Q3 2019 Gedabek exploration report - Anglo Asian Mining ... · mining operations and further upside potential defined speaks volumes to the positive contribution of the geological

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

EC2M 4YH, United Kingdom

October 2019

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

Q3 2019 Gedabek Exploration Activities and Results

Highlights

Objectives of the Exploration Programmes in Q3 2019

Significant greenfield exploration activity was carried out during Q3 2019 over

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

objective of Q3 2019 was to continue evaluating the ZTEM anomalies through

exploration methods, such as outcrop (“OC”) sampling and diamond drilling

(“DD”). Through regional work between anomalies, two new mineral

discoveries have been made; these are the Avshancli mineral district (within

which three priority targets have been identified) and the Gilar Au-bearing

quartz vein. Additionally, drilling has been completed at the Gadir

underground (“UG”) mine, which has increased geological confidence around

this operation.

Overview of Exploration Activity in Q3 2019

During Q3 2019, 7,868.75 m of DD drilling was completed over the Gedabek

CA. During Q3, a total of 1,305 OC samples were obtained over the ZTEM

anomalies and new mineral occurrences with some outstanding results.

Detailed geological mapping has also been completed over all targets.

WorldView-3® remote sensing data capture was completed in September,

including coverage of Agamaly (Zs4) and Narzan (Zs20). Image processing is

currently being completed by an independent specialist – results are expected

imminently.

Tunnelling continues from Gadir to access Gedabek UG.

Main Results of the Exploration Programmes in Q3 2019

The drilling results have yielded extensions to the Gadir UG mine. A significant

amount of data has been collected over the high-priority ZTEM targets – 9 are

described in this report. In addition to exploration over ZTEM anomalies, field

study has been completed over other regions within the CA, including the

Maarif Cu-porphyry target.

Outlook for Exploration in Q4 2019

Exploration work is progressing well, according to the overall three-year

strategy. Work defining the lateral and down-dip definition at Gadir UG is

ongoing. Further evaluation and field reconnaissance of the high-priority ZTEM

targets is continuing whilst the weather conditions are favourable, with drilling

planned to continue over the entire Q4 period. Due to the positive results from

the magnetometer survey at Zs18, a study is planned to be carried out over

both the Zs15 (“Korogly”) and Avshancli targets over this period.

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.

1

Anglo Asian Director of Geology and Mining, Dr. Stephen Westhead,

commented: “Two new mineral discoveries, extensions to existing

mining operations and further upside potential defined speaks volumes

to the positive contribution of the geological and mining teams. Work

has been balanced between near-surface exploration with the aim of

providing fast track mining development potential, deeper drilling to

assess the sources of known mineralisation, and continuation of work on

the periphery of current mining sites to extend mineral resources. The

Avshancli, Gilar and Maarif targets have yielded very good grades on

surface, and the intention is to initially commence follow-up work to

define the 3-D continuity and resource potential at Avshancli. All the

above upside reaffirms the opinion that the Gedabek Contract Area has

outstanding mineral potential to develop shareholder value.”

Gedabek CA Exploration Report Q3 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

OP open pit

AIMC Azerbaijan International Mining Company Limited; a subsidiary of AAM

ppm parts per million

CA Contract Area PSA Production Sharing Agreement

CP Competent Person, as defined in [1] Q3 ‘Quarter 3’ – third quarter of the financial year

DD diamond drilling UG underground

g/t grams per tonne ZTEM

Z-axis Tipper Electromagnetic geophysical system H1 ‘Half 1’ – first six months of the financial year

g/t grams per tonne Au chemical symbol for gold

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

Ag chemical symbol for silver

MENR Azerbaijan Ministry of Ecology and Natural Resources

Cu chemical symbol for copper

OC outcrop Zn chemical symbol for zinc

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

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

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

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

Exploration Activities Q3 2019 ............................................................................................................... 4

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

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

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

Ugur Open Pit ................................................................................................................................... 12

Deposit Overview ......................................................................................................................... 12

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

WorldView-3 Remote Sensing Project ............................................................................................ 15

Overview ....................................................................................................................................... 15

ZTEM Anomalies ............................................................................................................................... 16

Overview ....................................................................................................................................... 16

Gyzyljadag East – Zs7 ................................................................................................................... 17


Parakend Bugor – Zs14................................................................................................................. 19

Korogly – Zs15 .............................................................................................................................. 20

Soyugbulag – Zs16 ........................................................................................................................ 22

Zehmetkend – Zs18 ....................................................................................................................... 24

Masxit – Zs19 ................................................................................................................................ 27

Hachagaya – M1........................................................................................................................... 31

New Discoveries ............................................................................................................................... 33

Avshancli ....................................................................................................................................... 33

Gilar .............................................................................................................................................. 38

Other Exploration - Maarif .............................................................................................................. 41

Conclusions ....................................................................................................................................... 43

Planned Exploration Activities Q4 2019 .............................................................................................. 44

References ............................................................................................................................................ 44

Appendix A: Minimum Reporting Limits for Exploration Results ....................................................... 45

Appendix B: DD Details ........................................................................................................................ 45

Appendix C: Significant Intersections – Gadir UG DD ......................................................................... 47

Appendix D: ZTEM Target Codes ......................................................................................................... 56

Appendix E: JORC Table 1 – Gedabek CA ............................................................................................. 57

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 July to 30th September 2019 (“Q3 2019”) for the Gedabek CA.

Significant greenfield exploration activity was carried out over the Gedabek CA during Q3 2019. Work continued over high-priority ZTEM targets, predominantly consisting of outcrop sampling and mapping; several new targets have also been identified from conducting fieldwork outside of the anomalies. Near-mine activity continued at Gadir and commenced at Ugur. Acquisition of WorldView-3® remote sensing satellite imagery was completed on 25 September 2019. Data processing is currently underway by Exploration Mapping Group, Inc. (the contractor tasked with image collection, processing and provision of raw data and deliverables; “EMG”) and the results are expected imminently. Once results have been received and interpreted in-house a report will be issued, providing an overview of the findings.

Mineral Tenement and Land Tenure Status

Exploration activities carried out in Q3 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 Q3 2019 is provided below in Table 1. Minimum reporting grades for exploration results are provided in Appendix A, the DD collar


Table 1 - Gedabek CA Exploration statistics Q3 2019.

Note: Total samples have only been tallied if assay results have been returned for a complete drill hole.

details can be found in Appendix B and the significant intersections for 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.

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. Note that a few ZTEM targets straddle or lie outside of the extents of the CA. According to the PSA, exploration activities are permitted to occur outside of this perimeter, provided geological continuity can be demonstrated – for all targets covered in this report, geological continuity can be demonstrated.

Exploration Activities Q3 2019

Gadir Underground

Deposit Overview

Gadir is interpreted as a low-sulphidation (“LS”) epithermal orebody and located approximately 400 m northwest of the current Gedabek OP limits.

Exploration Activity Units Q3 2019 Total

Outcrop Sampling No. samples 1,305

No. holes 7

Total m 4,456.80

Total samples 2,927.00

Underground Geological Mapping Linear m 609

No. holes 22

Total m 2,443.50

Total samples 2,495

No. holes 51

Total m 968.45

Total samples 999

Underground DD Drilling (HQ/NQ)

Underground DD Drilling (BQ)

Underground

Surface DD Drilling

Surface

Gedabek Contract Area


Figure 2 – A map highlighting the near-mine (red), shallow (pink) and porphyry (orange) ZTEM exploration targets over the Gedabek CA (green) studied during Q3 2019. New mineral occurrences are highlighted in yellow, whilst known targets are in blue. Image obtained from Google Earth [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 Q3 2019, comprising underground drilling and mapping. Interpretation is now complete for the ground-based induced polarisation (“IP”) geophysical survey.

Various underground platforms were used to complete 73 DD holes (51 in BQ diameter and 22 HQ/NQ diameter), for a total of 3,411.95 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.

Ground-based IP Summary

BLASTO LLC (“BLASTO”) was contracted by AIMC to complete a geophysical data acquisition on surface, over the Gadir UG deposit. BLASTO used its advanced wireless system to run geophysical data acquisition in the area and completed a total of 7 profile lines (Figure 3).

The project used Multi Source/Phase Transceiver (“MPT”) units designed and manufactured

in the USA. Each unit is equipped with an in-built GPS, has three dedicated electrodes and

operates in two modes; these modes either being injecting current (mA) or measuring

potentials (mV). These units communicate with a ‘Main Control Unit’ over a radio signal at

distances of up to 5 km. The Control Unit is connected to a field PC and operated by

proprietary MPT Acquisition Software. The software sends acquisition commands to, and

receives measured data from, the units through the Main Control Unit. The in-built GPS is

crucial not only to obtain geographical coordinates but to time-sync the injecting and

measuring tasks across all units in use. The MPT system also supports secondary, and even

tertiary, routing, so-called ‘hopping’, in cases where direct communication is impossible due

to terrain or other structures. This allows the system to be used anywhere, irrespective of site

conditions and is especially ideal for use over the terrain above Gadir.

The fieldwork took 27 days to complete and began with the GPS team marking the electrodes

of all 7 profiles with wooden pegs and safety tape. Each peg was labelled accordingly, showing

its profile, unit and electrode numbers. There were 24 MPT units used to perform the data

acquisition of the 7 profiles, at a length of 3600 m with electrode spacing at 100 m. Profile

separation was 300 m and with the equipment and profiles laid out in this manner, the signal

target depth to be achieved was 700 m.

All profiles were measured at 1Tx, 2 x 2Tx and 2 x 4Tx modes. Each mode represents the number of units that simultaneously injected current into the ground in order to deliver the optimum signal-to-noise ratio and ensure data quality. The profiles measured in full 3D in order to obtain data of the best quality. Prior to each acquisition, each unit was tested to ensure a stable radio signal, locked GPS status and that lowest electrode resistance were achieved. Continuous QA monitoring was conducted during acquisition to ensure total electrode connectivity.


Figure 3 – Planned profile lines covering the Gadir UG orebody. Profile lengths were 3600 m.

The data processing phase began with pre-processing and filtering. A proprietary inversion software, capable of processing multisource data, was used to calculate resistivity and chargeability (“IP”) models. All of the measured data were filtered to remove any outliers or poor-quality values; it should be noted that there were very few abnormal or marginal values. The resistivity model was inverted at 500 Ω background resistivity and the inversion finished at the 5th iteration, with a roughness factor of 1. The IP model was inverted at 35 A background IP and the inversion finished at the 3rd iteration, with a roughness factor of 0.1.

All data were provided to AIMC upon completion of the data processing. Interpretation was carried out by an external consultant as well as in-house. The external contractor was not initially provided with any geological information to base their analysis on, and so AIMC were provided with an interpretation only from the geophysical modelling. This continues to be further refined in-house, utilising drill hole and development data to constrain the models and will be used to help plan future exploration drill programmes. Due to the ongoing nature of the study, the results will be provided at a later date.


Examples of lithologies and mineral associations from the Gadir HQ/NQ programme:

19GUD35 – 69.30-75.00 m – high-grade polymetallic intercept in quartz porphyry; pyrite, chalcopyrite and sphalerite identified.

