Anglo Asian Mining (LON: AAZ) released on Tuesday a JORC-compliant mineral resource update (MRE) for the Xarxar copper deposit following its discovery last year. The initial MRE shows 24.9 million tonnes of mineralization with average grades of 0.48% copper, for 119,100 tonnes of contained metal.
A majority of the MRE is in the measured and indicated category, totalling 22 million tonnes at 0.48% copper for 106,000 tonnes. The remaining resource (2.9 million tonnes at 0.44% copper for 12,800 tonnes) are in the inferred category.
In July 2022, an extensive geological exploration program commenced at the Xarxar deposit, targeting the central copper mineralization zone. Surface drill holes intercepted significant high-grade and continuous grades of copper mineralization, with intercepts of continuous copper for up to 380 metres.
Last month, the company confirmed the significant quantity of copper mineralization at Xarxar following analysis of recent surface drilling on the project.
Data for 66 holes with a total length of 21,707 metres (including historical drilling) were eventually used to complete the first resource estimate for Xarxar.
This resource estimate, says Anglo Asian’s VP Stephen Westhead, demonstrates that the deposit is “a substantial resource” containing over 100,000 tonnes of copper. According to the company, the Xarxar deposit still has significant additional exploration potential.
“To further expand the current mineral resources estimate, work will include surface infill drilling to the east of the deposit, deposit geotechnical and hydrogeological drilling, and drilling to supply samples for further metallurgical testwork,” he added.
The resource estimate was prepared using a copper price of $9,000 per tonne to determine the amount of metal under the reasonable prospects for eventual economic extraction under JORC criteria.
The parameters of an open pit were also determined at a copper selling price of $20,000 to calculate a “maximum” pit floor depth, which was used to define two zones (one upper and one lower). The upper zone is calculated to have resources ranging from 5.0 to 10.2 million tonnes at 0.2% to 0.3% copper.
The Xarxar deposit is one of several exploration-stage assets held by Anglo Asian in Azerbaijan. The group currently produces gold, silver and copper from its flagship Gedabek mine, with four more mines planned to come online over the next four years.
