.43 369.45 1.02 1.91 5.00 0.08 0.00

417.51 418.53 1.02 0.36 5.00 0.08 0.03

517.08 518.92 1.84 1.16 5.00 0.13 0.02

520.95 522.98 2.03 0.44 5.00 0.09 0.02

523.99 527.04 3.05 1.05 5.00 0.03 0.01

530.08 531.10 1.02 0.94 5.00 0.04 0.01

532.11 533.13 1.02 0.07 14.00 0.76 0.46

541.25 542.26 1.01 1.16 5.00 0.10 0.01

547.34 548.35 1.01 0.46 13.00 0.15 0.02

AV3TR1

4.90 5.60 0.70 0.34 5.00 0.04 0.02

53.12 54.15 1.03 0.11 5.00 0.32 0.02

194.83 195.85 1.02 0.33 5.00 0.05 0.02

212.93 213.95 1.02 0.03 16.00 0.01 0.02

292.65 293.68 1.03 0.30 5.00 0.01 0.01

380.80 381.83 1.03 0.10 5.00 0.34 0.33

579.35 580.25 0.90 0.03 5.00 0.37 0.05

597.25 598.25 1.00 0.03 5.00 0.41 0.06

599.25 600.25 1.00 0.05 5.00 0.35 0.03

626.60 628.20 1.60 0.03 5.00 0.32 0.07

629.20 630.20 1.00 0.03 5.00 0.33 0.05

841.00 842.00 1.00 0.03 5.00 0.67 0.49

900.00 900.30 0.30 0.98 5.00 0.01 0.01

DD Programme

Nine surface DD holes were completed around over the Avshancli district during Q4 2019 (for

1,732.05 m), to commence the initial drill programme.

Analysis of samples was fast-tracked through the AIMC laboratory and significant intercepts

are reported below in Table 7. Drilling will continue into Q1 2020, with sites prioritised on

access dependent upon weather conditions. Collar locations are shown in Figure 9.


Table 7 - Drill hole intersections summary, including significant grades – Avshancli DD.

Hole I.D.


Depth From

Depth To

Downhole Length

Au Ag Cu Zn

m m m g/t g/t % %

19BFDD01 NSI

19BFDD02

1.40 2.50 1.10 0.42 5.00 0.01 0.01

47.00 48.10 1.10 0.13 2.24 0.74 0.00

50.00 52.00 2.00 0.09 2.00 0.49 0.01

53.00 53.80 0.80 0.07 14.00 0.58 0.00

57.30 58.10 0.80 0.24 5.00 0.42 0.01

76.70 77.70 1.00 0.31 5.00 0.01 0.02

84.60 85.60 1.00 0.45 5.00 0.02 0.02

87.40 89.00 1.60 0.47 5.00 0.10 0.00

104.50 104.90 0.40 0.10 5.00 0.34 0.01

105.05 106.55 1.50 0.17 5.00 0.66 0.01

129.25 130.15 0.90 0.56 5.00 0.12 0.01

138.20 139.00 0.80 0.37 5.00 0.01 0.01

187.30 188.20 0.90 0.50 31.00 1.86 0.01

192.90 193.70 0.80 0.35 5.00 0.00 0.01

195.80 197.70 1.90 0.42 5.00 0.01 0.01

221.00 222.00 1.00 0.42 5.00 0.01 0.01

19BFDD03 NSI

19BFDD04 NSI

19BFDD05

0.90 3.40 2.50 3.49 5.00 1.00 0.03


0.90 2.00 1.10 7.03 5.00 0.45 0.04

9.70 10.80 1.10 0.06 5.00 0.44 0.03

20.20 21.00 0.80 0.37 5.00 0.01 0.04

25.85 26.80 0.95 0.36 5.00 0.05 0.08

79.50 80.50 1.00 1.26 5.00 0.02 0.12

83.80 85.00 1.20 0.33 5.00 0.01 0.03

119.70 120.40 0.70 0.31 5.00 0.02 0.01

140.80 141.25 0.45 0.51 5.00 0.13 0.01

163.50 164.50 1.00 0.34 5.00 0.03 0.03

19BFDD06

7.00 8.10 1.10 0.05 18.00 0.01 0.01

20.00 21.00 1.00 0.03 16.00 0.01 0.01

27.50 28.50 1.00 0.03 5.00 0.46 0.28

35.50 37.30 1.80 0.40 5.00 0.03 0.01

19BFDD07

7.00 8.00 1.00 0.55 5.00 0.13 0.03

19.00 22.00 3.00 0.39 5.00 0.04 0.12

67.00 68.00 1.00 0.51 5.00 0.04 0.01

19BFDD08 0.00 1.60 1.60 0.45 5.00 0.07 0.01

10.00 11.00 1.00 0.70 5.00 0.07 0.01


13.00 15.00 2.00 0.43 5.00 0.02 0.01

16.00 17.00 1.00 0.38 5.00 0.03 0.01

21.00 25.00 4.00 0.52 5.00 0.19 0.01

27.70 28.60 0.90 2.03 5.00 0.75 0.00

46.30 47.00 0.70 0.03 5.00 0.37 0.00

124.90 125.90 1.00 0.20 17.00 0.01 0.01

193.00 194.00 1.00 0.03 19.00 0.02 0.00

19BFDD09 53.50 54.40 0.90 0.33 5.00 0.03 0.03


Ground-Based Geophysics

A follow-up ground-based magnetic survey, covering approximately 0.15 km2, was completed

over the Avshancli-1 target region on 2nd October 2019. The aim of the survey was to establish

if there was a significant subsurface magnetic response to help target diamond drilling. The

survey utilised a GEM System Overhauser GSM-19 magnetometer, which is a high-sensitivity

magnetic surveying system that measures magnetic flux density and incorporates an in-built

GPS. In contrast to a standard proton magnetometer sensor that uses a proton-rich liquid, the

Overhauser effect is induced through the addition of a free radical (i.e. unpaired electron) to

the liquid. The unpaired electrons transfer their stronger polarisation to hydrogen atoms,


thereby generating a strong precession signal. This is ideal for very high sensitivity total field

measurements [5].

A total of 8 profiles were provided over the Avhancli-1 region and profile details are provided

below (Figure 10; Table 8). The survey lines were walked on a 61 m spacing between profiles.

In total, the survey took only one day to complete. The survey data were then processed in

GEMLink 5.4 and Surfer software – from this a high-resolution magnetic anomaly map over

Avshancli-1 was produced (Figure 11).

Table 8 – Profile details from the survey.

Figure 10 – A map showing the boundary of Avshancli-1 (yellow) with profile lines overlain (green). Base map from [2].

Profile Number From Easting Northing To Easting Northing

Base Station M-1 572670 4500330 - - -

Profile 1 M-2 572697 4500784 M-3 573095 4500788

Profile 2 M-4 573095 4500726 M-5 572696 4500724

Profile 3 M-6 572697 4500662 M-7 573096 4500666

Profile 4 M-8 573096 4500606 M-9 572698 4500600

Profile 5 M-10 572698 4500538 M-11 573098 4500544

Profile 6 M-12 573097 4500482 M-13 572747 4500478

Profile 7 M-14 572820 4500417 M-15 573099 4500419

Profile 8 M-16 573098 4500359 M-17 572892 4500357


Figure 11 – A 3D magnetic anomaly map over the Avshancli-1 study area.

Three key magnetic anomalies were identified – one high-magnetic response was identified

in the centre to SE region of the study area. Two magnetic lows were also identified (1 – in

the NW of the study area; 2 - in the SE of the study area) and these are believed to be

associated with alteration zones. There were also a number of anomalies that have been

attributed to potential fault structures, producing a contrast in the magnetic properties of the

rocks (Figure 12).

The results of this study enabled optimisation of drill hole planning through the identification

of geologically favourable targets. Due to its ease of use and efficiency, further work using

this ground-based magnetic system is planned over both Avshancli-2 and -3 during 2020.


Figure 12 – A plan view of the magnetic anomaly map, with significant contrasts highlighting potential fault structures included (red lines).

Gilar

Deposit Overview

Gilar is a new mineral occurrence that was discovered during Q3 2019 [3; 6], whilst fieldwork

was being conducted over the region. It is located approximately 2 km south of the Avshancli-

1 mineral occurrence and 9.5 km NE of the Gedabek OP (Figure 2).

Preliminary field mapping and outcrop sampling has established that Gilar is a continuous

quartz vein, hosted in rhyolite volcanics (Figure 13). The quartz vein emplacement appears to

be located in association with a previously mapped fault structure. The vein strikes between

320-330° (NW) which is the general trend of faulting mapped in the region. The vein has been

found to outcrop in two areas, with a ‘blind zone’ occurring between these. The quartz vein

can be traced for a total of around 500 m (including the ‘blind zone’) and has a measured dip

at surface of 80-85° to the NE. Thickness varies between 0.3-1 m.


Figure 13 - Geological mapping over the Gilar quartz vein. Lithologies are labelled, with Quaternary sediments (yellow) found to the east of the structure. Solid red lines show where the quartz vein outcrops, while the dashed red line indicates the ‘blind’ zone. Black dots highlight Q3 sample locations, with gold grades (g/t) also published.

Exploration Summary

After the collection of OC samples during Q3, drilling planning rapidly commenced, and a

preliminary programme completed during Q4. Collar locations are shown in Figure 14.

In total, four DD holes were drilled over Gilar (for 691.25 m). Complete assay results have

been returned for all holes but 19GLDD04; these are reported in Table 9 below. The

outstanding data will be reported as part of the next exploration update.

Table 9 - Drill hole intersections summary, including significant grades – Gilar DD.

Hole I.D.


Depth From

Depth To

Downhole Length

Au Ag Cu Zn

m m m g/t g/t % %

19GLDD01 13.00 14.00 1.00 0.03 5.00 0.35 0.21

23.00 24.40 1.40 5.48 5.00 0.01 0.01


28.20 29.40 1.20 0.03 20.00 0.01 0.01

19GLDD02 21.40 22.10 0.70 0.55 5.00 0.03 0.01

19GLDD03 16.00 17.00 1.00 0.41 5.00 0.01 0.01

Figure 14 – A map showing the location of the drill holes completed during Q4 2019. Image from [2].