71.10-71.70 m – Au = 4.77 g/t; Ag = 86.00 g/t; Cu = 4.56%; Zn = 0.55%

19GUD37 – 48.00-56.00 m – wide unit of moderately silicified quartz porphyry, with weak pervasive pyrite mineralisation

55.00-56.00 m – Au = 15.02 g/t; Ag = 5.00 g/t; Cu = 0.02%; Zn = 0.04%


19GUD38 – 52.60-58.40 m – sphalerite mineralisation identified & weak haematitic alteration

53.00-55.70 m – Au = 0.27 g/t; Ag = 23.07 g/t; Cu = 0.07%; Zn = 1.81%

19GUD53 – 8.00-16.00 m – weak pyrite and sphalerite mineralisation

13.00-14.00 m – Au = 4.22 g/t; Ag = 64.00 g/t; Cu = 0.06%; Zn = 0.01%

This work has resulted in defining ores that extend the current Gadir mineralisation footprint both laterally and down-dip (Figure 4). Additionally, the BQ and HQ/NQ drilling continues to help constrain ore body models around production stoping fronts, so that tonnages and grade can be more accurately determined (Figure 5). These positive results demonstrate the expansion potential of the underground mine at Gadir.


Figure 4 – An oblique view of a section of the Gadir UG mine, showing the underground development drive used as a drilling platform (green strings) and some of the drilling completed during Q3 2019. These holes were deeper exploration holes to test the extents of mineralisation around Gadir. Collar I.D.s are shown in yellow, with Au grades shown on the right of the drill trace (g/t; orange) over the intersection lengths noted on the left (m; red).

10 m


Figure 5 – A cross-sectional view of Gadir UG, facing NE, showing the continuous updating of wireframe surfaces to include new drill assay data. Once all the assay data from drilling completed during Q3 has been returned and validated, the entire model will be updated for Gadir UG.


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

A number of surface DD holes were completed around the Ugur OP during Q3 2019 (Figure

6). A total of seven holes were completed and programmes are continuing into Q4. Two of

these holes(19UTDD01/02) were drilled for geotechnical purposes – their collars are reported

in Appendix B but were not assayed.

Hole ‘19GED03’ was completed to intersect the Zs9 anomaly (“Yagublu”; previously described

in [3] and [4]) but here is reported as part of regional Ugur drilling. Figure 7 shows the planned

trace overlain on the magnetic susceptibility and resistivity responses, obtained from the

ZTEM survey.


Figure 6 – A map showing the location of the drill holes completed as part of Q3 2019.

A summary of the significant intersections is provided below (Table 2) – as drill holes are still under study (for additional elemental analysis), core photos will not be provided at this stage. Holes 19GDD04/05 are currently being assayed; results will be reported as part of the Q4 summary.


Figure 7 – S-N slices of the Zs8 and Zs9 (left) anomalies, with the planned trace for 19GED03 overlain.

Table 2 – Drill hole intersections summary, including significant grades – Ugur regional 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 % %

19UGDD01

4.00 6.00 2.00 0.35 5.00 0.03 0.00

6.00 7.00 1.00 0.23 17.00 0.03 0.00

9.00 11.60 2.60 0.56 5.00 0.05 0.00

14.50 15.50 1.00 0.39 5.00 0.02 0.00

30.50 31.50 1.00 0.14 16.00 0.02 0.00

45.40 47.50 2.10 0.42 5.00 0.02 0.01

48.50 51.50 3.00 0.49 5.00 0.02 0.00

52.50 54.50 2.00 0.54 5.00 0.02 0.00

55.65 58.50 2.85 0.09 20.35 0.11 0.00

60.50 63.50 3.00 0.24 28.00 0.21 0.00

64.50 70.00 5.50 0.22 25.44 0.25 0.00

71.00 73.30 2.30 0.09 18.35 0.29 0.00

75.00 76.00 1.00 0.06 19.00 0.23 0.00

77.00 92.40 15.40 0.20 26.73 0.66 0.00

with notable intersections


79.00 80.00 1.00 0.10 28.00 1.14 0.00

91.60 92.40 0.80 0.24 38.00 1.46 0.01

162.00 163.00 1.00 0.05 18.00 0.04 0.01

240.70 241.40 0.70 0.03 26.00 0.04 0.01

683.50 684.30 0.80 3.39 44.23 0.15 0.04

775.50 777.60 2.10 0.03 25.48 0.02 0.01

19UGDD02

494.00 495.80 1.80 0.04 16.78 0.12 0.00

499.10 500.00 0.90 0.03 20.00 0.46 0.00

557.60 558.10 0.50 0.03 16.00 0.04 0.00

19GED03

282.70 283.10 0.40 0.05 11.00 0.36 0.01

284.50 285.50 1.00 0.03 15.00 0.01 0.02

390.00 391.00 1.00 0.03 16.00 0.02 0.01

428.00 429.00 1.00 0.10 15.00 0.01 0.01

760.85 764.50 3.65 0.95 70.36 0.48 4.77


761.60 761.90 0.30 0.73 159.00 0.59 7.19

762.80 764.50 1.70 1.38 99.00 0.59 6.70

767.75 768.70 0.95 0.32 5.00 0.37 4.55

772.65 774.25 1.60 0.61 32.25 1.29 0.03

777.40 778.10 0.70 0.30 38.00 0.77 0.91

779.00 779.90 0.90 0.39 10.00 0.12 1.39

860.70 861.40 0.70 0.03 5.00 0.07 2.15

1,053.00 1,054.00 1.00 0.03 5.00 0.03 0.94

WorldView-3 Remote Sensing Project

Overview

WorldView-3® satellite data and imaging are products of the company DigitalGlobe Inc., which now along with other pioneering remote sensing groups, is unified under one brand, Maxar Technologies (“Maxar”). Approval was granted in Q3 to obtain WorldView-3 satellite imagery over part of the CA, to support mineral exploration activities in the area (Figure 8). The project was contracted out to Exploration Mapping Group Inc., and processing of the data is currently underway. Image collection occurred on 25 September 2019 and the deliverables will be provided to AIMC in Q4 2019. Prior to collection, no WorldView-3 satellite images existed over the area in archive; this is the second WorldView-3 remote sensing project conducted by AIMC after that recently completed over the Ordubad CA. The area being tested covers/partially covers the Agamaly (Zs4), Narzan (Zs20) and Hachagaya (M1) ZTEM anomalies. This area is being targeted to test the success of the satellite capabilities over heavily vegetated terrain, where access is difficult. It is envisioned that if deemed appropriate for the region, utilisation of the remote sensing data will improve efficiency by allowing field targeting, prior to deployment to site. Expansion of the capture area will also occur, enabling hidden mineral occurrence signatures to be identified.


Figure 8 – A map showing the region covered by WorldView-3 (light green) within the CA (green border). ZTEM anomalies included for orientation. Heavy vegetation is found to the W of the region.

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. These newly identified targets have been ranked and assimilated into the current exploration plan and study is occurring in parallel with existing prospects. The new targets were categorised into three groups based on anomaly depth:

• Shallow: 20 targets at 300 metres or less depth (labelled as "Zs1" to "Zs20");

• Deep: 5 targets at between 301 to 500 metres depth (labelled as "Zd1" to "Zd5"); and

• Porphyry: 6 targets at various depths (labelled as "M1" to "M6").

The shallow targets are possible epithermal-porphyry mineralisation deposits. They potentially enable the Company to increase its portfolio of exploitable oxide and sulphide deposits with resources similar to our existing mines which currently produce mixed ores. To process these ores would require no major reconfiguration of the Company's current processing facilities.

Targets have been identified over areas where the Company is already aware of the presence of mineralisation, but importantly, other areas have also been identified where no previous exploration activity has been carried out. The data generated from the survey have provided information on the geometry and potential depths of mineralisation zones within a newly interpreted geological structural framework.

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 method; these are presented in [3].

For targets that straddle or lie outside of the boundary of the Gedabek CA (see Figure 2), under the PSA, the Company has the right to explore for and exploit mineral deposits outside the boundaries of its CAs provided geological continuity can be demonstrated over this boundary. This geological continuity must be demonstrated on the basis of structural geology framework and ore formation models.

Work has been expanded and now includes areas not initially identified in [3] – this is especially the case where anomalies are proximal to one another, so expansion of a field reconnaissance plan improves efficiency. Exploration activities completed over each of the targets are summarised below and presented in target I.D. order. The anomaly I.D.’s and names have been summarised in Appendix D. 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 capture pathfinder signatures that may vector back to an ore body.

Gyzyljadag East – Zs7

Deposit Overview

This deposit was considered a high priority target as part of the initial ZTEM report outlining ranking [3]. The Zs7 target has been designated “Gyzyljadag East” (Figure 9) and its centre is located approximately 4.8 km NW of the Gedabek OP. It lies within the CA and is close to the Ugur mine.

The feature is elongate roughly in the NS direction and is approximately 1.5 km in length. The geology of the region comprises of Upper Bajocian volcanics (teal on map; predominantly tuffs and pyroclastic rocks) and is considered structurally complex. The feature lies over a NS-trending fault zone, which is interpreted as post-dating NW-SE movement.

Whilst the magnetic susceptibility is not particularly strong, the anomaly (Figure 10) returned a strong resistivity contrast that appears to ‘balloon’ under an existing drill hole (UGDD58). Should field reconnaissance results be positive, consideration will be given to re-entering the drill hole and extending, with the aim of intersecting this contrast.

It is suggested that this target may be associated with the Ugur OP mine and as such, represents a potential target for base metal and precious metal mineralisation.

Exploration Summary

A total of 194 outcrop samples were collected over Zs7 during Q3 2019. Two samples returned grades above reportable limits (see Figure 9 for locations) and returned significant assays for Au (Table 3). The samples showed weak limonitic alteration, with kaolin alteration noted as occurring on sample EXPUR-159. Study of the anomaly is on hold due to the elevation in priority of other targets.

Table 3 - Reportable assay grades from OC sampling over Zs7.

Au Ag Cu Zn

g/t g/t % %

EXPUR-121 0.33 5.00 0.07 0.16

EXPUR-159 0.43 5.00 0.01 0.00

Sample I.D.


Figure 9 - An overview of the Gyzyljadag East anomaly boundary (blue) with the sampling regions outside of the boundary (red). The locations of the two samples returning significant grades are noted. A regional geological map has been overlain, along with the location for the Ugur OP. Image from [2].

Figure 10 – W-E slices of Zs7. Note the strong contrast in the resistivity response below UGDD58.


Parakend Bugor – Zs14

Deposit Overview

This deposit was not discussed as part of the initial ZTEM report outlining target ranking [3], 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 11), 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 12); 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 11 – An overview of the Parakend Bugor anomaly (blue box), along with sampling areas that have occurred outside the target (red boxes). A regional geological map has been overlain, along with the collection locations for the two OC samples with significant grade. Image from [2].


Exploration Summary

A total of 66 outcrop samples were collected over Zs14 and its surrounds during Q3 2019. Two samples returned grades above reportable limits (see Figure 11 for locations) and returned significant assays for Au (Table 4). The samples were obtained from a vertically dipping quartz vein set. Study of the anomaly is continuing alongside regional exploration.


Figure 12 – N-S slices of the Zs14 anomaly. Note the different responses with the magnetic susceptibility and resistivity data.

Korogly – Zs15

Deposit Overview

This deposit was considered a high priority target as part of the initial ZTEM report outlining ranking [3]. The Zs15 target has been designated “Korogly” (Figure 16) and its centre is located approximately 6 km NE of the Gedabek OP. It lies within the CA, close to the village of Söyüdlü.

