Could Old Infrastructure at Demirli Copper Mine Stall Anglo Asian Mining’s Plans?

Highlights

• Anglo Asian Mining PLC is reviewing the Demirli copper mine in Azerbaijan's Karabakh region, exploring its potential for reopening.
• The mine, containing two open pits and a flotation plant, was active for nearly a decade before closing in 2022.
• The company is conducting surveys, drilling, and environmental studies to evaluate the site’s resources and sustainability.

Anglo Asian Mining PLC (OTC:AGXKF) has initiated an assessment of the Demirli copper mine, located in Azerbaijan’s Karabakh region, formerly known as Nagorno Karabakh. This mine is part of a strategic contract area acquired in 2022. Demirli comprises two adjacent open pits and a six-million-tonnes-per-annum flotation plant designed for copper concentrate production. After operating for about a decade, the mine was closed in 2022. Anglo Asian Mining is now exploring its viability for resuming operations, focusing on resource quality, environmental impact, and structural integrity.

Current Condition of the Demirli Mine

The flotation plant at Demirli has reportedly remained intact and in relatively good condition since its closure. The company has initiated an evaluation of the tailings dam to determine its serviceability, exploring the possibility of raising its walls to support expanded operations. This study is essential for assessing the dam's capability to handle additional waste material if mining resumes. Ensuring the dam’s structural integrity will be crucial for maintaining environmental and operational standards.

Estimated Copper Reserves and Ore Quality

Based on preliminary and incomplete data, Anglo Asian Mining estimates that approximately 58 million tonnes of residual ore remain in the mine, containing roughly 239,000 tonnes of copper. Of this total, 22 million tonnes are considered viable reserves suitable for immediate flotation processing. This sizeable reserve could potentially support extended production cycles if the plant reopens. However, the full extent and quality of the resources will be further clarified through ongoing exploration efforts.

Drone Surveys and Drilling for Precise Assessment

To refine its understanding of the mine’s resources, Anglo Asian Mining has conducted a drone survey to map the topography and layout of the deposit. This survey provides valuable data on the physical characteristics of the site, aiding in the identification of optimal areas for further development. In addition to aerial assessments, the company is carrying out Reverse Circulation (RC) drilling to a depth of approximately ten meters. This drilling aims to identify ore blocks large enough to justify commissioning the plant, with an initial goal of sustaining operations for at least one year.

Development of a JORC Mineral Resources Estimate

Anglo Asian Mining intends to develop a JORC-compliant mineral resources estimate for the remaining ore at Demirli. This standardized estimate will provide a more precise measure of the mine's economic potential, offering stakeholders a clearer understanding of the quantity and quality of available resources. The JORC code, a recognized international standard for mineral resource classification, ensures that the reported resources meet stringent criteria for accuracy and reliability.

Environmental and Exploration Studies Near the Mine

Alongside resource assessments, the company is exploring additional near-mine targets for potential future development. This effort includes an initial environmental benchmarking study aimed at evaluating the ecological impact of resuming operations at Demirli. By conducting this preliminary study, Anglo Asian Mining aims to establish a baseline for environmental conditions, allowing it to monitor and minimize potential impacts associated with future mining activities.