ZTEM Anomalies

Overview

During Q4 2018, a ZTEM and aeromagnetic survey was completed over the Gedabek CA. This survey yielded 31 potential targets that are additional to the prospects already identified in-house – further details describing the initial stages of the project can be found in previous reports [3; 7-9].

The results of the aerial ZTEM survey have been assessed and 'ranked' in terms of prospectivity. The initial ranking has focused on those targets nearer surface which can be evaluated and brought to production more quickly than the deeper targets. The Company has thus worked to prioritise the shallow targets that could be potentially be mined by open pit methods; these are presented in [7].


Due to the intense study completed during previous quarters over the high-priority targets, the focus during Q4 2019 was on following-up on critical findings with trench and drill programmes at Avshancli and Gilar. As such, attention was paid to only one favourable ZTEM target at Zs14 (see below). Once manpower (i.e. drill core processing demands decrease) and weather conditions allow greenfield exploration activity to increase, study of other ZTEM anomalies will recommence.

It should be noted that field reconnaissance often extends outside of the target bounds – this is to account for any potential surface expression offset and to capture pathfinder signatures that may vector back to an ore body.

Parakend Bugor – Zs14

Deposit Overview

This deposit was not discussed as part of the initial ZTEM report outlining target ranking [7], however, exploration has been extended over this region due to its proximity to the Korogly (Zs15) anomaly. The Zs14 target has been designated “Parakend Bugor” and its centre is located approximately 9 km NW of the Gedabek OP. It lies within the CA.

The feature is elongate in the EW direction and is approximately 1.5 km in length. The geology of the anomaly comprises of Upper Bajocian volcanics (andesitic lavas, breccias and tuffs; teal on map in Figure 15), overlain by Quaternary sediments over the eastern region (yellow on map). Large-scale structures are found on the western margin of the anomaly and are orientated in the NW-direction.

There are two distinctive bodies, both apparent in the magnetic susceptibility and resistivity plots (Figure 16); they do not appear to align, however. It can be seen that the anomaly at Parakend Bugor occurs at a contact between non-magnetic and strongly magnetic features. Beneath the topographic low, a strongly resistive body is clear.


Figure 15 – An overview of the Parakend Bugor anomaly (blue box). A regional geological map has been overlain and the CA extents highlighted by the green line. Gilar also shown. Image from [2].

Exploration Summary

A total of 343 OC samples were collected over Zs14 and its surrounds during Q4 2019. Significant results were returned for 45 samples and these are presented in Table 10 below.

Table 10 – Reportable assay grades from OC sampling over Zs14.

Sample I.D. Au Ag Cu Zn

Sample I.D. Au Ag Cu Zn

g/t g/t % % g/t g/t % %

19ZS 14-551 0.42 5.00 0.01 0.00 19ZS 14-658 0.82 5.00 0.01 0.01

19ZS 14-552 0.75 5.00 0.04 0.00 19ZS 14-676 1.18 5.00 0.01 0.01

19ZS 14-556 0.49 5.00 0.02 0.00 19ZS 14-686 0.99 5.00 0.01 0.01

19ZS 14-557 0.90 5.00 0.05 0.00 19ZS 14-712 0.40 14.00 0.01 0.01

19ZS 14-559 1.33 5.00 0.08 0.00 19ZS 14-714 0.37 15.00 0.01 0.02

19ZS 14-599 0.47 5.00 0.01 0.00 19ZS 14-715 0.43 22.00 0.01 0.02

19ZS 14-601 1.00 5.00 0.02 0.00 19ZS 14-722 0.09 17.00 0.01 0.00

19ZS 14-605 3.89 5.00 0.03 0.00 19ZS 14-724 0.39 5.00 0.01 0.01

19ZS 14-606 2.04 5.00 0.11 0.00 19ZS 14-725 0.87 5.00 0.01 0.02

19ZS 14-607 4.61 5.00 0.04 0.00 19ZS 14-728 1.36 49.00 0.02 0.01

19ZS 14-609 1.97 5.00 0.02 0.00 19ZS 14-733 1.20 5.00 0.02 0.03

19ZS 14-611 3.29 5.00 0.05 0.00 19ZS 14-734 0.46 5.00 0.01 0.02


19ZS 14-612 2.33 5.00 0.06 0.00 19ZS 14-735 0.34 5.00 0.02 0.02

19ZS 14-613 0.50 5.00 0.03 0.00 19ZS 14-791 0.35 5.00 0.01 0.01

19ZS 14-616 0.69 5.00 0.03 0.00 19ZS 14-798 0.39 5.00 0.01 0.01

19ZS 14-617 0.31 5.00 0.03 0.00 19ZS 14-849 1.67 5.00 0.21 0.00

19ZS 14-622 0.46 5.00 0.12 0.00 19ZS 14-878 0.03 12.00 0.02 5.51

19ZS 14-626 0.42 5.00 0.05 0.00 19ZS 14-904 2.01 5.00 0.05 0.01

19ZS 14-637 0.46 5.00 0.01 0.01 19ZS 14-906 0.38 5.00 0.03 0.01

19ZS 14-643 0.38 5.00 0.06 0.01 19ZS 14-909 0.61 5.00 0.02 0.01

19ZS 14-646 0.45 5.00 0.05 0.01 19ZS 14-920 0.42 5.00 0.03 0.01

19ZS 14-648 2.86 5.00 0.06 0.00 19ZS 14-923 0.16 22.00 0.03 0.01

19ZS 14-650 0.62 5.00 0.03 0.01

Figure 16 – N-S slices of the Zs14 anomaly. Note the different responses with the magnetic susceptibility and resistivity data.

Natural History Museum (London) site visit

Overview

From 24th to 30th November 2019, representatives of the Natural History Museum, London

(“NHM”) visited the Gedabek CA, following their Ordubad field visit. The AIMC geology team


worked with the NHM team to provide an overview of the Gedabek CA geology. They visited

the operational mines and main exploration target areas. Given the known gold and copper

styles of mineralisation, focus was on the alteration and structural patterns that may relate

to buried porphyry systems, above which is the surface expression of the epithermal style

gold-copper mineralisation seen at the CA. Rock alteration can be used as a tool for vector

mapping toward mineralised centres.

The team also correlated the WorldView-3® data with other exploration results. A number of

rock samples were taken and these will be analysed at the NHM research facility in early 2020.

Discussions are ongoing with the NHM to assess the potential to further utilise their services

to assist with mineral target definition, rock age dating and geochemical interpretation.

Planned Exploration Activities Q1 2020

Work will continue over the high-priority targets Avshancli (including zones 1-3) and Gilar.

Due to potential adverse weather conditions, it is expected that drilling rates will slow for a

number of weeks during this quarter. Exploration activities, such as field mapping and OC

sampling, will also occur on a sporadic basis until conditions improve. This will, however, give

the exploration team the opportunity to focus on processing drill core and interpreting the

assay results. Preliminary geological modelling will commence for both Avshancli-1 and Gilar

as opportunity allows.

Further ground-based magnetic geophysical surveys are being planned, similar to that

completed over Avshancli-1 during Q4 2019. Provided there is no active precipitation during

the study, the presence of a snow/ice layer should not affect the results of any ground-based

geophysical survey. In addition, it is proposed to carry out a wide-spaced, ground-based

induced polarisation (“IP”) geophysical survey to determine whether to evaluate Avshancli as

a system, or to focus on the individual zones.

Underground tunnel development from Gadir to the target mineralisation zones at depth

below the Gedabek open pit will continue. Currently the tunnel is situated about 120 metres

below the pit floor at the northern part of the Gedabek OP (Pit #4). The ventilation system is

in place, which will allow drilling to commence once tunnelling work for cross-cut tunnels and

drill chambers is complete. During 2020, it is planned that a critical milestone in the

development of Gedabek Underground will be achieved, namely, the underground tunnelling

being extended between Pits #4 and #6.

Exploration activities will continue over ZTEM targets and at other known mineral

occurrences, namely Söyüdlü, Maarif and Bittibulag. Initially, work will focus on interpreting

historical data (both Soviet and Company, where available), prior to conducting exploration

activities, including field reconnaissance, updating geological mapping records and OC

sampling. If warranted, a portion of exploration funding will be assigned to additional

activities such as trenching, drilling and geophysical surveying. As with previous years, efforts

will also continue to expand the reserve footprint of current operations.


References

[1] JORC, 2012. Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) [online]. Available from: http://www.jorc.org (The Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia).

[2] Google Earth, “Gedabek Contract Area,” DigitalGlobe 2020. http://www.earth.google.com

[January 2020].

[3] Azerbaijan International Mining Company, “Q3 2019 Exploration Activities - Gedabek”.

[Online]. Available from: https://www.angloasianmining.com/wp-

content/uploads/2019/11/Q3-2019-Exploration-Activities-Gedabek-FILE_3.pdf.

[4] Azerbaijan International Mining Company, “AIM Announcement - Anglo Asian Mining

makes new gold discovery at Avshancli, Gedabek Contract Area, Azerbaijan” Published 4th Nov

2019. [Online]. Available from: https://www.angloasianmining.com/wp-

content/uploads/2019/11/New_Discovery_Announcement_Avshancli-FILE_1.pdf.

[5] GEM Systems Overhauser Version7.0 [Online]. Available: http://www.gemsys.ca/wp-

content/themes/gemsystems/pdf/GEM_VLF_Ground_GSM-19V.pdf. [Accessed: 4th January

2020].

[6] Azerbaijan International Mining Company, “AIM Announcement - Anglo Asian Mining

makes new gold discovery at Gilar, Gedabek Contract Area, Azerbaijan” Published 4th Nov

2019. [Online]. Available from: https://www.angloasianmining.com/wp-

content/uploads/2019/11/New_Discovery_Announcement_Gilar-FILE_2.pdf.

[7] Azerbaijan International Mining Company, “ZTEM and Aeromagnetic Survey Update”. [Online]. Available from: https://www.rns-pdf.londonstockexchange.com/rns/6860C_1-2019-6-19.pdf.