Au Ag Cu Zn

g/t g/t % %

ZS14-49 4.47 5.00 0.11 0.02

ZS14-50 2.38 11.00 0.09 0.01

Sample I.D.


The feature is elongated roughly in the NW direction and is approximately 2 km in length. The geology of the region comprises Quaternary sediments that overlay an intrusive body (pink on the geological map in Figure 13) and is considered a structurally complex area. The anomaly lies along a NW-striking fault and coincides with a zone of low magnetic susceptibility, likely indicative of magnetite-destructive alteration (Figure 14). At its western margin, the area covered by Zs15 intersects the regional-scale Boyuk Galacha-Chenlibel Fault. This anomaly is located proximal to the Maarif main mineralised zone, which makes it a potential candidate for Cu mineralisation.

Figure 13 - An overview of the Korogly anomaly boundary (blue box), along with sampling that has occurred outside the target (red box). A regional geological map has been overlain. Image from [2].

Bounding the anomaly are Upper Bajocian-ages volcanics (rhyolites and dacites; teal on map in Figure 13) that have undergone weak carbonate alteration and kaolinisation. The aplitic intrusion belongs to the Gedabek system and hosts a series of dioritic intrusions. Outcrops over the area display various forms and degrees of alteration; observed during Q3 2019 was moderate silicification, along with weak haematitic and limonitic alteration, as well as local zones of chloritised and epidote-altered units. Gangue minerals comprise of quartz, muscovite and sericite, with minor biotite, andalusite, orthoclase, fluorite, chlorite, calcite and chalcedony. Indicator minerals identified include pyrite, chalcopyrite, magnetite, haematite and limonite.

Exploration Summary

A total of 12 outcrop samples were collected over Zs15 during Q3 2019. No samples returned assay grades above reportable limits; however, due to the positive results from OC sampling in H1 2019, study continues over the region.


After interpretation of historic and new data, it has been suggested that the Korogly anomaly is analogous to the known Khar-Khar mineral occurrence, to the north. A ground-based magnetometer survey is planned to be carried out over the target in the near future to further delineate the anomaly and additional study is ongoing.

Figure 14 – SW-NE slices of the Zs15 anomaly. Note that straight-line nature of the magnetic contrasts, indicative of faulting.

Soyugbulag – Zs16

Deposit Overview

This deposit was not discussed as part of the initial ZTEM report outlining target ranking [3], however, exploration has been extended over this region due to its proximity to the Korogly (Zs15) anomaly. The Zs16 target has been designated “Soyugbulag” and its centre is located approximately 7 km E of the Gedabek OP. It lies within the CA and is close to the village of Söyüdlü.

The feature is crescent-shaped, trending NW, and is approximately 2 km in length. The geology of the anomaly comprises of volcaniclastic sedimentary units (predominantly tuffs; teal on map in Figure 15). Minor intrusions have been identified amongst the faults to the west of the region, with Quaternary sediments overlying the units to the east (yellow on map). Faulting occurs in two orientations; smaller fault systems (and the minor intrusions) trend NW


whilst faults orientated N-S can be traced along strike for over 1 km. Mineralisation previously identified over the area includes tourmaline, limonite and sericite.

The magnetic susceptibility and resistivity show two distinct responses (Figure 16). The sharp contrast between the high and low in the centre of the magnetic plot may represent the N-S trending fault running through the region (as seen on Figure 15).

Figure 15 - An overview of the Soyugbulag anomaly (purple box), along with sampling that has occurred outside the target (red boxes). A regional geological map has been overlain, along with the collection locations for the OC sample with significant grade. Image from [2].

The north-western sector of the target appears to be associated with the known Söyüdlü mineral occurrence and so is a good prospect for Au-Cu mineralisation.

Exploration Summary

A total of 35 outcrop samples were collected over Zs16 during Q3 2019. One sample returned grade (ZS16-21) above reportable limits for Au (see Figure 15 for location; Table 5 for grade). The sample displayed moderate silicification and weak chlorite alteration.



Figure 16 - NE-SW slices of the Zs16 anomaly. Note the different responses with the magnetic susceptibility and resistivity data.

Zehmetkend – Zs18

Deposit Overview

This deposit was considered a high priority target as part of the initial ZTEM report outlining ranking [3]. The Zs18 target has been designated “Zehmetkend” (Figure 17) and its centre is located approximately 12 km NE of the Gedabek OP. The anomaly polygon straddles the CA border however the target meets the demands for geological continuity to be demonstrated. The proximity to the Zs19 target is highlighted – it should be noted that due to this, sampling and activities may occasionally overlap.

The feature is elongated roughly in the NNW direction and is over 1.5 km in length. The anomaly lies within the Atabay-Slavyanka felsic intrusive unit (pink on the geological map in Figure 17) and is considered to be structurally complex. It appears to be related to a NW-

Au Ag Cu Zn

g/t g/t % %

ZS16-21 0.42 5.00 0.02 0.00

Sample I.D.


striking fault. There are known mineral occurrences along the Maarif Regional Trend, and this anomaly may be linked, making it a target for epithermal base metal mineralisation.

It lies within a broad zone of low magnetic susceptibility that may be attributed to the intrusive body and/or widespread alteration (Figure 18). This contrasts strongly with the resistivity responses, which may represent a zone of silicification.

Figure 17 - An overview of the Zehmetkend anomaly (purple box), along with sampling that has occurred outside of the target (red boxes). A regional geological map has been overlain, along with the collection locations for OC samples with significant. Image from [2].

During recent fieldwork, hydrothermally altered lenses were identified that are believed to be related to the intrusive complex. Host rocks are characterised by phenocrysts of orthoclase and quartz, along with minor biotite and plagioclase. The phenocrysts are matrix-supported in an aplitic groundmass that consists of quartz, biotite and pyrite. This porphyritic texture is cross-cut by quartz-sericite-pyrite veinlets and overprinted by sericite alteration, associated with the intrusion. It is believed that the bulk of the mineralisation is associated with the sericitic alteration event. Additionally, dyke systems have been mapped that are aplitic in composition.

Local faulting appears to be related to the larger, NW-trending Khar-Khar Fault (strike 310°/ dip 90°). Rock exposure at surface varies from approximately 1-5 m thickness and these


typically display argillic-silica alteration; limonitic- and haematitic-altered outcrops have also been mapped. Sulphide mineralisation has infrequently been identified and comprises of pyrite and chalcopyrite. Quartz veins and stringers have also been observed within the Zs18 region. Argillic alteration has been observed in the periphery of the alteration zones around the anomaly. It is spatially associated with the NW- orientated faults; argillic alteration has

Figure 18 – SW-NE slices of the Zs18 anomaly. Note the differences in the responses of the two geophysical survey techniques.

also been mapped around the quartz vein systems, which also show intense limonitic and haematitic alteration.

Exploration Summary

A total of 43 outcrop samples were collected over Zs18 during Q3 2019. Six samples returned grades above reportable limits (see Figure 17 for location; results in Table 6. All the samples returning positive grades were obtained from quartz vein sets striking over a range of azimuths. Weak limonitic and haematitic alteration was noted for all samples, as well as rare malachite mineralisation. Cu mineralisation (e.g. peak seen in ZS18-183) is believed to be associated with the quartz veins cross-cutting the Atabay Granite Intrusion; however, at this stage it has not been established if the quartz veining emplacement is related to the Atabay or Gedabek intrusive events.


Table 6 – Reportable assay grades from OC sampling over Zs18.

Masxit – Zs19

Deposit Overview

This deposit was not discussed as part of the initial ZTEM report outlining target ranking [3];

however, it was covered in [4]. The Zs19 target has been designated “Masxit” and its centre

is located approximately 12.5 km NE of the Gedabek OP. The anomaly straddles the CA

however the target meets the demands for geological continuity to be demonstrated.

The feature is elongate in the N-S direction and is approximately 1.5 km in length. The geology

of the region comprises Bajocian volcanic units (dominantly andesites and pyroclastic facies;

teal on map in Figure 19). Structurally, there are prevalent NW-trending fault zones over the

region, potentially related to the Atabay-Slavyanka Intrusion in the NW region of the anomaly.

The responses from the magnetic susceptibility and resistivity sections contrast with each

other (Figure 20). It has been suggested that the nature of the magnetic response is likely to

be a conductive fault or shear zone; however, further work will need to be carried out over

the anomaly to confirm this hypothesis.

Exploration Summary

A total of 499 outcrop samples were collected over and around Zs19 during Q3 2019. Significant grades were returned for 107 samples (see Figure 19 for locations and Table 7 for grades). The samples displayed various forms of alteration and mineralisation styles, which appear to be dependent upon the host rock. Significant malachite mineralisation was noted in many of these samples, reflecting the Cu grades returned.

Au Ag Cu Zn

g/t g/t % %

ZS18-181 1.16 5.00 0.08 0.01

ZS18-183 0.41 12.00 0.28 0.00

ZS18-184 0.38 5.00 0.03 0.00

ZS18-186 0.36 5.00 0.08 0.00

ZS18-187 0.33 36.00 0.15 0.00

ZS18-191 0.88 5.00 0.03 0.00

Sample I.D.


Figure 19 - An overview of the Masxit anomaly (purple box), along with sampling that has occurred outside of the target (red boxes). A regional geological map has been overlain, along with the location for the significant OC samples obtained during Q3 2019 (zoomed images). Image from [2].


Figure 20 - W-E slices of the Zs19 anomaly. Note the differences in the contrasts between the magnetic response and the resistivity response. It appears that the trends are orientated in a similar direction.

Table 7 – Reportable assay grades from OC sampling over Zs19.

Sample I.D.

Au Ag Cu Zn Sample I.D.

