Gold, copper and silver producer Anglo Asian Mining announce a new gold discovery named 'Ugur' on Monday, within its Gedabek licence area in western Azerbaijan.
The AIM-traded firm said it fell in line with the company's strategy to continue to expand the potential resource at the Gedabek Licence, with Ugur providing significant potential upside to the company's future gold production.
It said the gold exploration target was discovered 3 kilometres north-west of the company's agitation leaching plant and heap leach facilities at Gedabek.
Positive assay results were returned from chip samples and reverse circulation drilling, with all drill holes ending in oxide mineralisation and preliminary test work results yielding an average gold recovery of 87%, suggesting the oxide zone is amenable to leaching.
An initial Phase II core drilling programme has commenced to determine the overall depth and style of mineralisation with a view to increase resources, the board said, with detailed geological structural and alteration mapping also starting with additional trenching also planned before the end of 2016.
There was significant upside potential, the company said, as the target had only been partially drilled and initial field mapping suggested that the area is open along the strike.
An additional exploration target had been defined in the expanded Ugur area, based on a similar alteration and geomorphological position to the Ugur deposit and located approximately 1,500 metres south of the current Ugur drilling area.
Further evaluation was planned as part of the 2017 field work programme.
"In line with our strategy to increase our gold production, we are constantly evaluating the upside surrounding our producing mines and the discovery of the Ugur deposit has the potential to add significantly to our gold resources and reserves and hence our future production at Gedabek," said Anglo Asian CEO Reza Vaziri.
"Having recently returned to profitability, and following the completion of several operational initiatives to improve efficiencies and lower costs at Gedabek, I believe Anglo Asian is now well positioned to expand its mineable reserves which will lay the foundations for long term and sustainable production from multiple deposits at Gedabek.
"This is an exciting time for the company and I look forward to updating shareholders on our progress as we look to unlock the potential from this new target and increase value for our shareholders in the process."