[8] Azerbaijan International Mining Company, Anglo Asian Mining PLC, “2018 Gedabek and Gosha Exploration Activities and Results Highlights”. [Online]. Available from: https://www.rns-pdf.londonstockexchange.com/rns/5827C_2-2019-6-18.pdf

[9] Azerbaijan International Mining Company, “H1 2019 Exploration Activities - Gedabek”. [Online]. Available from: https://www.angloasianmining.com/wp-content/uploads/2019/09/h1-2019-exploration-activities-gedabek-uncompressed.pdf.

Appendix A: Minimum Reporting Limits for Exploration Results

For gold assays, significant intersections were reported if samples graded ≥ 0.3 g/t Au.

For silver assays, significant intersections were reported if samples graded ≥ 15 g/t Ag.

For copper assays, significant intersections were reported if samples graded ≥ 0.3% Cu.

For zinc assays, significant intersections were reported if samples graded ≥ 0.6% Zn.

Should all assays for a sample or interval fall below all these values, the intersection is reported as ‘NSI’ (“no significant intersections”).


Appendix B: DD Details

Gedabek CA

Gadir Surface DD

Hole I.D. Collar Coordinates Dip Azimuth

EOH Depth

X Y Z ° (deg) ° (deg) (m)

19GDD06 565388.40 4493325.91 1779.05 -90.0 0.0 490.50

19GDD07 566344.51 4492813.30 1731.68 -90.0 0.0 314.00

19GDD08 566617.76 4492331.83 1782.10 -90.0 0.0 523.00

19GDD09 566633.34 4492320.14 1782.65 -90.0 0.0 548.00

19GDD10 566282.03 4492522.86 1798.57 -90.0 0.0 500.00

Gadir Underground DD – HQ/NQ


EOH Depth


19GUD56 566663.32 4492474.16 1458.42 -89.2 11.5 182.60

19GUD57 566557.92 4492504.09 1443.58 -48.5 134.0 138.00

19GUD58 566339.16 4492532.59 1412.98 -22.2 323.6 127.50

19GUD59 566880.73 4492402.09 1507.99 9.2 244.1 49.00

19GUD60 566338.04 4492532.65 1412.66 -25.5 313.2 132.40

19GUD61 566880.61 4492402.50 1509.25 36.2 253.3 42.00

19GUD62 566883.47 4492405.30 1510.29 67.1 30.4 42.00

19GUD63 566974.25 4492351.27 1516.84 3.1 226.3 82.00

19GUD64 566587.05 4492497.95 1446.36 -89.0 321.2 148.10

19GUD65 566974.24 4492351.28 1517.53 23.6 226.3 69.00

19GUD66 567005.22 4492332.15 1522.58 46.0 222.2 91.00

19GUD67 567005.79 4492332.81 1522.95 65.0 219.4 128.00

19GUD68 566552.80 4492454.17 1444.50 -21.5 328.0 120.30

19GUD69 566891.36 4492399.34 1511.58 89.9 45.0 70.00

19GUD70 566890.14 4492398.17 1511.15 50.8 222.3 55.00

19GUD71 566889.80 4492397.40 1509.82 15.0 219.2 60.00

19GUD72 566843.37 4492468.27 1507.53 19.4 236.5 65.00

19GUD73 566842.95 4492468.24 1505.59 -26.3 241.6 96.00

19GUD74 566557.56 4492448.35 1444.72 -57.1 132.4 175.00

19GUD75 566786.13 4492491.33 1516.21 48.3 57.1 50.30

19GUD76 566784.84 4492488.60 1516.16 41.7 146.4 25.00

19GUD77 566804.51 4492540.67 1516.28 -89.6 69.3 69.70

19GUD78 566785.26 4492490.90 1513.29 -89.9 116.3 70.00

19GUD79 566783.80 4492489.92 1516.68 45.4 239.1 25.00

19GUD80 566784.27 4492492.30 1516.27 45.3 335.2 20.00


Gadir Underground DD – BQ


EOH Depth


19UDD117 566509.98 4492580.90 1395.64 -36.1 332.3 15.00

19UDD118 566631.55 4492551.39 1445.15 -88.5 11.0 40.00

19UDD119 566642.91 4492560.40 1448.06 45.3 330.2 15.00

19UDD120 566642.53 4492561.03 1445.91 -28.6 329.0 32.80

19UDD121 566643.05 4492560.19 1445.34 -65.0 325.1 25.00

19UDD122 566591.43 4492530.00 1444.90 -43.0 327.5 11.60

19UDD123 566591.74 4492529.78 1446.74 49.6 320.5 15.00

19UDD124 566576.07 4492520.07 1446.12 36.0 329.1 15.25

19UDD125 566575.94 4492520.24 1444.94 -36.4 326.3 12.00

19UDD126 566575.99 4492520.21 1445.55 1.1 328.4 11.30

19UDD126A 566575.99 4492520.22 1445.65 6.4 328.6 35.00

19UDD127 566642.24 4492560.82 1446.80 -5.9 325.1 25.00

19UDD128 566643.30 4492559.82 1445.34 -75.4 152.2 30.00

19UDD129 566600.63 4492535.98 1446.18 9.0 322.4 31.00

19UDD130 566600.57 4492535.96 1444.54 -58.6 319.1 6.20

19UDD130A 566601.58 4492536.66 1444.77 -58.7 315.3 44.20

19UDD131 566647.19 4492563.70 1447.03 3.2 328.6 30.00

19UDD132 566647.71 4492563.29 1445.37 -82.0 314.1 35.00

19UDD133 566549.66 4492496.99 1444.01 -57.6 142.3 29.60

19UDD134 566532.87 4492482.83 1444.03 -55.1 133.4 28.00

19UDD135 566532.00 4492482.01 1443.73 -78.4 130.5 5.00

19UDD135A 566530.80 4492485.90 1443.85 -62.1 303.3 50.00

19UDD136 566580.52 4492522.42 1444.06 -69.3 320.2 7.00

19UDD137 566582.33 4492518.99 1445.54 2.2 151.1 10.00

19UDD138 566581.97 4492519.40 1447.07 50.1 160.3 10.00

19UDD139 566660.88 4492472.13 1461.42 43.4 205.2 22.00

19UDD140 566661.23 4492472.19 1458.54 -46.1 191.2 30.00

19UDD141 566665.76 4492476.91 1458.99 -54.9 57.5 40.00

19UDD142 566573.16 4492514.40 1444.32 -44.5 143.0 15.90

19UDD143 566572.90 4492514.45 1446.38 46.3 155.0 10.00

19UDD144 566566.20 4492515.02 1446.19 47.6 318.4 10.00

19UDD145 566566.01 4492515.19 1445.10 -1.5 318.2 24.50

19UDD146 566565.99 4492515.13 1444.26 -41.0 316.3 15.00

19UDD147 566624.92 4492562.95 1448.02 55.7 141.1 15.00

19UDD148 566625.61 4492555.67 1448.39 58.0 172.5 13.00

19UDD149 566441.07 4492478.62 1396.57 -69.3 336.1 19.90

19UDD150 566452.95 4492492.88 1396.49 -72.8 85.1 20.00

Ugur Open Pit – DD



EOH Depth


19UGDD03 565411.97 4496580.78 1916.17 -90.0 0.0 374.00

19UGDD04 565351.22 4496682.54 1918.35 -90.0 0.0 353.00

19UGDD05 565413.04 4496654.26 1919.13 -90.0 0.0 411.50

19UGDD06 565348.70 4496639.60 1920.60 -90.0 0.0 371.00

Gedabek Flanks and Duzyurd – DD


EOH Depth


19DYDD01 565289.40 4490377.09 1748.44 -64.0 340.0 727.25

19GBD09 567668.88 4492428.55 1601.51 -52.5 231.5 1063.00

19GBD10 567505.09 4492395.97 1649.86 -90.0 0.0 108.60

19GBD11 567519.08 4492416.14 1642.70 -90.0 0.0 103.80

19GBD12 567526.42 4492340.03 1649.99 -90.0 0.0 100.00

19GBD13 567561.82 4492322.17 1645.12 -90.0 0.0 100.00

Avshancli - DD


EOH Depth


19BFDD01 572931.26 4500623.02 1914.21 -75.0 174.6 208.20

19BFDD02 572906.96 4500716.99 1925.52 -60.0 267.0 310.00

19BFDD03 572930.91 4500509.06 1894.58 -55.0 84.0 125.00

19BFDD04 572962.95 4500490.22 1887.62 -90.0 0.0 50.00

19BFDD05 572879.20 4500734.08 1930.79 -55.0 220.0 170.35

19BFDD06 573149.45 4500403.86 1884.47 -55.0 20.0 204.20

19BFDD07 573957.89 4500566.18 1814.01 -60.0 275.0 201.30

19BFDD08 573789.70 4500608.84 1840.26 -60.0 290.0 206.00

19BFDD09 574179.31 4501089.54 1820.71 -55.0 223.0 257.00

Gilar - DD


EOH Depth


19GLDD01 572790.98 4498391.43 1798.30 -65.0 210.0 99.25

19GLDD02 572581.27 4498670.25 1873.90 -60.0 200.0 82.00

19GLDD03 572534.85 4498486.63 1805.05 -65.0 163.0 60.00

19GLDD04 572743.15 4497983.14 1690.02 -75.0 250.0 450.00


Appendix C: Significant Intersections – Gadir UG DD

Gadir UG DD – HQ/NQ

Hole I.D.