Au Ag Cu Zn

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

ZS19-25 5.25 5.00 0.02 0.00 ZS19-374 0.03 5.00 0.40 0.02

ZS19-29 13.37 14.00 0.76 0.02 ZS19-375 0.03 5.00 0.35 0.02

ZS19-30 1.80 10.00 0.54 0.36 ZS19-376 1.07 5.00 0.24 0.00

ZS19-34 6.63 5.00 0.08 0.06 ZS19-378 0.76 5.00 0.16 0.00

ZS19-36 0.25 5.00 0.37 0.03 ZS19-379 0.41 5.00 0.13 0.00

ZS19-70 0.03 5.00 0.77 0.05 ZS19-380 1.72 5.00 0.15 0.00

ZS19-80 1.95 10.00 0.31 0.04 ZS19-381 0.40 5.00 0.15 0.00

ZS19-81 0.32 5.00 0.05 0.00 ZS19-383 0.53 5.00 0.06 0.01

ZS19-87 0.05 5.00 0.70 0.06 ZS19-384 1.07 5.00 0.23 0.00

ZS19-88 0.07 11.00 1.66 0.10 ZS19-386 2.15 5.00 0.17 0.00

ZS19-107 0.03 5.00 0.60 0.01 ZS19-388 0.68 5.00 0.13 0.00

ZS19-108 0.15 15.00 0.09 0.00 ZS19-389 0.79 5.00 0.26 0.01

ZS19-116 0.07 5.00 1.74 0.07 ZS19-391 0.74 5.00 0.38 0.06

ZS19-123 2.17 10.00 0.13 0.02 ZS19-393 0.14 5.00 0.71 0.02

ZS19-125 0.50 5.00 0.06 0.02 ZS19-395 2.32 5.00 0.04 0.01

ZS19-127 0.07 5.00 1.04 0.04 ZS19-397 1.15 5.00 0.13 0.03


ZS19-135 0.34 5.00 0.05 0.01 ZS19-398 0.73 11.00 0.25 0.01

ZS19-158 0.36 5.00 0.07 0.01 ZS19-401 0.76 16.00 0.05 0.00

ZS19-164 0.03 5.00 0.37 0.01 ZS19-403 0.74 5.00 0.04 0.00

ZS19-197 0.46 5.00 0.01 0.00 ZS19-404 1.38 5.00 0.22 0.00

ZS19-216 0.03 5.00 0.31 0.01 ZS19-405 1.11 5.00 0.10 0.00

ZS19-224 0.36 14.00 0.10 0.01 ZS19-406 0.65 5.00 0.12 0.00

ZS19-229 0.42 5.00 0.01 0.00 ZS19-407 0.82 5.00 0.18 0.00

ZS19-231 0.61 5.00 0.12 0.00 ZS19-408 0.57 5.00 0.07 0.00

ZS19-234 1.63 5.00 0.10 0.00 ZS19-409 0.07 5.00 1.73 0.01

ZS19-236 1.50 5.00 0.04 0.00 ZS19-410 0.57 5.00 0.05 0.00

ZS19-264 0.03 5.00 0.44 0.04 ZS19-421 1.05 5.00 0.27 0.00

ZS19-265 0.03 11.00 0.43 0.03 ZS19-423 1.13 5.00 0.49 0.00

ZS19-266 7.72 27.00 0.14 0.01 ZS19-424 0.60 5.00 1.36 0.00

ZS19-268 0.03 5.00 0.60 0.02 ZS19-426 0.33 5.00 0.10 0.00

ZS19-270 0.03 5.00 0.43 0.00 ZS19-427 1.12 5.00 0.61 0.00

ZS19-271 0.03 63.00 3.26 10.50 ZS19-431 0.52 5.00 0.10 0.00

ZS19-273 0.45 5.00 0.30 0.01 ZS19-443 0.03 5.00 0.37 0.02

ZS19-275 0.03 5.00 3.16 0.02 ZS19-445 0.13 18.00 0.05 0.01

ZS19-276 0.11 5.00 0.59 0.00 ZS19-450 0.03 5.00 0.43 0.01

ZS19-291 0.03 15.00 0.08 0.07 ZS19-451 1.74 10.00 0.17 0.00

ZS19-299 0.03 5.00 0.42 0.00 ZS19-453 2.15 5.00 0.09 0.00

ZS19-321 0.44 5.00 0.06 0.01 ZS19-458 0.62 5.00 0.07 0.00

ZS19-324 0.15 5.00 0.65 0.03 ZS19-460 0.03 5.00 1.13 0.02

ZS19-325 1.33 12.00 0.05 0.01 ZS19-463 0.03 5.00 0.50 0.02

ZS19-326 0.53 5.00 0.09 0.01 ZS19-465 0.03 5.00 6.05 0.01

ZS19-327 0.12 20.00 0.05 0.01 ZS19-469 4.74 13.00 0.26 0.00

ZS19-328 0.35 5.00 0.28 0.00 ZS19-471 4.82 5.00 0.06 0.00

ZS19-331 1.53 5.00 0.15 0.02 ZS19-483 0.66 5.00 0.04 0.00

ZS19-332 1.03 5.00 0.44 0.04 ZS19-490 0.38 5.00 0.22 0.01

ZS19-337 0.68 5.00 0.01 0.00 ZS19-508 3.84 5.00 0.23 0.00

ZS19-338 0.40 5.00 0.03 0.00 ZS19-509 0.73 5.00 0.04 0.01

ZS19-339 1.28 12.00 0.07 0.01 ZS19-514 1.56 10.00 0.10 0.00

ZS19-355 0.94 5.00 0.13 0.00 ZS19-517 0.45 5.00 0.04 0.00

ZS19-356 1.69 5.00 0.14 0.00 ZS19-525 0.32 10.00 0.06 0.09

ZS19-357 1.95 5.00 0.33 0.00 ZS19-534 0.39 5.00 0.01 0.00

ZS19-358 0.41 5.00 0.04 0.00 ZS19-535 0.03 19.00 0.04 0.02

ZS19-363 0.42 5.00 0.09 0.00 ZS19-546 0.50 5.00 0.03 0.03

ZS19-371 0.03 5.00 0.70 0.01


Hachagaya – M1

Deposit Overview

This deposit was considered a high priority target as part of the initial ZTEM report outlining ranking [3]. The M1 target has been designated “Hachagaya” and its centre is located approximately 12 km NW of the Gedabek OP. It straddles the CA and geological continuity can be established here.

The feature is roughly circular and associated with the Chanakhchy Intrusion (Figure 21). This intrusion is dominantly composed of granodiorite (pink unit), with a minor gabbroic unit (bright green) found around its SW flanks. Volcanics (Upper and Lower Bajocian in age) surround the intrusion and the area lies within a region of significant structural complexity.

The core (diameter approximately 2 km) returned a low magnetic response with elevated resistivity, whilst the encompassing ring (approximately 5 km in diameter) returned a strong magnetic response, whilst being moderately conductive (Figure 22). From initial analysis, due to its size and anomaly responses, the target may be analogous to the large porphyry systems found in Australia [5].

This target lies adjacent to Zs3 and Zd5 (both previously described in [3]) – an underlying genetic link is yet to be established however the proximity of all three anomalies to each other cannot be ignored.

Exploration Summary

A total of 12 outcrop samples were collected over M1 during Q3 2019 (all sampling conducted over the Chanakhchy Intrusion). Two adjacent samples returned grades above reportable limits (see Figure 21 for locations) and returned significant assays for Ag (Table 8). The samples showed moderate haematitic and limonitic alteration, with weak silicification noted. Study of the anomaly is on hold due to the elevation in priority of other targets.

Table 8 - Reportable assay grades from OC sampling over M1.

Au Ag Cu Zn

g/t g/t % %

M01-11 0.03 19.00 0.01 0.00

M01-13 0.03 17.00 0.03 0.01

Sample I.D.


Figure 21 - An overview of the Hachagaya porphyry target (orange box). Sample locations with significant assays highlighted. A regional geological map has been overlain. Image from [2].

Figure 22 – SW-NE slices of the M1 anomaly. Key features have been highlighted.


New Discoveries

Avshancli

Deposit Overview

“Avshancli” is a new mineral region that was discovered during Q3 2019, whilst fieldwork was

being conducted over the area. It was not directly identified through the ZTEM survey;

however, it lies immediately south of the Zehmetkend (Zs18) and Masxit (Zs19) anomalies

and was defined on structural mapping of trends linking ZTEM targets.

The region dominantly comprises of Bajocian volcaniclastic strata, typically andesitic tuffs and

breccias. Towards the south-east of the region, minor quartz-plagioclase porphyries can be

found, with Quaternary sediments overlying unconformably. Structurally complex, the main

series of faults trends in a NW-direction, with intrusive dykes also emplaced in this general

orientation. 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 23).

Within the wider Avshancli district, the geologically favourable targets have been identified;

at this stage, they are designated Avshancli-1, Avshancli-2 and Avshancli-3 (Figure 24). During

Q3, preliminary exploration activities comprise of field reconnaissance and OC sampling, both

with positive results.

Figure 23 – Examples of malachite and azurite mineralisation found in the field during sampling over Avshancli.


Figure 24 - An overview of the new Avshancli ore district (yellow box), with Zs18 and Zs19 included for spatial comparison. The three zones under study within Avshancli are also highlighted. Image from [2].

Exploration Summary

During Q3 2019, preliminary field mapping was completed over the region, focusing over

Avshancli-1 to -3. Additionally, 338 OC samples were obtained over Avshancli (high grades

highlighted in Figures 25-28). Assaying was completed over the standard Au-Ag-Cu-Zn suite,

with significant grades returned for 124 samples (Table 9).


Table 9 - Reportable assay grades from OC sampling over the Avshancli mineral district.

Sample I.D.

Au Ag Cu Zn Sample I.D.