Depth From

Depth To

Downhole Length

Au Ag Cu Zn

m m m g/t g/t % %

19GUD56

0.00 1.00 1.00 0.50 5.00 0.08 0.06

2.90 4.00 1.10 0.41 5.00 0.03 0.02

5.00 20.00 15.00 1.05 5.00 0.11 0.13


9.00 14.00 5.00 1.85 5.00 0.08 0.21

26.00 27.00 1.00 0.54 5.00 0.02 0.20

48.00 49.00 1.00 0.37 5.00 0.02 1.46

53.00 54.20 1.20 0.20 5.00 0.13 1.27

81.00 82.00 1.00 0.37 5.00 0.01 0.12

83.00 86.00 3.00 0.74 5.00 0.02 0.18


85.00 86.00 1.00 1.22 5.00 0.02 0.15

90.20 90.40 0.20 0.39 5.00 0.02 0.28

91.00 97.00 6.00 0.83 6.83 0.03 0.53


91.00 92.00 1.00 1.85 5.00 0.04 0.85

98.00 99.00 1.00 0.30 5.00 0.03 0.18

104.00 107.00 3.00 0.10 5.00 0.05 0.88

114.00 115.00 1.00 0.35 5.00 0.01 0.01

126.00 128.60 2.60 0.55 5.00 0.01 0.05

136.00 141.00 5.00 0.37 5.00 0.04 0.59

145.00 176.50 31.50 0.18 9.30 0.07 1.41


165.50 168.50 3.00 0.20 11.33 0.10 4.43

173.50 175.50 2.00 0.15 7.50 0.06 2.85

176.50 177.30 0.80 0.58 20.00 0.54 0.40

180.40 181.50 1.10 0.77 5.00 0.18 0.54

181.50 182.60 1.10 0.06 5.00 0.03 1.66

19GUD57

19.00 22.00 3.00 1.48 5.00 0.02 0.02


20.00 22.00 2.00 2.05 5.00 0.02 0.03

27.00 28.00 1.00 0.30 5.00 0.01 0.02

91.00 92.00 1.00 0.03 16.00 0.02 0.06

115.00 116.00 1.00 0.09 20.00 0.01 0.13

129.00 130.00 1.00 0.07 21.00 0.07 0.14

134.00 135.00 1.00 0.05 15.00 0.02 0.12

19GUD58 10.60 18.50 7.90 1.42 5.00 0.06 0.02



12.50 15.50 3.00 1.78 5.00 0.08 0.03

16.50 17.50 1.00 2.38 5.00 0.07 0.02

22.50 24.50 2.00 1.67 5.00 0.04 0.03


22.50 23.50 1.00 2.89 5.00 0.04 0.03

31.00 32.00 1.00 0.42 5.00 0.02 0.02

33.00 36.00 3.00 0.37 5.00 0.02 0.02

37.00 39.00 2.00 0.66 5.00 0.02 0.02

41.00 42.20 1.20 0.30 5.00 0.02 0.13

43.00 48.00 5.00 0.05 12.80 0.03 1.01

56.00 57.00 1.00 1.24 5.00 0.01 0.01

68.00 69.00 1.00 0.07 18.00 0.01 0.01

71.00 72.00 1.00 0.03 16.00 0.02 0.01

88.10 90.00 1.90 0.69 5.00 0.07 0.03

97.00 98.00 1.00 0.49 5.00 0.04 0.02

100.80 104.60 3.80 1.02 5.00 0.30 0.02

113.00 116.30 3.30 0.60 5.00 0.14 0.02

116.30 117.30 1.00 0.23 5.00 0.58 0.02

121.10 126.50 5.40 6.73 5.00 0.07 0.01


124.00 125.50 1.50 19.00 5.00 0.12 0.02

19GUD59

0.00 19.00 19.00 1.60 20.89 0.03 0.33


8.00 17.00 9.00 2.70 34.56 0.02 0.16

23.00 34.00 11.00 1.26 5.00 0.03 0.12


24.00 26.00 2.00 2.56 5.00 0.04 0.29

27.00 29.00 2.00 2.16 5.00 0.09 0.08

19GUD60

11.50 12.50 1.00 0.44 5.00 0.04 0.03

13.50 28.50 15.00 1.31 5.53 0.03 0.02


18.50 24.50 6.00 2.36 5.00 0.02 0.01

29.50 30.50 1.00 0.45 13.00 0.03 0.02

31.50 32.50 1.00 0.31 5.00 0.04 0.02

38.50 48.50 10.00 0.09 6.70 0.07 1.40


45.50 48.50 3.00 0.14 5.00 0.10 2.36

48.50 52.10 3.60 1.99 8.56 0.08 0.90


50.50 52.10 1.60 3.03 13.00 0.10 1.10

53.00 58.00 5.00 1.10 7.40 0.02 0.07


54.00 57.00 3.00 1.56 5.00 0.02 0.04

65.00 66.00 1.00 1.66 5.00 0.04 0.02

76.00 78.00 2.00 0.03 17.50 0.02 0.02


79.00 80.00 1.00 0.03 16.00 0.01 0.02

101.00 102.00 1.00 0.19 17.00 0.07 0.05

106.00 108.00 2.00 0.51 5.00 0.03 0.02

110.00 114.20 4.20 1.50 7.86 0.06 0.02


112.00 113.00 1.00 4.81 5.00 0.08 0.02

19GUD61

0.00 10.00 10.00 1.12 18.93 0.04 0.33


5.00 10.00 5.00 1.56 29.86 0.02 0.14

11.00 16.00 5.00 0.40 11.60 0.01 0.11

20.00 26.00 6.00 0.42 5.00 0.01 0.03

27.00 30.40 3.40 0.48 5.00 0.01 0.01

32.00 33.00 1.00 1.20 18.00 0.01 0.05

19GUD62

0.00 25.50 25.50 4.42 42.75 0.04 0.45


11.00 22.00 11.00 8.45 77.12 0.03 0.64

23.50 24.50 1.00 5.62 18.00 0.01 0.03

27.50 34.00 6.50 3.47 5.00 0.02 0.02


28.50 30.50 2.00 8.72 5.00 0.02 0.02

33.10 34.00 0.90 2.00 5.00 0.02 0.02

19GUD63

0.00 1.00 1.00 0.41 19.00 0.02 0.03

12.00 13.00 1.00 0.44 5.00 0.24 0.02

14.00 16.00 2.00 0.36 13.00 0.24 0.02

22.00 23.00 1.00 0.57 5.00 0.09 0.07

24.00 25.00 1.00 0.39 5.00 0.01 0.02

67.00 68.00 1.00 1.05 5.00 0.24 0.05

70.00 72.00 2.00 0.71 8.00 0.27 0.07

19GUD64

0.00 4.00 4.00 0.59 5.00 0.01 0.02

7.00 13.00 6.00 1.21 8.33 0.07 0.62


8.20 10.00 1.80 2.73 5.00 0.04 0.10

15.00 16.80 1.80 0.32 5.00 0.02 0.24

18.50 19.50 1.00 0.30 5.00 0.02 0.04

26.50 27.20 0.70 0.33 5.00 0.01 0.03

31.00 31.60 0.60 0.50 5.00 0.01 0.02

19GUD65

16.00 17.00 1.00 0.35 5.00 0.19 0.02

18.00 19.00 1.00 0.32 5.00 0.24 0.01

21.00 22.00 1.00 0.45 5.00 0.12 0.01

29.50 30.50 1.00 0.34 5.00 0.21 0.04

40.00 40.70 0.70 1.78 5.00 0.46 0.01

40.70 41.50 0.80 0.14 16.00 0.06 0.01

42.50 43.50 1.00 0.21 16.00 0.12 0.01

19GUD66 24.00 25.00 1.00 0.44 5.00 0.14 0.02

38.00 39.00 1.00 0.91 5.00 2.86 1.22


46.00 47.00 1.00 0.18 16.00 0.09 0.01

53.50 54.50 1.00 0.10 19.00 0.10 0.22

72.50 73.50 1.00 0.36 5.00 0.18 0.06

80.90 83.50 2.60 0.75 14.62 0.44 0.16


80.90 81.60 0.70 1.38 19.00 0.92 0.12

85.50 91.00 5.50 0.47 4.23 0.02 0.05

19GUD67

31.50 33.00 1.50 0.70 5.00 0.30 0.14

47.50 50.50 3.00 0.39 14.67 0.72 0.10

52.50 53.50 1.00 0.11 5.00 0.14 1.19

58.50 59.50 1.00 0.24 20.00 0.28 0.38

62.50 63.30 0.80 0.03 5.00 0.79 0.15

71.00 77.00 6.00 0.81 23.58 0.33 4.37


74.00 75.70 1.70 1.78 40.71 0.51 11.52

79.00 96.00 17.00 0.91 6.29 0.03 0.26


87.00 88.00 1.00 1.55 5.00 0.04 0.27

91.00 92.00 1.00 1.73 5.00 0.07 0.40

99.00 101.00 2.00 0.40 5.00 0.03 0.30

103.00 104.00 1.00 0.32 5.00 0.09 0.07

105.00 113.00 8.00 0.34 11.73 0.29 1.11

115.00 116.00 1.00 0.34 5.00 0.30 0.10

122.50 124.50 2.00 0.62 5.00 0.07 0.02

19GUD68

63.50 64.50 1.00 0.26 5.00 0.35 0.03

66.50 67.50 1.00 0.62 5.00 0.10 0.02

74.70 75.50 0.80 0.33 5.00 0.06 0.02

76.20 76.70 0.50 0.32 5.00 0.39 0.06

86.50 87.50 1.00 0.34 5.00 0.01 0.01

100.60 102.00 1.40 0.32 9.00 0.63 0.09

117.50 119.50 2.00 0.33 5.00 0.12 0.10

19GUD69

1.00 2.00 1.00 0.36 5.00 0.16 6.26

3.00 16.00 13.00 1.41 10.62 0.05 0.52


8.00 10.00 2.00 1.75 16.00 0.06 0.44

10.90 13.85 2.95 3.39 12.80 0.04 0.68

17.00 20.00 3.00 0.52 5.00 0.01 0.15

19GUD70

0.00 12.50 12.50 1.20 23.54 0.06 2.19


8.00 9.00 1.00 6.84 154.00 0.11 3.04

15.50 16.50 1.00 0.16 10.00 0.01 0.63

39.00 43.00 4.00 0.77 5.00 0.02 0.02

19GUD71

0.00 1.00 1.00 0.33 9.00 0.08 1.44

6.00 32.00 26.00 1.44 15.33 0.04 0.31



15.20 17.00 1.80 3.54 29.89 0.06 0.23

51.00 52.00 1.00 0.38 5.00 0.02 0.01

19GUD72 32.00 33.00 1.00 0.37 5.00 0.01 0.10

19GUD73

0.00 1.00 1.00 0.45 5.00 0.03 0.08

19.00 20.00 1.00 0.39 5.00 0.04 0.03

22.00 23.00 1.00 0.33 5.00 0.05 0.03

24.00 25.00 1.00 0.49 5.00 0.06 0.19

19GUD74

27.00 29.00 2.00 1.07 5.00 0.01 0.01

34.00 35.00 1.00 0.49 5.00 0.02 0.02

43.00 44.00 1.00 1.46 5.00 0.03 0.18

46.00 51.00 5.00 0.27 5.00 0.06 1.07

61.00 62.00 1.00 0.40 5.00 0.10 0.01

63.00 64.00 1.00 0.47 5.00 0.07 0.04

88.50 89.50 1.00 0.37 5.00 0.09 0.07

113.00 147.70 34.70 0.77 5.00 0.05 0.07


115.60 116.50 0.90 3.26 5.00 0.02 0.01

137.50 138.50 1.00 3.60 5.00 0.02 0.06

140.50 141.50 1.00 2.80 5.00 0.07 0.05

151.60 156.00 4.40 2.17 5.00 0.10 0.04


152.50 154.50 2.00 3.28 5.00 0.16 0.05

158.00 159.00 1.00 0.31 5.00 0.01 0.08

160.00 161.00 1.00 0.30 5.00 0.01 0.07

19GUD75

0.00 7.30 7.30 2.22 19.12 0.06 0.84


0.00 1.00 1.00 3.63 5.00 0.16 3.02

3.00 4.00 1.00 4.78 28.00 0.06 0.61

19GUD76

0.00 3.00 3.00 2.29 5.00 0.01 0.20


0.00 1.00 1.00 4.87 5.00 0.01 0.22

7.00 9.00 2.00 0.32 8.50 0.02 0.08

19GUD77

6.00 6.70 0.70 0.18 5.00 0.01 0.76

8.50 26.60 18.10 1.02 5.00 0.07 0.50


12.50 13.50 1.00 2.29 5.00 0.14 0.74

22.50 23.50 1.00 2.88 5.00 0.09 1.04

51.00 52.00 1.00 0.05 23.00 0.02 0.18

19GUD78

0.00 4.00 4.00 0.90 5.00 0.03 0.12

13.00 21.70 8.70 1.30 7.18 0.07 0.88


15.00 16.00 1.00 2.73 5.00 0.06 0.42

30.00 31.00 1.00 0.42 5.00 0.04 0.46

32.00 33.00 1.00 0.29 5.00 0.06 1.94

34.00 37.00 3.00 0.15 5.00 0.01 0.91


43.50 44.50 1.00 0.30 5.00 0.04 0.01

45.50 46.20 0.70 0.46 5.00 0.11 0.14

52.00 53.00 1.00 0.43 5.00 0.10 0.17

54.00 54.80 0.80 0.34 5.00 0.07 0.18

55.50 56.50 1.00 0.31 5.00 0.05 0.24

57.50 61.50 4.00 0.83 16.25 0.23 0.62

62.50 63.50 1.00 0.32 5.00 0.05 0.13

68.00 70.00 2.00 0.43 5.00 0.08 0.19

19GUD79 0.00 1.90 1.90 2.76 5.00 0.03 0.25

5.00 6.00 1.00 0.32 5.00 0.05 0.01

19GUD80 0.00 1.70 1.70 2.41 20.29 0.43 4.66

Gadir UG DD – BQ

Hole I.D.


Depth From

Depth To

Downhole Length

Au Ag Cu Zn

m m m g/t g/t % %

19UDD117

0.00 3.80 3.80 0.40 7.39 0.09 0.29

8.00 9.00 1.00 0.07 5.00 0.05 1.31

11.00 12.00 1.00 0.12 5.00 0.04 0.63

19UDD118

1.00 2.00 1.00 1.61 5.00 0.05 0.07

3.00 14.50 11.50 1.44 5.96 0.04 0.29


3.00 7.00 4.00 1.79 5.00 0.02 0.04

8.70 11.50 2.80 2.22 5.00 0.02 0.04

15.50 16.50 1.00 0.31 5.00 0.05 0.32

17.50 18.50 1.00 0.06 5.00 0.01 0.87

28.50 29.20 0.70 0.79 5.00 0.06 0.01

39.30 40.00 0.70 0.33 5.00 0.03 0.01

19UDD119 0.00 1.00 1.00 0.60 5.00 0.01 0.05

19UDD120

4.00 23.00 19.00 4.99 16.52 0.05 0.28


5.00 18.00 13.00 7.10 20.06 0.04 0.09

18.00 23.00 5.00 0.38 9.60 0.06 0.84

24.70 25.50 0.80 0.30 5.00 0.03 0.08

27.50 28.50 1.00 0.61 5.00 0.03 0.06

19UDD121

2.00 3.00 1.00 0.69 14.00 0.01 0.02

10.20 25.00 14.80 2.14 14.88 0.06 0.68


11.00 17.20 6.20 4.59 25.03 0.07 0.23

20.00 25.00 5.00 0.23 6.20 0.04 1.33

19UDD122 1.00 8.00 7.00 0.38 16.89 0.08 1.68

9.00 10.80 1.80 0.35 5.00 0.05 2.07


19UDD123

0.00 8.80 8.80 5.19 13.30 0.01 0.08


0.00 2.00 2.00 1.24 5.00 0.02 0.17

3.00 4.00 1.00 1.52 43.00 0.02 0.09

6.00 8.80 2.80 14.25 17.50 0.01 0.06

19UDD124

0.00 12.10 12.10 1.82 5.00 0.04 0.14


0.00 3.00 3.00 3.27 5.00 0.02 0.03

6.50 7.50 1.00 1.67 5.00 0.02 0.20

8.50 12.10 3.60 2.13 5.00 0.10 0.24

19UDD125

0.00 12.00 12.00 1.00 14.75 0.08 0.78


0.00 1.00 1.00 1.61 5.00 0.01 0.02

4.00 6.00 2.00 2.05 5.00 0.01 0.03

8.00 9.00 1.00 1.43 46.00 0.52 0.61

10.00 11.00 1.00 1.13 20.00 0.11 3.36

19UDD126

0.00 2.00 2.00 1.82 5.00 0.00 0.01


1.00 2.00 1.00 2.70 5.00 0.01 0.02

3.00 4.70 1.70 0.47 5.00 0.01 0.02

8.50 10.50 2.00 1.32 5.00 0.00 0.00


9.50 10.50 1.00 2.25 5.00 0.01 0.00

19UDD126A

0.00 1.00 1.00 0.62 5.00 0.00 0.01

3.00 5.00 2.00 0.54 5.00 0.01 0.02

7.00 9.00 2.00 0.75 5.00 0.00 0.01


7.00 8.00 1.00 1.16 5.00 0.01 0.01

19UDD127

1.00 2.00 1.00 0.36 5.00 0.00 0.01

7.00 8.00 1.00 0.32 5.00 0.01 0.01

11.00 25.00 14.00 5.77 6.93 0.01 0.02


12.00 23.00 11.00 7.18 7.45 0.01 0.02

19UDD128

6.00 8.00 2.00 0.70 5.00 0.01 0.02

11.00 23.00 12.00 1.34 7.00 0.03 0.37


12.00 17.00 5.00 2.49 7.40 0.02 0.13

25.00 27.00 2.00 2.20 15.50 0.23 0.87


26.00 27.00 1.00 3.68 26.00 0.40 1.12

19UDD129

0.00 4.00 4.00 0.82 7.25 0.03 0.12

5.00 6.00 1.00 0.34 5.00 0.01 0.05

15.00 16.00 1.00 0.35 5.00 0.01 0.03

19UDD130 0.00 1.00 1.00 0.50 5.00 0.03 0.05

4.00 6.20 2.20 0.95 5.00 0.01 0.01



4.00 5.00 1.00 1.14 5.00 0.01 0.01

19UDD130A

6.50 7.50 1.00 0.69 5.00 0.02 0.01

8.50 10.50 2.00 0.62 9.50 0.01 0.01

15.50 16.50 1.00 0.50 5.00 0.07 0.02

19.50 21.50 2.00 0.44 5.00 0.01 0.01

37.50 38.50 1.00 0.07 5.00 0.35 0.24

19UDD131

11.00 11.70 0.70 0.43 5.00 0.01 0.02

12.50 15.50 3.00 2.73 5.00 0.01 0.04


12.50 13.50 1.00 6.81 5.00 0.01 0.02

17.50 18.50 1.00 0.51 5.00 0.00 0.01

19UDD132

9.00 35.00 26.00 1.64 14.92 0.05 1.09


9.00 10.00 1.00 3.68 5.00 0.01 0.02

11.50 17.50 6.00 5.47 37.17 0.04 0.43

21.50 35.00 13.50 0.31 7.36 0.06 1.72

19UDD133

21.50 26.00 4.50 1.27 5.00 0.09 0.15


22.20 24.00 1.80 2.29 5.00 0.12 0.11

27.00 29.60 2.60 0.61 5.00 0.25 0.02


27.80 28.50 0.70 1.01 5.00 0.47 0.02

19UDD134 21.50 24.50 3.00 0.53 5.00 0.02 0.01

26.50 27.20 0.70 0.62 5.00 0.03 0.04

19UDD135 NSI

19UDD135A 30.00 30.40 0.40 0.36 5.00 0.25 0.02

36.00 39.00 3.00 0.48 5.00 0.01 0.05

19UDD136

0.00 1.00 1.00 1.70 10.80 0.08 0.21


2.00 4.00 2.00 3.01 19.50 0.14 0.24

6.00 7.00 1.00 0.30 5.00 0.01 0.57

19UDD137 NSI

19UDD138 NSI

19UDD139

0.00 1.00 1.00 0.50 5.00 0.05 0.06

2.00 10.00 8.00 0.92 5.00 0.08 0.02

11.00 15.00 4.00 1.15 5.00 0.02 0.30

19UDD140

1.80 3.50 1.70 0.93 5.00 0.26 0.03

4.50 6.30 1.80 0.50 5.00 0.14 0.04

9.00 10.00 1.00 0.43 5.00 0.00 0.00

17.00 18.00 1.00 1.13 5.00 0.00 0.00

19UDD141

0.00 5.00 5.00 0.98 5.00 0.02 0.05

6.00 7.00 1.00 0.40 5.00 0.06 0.04

10.00 11.00 1.00 0.31 5.00 0.01 0.03


33.00 34.00 1.00 0.43 12.00 0.03 0.53

19UDD142

2.00 3.00 1.00 0.99 5.00 0.01 0.02

14.50 15.90 1.40 1.87 5.00 0.01 0.01


15.20 15.90 0.70 3.13 5.00 0.01 0.01

19UDD143 NSI

19UDD144 NSI

19UDD145 NSI

19UDD146 9.00 10.00 1.00 1.54 5.00 0.01 0.02

11.00 14.00 3.00 0.74 5.00 0.01 0.02

19UDD147

0.00 10.00 10.00 3.78 38.17 0.57 13.92


0.00 5.70 5.70 6.05 51.53 0.79 19.24

11.00 15.00 4.00 1.77 5.00 0.04 0.16

19UDD148

0.00 13.00 13.00 4.20 15.91 0.46 8.38


10.00 10.70 0.70 7.37 27.00 0.16 1.17

12.00 13.00 1.00 32.11 21.00 0.04 0.20

19UDD149 10.00 11.00 1.00 0.31 5.00 0.06 0.02

19UDD150

2.70 3.70 1.00 0.20 5.00 0.07 0.92

4.80 8.10 3.30 0.57 5.00 0.04 0.06

8.10 8.60 0.50 0.16 5.00 0.09 0.69

12.50 13.50 1.00 0.55 5.00 0.01 0.02

19.80 20.00 0.20 0.17 16.00 0.73 0.08

Appendix D: ZTEM Target Codes

Note: Not all targets have been mentioned in this report

Shallow Deep Porphyry

Zs1 Dondarly Zs11 Garabulag

East (N) Zd1

Almalytala Deep

M1 Hachagaya

Zs2 Mt. Okuzdag Zs12 Garabulag

East (S) Zd2

Gyzyljadag Deep

M2 Ertepe East

Zs3 Almalytala Shallow Zs13 Gunash Zd3 Arykhdam/AC

Area M3 Shemkirchay

Zs4 Agamaly Zs14 Parakend

Bugor Zd4 Godekdere M4 Mubariz

Zs5 Dikbash Zs15 Korogly Zd5 Deyegarabulag M5 Gedabek

Zs6 Shekerbek Zs16 Soyugbulag M6 Duzyurd

Zs7 Gyzyljadag East Zs17 Seyfali Dam

Zs8 Gyzyljadag Shallow Zs18 Zehmetkend

Zs9 Yagublu Zs19 Masxit

Zs10 Chenlibel SE Zs20 Narzan


Appendix E: JORC Table 1 – Gedabek CA

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary

Sampling

techniques

• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Gedabek Contract Area -

Gadir:

• A total of 5 surface DD holes were drilled over Gadir, totalling 2,375.50 m.

• A total of 25 underground DD holes were drilled from Gadir, totalling 2,132.90 m.

• A total of 37 underground DD holes were drilled from Gadir, utilising BQ diameter tubes. Total BQ core drilled during Q4 2019 was 804.25 m.

• All DD programmes were completed with the aim of establishing the continuity of mineable material and extending the mineralisation footprint at depth.

Ugur:

• A total of 4 exploration DD holes were drilled over and around the Ugur OP during Q4 2019, totalling 1,509.50 m.

Gedabek Flanks and Duzyurd:

• A total of 6 DD holes were completed from surface around Gedabek for 1,475.40

m.

• One DD hole was drilled from surface at Duzyurd for 727.25 m.

Avshancli:

• A total of 9 exploration DD holes were drilled over the Avshancli district during Q4 2019, totalling 1,732.05 m.

• Trench (“TR”) sampling has been carried out over all three high-priority zones (Avshancli-1, -2 and -3). o Two trenches were completed in Avshancli-1 for a total of 295.80 m. o One trench was completed in Avshancli-2 for 704.50 m.



o One trench was completed in Avshancli-3 for 1129.25 m.

• Outcrop ("OC") sampling was conducted over Avshancli; 128 samples were collected and analysed.

Gilar:

• A total of 4 exploration DD holes were drilled over Gilar during Q4 2019, totalling 691.25 m.