Au Ag Cu Zn

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

ZSD-14 0.74 5.00 0.02 0.00 ZSD-228 0.31 5.00 0.10 0.03

ZSD-15 1.76 5.00 0.03 0.00 ZSD-229 0.31 5.00 0.07 0.05

ZSD-16 3.98 5.00 0.05 0.00 ZSD-235 0.75 5.00 0.03 0.04

ZSD-20 0.10 16.00 0.01 0.00 ZSD-274 0.98 5.00 0.08 0.03

ZSD-58 0.41 5.00 0.03 0.01 ZSD-275 0.33 5.00 0.02 0.07

ZSD-61 0.54 5.00 0.03 0.01 ZSD-277 1.38 5.00 0.14 0.05

ZSD-65 0.35 5.00 0.03 0.02 ZSD-278 2.62 5.00 0.15 0.04

ZSD-74 0.14 5.00 0.31 0.03 ZSD-286 0.65 5.00 0.21 0.01

ZSD-77 0.39 5.00 2.37 0.02 ZSD-287 19.49 141.00 0.44 0.03

ZSD-79 0.10 5.00 0.43 0.03 ZSD-291 3.94 5.00 0.31 0.03

ZSD-81 0.93 5.00 1.29 0.02 ZSD-294 0.79 5.00 0.25 0.03

ZSD-83 2.01 5.00 0.19 0.01 ZSD-295 0.34 5.00 0.07 0.02

ZSD-84 1.45 5.00 0.53 0.02 ZSD-296 0.19 5.00 0.60 0.03

ZSD-85 0.93 5.00 0.50 0.01 ZSD-299 0.92 5.00 0.23 0.02

ZSD-86 1.25 5.00 0.28 0.02 ZSD-300 0.23 5.00 0.53 0.02

ZSD-88 0.03 5.00 1.74 0.07 ZSD-301 0.52 5.00 0.46 0.02

ZSD-89 0.03 5.00 0.32 0.03 ZSD-304 0.34 5.00 0.09 0.03

ZSD-90 0.03 5.00 2.93 0.05 ZSD-305 0.03 24.00 0.02 0.01

ZSD-91 0.03 5.00 0.45 0.02 ZSD-309 0.35 5.00 0.10 0.04

ZSD-94 0.03 5.00 1.59 0.03 ZSD-323 1.81 5.00 0.04 0.01

ZSD-96 0.11 5.00 0.66 0.02 ZSD-325B 0.80 5.00 0.28 0.03

ZSD-100 0.03 5.00 1.88 0.04 ZSD-326 14.05 5.00 0.35 0.03

ZSD-101 0.03 5.00 1.33 0.06 ZSD-328 0.70 5.00 0.07 0.03

ZSD-103 0.03 5.00 1.77 0.06 ZSD-330 0.58 5.00 0.03 0.02

ZSD-104 0.03 5.00 0.60 0.07 ZSD-331 19.86 5.00 0.43 0.05

ZSD-105 0.03 5.00 0.69 0.06 ZSD-333 1.66 5.00 0.19 0.06

ZSD-106 0.03 5.00 0.64 0.05 ZSD-334 2.00 5.00 0.18 0.01

ZSD-107 0.03 5.00 0.81 0.05 ZSD-335 0.93 5.00 0.13 0.02

ZSD-108 0.03 5.00 0.52 0.04 ZSD-338 1.42 5.00 0.10 0.01

ZSD-109 0.03 5.00 1.33 0.09 ZSD-339 0.42 5.00 0.76 0.02

ZSD-110 0.03 5.00 0.99 0.11 ZSD-340 1.35 5.00 0.11 0.01

ZSD-111 0.03 5.00 2.00 0.05 ZSD-343 1.07 5.00 0.05 0.03

ZSD-113 0.03 5.00 0.79 0.03 ZSD-344 0.72 5.00 0.09 0.01

ZSD-114 0.03 5.00 0.53 0.05 ZSD-370 0.39 5.00 0.08 0.07

ZSD-115 0.03 5.00 2.24 0.06 ZSD-371 0.70 5.00 0.09 0.03

ZSD-116 0.03 5.00 3.07 0.04 ZSD-383 1.12 5.00 0.20 0.04

ZSD-117 0.03 5.00 1.84 0.05 ZSD-386 0.57 5.00 0.14 0.02

ZSD-118 0.03 5.00 2.08 0.03 ZSD-387 0.59 5.00 0.10 0.02

ZSD-119 0.03 5.00 1.94 0.04 ZSD-393 0.56 5.00 0.07 0.05

ZSD-120 0.03 5.00 3.56 0.03 ZSD-403 1.04 5.00 0.12 0.05

ZSD-121 0.03 5.00 1.99 0.03 ZSD-406 0.42 5.00 0.05 0.06


ZSD-125 0.03 5.00 3.19 0.03 ZSD-408 2.31 5.00 0.20 0.09

ZSD-126 0.03 5.00 2.87 0.04 ZSD-410 1.76 5.00 0.12 0.07

ZSD-127 0.03 5.00 0.73 0.01 ZSD-411 0.33 5.00 0.08 0.03

ZSD-128 0.03 5.00 1.17 2.04 ZSD-414 1.27 5.00 0.03 0.05

ZSD-135 0.42 29.00 0.11 0.01 ZSD-417 0.69 15.00 0.18 0.06

ZSD-140 0.07 5.00 0.35 0.03 ZSD-418 0.72 5.00 0.08 0.04

ZSD-141 0.37 182.00 0.15 0.01 ZSD-419 0.94 5.00 0.05 0.03

ZSD-143 0.19 17.00 0.03 0.01 ZSD-424 0.54 5.00 0.03 0.11

ZSD-144 0.03 5.00 0.35 0.02 ZSD-425 1.21 5.00 0.02 0.02

ZSD-161 0.56 5.00 0.17 0.02 ZSD-439 0.05 15.00 0.11 0.01

ZSD-206 0.28 5.00 1.59 0.03 ZSD-447 1.28 5.00 0.04 0.04

ZSD-207 0.17 5.00 1.33 0.03 ZSD-448 1.44 5.00 0.06 0.11

ZSD-208 0.12 5.00 2.44 0.05 ZSD-450 6.09 5.00 0.04 0.03

ZSD-209 0.65 5.00 0.56 0.01 ZSD-451 1.17 5.00 0.06 0.26

ZSD-210 0.82 5.00 1.05 0.01 ZSD-453 0.31 5.00 0.02 0.03

ZSD-211 0.52 5.00 1.02 0.22 ZSD-454 33.47 5.00 1.06 0.76

ZSD-213 0.03 5.00 0.48 0.04 ZSD-455 0.60 5.00 0.03 0.03

ZSD-214 1.53 5.00 1.21 0.08 ZSD-471 1.50 5.00 0.06 0.06

ZSD-217 0.03 5.00 0.85 0.02 ZSD-473 3.20 24.00 0.08 0.09

ZSD-224 1.07 5.00 0.02 0.01 ZSD-475 0.41 5.00 0.10 0.01

ZSD-227 0.59 12.00 0.09 0.03 ZSD-478 0.10 5.00 0.35 0.01

Figure 25 – A zoom over Avshancli-1 highlighting the sampling locations of significant grades over the area. Geological map overlain. Image from [2].


Figure 26 - A zoom over Avshancli-2 highlighting the sampling locations of significant grades over the area. Geological map overlain. Image from [2].

Figure 27 - A zoom over Avshancli-3 highlighting the sampling locations of significant grades over the area. Geological map overlain. Image from [2].


Figure 28 - A regional map of Avshancli, highlighting the sampling locations of significant grades away from the target zones. Geological map overlain. Image from [2].

Gilar

Deposit Overview

“Gilar” is a new mineral occurrence that was discovered during Q3 2019, whilst fieldwork was

being conducted over the region. It was not identified through the ZTEM survey, likely due to

the narrow vein nature of the mineralisation zone. It is located approximately 2 km south of

the Avshancli-1 mineral occurrence.

Preliminary field mapping has established that Gilar is a quartz vein, hosted in rhyolite

volcanics (Figure 29). The quartz vein emplacement appears to sit alongside a previously

mapped 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 between 80-85° to the NE.

Thickness varies between around 0.3-1 m (Figure 30).


Figure 29 - An overview of the new Gilar quartz vein (yellow box). Sample locations returning significant Au grades are shown on the left image, whilst the right image highlights the outcrops of the quartz vein (solid red) and the ‘blind zone’ (dashed red area). Image from [2].


Figure 30 – A field photo showing the nature of the northern most outcrop of the quartz vein. Calico sample bags for scale.

Exploration Summary

During Q3 2019, preliminary field mapping was completed over the target upon discovery.

Additionally, 72 OC samples were obtained along the length of the structure, both of the

quartz vein and surrounding host rock. Of these, only the quartz vein material returned grade,

comprising 35 samples. Assaying was completed over the standard Au-Ag-Cu-Zn suite, with

grades only being returned for Au (Table 10).


Table 10 - Reportable assay grades from OC sampling over the Gilar quartz vein.

Other Exploration - Maarif

Deposit Overview

Exploration has also been conducted over the Maarif region during Q3 2019. This is a known mineral occurrence, with exploration works having been conducted over the area since the Soviet era – there is evidence of activity around the southern portion where old mine workings (trenches and a small open cut) can be found.

Au Ag Cu Zn

g/t g/t % %

19ZS 14-155 0.50 5.00 0.01 0.01

19ZS 14-156 0.68 5.00 0.03 0.01

19ZS 14-157 0.99 5.00 0.02 0.01

19ZS 14-159 2.04 5.00 0.03 0.00

19ZS 14-160 1.99 5.00 0.02 0.01

19ZS 14-162 3.21 5.00 0.02 0.01

19ZS 14-164 1.11 5.00 0.03 0.02

19ZS 14-165 16.02 5.00 0.05 0.01

19ZS 14-166 4.20 5.00 0.05 0.02

19ZS 14-168 0.56 5.00 0.03 0.01

19ZS 14-169 0.93 5.00 0.03 0.00

19ZS 14-171 2.25 5.00 0.03 0.01

19ZS 14-172 0.47 5.00 0.01 0.01

19ZS 14-173 3.26 5.00 0.01 0.01

19ZS 14-174 0.46 5.00 0.02 0.01

19ZS 14-175 1.23 5.00 0.02 0.01

19ZS 14-177 1.45 5.00 0.03 0.01

19ZS 14-178 0.73 5.00 0.02 0.01

19ZS 14-181 0.52 5.00 0.02 0.01

19ZS 14-187 4.49 5.00 0.09 0.00

19ZS 14-188 4.67 11.00 0.04 0.00

19ZS 14-192 8.37 12.00 0.05 0.00

19ZS 14-194 6.31 12.00 0.05 0.00

19ZS 14-195 1.96 5.00 0.02 0.00

19ZS 14-196 2.99 5.00 0.03 0.00

19ZS 14-209 0.89 5.00 0.06 0.00

19ZS 14-210 0.50 5.00 0.04 0.00

19ZS 14-211 1.05 5.00 0.06 0.00

19ZS 14-212 5.17 5.00 0.08 0.00

19ZS 14-214 11.84 5.00 0.14 0.01

19ZS 14-215 6.96 5.00 0.07 0.00

19ZS 14-216 4.88 5.00 0.09 0.00

19ZS 14-217 9.12 5.00 0.15 0.00

19ZS 14-218 9.06 5.00 0.13 0.00

19ZS 14-219 9.39 5.00 0.08 0.00

Sample I.D.


Maarif is a Cu-porphyry occurrence that sits south of the Atabay-Slavyanka granitic and north of the Gedabek dioritic Intrusions. The lithology of the region is dominated by Lower Bajocian andesitic volcanics (Figure 31); rhyolites and small porphyritic bodies have also been mapped. To the west of the region, Quaternary sediments overlie the volcanics. The region is structurally complex, which makes it favourable for potential ore body emplacement due to complex fluid pathways. Faults are predominantly oriented NW however, cross-cutting N-S and NE-SW trending faults are also present.

It has been observed that alteration is stronger around the faults over Maarif. Alteration styles found include silicifcation, chloritisation, kaolinisation, along with haematitic and limonitic found over some areas. Mineralisation identified at surface and at depth (in historic drill holes) include pyrite, chalcopyrite, molybdenite, malachite and rare azurite.

Figure 31 - An overview of the Maarif mineral occurrence (blue box), with the geological map overlain. The locations of the samples returning significant grades are noted. Image from [2].

Exploration Summary

A total of 34 outcrop samples were collected over the Maarif region during Q3 2019. Eleven samples returned grades above reportable limits (see Figure 31 for locations) and returned significant assays for Au, Ag and/or Cu (Table 11). It is interesting to note that previously, Maarif was not considered to host significant Au grades; the positive results returned from this OC programme indicates otherwise and so the ridge where the samples were collected from, is under further investigation. The Cu-only grade was located in a valley sample to the west of the region. Study continues over the anomaly.


Table 11 - Reportable assay grades from OC sampling over Maarif.

Conclusions

Targets have been identified over areas where the Company is already aware of the presence of mineralisation, but importantly other areas have also been identified, where no previous exploration activity has been carried out. The data generated from the ZTEM survey have provided information on the geometry and potential depths of mineralisation zones within a newly interpreted geological-structural framework. The intensities of the resistivity and magnetic responses have been analysed to help classify the targets, with the strongest degrees of contrast between high and low responses favouring target ranking.

Highlighted is the clear distinction between the magnetic and resistive lows and highs – these straight-line responses and areas of significant contrast could represent fault structures that may be feeder structures or fluid pathways of the mineralising system or contacts between rocks, giving a metallic signature against the barren host rocks. However, these contrasts may also be formed by lithological variation and not be related to ore mineralisation. Anomalies may also represent the feeder systems, but not necessarily the final position, of a mineralised orebody.

It is the structural geology that can act to focus mineralisation above and adjacent to the feeders. As such, overlapping anomalies with results from previous work, intensity of the anomalies for both conductivity and magnetics were considered. They may also represent lithological (e.g. the contact between a magnetic and non-magnetic unit) or alteration (e.g. magnetite destruction against magnetite preservation) boundaries. It is features like these that have been considered and discussed in detail when ranking the targets provided. Local structural geology may have further impacted on the form of a mineralised orebody. As such, overlapping anomalies with results from previous work, intensity of the anomalies for both conductivity and magnetics were considered.

All the targets discussed in this report show alteration on surface (except for the Gilar quartz vein), so ground-based geophysics surveying is to be considered following further mapping adjacent to the anomalies, as directed by the structural interpretation.