Zs14 (“Parakend Bugor”):

• A total of 343 OC samples were collected and assayed over Zs14 during Q4 2019.

• OC sampling was carried out via chipping exposed rock with a rock hammer. A mass of 2-3 kg was targeted for each sample.

• Upon collection of a sample, location was obtained via GPS and subsequently uploaded into appropriate geological software for verification.

• TR sampling was carried out via chipping material exposed in hand-dug channels with a rock hammer. A mass of 2-3 kg was targeted for each sample.

• During OC and TR sample collection, sample description and analysis by portable method was carried out by the geologist(s) present. Lithology, alteration and mineralisation were recorded into field notebooks and transferred to the Gosha Exploration database once access to a computer was available. This was verified by the Exploration Manager prior to submission to the onsite laboratory.

• TR length was dependent upon the ease of digging. Typical sample interval was 1.0 m unless geology warranted constraints.

• DD was used to provide a continuous sample of bedrock at depth for geological (including structural) information.

• Verification for OC sampling were both visual and through use of a handheld XRF instrument (model Thermo Scientific™ Niton™ XL3t GOLDD+ XRF Analyzer). Sample and geological information was recorded into the AIMC geological database. Results from XRF analysis were also uploaded to the database.

• Include reference to measures taken to ensure sample representivity and the

• All OC samples were weighed to ensure representative sampling of the rock. Bias existed where samples were taken, as sampling could only occur where rock



appropriate calibration of any measurement tools or systems used.

exposures were found.

• All TR samples were weighed to ensure representative sampling of the trench.

• To ensure representative sampling, DD core was logged and marked considering mineralisation and alteration intensity, after ensuring correct core run marking with regards to recovery. Sampling of the drill core was systematic and unbiased.

• The portable XRF is calibrated by AIMC on a monthly basis using THERMO-supplied certified reference materials (“CRMs”; this equates to calibration every 150-200 samples). The equipment supplier also conducts annual calibration on the machine.

• Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• A mass of 2-3 kg was targeted for each OC sample to minimise the risk of sample bias that may be introduced at the laboratory. Pulverisation at the AIMC laboratory produced 50 g charges, ready for primary Atomic Absorption ("AAS") analysis and check Fire Assay ("FA”).

• A mass of 2-3 kg was targeted for each TR sample to minimise the risk of sample bias that may be introduced at the laboratory. Pulverisation at the AIMC laboratory produced 50 g charges, ready for primary AAS analysis and check FA.

• DD sample target mass was 2-3.5 kg prior to laboratory processing. Pulverisation at the AIMC laboratory produced 50 g charges, ready for primary AAS and check FA. o Based on geological logging by AIMC geologists, core was submitted for sampling

to the preparation area. Full core was split longitudinally in half by using a diamond-blade core saw; the core saw is a 'CM501' manufactured by Norton Clipper and the blades from the 'GSW' series manufactured by Lissmac.

o Half-core samples were taken at typically 1 m intervals, or to rock contacts if present in the core run (e.g. lithological, mineralisation, alteration contacts).

o The drill core was rotated prior to cutting to maximise structure to core axis of the cut core.

• Elements assayed for were gold (Au), silver (Ag), copper (Cu) and zinc (Zn).



Drilling

techniques

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

Gadir Underground:

• Underground DD drilling was completed from platforms in Gadir; various tube sizes were used (dependent upon site turnaround demands and mineralisation targets). These were HQ (63.5 mm diameter), NQ (47.6 mm diameter) and BQ (36.5 mm diameter) standard tubes.

Gadir Surface, Ugur. Gedabek Flanks and Duzyurd, Avshancli and Gilar:

• Surface DD drilling carried out comprised of HQ/NQ core.

• Across all areas, drill core was not orientated due to technological limitations in-country. Discussions are underway with regards to possible future use of orientated core.

• OC and TR sampling were conducted by hand.

• Trench length varied dependent on how easy the material was to excavate.

• Target trench depth was 0.5 m and 0.5 – 1.0 m width.

Drill sample

recovery

• Method of recording and assessing core and chip sample recoveries and results assessed.

• OC/TR sample recoveries were not able to be assessed; however, sample masses were recorded prior to laboratory processing.

• Core recovery was recorded at site, verified at the Gedabek core yard and subsequently entered into the database. Recovery for mineralised sections was generally very good (in excess of 95%) and over the length of the hole was typically > 90%. Recovery measurements were poorer in fractured and faulted rocks, weathered zones or dyke contacts – in these zones average recovery was 85%.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• Geological information was passed to the drilling crews to make the operators aware of zones of geological complexity (where available) - the aim was to maximise sample recovery through technical management of the drilling. o When zones of difficult drilling were encountered, holes were flushed with water

to prevent core loss. o Management was also carried out via controlling downward pressures and

rotation speeds. o In fractured or faulted ground, shorter core runs were completed. o In poorly consolidated or weak, oxidised ground, drill clays were used to



maximise core recovery.

• Data collected from all the Q4 2019 drill programmes will be analysed and used to predict zones of geological complexity in advance, to maximise core recovery for future campaigns.

• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• The relationship could only be tested for DD sample collection.

• For the operating mines, there is no direct relationship between sample recovery and grade variation (see most-recent JORC reports from Gedabek OP and Gadir UG). o In core drilling however, losses of fines are believed to result in lower gold grades

due to washout in fault/fracture zones. o This is also the situation when core drilling grades are compared with RC grades. o This is likely to result in an underestimation of grade, which has been confirmed

during production.

• Studies will be undertaken to determine if a relationship exists between sample recovery and grade once drilling is completed over Avshancli, Gilar and the ZTEM anomalies.

Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• All OC/TR/DD material was logged by the AIMC exploration geology team.

• All DD core (surface and underground) was logged in detail for lithology, alteration, mineralisation, geological structure and oxidation state by AIMC geologists, utilising logging codes and data sheets as supervised by the Competent Person (“CP”). Data were captured on paper and manually entered into the digital database. o Rock quality designations (“RQD”) data were recorded for geotechnical

purposes. Fracture intensity, style, fracture-fill and fragmentation proportion data were also collected for geotechnical analysis.

• DD logging data were considered sufficient to be used to support future Mineral Resource estimations, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

• Logging was both qualitative and quantitative in nature.

• All core was dry-photographed and included core box number, run blocks and from/to depths.

• The total length and percentage of the • All DD holes were logged in their entirety.



relevant intersections logged.

Sub-Sampling

Techniques and

Sample

Preparation

• If core, whether cut or sawn and whether quarter, half or all core taken.

• Prior to sampling, all HQ and NQ DD core was split longitudinally in half by using a diamond-blade core saw, as described above.

• Samples of one half of the core were taken, typically at 1 metre intervals, whilst the other half was retained in the core tray for reference.

• If geological features or contacts warranted adjustment of the interval, then the intersection sampled was reduced to confine these features.

• The drill core was rotated prior to cutting to maximise structure to the axis of the cut core – cut lines were drawn on during metre-marking.

• The same sampling process for BQ core (from Gadir) was adhered to however whole core material was submitted to the AIMC laboratory. As such, only coarse reject and pulp rejects were retained.

• If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

• All material drilling completed during Q4 2019 has been completed via DD methods.

• OC/TR samples did not undergo any sub-sampling prior to laboratory submission. Only coarse reject and pulp material was retained for these samples.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• All DD samples were prepared according to best practice, as previously verified by external auditors (most recently, Datamine® in 2018).

• Industry-standard sample preparation is conducted under controlled conditions within the AIMC laboratory. Sample preparation methods are considered appropriate for the sample types submitted.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• All samples were weighed prior to laboratory submission to ensure representivity of samples.

• QAQC samples were submitted with each batch of OC samples.

• QAQC samples were submitted with each batch of TR samples.

• QAQC samples were submitted with each DD hole submission.

• Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

• No OC/TR field duplicates were taken due to the reconnaissance nature of the sampling.

• Coarse reject duplicates and second-half samples are in the process of being



submitted as part of a QAQC programme for the Gedabek region.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• Sample sizes are considered appropriate to the grain size of the materials, styles of mineralisation and analytical techniques, based on the Gedabek CA dataset.

Quality of Assay

Data and

Laboratory Tests

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• Laboratory procedures, QAQC assaying and analysis methods employed are industry standard. They are executed and supervised by a dedicated laboratory team. AAS and FA techniques were utilised and as such, both partial and total analytical techniques were conducted.

• Handheld XRF (model Thermo Scientific™ Niton™ XL3t GOLDD+ XRF Analyzer) was used to assist with mineral identification during field mapping and core logging procedures.

• The AIMC site laboratory is located within the Gedabek CA. o Laboratory procedures, QAQC assaying and analysis methods employed are

industry standard. They are enforced and supervised by a dedicated laboratory team. AAS and FA techniques were utilised and as such, both partial and total analytical techniques were conducted.

o The onsite laboratory has QAQC protocols in place and uses an external control laboratory. Calibration of the analytical equipment in the laboratory is considered to represent best practice.

o Samples were pulverised to -75 µm to produce 50 g charges for primary AAS – this is considered appropriate for the material presented.

• For check FA, the samples are submitted to the ALS Loughrea (‘OMAC’) laboratory in Ireland.

• The number of QC samples inserted in each ALS batch of samples is based on the analytical batch size and requirements. Each batch of samples contains a minimum of the following:

o “1 method blank. It is placed in the first position of the batch and does not contain a sample and goes through the entire analytical process from weighing to instrument analysis. This blank contains the same reagents as the regular samples and is used to monitor contamination throughout the analytical process.



o 1 reference material. Reference materials are homogenous samples containing known concentrations of analytes. They go through the exact same process as the regular samples and therefore can be used to monitor the accuracy and precision of the method as a whole, as well as sample order, contamination, and digestion quality of the batch. The first reference material is inserted in the second position of the batch and a second reference material is inserted into a random position chosen by GEMS. Results for the reference materials should be within the criteria set for the method.

• 1 set of duplicates. The duplicate sample is the last sample in the batch and is a separate weighing from the same pulp as the original sample. Duplicates are used to evaluate the precision of the analytical method. For gold analysis, duplicates show the degree of homogeneity of the sample. [sic]”

• For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• Calibration of the Thermo Scientific™ Niton™ XL3t GOLDD+ XRF Analyzer is carried out annually by the manufacturer, when the machine is submitted for servicing. o The XRF is calibrated by AIMC on a monthly basis using THERMO-supplied CRMs

(this equates to calibration every 150-200 samples). o Read-times for the machine total 88 seconds (minimum).

• Calibration of the analytical equipment in the laboratory is considered to represent best practice.

• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

• Monitoring of QAQC data is conducted after each assay return from the laboratory.

• All assay data presented as part of this Q4 2019 Exploration report passed QAQC protocols.

• Internal laboratory QAQC checks are regularly conducted and reviewed by staff. AIMC geologists also conduct reviews on the laboratory QAQC data. o Laboratory control comprises of pulp and coarse duplicates, the same method

as is carried out at ALS per batch (see above).

• The verification of significant intersections by either independent or alternative company personnel.

• Intersections were defined and verified by K. Matthews, Project Geologist.

• Significant intersections were verified internally by a number of company personnel within the management structure of the Exploration Department of AIMC.



Verification of

Sampling and

Assaying

• Assay intersections were cross validated with visual drill core intersections (i.e. photographs).

• The use of twinned holes. • No twinned holes were drilled as part of the exploration programme during Q4 2019. Over the operating mines, extraction of the ore blocks is believed to represent ‘twinning’ and is reconciled once mined.

• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

• Data entry is supervised by a data manager. Verification and checking procedures are in place. The format of the data is appropriate for direct import into Datamine® software. All data are stored in electronic databases within the geology department and backed-up to the secure company electronic server – access is restricted.

• AIMC laboratory data are loaded electronically by the laboratory department and validated by the geology department. Any outliers or anomalous assays are resubmitted.

• ALS laboratory data are loaded electronically and validated by the Gedabek exploration geology team. Any outliers or anomalous assays are restricted and resubmitted for assay.

• Discuss any adjustment to assay data. • No adjustments were made to the assay data except where results fell below detection limit (BLD). o When entering these data into the database, BLD values were set to half the

detection limit of the equipment being utilised. For the XRF, this was 0.025 ppm for Au (rounded to 2 d.p. in this report), 5 ppm for Ag and Cu & Zn were both 0.001%. Note that ppm and g/t are equivalent units.

Location of Data

Points

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• OC/TR sample locations were collected by the field exploration geologist through the use of a handheld GPS. These were verified when uploading to Leapfrog® or ArcGIS® software. o The start and end locations of the trenches were collected and verified by the

same methods.

• DD collar locations (surface and UG) were surveyed by the AIMC Survey Department.

• Specification of the grid system used. • The grid system used for the Gedabek CA is Universal Transverse Mercator WGS 84



Zone 38T (Azerbaijan).

• Quality and adequacy of topographic control. • Topographic surfaces over the Gedabek and Ugur OPs are correct to 1 m contouring.

• The most recent satellite imagery was from and obtained via Google Earth®.

• A detailed topographic survey of the whole Gedabek CA has not been carried out at this stage.

Data Spacing and

Distribution

• Data spacing for reporting of Exploration Results.

• Data spacing was dependent upon the exploration area being tested. o Mineralisation intersection spacing over Gadir UG was

▪ 25 x 25 m for underground HQ/NQ drilling ▪ 10 x 10 m for underground BQ drilling

o As drilling around other sites was regional exploration, drill spacing was not considered critical at this stage.

• OC sampling over the ZTEM anomalies was dependent upon rock exposures and outcrops; sampling was not completed on a grid pattern.

• TR sampling was not subject to grid sampling due to its requirement to target soft, easily-dug material.

• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserves estimation procedure(s) and classifications applied.

• Mineral Resources and Ore Reserve calculations have previously been carried out for the Gadir UG operations. o The surface and underground drilling completed over the Gadir UG mine was

completed in order to test strike and down-dip extensions, with the aim of bringing Inferred material into Indicated, as well as establishing further Inferred resources.

• As the ZTEM anomalies and other regional targets are greenfield exploration sites, no Mineral Resources or Ore Reserve calculations have been carried out.

• As this stage, targeting for geological or grade continuity has not commenced over these regions. o Required drill grid spacing will be considered once the projects reach the

Resource Definition stage.

• Whether sample compositing has been applied.

• No sample compositing has been applied.



Orientation of

Data in Relation

to Geological

Structure

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• As Avshancli, Gilar and the ZTEM anomalies and regional targets are considered greenfield exploration sites, sub-surface geology is not constrained enough to ascertain if a sampling bias exists. o Once further exploration is conducted over these regions and wireframe

modelling commences, sub-surface geology for the area will be better understood, to ensure the potential for drilling-related sampling bias is negligible. As sampling procedures are in place across all sites, it is believed that following these practices will not lead to sample bias.

• For exploration conducted over operating mines (Ugur OP and Gadir UG), pre-existing geological modelling, drilling and development has enabled the deposit characteristics of each to be understood. o Overall, orientation of drilling was as perpendicular to mineralisation as was

practicable. o Given this level of geological understanding for each deposit and the application

of the drilling grid orientation and spacing, no orientation-based sample bias was identified in the data that resulted in unbiased sampling of structures, considering the deposit types.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• To-date, no orientation-based sampling bias has been identified in the DD datasets.

• Orientation-based sampling as applicable to OC/TR sampling cannot be established.

Sample Security • The measures taken to ensure sample security.

• Chain of custody of samples is managed by AIMC.