Au Ag Cu Zn

g/t g/t % %

MVR-01 0.63 14.00 0.02 0.00

MVR-12 0.57 5.00 0.06 0.00

MVR-13 2.69 16.00 0.12 0.08

MVR-14 2.41 5.00 0.05 0.01

MVR-15 8.11 14.00 0.09 0.03

MVR-16 0.52 12.00 0.02 0.01

MVR-17 2.69 26.00 0.06 0.04

MVR-19 7.76 31.00 0.20 0.02

MVR-20 0.44 5.00 0.03 0.01

MVR-21 0.61 5.00 0.01 0.00

MVR-34 0.03 5.00 0.88 0.23

Sample I.D.


Planned Exploration Activities Q4 2019

Work will continue over the high-priority targets as described in this report – these are Avshancli (including zones 1-3), Gilar, Maarif and Korogly (Zs15). Exploration activities, such as field mapping and OC sampling, will occur over other regions; however, demand for equipment and personnel will be directed to the above targets as a priority.

Further ground-based geophysical surveys are being planned, similar to that completed over Zs18 during H1 2019 [4]. Commencement of further geological study is also planned for Avshancli-1, -2 and -3 and initial results will be released with a ‘New Discovery Announcement’ for the region, planned for issue during Q4.

A trenching and DD programme for each zone (1-3) within Avshancli is also due to commence during Q4 – processing of samples at the AIMC laboratory has been elevated so that preliminary results may be released as part of this ‘New Discovery Announcement’.

Planning for a small DD programme along the Gilar quartz vein is also scheduled during Q4. As the geology outcrops at surface and the assays prove that the quartz vein is carrying economic grades, no further exploration work (e.g. geophysics or geochemical works) is required over the immediate area. It is envisioned that a number of holes will be drilled from an individual collar point in a fan pattern; this will help establish the depth extents of the vein and will be useful especially over the central ‘blind zone’. Further details will be provided as part of a ‘New Discovery Announcement’ for Gilar, also planned to be released during Q4.

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 for drilling to commence once tunnelling work for cross-cut tunnels and drill chambers is complete. Further extension of the main drive tunnel below the central and southern parts of the Gedabek OP will be assessed.

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 2019. http://www.earth.google.com

[October 2019].

[3] 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.

[4] 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.

[5] D.J. Isles and L.R. Rankin, “Geological interpretation of Aeromagnetic Data,” Australian Society of Exploration Geophysicists, 357 pp., 2013.


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 Underground DD – HQ/NQ

Hole I.D. Collar Coordinates Dip Azimuth EOH Depth

X Y Z ° (deg) ° (deg) (m)

19GUD34 566339.13 4492528.34 1411.38 -89.2 36.5 142.60

19GUD35 566825.74 4492396.55 1506.51 -43.3 100.4 167.00

19GUD36 566558.08 4492450.92 1444.53 -76.5 106.5 170.00

19GUD37 566558.01 4492448.66 1444.55 -68.6 354.2 142.50

19GUD38 566821.79 4492400.56 1505.59 -63.9 162.6 190.00

19GUD39 566821.50 4492400.75 1507.09 -22.7 350.2 96.90

19GUD40 566522.73 4492412.48 1445.72 -45.0 133.3 167.50

19GUD41 566661.52 4492477.83 1459.33 -40.5 347.2 127.00

19GUD42 566653.22 4492569.69 1446.39 -35.8 343.4 55.00

19GUD43 566597.35 4492614.12 1441.69 -89.3 67.6 81.80

19GUD44 566584.59 4492604.35 1441.38 -70.9 141.4 122.60

19GUD45 566802.93 4492539.12 1517.12 -57.6 304.0 70.50

19GUD46 566565.42 4492572.75 1442.47 -32.9 225.2 119.60

19GUD47 566804.35 4492539.08 1516.01 -49.7 158.4 62.20

19GUD48 566567.05 4492571.42 1441.76 -89.2 42.2 111.00

19GUD49 566783.53 4492578.88 1522.21 -89.3 49.2 123.10

19GUD50 566583.74 4492604.10 1445.35 51.9 147.4 31.30

19GUD51 566598.51 4492612.35 1445.75 53.9 147.5 32.60

19GUD52 566657.09 4492563.13 1445.79 -49.6 142.2 69.00

19GUD53 566857.94 4492447.95 1504.06 -90.0 90.0 121.10

19GUD54 566542.68 4492489.84 1443.53 -65.8 142.4 146.10

19GUD55 566894.81 4492397.51 1508.16 -89.1 220.1 94.10

Gadir Underground DD – BQ

Hole I.D. Collar Coordinates Dip Azimuth EOH Depth


19UDD66 566437.19 4492476.80 1399.43 44.5 255.4 15.00

19UDD67 566437.00 4492476.65 1398.24 2.1 252.2 20.00


19UDD68 566437.15 4492476.63 1396.94 -48.3 245.6 21.00

19UDD69 566442.75 4492511.95 1398.00 -44.5 2.2 11.70

19UDD70 566442.87 4492512.00 1399.13 1.6 333.5 25.00

19UDD71 566443.02 4492512.05 1400.33 43.1 340.2 13.50

19UDD72 566468.32 4492502.52 1396.48 -89.6 90.0 13.00

19UDD73 566468.33 4492485.23 1396.21 -67.2 196.4 19.80

19UDD74 566464.34 4492482.14 1396.84 -45.2 148.3 22.50

19UDD75 566485.49 4492548.68 1396.01 -53.6 258.0 20.50

19UDD76 566484.67 4492559.83 1395.84 -50.9 301.2 21.50

19UDD77 566367.56 4492548.61 1411.37 -45.5 322.2 34.90

19UDD78 566367.74 4492548.40 1412.13 0.3 325.4 14.50

19UDD79 566367.78 4492548.38 1412.63 37.9 327.5 17.00

19UDD80 566368.32 4492543.98 1413.18 40.3 148.3 20.00

19UDD81 566368.37 4492543.94 1412.23 0.7 147.3 19.00

19UDD82 566382.26 4492556.40 1411.87 -1.2 322.5 20.50

19UDD83 566382.47 4492556.21 1413.08 42.2 324.6 20.50

19UDD84 566384.16 4492552.45 1412.83 44.5 146.5 15.00

19UDD85 566384.38 4492552.20 1411.97 1.1 146.2 20.50

19UDD86 566384.32 4492552.39 1411.18 -43.5 141.3 11.65

19UDD87 566370.95 4492550.42 1411.19 -47.2 323.4 21.50

19UDD88 566370.99 4492550.38 1412.18 0.2 324.5 20.00

19UDD89 566371.03 4492550.33 1413.21 41.5 325.5 17.00

19UDD90 566373.33 4492546.87 1412.03 -1.2 146.3 10.00

19UDD91 566373.47 4492546.78 1411.43 -34.3 140.3 10.00

19UDD92 566569.43 4492570.92 1444.54 38.6 152.4 24.50

19UDD93 566575.11 4492611.69 1441.87 -87.5 330.4 50.00

19UDD94 566549.18 4492614.97 1442.70 11.2 317.3 10.00

19UDD95 566549.69 4492614.47 1443.72 55.4 321.1 10.00

19UDD96 566550.01 4492606.67 1441.08 -39.8 174.6 15.00

19UDD97 566638.17 4492552.06 1445.40 -36.8 150.4 20.00

19UDD98 566638.10 4492551.99 1446.79 0.7 152.4 15.80

19UDD99 566637.80 4492552.56 1447.94 43.2 152.4 18.30

19UDD100 566623.74 4492545.72 1447.00 42.1 154.2 15.00

19UDD101 566623.88 4492545.60 1446.24 -0.5 146.3 15.00

19UDD102 566623.54 4492546.11 1446.11 -43.4 138.2 19.80

19UDD103 566657.91 4492563.38 1446.95 -0.1 138.2 24.30

19UDD104 566657.61 4492563.64 1447.93 49.0 142.6 14.00

19UDD105 566657.56 4492563.84 1445.49 -76.1 123.3 8.00

19UDD106 566628.21 4492546.76 1443.44 -55.1 126.1 16.50

19UDD107 566618.46 4492541.58 1444.97 -54.8 138.3 32.40

19UDD108 566618.35 4492541.52 1446.17 0.5 147.3 15.00

19UDD109 566644.57 4492557.24 1446.78 2.2 149.2 15.00

19UDD110 566644.57 4492557.29 1446.02 -43.1 147.0 35.00

19UDD111 566517.32 4492584.52 1395.46 -30.6 325.1 15.00

19UDD112 566517.33 4492584.64 1395.50 -89.0 314.1 37.80


19UDD113 566518.08 4492579.65 1398.35 44.1 157.3 15.00

19UDD114 566522.86 4492574.81 1398.25 44.5 152.4 15.00

19UDD115 566510.85 4492575.60 1399.22 46.4 156.4 15.50

19UDD116 566511.13 4492575.01 1395.61 -86.1 33.3 21.00

Ugur Open Pit – DD

Hole I.D. Collar Coordinates Dip Azimuth

EOH Depth


19UGDD01 565105.54 4496882.61 1870.93 -63.0 249.0 853.00

19UGDD02 564620.41 4496827.51 1969.20 -60.0 100.0 984.50

19UTDD01 565667.06 4496806.71 1853.60 -90.0 0.0 200.10

19UTDD02 565580.11 4496794.39 1865.97 -90.0 0.0 220.20

19GED03 564055.45 4493817.82 1980.29 -60.0 345.0 1056.30

19GDD04 565015.20 4493378.17 1822.13 -90.0 0.0 495.20

19GDD05 566342.91 4492486.81 1796.22 -90.0 0.0 647.50

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 % %

19GUD34

16.00 17.00 1.00 0.05 15.00 0.03 0.02

25.00 26.10 1.10 0.03 12.00 0.31 0.02

28.00 30.00 2.00 0.76 11.00 0.02 0.05

19GUD35

19.50 39.00 19.50 1.06 34.42 0.08 0.12

with notable intersection

20.50 27.00 6.50 2.28 74.46 0.10 0.20

46.00 47.00 1.00 0.45 5.00 0.19 0.05

48.00 49.00 1.00 0.40 5.00 0.42 0.29

52.00 53.00 1.00 0.03 44.00 0.05 0.00

66.50 68.50 2.00 0.84 21.00 0.82 0.12

70.50 71.70 1.20 2.58 49.00 2.47 0.31


71.10 71.70 0.60 4.77 86.00 4.56 0.55

98.50 99.50 1.00 0.36 5.00 0.11 0.01

19GUD36

14.00 24.50 10.50 1.66 5.00 0.03 0.15


14.00 18.00 4.00 2.28 5.00 0.04 0.25

19.00 21.50 2.50 2.36 5.00 0.04 0.15

26.50 27.50 1.00 0.48 5.00 0.09 0.10

31.50 32.50 1.00 1.19 5.00 0.08 0.12


42.50 43.50 1.00 0.47 5.00 0.16 0.06

45.50 46.50 1.00 0.74 5.00 0.49 0.19

115.00 116.00 1.00 0.60 5.00 0.04 0.01

156.90 159.00 2.10 1.07 7.86 0.87 0.03


158.00 159.00 1.00 1.64 11.00 1.26 0.03

162.00 163.00 1.00 0.03 184.00 0.02 0.02

19GUD37

47.60 50.50 2.90 0.79 5.00 0.04 0.13


47.60 48.50 0.90 1.53 5.00 0.03 0.26

54.00 57.00 3.00 5.31 5.00 0.01 0.04


55.00 56.00 1.00 15.02 5.00 0.02 0.04

72.00 74.00 2.00 0.92 5.00 0.06 0.01


72.00 73.00 1.00 1.11 5.00 0.05 0.01

100.00 101.20 1.20 0.31 5.00 0.07 0.07

104.00 105.00 1.00 0.38 5.00 0.01 0.01

121.00 122.00 1.00 0.95 5.00 0.07 0.01

137.00 138.00 1.00 0.40 5.00 0.01 0.00

138.00 139.00 1.00 0.03 15.00 0.01 0.00

19GUD38

19.00 35.00 16.00 0.83 9.52 0.08 0.82


22.00 24.00 2.00 2.00 9.65 0.01 0.09

27.00 29.00 2.00 1.29 10.00 0.19 1.30

39.20 41.30 2.10 0.35 7.38 0.08 0.84

43.00 47.00 4.00 0.36 7.00 0.09 1.32

49.00 50.00 1.00 0.19 13.00 0.03 0.72

53.00 55.70 2.70 0.27 23.07 0.07 1.81

70.50 71.60 1.10 0.13 5.00 0.02 0.94

75.50 76.50 1.00 0.36 5.00 0.09 0.22

79.50 80.50 1.00 0.15 5.00 0.10 1.21

84.50 85.50 1.00 0.63 13.00 0.39 0.16

105.00 106.00 1.00 0.45 5.00 0.04 0.01

19GUD39

59.00 68.00 9.00 0.88 5.78 0.02 0.02


62.00 64.00 2.00 1.98 8.50 0.01 0.02

76.00 77.00 1.00 0.48 5.00 0.03 0.20

81.40 82.00 0.60 0.39 5.00 0.04 0.25

88.10 89.00 0.90 0.30 5.00 0.04 0.19

19GUD40

141.00 143.00 2.00 0.81 14.50 0.02 0.03


142.00 143.00 1.00 1.24 18.00 0.03 0.04

148.00 150.00 2.00 0.36 5.00 0.02 0.01

160.00 161.00 1.00 2.07 5.00 0.03 0.02


164.00 167.50 3.50 0.92 5.00 0.06 0.08


165.00 166.00 1.00 2.33 5.00 0.11 0.12

19GUD41

0.00 6.35 6.35 0.74 5.66 0.04 0.15


1.00 2.00 1.00 1.49 5.00 0.09 0.10

3.00 3.70 0.70 1.48 11.00 0.02 0.09

72.50 73.50 1.00 0.97 5.00 0.01 0.00

101.00 102.40 1.40 0.67 12.00 0.03 0.05

109.30 111.30 2.00 0.38 10.00 0.09 0.05

19GUD42

11.25 12.00 0.75 0.74 5.00 0.02 0.05

47.50 49.50 2.00 1.54 5.00 0.02 0.05


47.50 48.60 1.10 2.17 5.00 0.02 0.07

19GUD43

0.00 1.00 1.00 0.39 5.00 0.08 0.01

2.00 3.00 1.00 0.86 5.00 0.01 0.01

9.00 11.00 2.00 0.16 5.00 0.06 1.06

12.00 13.00 1.00 0.22 5.00 0.03 0.88

23.00 23.80 0.80 0.34 5.00 0.03 0.05

40.50 41.50 1.00 0.25 5.00 0.32 0.02

48.00 50.00 2.00 1.64 5.00 0.07 0.04

68.00 68.60 0.60 0.31 5.00 0.04 0.32

69.50 70.50 1.00 0.41 5.00 0.02 0.05

74.50 75.50 1.00 0.55 5.00 0.02 0.05

76.50 77.50 1.00 0.62 5.00 0.09 0.25

19GUD44

64.00 66.00 2.00 0.99 10.00 0.07 0.03

69.00 70.00 1.00 0.38 11.00 0.03 0.02

71.00 72.00 1.00 0.30 10.00 0.23 0.17

73.00 74.00 1.00 0.18 5.00 0.31 0.51

92.50 93.50 1.00 0.03 15.00 0.08 0.01

121.50 122.60 1.10 0.46 5.00 0.08 0.02

19GUD45

11.00 12.00 1.00 0.34 11.00 0.03 0.42

13.50 14.50 1.00 0.33 5.00 0.01 0.08

18.50 27.50 9.00 2.64 10.56 0.02 0.15


18.50 19.50 1.00 2.04 18.00 0.05 0.14

20.50 23.50 3.00 5.52 0.67 0.03 0.24

24.50 25.50 1.00 2.09 5.00 0.02 0.15

32.50 33.20 0.70 0.34 5.00 0.02 0.22

37.00 38.00 1.00 0.56 5.00 0.05 0.84

39.00 43.00 4.00 0.28 5.00 0.07 1.04

43.00 49.50 6.50 0.41 6.38 0.04 0.11

50.50 63.50 13.00 0.43 5.00 0.04 0.87

65.50 66.50 1.00 0.35 5.00 0.02 0.77

68.50 70.50 2.00 0.35 8.50 0.05 0.90


19GUD46

1.00 3.00 2.00 0.93 5.00 0.01 0.05


2.00 3.00 1.00 1.42 5.00 0.01 0.06

4.00 6.00 2.00 0.57 5.00 0.01 0.02

7.00 8.00 1.00 0.32 5.00 0.01 0.03

13.50 14.50 1.00 0.07 5.00 0.03 0.79

39.50 40.50 1.00 0.08 5.00 0.07 1.65

48.50 50.50 2.00 0.55 5.00 0.02 0.01

51.50 54.50 3.00 0.78 5.00 0.04 0.02


52.50 53.50 1.00 1.15 5.00 0.02 0.01

58.00 59.00 1.00 0.11 5.00 0.05 0.84

65.00 68.00 3.00 0.17 9.33 0.03 1.95

70.00 70.70 0.70 0.32 5.00 0.05 0.03

71.50 75.50 4.00 0.42 5.00 0.04 0.05

78.50 80.50 2.00 1.00 9.00 0.11 0.05


79.50 80.50 1.00 1.52 13.00 0.16 0.05

82.50 83.50 1.00 0.87 11.00 0.07 0.05

84.30 85.10 0.80 0.48 5.00 0.01 0.02

85.10 86.00 0.90 0.15 25.00 0.02 0.13

86.00 87.00 1.00 0.23 5.00 0.07 0.72

90.00 91.00 1.00 0.34 5.00 0.05 0.54

19GUD47

7.30 28.00 0.00 1.38 24.04 0.04 0.37


10.00 22.00 12.00 1.97 35.00 0.06 0.46

34.00 35.10 1.10 0.68 13.00 0.02 0.29

36.00 37.00 1.00 0.30 12.00 0.01 0.04

39.00 50.00 11.00 0.51 9.18 0.03 0.39

51.00 54.00 3.00 0.35 5.00 0.04 0.10

19GUD48

1.00 3.00 2.00 0.33 5.00 0.02 0.04

12.90 16.00 3.10 0.34 5.00 0.14 4.27

48.50 50.60 2.10 0.87 22.81 0.20 0.04


49.50 50.60 1.10 1.26 29.00 0.33 0.06

52.50 53.50 1.00 0.37 5.00 0.01 0.03

55.50 60.50 5.00 0.50 5.00 0.03 0.01

64.00 65.00 1.00 0.17 15.00 0.05 0.18

67.00 69.00 2.00 0.38 5.00 0.06 0.05

71.00 73.00 2.00 0.42 8.50 0.20 0.13

73.70 74.20 0.50 0.42 5.00 0.21 0.07

19GUD49

21.50 23.50 2.00 0.35 5.00 0.02 0.11

24.50 27.00 2.50 0.59 5.00 0.03 0.05

29.00 44.00 15.00 1.21 5.00 0.02 0.10



30.00 32.00 2.00 1.84 5.00 0.01 0.08

35.00 41.00 6.00 1.73 5.00 0.03 0.17

45.70 46.90 1.20 0.52 5.00 0.04 0.02

19GUD50 11.40 12.20 0.80 0.03 15.00 0.04 0.01

19GUD51 NSI

19GUD52

18.50 20.50 2.00 0.03 15.50 0.02 0.00

29.40 30.50 1.10 0.03 17.00 0.03 0.01

40.00 41.00 1.00 0.03 15.00 0.02 0.01

55.00 56.00 1.00 0.03 15.00 0.05 0.01

19GUD53

13.00 18.00 5.00 2.44 20.20 0.03 0.01


13.00 14.00 1.00 4.22 64.00 0.06 0.01

21.00 22.00 1.00 0.52 13.00 0.07 0.02

23.00 24.00 1.00 0.90 11.00 0.05 0.03

27.10 30.50 3.40 0.35 5.00 0.04 0.12

32.50 34.50 2.00 0.63 5.00 0.05 0.24

34.50 43.00 8.50 0.87 11.12 0.09 1.75


36.50 38.50 2.00 0.08 24.00 0.07 3.20

40.50 43.00 2.50 2.60 8.20 0.12 1.29

51.00 52.00 1.00 0.03 17.00 0.06 0.01

64.00 65.00 1.00 2.90 5.00 0.06 0.03

71.00 72.00 1.00 0.03 15.00 0.05 0.01

88.00 92.00 4.00 6.96 5.00 0.08 0.03


88.00 90.00 2.00 10.30 5.00 0.07 0.03

105.00 107.00 2.00 0.77 5.00 0.02 0.02

113.50 114.50 1.00 2.63 5.00 0.02 0.01

19GUD54

96.50 97.50 1.00 0.14 15.00 0.01 0.45

108.00 109.00 1.00 0.34 5.00 0.01 0.01

123.20 131.00 7.80 0.27 6.41 0.16 0.96


126.00 127.00 1.00 0.82 16.00 0.44 1.89

19GUD55

25.00 27.00 2.00 1.12 5.00 0.02 0.02


26.00 27.00 1.00 1.31 5.00 0.03 0.01

30.00 31.00 1.00 0.48 5.00 0.22 0.06

37.50 38.50 1.00 0.49 5.00 0.11 0.02

76.00 77.30 1.30 0.30 5.00 0.02 0.06

91.00 92.00 1.00 0.06 17.00 0.04 0.02


Gadir UG DD – BQ

Hole I.D.