• Regarding OC/TR samples: each sample was collected in its own calico bag, assigned a sample I.D. and logged on a sample sheet. These were collected and retained by the AIMC exploration geologist(s) and driven to the AIMC laboratory daily.

• Regarding DD core: each drill site was supervised by an experienced geologist. The drill core was placed into wooden or plastic core boxes at the drill site. Once a box was filled, a wooden/plastic lid was fixed to the box to ensure there was no spillage. Core box number, drillhole I.D. and from/to metres were written on both the box and the lid. The core was then transported to the core storage area and logging



facility, where it was received and logged into a data sheet. o Core logging, cutting and sampling took place at the secure core management

area. The core samples were bagged with labels both in and on the bag, and data recorded on a sample sheet. The area is covered by 24-hour security.

• Documentation was prepared in the form of an “act”. For DD drilling, the act was signed by the drilling team supervisor, supervising exploration geologist and core facility supervisor (responsible person). For OC/TR samples, the act was signed for each daily batch of samples by the supervising exploration geologist.

• Once sampling was completed, the act was signed by the core facility supervisor prior to release to the laboratory. On receipt at the laboratory, the responsible person countersigned the order acknowledging full delivery of the samples.

• After assaying, all reject duplicate samples were received from laboratory to core facility (again, recorded on the act). All reject samples were placed into boxes referencing the sample identities and stored in the core facility.

• Hence, a chain of custody procedure was followed from collection to assaying and storage of reference material for all samples obtained during the Q4 2019 Gedabek CA Exploration Programme.

Audits or Reviews • The results of any audits or reviews of sampling techniques and data.

• For the early-stage exploration programmes over the Gedabek CA, no external audits of reviews of sampling techniques and data have been completed. o It should be noted that across all the CAs held by AAM, sampling techniques and

data collection processes are identical for the AIMC Geology department. o Audits and reviews of the sampling techniques and data were completed, most

recently by Datamine® in 2018, for the Gedabek and Gadir operating projects within the Gedabek CA.

o The techniques were deemed to be consistent with industry standards and so, by extrapolation, the techniques employed over the Gedabek CA may also be considered as such until an external review is conducted.

• As mentioned, external reviews on drilling, sampling and assaying techniques were conducted for all data by Datamine® as part of the Mineral Resource and Ore Reserves calculations for the Ugur OP (2017), Gedabek OP and Gadir UG (2018) operations. No concerns were raised as to the procedures, data or results. All



procedures were considered industry standard and well-conducted. Datamine® identified no material issues that would prevent these operations from reporting Measured, Indicated and Inferred Mineral Resources, as well as Proved and Probable Ore Reserves.

Section 2 Reporting of Exploration Results

(Criteria in this section apply to all succeeding sections.)


Mineral

Tenement and

Land Tenure

Status

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• All the areas covered by the exploration programmes in Q4 2019 are located within the Gedabek CA.

• The CA is governed under a Production Sharing Agreement (“PSA”), as managed by AIMC and the Azerbaijan Ministry of Ecology and Natural Resources (“MENR”). o The PSA grants the Company a number of ‘time periods’ to exploit defined

Contract Areas, as agreed upon during the initial signing. The period of time allowed for early-stage exploration of the Contract Areas to assess prospectivity can be extended if required.

o A 'development and production period' commences on the date that the Company issues a notice of discovery, which runs for 15 years with two extensions of five years each at the option of the Company. Full management control of mining in the Contract Areas rests with AIMC.

o The Gedabek CA, incorporating the Gedabek OP, Gadir UG and Ugur OP operations, currently operates under this title.

o Under the PSA, AAM is not subject to currency exchange restrictions and all imports and exports are free of tax or other restriction. In addition, MENR is to use its best endeavours to make available all necessary land, its own facilities and equipment and to assist with infrastructure.

• No national park lies within the Gedabek CA.


• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• At the time of reporting, no known impediments to obtaining a licence to operate in the area exist and the CA agreement is in good standing.

Exploration Done

by Other Parties

• Acknowledgement and appraisal of exploration by other parties.

• Mineralisation around Gedabek has been known since ancient times.

• The current Gedabek open pit deposit itself was repeatedly mined by primitive underground methods until the second half of the 19th century. o During the years 1864-1917 it was a subject to economic mining by the ‘Siemens

Brothers’ company. Archival production records list ore extraction at a total of 1.72 Mt.

o Mining of the deposit was stopped in 1917 due to the Bolshevik revolution.

• From 1917 to the 1990s, sporadic exploration work was conducted over the Gedabek CA by Soviet geologists.

• During the 1990s to early 2000s, Azeri geologists carried out further exploration work (under ‘Azergyzil’, an Azerbaijan state entity).

• From 1917 until acquisition by AAM, exploration works over the Gedabek CA included: o Regional geological mapping o Mineralogical and geological studies o Gravity and magnetic regional geophysics surveys o Trenching o Dump sampling o Core drilling o Adit-driving/tunnelling

• From the data gathered, numerous preliminary resource estimations were completed for the Gedabek deposit, in accordance with Soviet classification systems.

• It should be noted that whilst a considerable amount of information exists, AIMC are in the process of reconciling observations as the reliability of the Soviet-era data is questionable. o Details and results of the work carried out during this time will not be presented

here as it is commercially sensitive.

• For further historical details, and information regarding exploration works completed by AIMC, please see the Gedabek and Gadir JORC Mineral Resources


reports (2018).

Geology • Deposit type, geological setting and style of mineralisation.

• All the deposits listed in this Table are located within the Gedabek CA and are part of the Gedabek ore district.

• The Gedabek ore district is extensive and includes numerous mineral occurrences and prospects (as well as operating mines).

• The region lies within the Shamkir uplift of the Lok-Karabakh volcanic arc, in the Lesser Caucasus Mega-Anticlinorium.

• This province has been deformed by several major magmatic and tectonic events, resulting in compartmentalised stratigraphic blocks.

• The ore finds in the Gedabek CA lie within the central part of the world-class Tethyan metallogenic ore belt and are hosted predominantly in Bajocian-aged, hydrothermally altered volcanic units.

• Details specific to each exploration area are covered in the main body of the report.

Drill Hole

Information

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation

above sea level in metres) of the drill hole collar

o dip and azimuth of the hole o down hole length and interception depth

• hole length.

• All the information as stated here is provided in the relevant Appendices of the report.

• Drill hole collar coordinates, dips, azimuths, down-hole sample lengths and end-of-hole depths are recorded in the Gedabek drilling database.

• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

• Given the reconnaissance nature of the OC/TR sampling for the purpose of establishing a baseline understanding of the lithology, alteration and mineralisation styles away from the geological models (high-confidence) of the current operations within the Gedabek CA, the overview of sample locations and key results provided in the main body of the report provides an objective view of these programmes. Not providing all sample locations and results does not detract from the understanding of the report.

• No DD information has been excluded.


Data

Aggregation

Methods

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-ff grades are usually Material and should be stated.

• All intercepts have been reported as down-hole intercepts and reported to two decimal places.

• Downhole weighted averaging has been applied for all drillholes where consecutive assay grades are returned above reportable limits (Appendix A) and are presented in the main body of the report.

• Nominal 0.3 g/t Au, 15 g/t Ag, 0.3% Cu and 0.6% Zn lower cut-off grades have been applied to the assays – grades lower than these bounds have not been reported.

• No cutting of high grades was carried out.

• No cut-off grades for the ZTEM or other regional targets were applied as the projects are in early-stage exploration. No cut-off grades for the Ugur OP or Gadir UG drilling was introduced.

• No weighted averaging techniques were applied to OC sample assays.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• Not applicable.

• Any intervals containing a zone of particularly high grade have been extracted and reported separately as a ‘notable intersection’. The same weighted average method was applied to the calculation of these grades.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• No metal equivalent values were used in the calculation and reporting of exploration results.

Relationship

Between

Mineralisation

Widths and

Intercept Lengths

• These relationships are particularly important in the reporting of Exploration Results.

• Mineralisation intercepts are reported as down-hole lengths as measured along the drill hole trace.

• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

• The geometry of the mineralisation with respect to the drill hole angle is unknown at this stage.

• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

• Mineralisation widths are reported as down-hole lengths at this point in time (prior to modelling).

Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being

• Relevant diagrams are provided in the main body of the report.


reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Balanced

Reporting

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• Due to the number of OC/TR samples, not all results have been reported. Instead, a plan view showing the general locations has been provided in the main body of the report.

• All DD results have been comprehensively reported.

Other

Substantive

Exploration Data

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• Approval was granted in Q4 to complete a ground-based magnetic geophysical survey over Avshancli-1. Data have been interpreted in-house and used to develop geological understanding of the Avshancli district. Details have been provided in the main body of the report. No other exploration data, that are considered meaningful and material, have been excluded from this report.

Further Work • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• Work will continue over the high-priority targets Avshancli (including zones 1-3) and

Gilar. Due to potential adverse weather conditions, it is expected that drilling rates

will slow for a number of weeks during this quarter. Exploration activities, such as

field mapping and OC sampling, will also occur on a sporadic basis until conditions

improve.

o This will, however, give the exploration team the opportunity to focus on

processing drill core and interpreting the assay results.

o Preliminary geological modelling will commence for both Avshancli-1 and Gilar

as opportunity allows.

• Further ground-based magnetic geophysical surveys are being planned, similar to

that completed over Avshancli-1 during Q4 2019.

• it is proposed to carry out a wide-spaced ground-based induced polarisation

geophysical survey to determine whether to evaluate Avshancli as a system, or to

focus on the individual zones.


• During 2020, it is planned that a critical milestone in the development of Gedabek

Underground be achieved, with the underground tunnelling extending between Pits

#4 and #6.

• Exploration activities will continue over ZTEM targets and at other known mineral

occurrences, namely Söyüdlü, Maarif and Bittibulag

• Further details are provided in the main body of the report.

Q4 2019 Gedabek exploration report - Anglo Asian Mining ... · Q4 2019 Gedabek Exploration...

Documents

Transcript of Q4 2019 Gedabek exploration report - Anglo Asian Mining ... · Q4 2019 Gedabek Exploration...