Depth From

Depth To

Downhole Length

Au Ag Cu Zn

m m m g/t g/t % %

19UDD66 NSI

19UDD67 NSI

19UDD68 0.00 0.90 0.90 0.06 5.00 0.91 0.09

19UDD69 10.00 11.00 1.00 0.50 13.00 0.77 0.05

19UDD70

1.00 3.00 2.00 0.42 8.00 0.02 0.01

6.00 7.00 1.00 1.35 5.00 0.57 0.03

9.00 9.70 0.70 1.28 11.00 0.11 0.02

19UDD71 10.00 12.00 2.00 0.46 5.00 0.03 0.02

19UDD72 0.00 2.00 2.00 0.72 5.00 0.30 0.07

3.00 4.00 1.00 0.61 5.00 0.03 0.02

19UDD73

3.00 4.00 1.00 0.34 5.00 0.01 0.16

8.00 12.00 4.00 2.07 5.00 0.12 0.46


9.00 11.00 2.00 3.51 5.00 0.07 0.59

15.00 16.00 1.00 0.45 5.00 0.03 0.13

19UDD74

3.40 4.40 1.00 0.64 5.00 0.15 0.14

6.50 8.50 2.00 2.98 5.00 0.02 0.02


6.50 7.50 1.00 4.52 5.00 0.01 0.01

9.50 10.50 1.00 1.04 5.00 0.01 0.04

11.50 13.50 2.00 0.72 5.00 0.02 0.01

19UDD75

0.00 1.00 1.00 1.05 5.00 0.04 0.07

2.00 3.00 1.00 0.34 5.00 0.04 0.01

7.00 8.00 1.00 0.22 5.00 0.06 0.82

19UDD76

0.00 1.00 1.00 1.44 12.00 0.36 0.60

3.00 4.00 1.00 0.82 5.00 0.01 0.13

7.00 8.00 1.00 0.39 5.00 0.01 0.08

19UDD77

1.00 5.00 4.00 2.44 8.25 0.17 0.21


2.00 3.00 1.00 5.38 11.00 0.27 0.64

9.00 11.00 2.00 1.63 7.50 0.02 0.21

12.00 13.00 1.00 0.41 5.00 0.03 0.41

18.00 19.00 1.00 0.07 13.00 0.05 1.38

27.00 30.00 3.00 0.05 8.67 0.08 1.09

19UDD78 3.00 4.00 1.00 0.59 22.00 0.13 0.05

5.00 8.00 3.00 0.63 7.00 0.19 0.06

19UDD79

0.00 1.00 1.00 0.17 16.00 0.02 0.01

8.00 8.80 0.80 0.33 12.00 0.05 0.02

13.20 16.00 2.80 0.80 5.00 0.45 0.03



14.00 15.00 1.00 1.43 5.00 0.38 0.04

19UDD80 7.00 8.00 1.00 3.50 17.00 0.45 0.02

19UDD81 5.00 6.00 1.00 0.17 15.00 0.03 0.01

19UDD82 NSI

19UDD83 NSI

19UDD84 NSI

19UDD85 7.00 8.00 1.00 0.42 5.00 0.01 0.02

19UDD86 5.60 6.50 0.90 0.57 10.00 0.03 0.02

19UDD87

0.00 1.00 1.00 0.36 5.00 0.21 0.24

2.00 3.00 1.00 0.84 12.00 0.02 0.05

5.00 6.00 1.00 0.32 5.00 0.03 0.08

18.50 19.50 1.00 0.20 16.00 0.12 0.04

19UDD88

0.00 1.00 1.00 1.65 5.00 0.35 0.19

2.00 3.00 1.00 0.33 5.00 0.03 0.04

6.00 7.20 1.20 0.19 5.00 0.37 0.12

19UDD89 2.00 3.00 1.00 0.08 15.00 0.05 0.02

5.00 9.00 4.00 0.32 10.25 0.14 0.04

19UDD90 NSI

19UDD91 7.00 9.00 2.00 0.48 10.00 0.13 0.01

19UDD92 NSI

19UDD93

3.00 3.50 0.50 0.55 5.00 0.23 0.02

23.50 25.50 2.00 0.65 5.00 0.02 0.01

32.50 34.50 2.00 0.08 10.50 0.06 1.19

35.50 38.50 3.00 0.57 6.67 0.04 0.26

19UDD94

0.00 10.00 10.00 0.54 5.00 0.05 0.03


8.50 9.20 0.70 1.06 5.00 0.07 0.02

19UDD95

0.00 7.90 7.90 2.82 24.76 0.29 3.34


0.00 3.00 3.00 6.07 57.03 0.54 8.73

19UDD96

1.00 3.00 2.00 0.32 5.00 0.09 0.02

9.00 15.00 6.00 0.64 5.00 0.02 0.02


9.00 10.00 1.00 1.38 5.00 0.03 0.02

19UDD97 NSI

19UDD98 NSI

19UDD99 0.00 3.00 3.00 0.77 5.00 0.03 0.04

10.70 11.40 0.70 0.35 5.00 0.01 0.01

19UDD100

1.00 5.00 4.00 1.98 6.75 0.02 0.02


1.00 3.00 2.00 3.41 8.50 0.02 0.02

11.00 12.00 1.00 1.42 5.00 0.66 0.01

19UDD101 0.00 15.00 15.00 2.42 5.00 0.03 0.02



0.00 3.00 3.00 5.51 5.00 0.02 0.03

5.00 11.00 6.00 2.52 5.00 0.03 0.02

12.00 13.00 1.00 2.47 5.00 0.02 0.01

19UDD102

0.00 13.50 13.50 5.07 16.93 0.05 0.17


0.00 10.50 10.50 6.06 20.33 0.05 0.21

12.50 13.50 1.00 3.37 5.00 0.05 0.03

16.40 19.80 3.40 1.63 5.00 0.04 0.05


17.50 19.80 2.30 1.95 5.00 0.05 0.06

19UDD103

0.00 0.30 0.30 6.32 5.00 0.02 0.01

2.20 9.00 6.80 3.27 5.00 0.01 0.01


2.20 8.00 5.80 4.21 5.00 0.01 0.01

19UDD104 0.00 1.00 1.00 0.33 11.00 0.02 0.02

19UDD105

0.00 4.20 4.20 2.39 5.00 0.01 0.02


0.00 1.00 1.00 3.93 5.00 0.01 0.01

7.10 8.00 0.90 2.28 5.00 0.04 0.01

19UDD106

0.00 5.00 5.00 3.67 33.32 0.05 0.77


0.00 1.80 1.80 3.92 52.00 0.11 2.02

6.00 10.00 4.00 1.19 5.00 0.01 0.04


8.00 10.00 2.00 1.49 5.00 0.01 0.05

14.00 16.50 2.50 0.53 5.00 0.01 0.04


14.00 15.50 1.50 0.60 5.00 0.01 0.03

19UDD107

0.00 0.50 0.50 0.86 5.00 0.01 0.02

2.50 15.50 13.00 1.41 21.85 0.08 0.56


6.40 7.60 1.20 4.42 22.00 0.20 0.38

8.60 9.60 1.00 3.14 32.00 0.06 0.86

10.60 13.50 2.90 1.56 5.00 0.17 1.67

14.50 15.50 1.00 1.51 20.00 0.10 0.13

21.00 22.00 1.00 0.14 15.00 0.01 0.01

19UDD108

1.00 2.00 1.00 0.30 5.00 0.00 0.00

4.00 9.00 5.00 0.63 5.00 0.01 0.01

10.00 11.00 1.00 0.35 5.00 0.01 0.01

19UDD109 NSI

19UDD110 NSI

19UDD111 8.00 10.00 2.00 0.10 5.00 0.04 0.95

12.00 13.00 1.00 0.12 5.00 0.13 1.50


14.00 15.00 1.00 0.17 5.00 0.03 0.97

19UDD112

0.00 1.00 1.00 0.17 5.00 0.05 1.06

6.00 10.00 4.00 0.12 5.00 0.07 0.91

15.00 16.00 1.00 0.34 5.00 0.10 0.80

16.00 20.00 4.00 0.21 5.00 0.17 1.95

24.00 25.00 1.00 0.40 5.00 0.10 1.17

26.00 34.50 8.50 1.53 5.00 0.10 0.88


27.00 28.00 1.00 5.96 5.00 0.26 1.80

31.00 31.70 0.70 2.19 5.00 0.06 0.33

19UDD113

0.00 15.00 15.00 1.34 5.00 0.17 3.29


0.00 5.00 5.00 2.27 5.00 0.27 4.41

9.00 11.00 2.00 2.28 5.00 0.22 3.69

14.20 15.00 0.80 1.23 5.00 0.12 3.70

19UDD114

0.00 12.00 12.00 0.90 8.75 0.18 1.56


4.00 9.00 5.00 1.23 14.00 0.23 1.74

19UDD115

0.00 15.50 15.50 2.61 9.26 0.15 2.21


0.00 3.00 3.00 2.33 14.33 0.12 2.56

5.00 11.00 6.00 5.01 10.17 0.22 3.09

19UDD116

0.00 5.00 5.00 0.45 5.00 0.06 0.83

6.00 7.00 1.00 0.43 5.00 0.06 1.19

9.00 11.00 2.00 0.21 5.00 0.06 1.01

12.00 13.00 1.00 2.20 5.00 0.07 0.28

14.00 15.00 1.00 0.41 5.00 0.07 0.13

15.00 17.50 2.50 0.26 5.00 0.12 1.20


Appendix D: ZTEM Target Codes

Note: Not all targets have been mentioned in this report

Shallow Zs17 Seyfali Dam

Zs1 Dondarly Zs18 Zehmetkend

Zs2 Mt. Okuzdag Zs19 Masxit

Zs3 Almalytala Shallow Zs20 Narzan

Zs4 Agamaly Deep

Zs5 Dikbash Zd1 Almalytala Deep

Zs6 Shekerbek Zd2 Gyzyljadag Deep

Zs7 Gyzyljadag East Zd3 Arykhdam/AC Area

Zs8 Gyzyljadag Shallow Zd4 Godekdere

Zs9 Yagublu Zd5 Deyegarabulag

Zs10 Chenlibel SE Porphyry

Zs11 Garabulag East (N) M1 Hachagaya

Zs12 Garabulag East (S) M2 Ertepe East

Zs13 Gunash M3 Shemkirchay

Zs14 Parakend Bugor M4 Mubariz

Zs15 Korogly M5 Gedabek

Zs16 Soyugbulag M6 Duzyurd


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 22 underground DD holes were drilled from Gadir, totalling 2,443.50 m.

• A total of 51 underground DD holes were drilled from Gadir, utilising BQ diameter tubes. Total BQ core drilled during Q3 2019 was 968.45 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 7 exploration DD holes were drilled over and around the Ugur OP during Q3 2019, totalling 4,456.80 m. o Two of these holes were completed at the OP for geotechnical purposes and for

this reason, were not assayed.

Gedabek Regional:

• Outcrop ("OC") sampling was conducted over seven ZTEM targets, two new discoveries (“Avshancli” and “Gilar”) and one known mineral occurrence (“Maarif”); 1,305 samples were collected and analysed. o OC sampling was carried out via chipping exposed rock with a rock hammer. A

mass of 2-3 kg was targeted for each sample. o Upon collection of a sample, location was obtained via GPS and subsequently

uploaded into Leapfrog® for verification.

• During OC collection, sample description and analysis by portable methods was carried out by the geologist(s) present. Geology (lithology, alteration and mineralisation) were recorded into field notebooks and transferred to the Gedabek



Exploration database once access to a computer was available. This was verified by the Exploration Manager prior to submission to the onsite laboratory.

• 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 appropriate calibration of any measurement tools or systems used.

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

• 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. This mass was determined to minimise the risk of sample bias that may be introduced at the laboratory. Pulverisation at the AIMC laboratory produced 50 gramme (“g”) charges, ready for primary Atomic Absorption ("AAS") analysis and check Fire Assay ("FA").

• DD sample target mass was 2-3.5 kilogrammes (“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.



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 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.

Ugur:

• 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.

• Elements assayed for were gold ((Au), silver (Ag) and copper (Cu). If mineralisation and alteration styles warranted, zinc (Zn) content was also assayed.

Drill sample

recovery

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

• OC 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 Q3 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 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/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.

• All RC chip trays were photographed and included reference to from/to depths.

• The total length and percentage of the relevant intersections logged.

• All DD holes were logged in their entirety.



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.

• OC 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 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 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 Q3 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.

• Laboratory control comprises of pulp and coarse duplicates.

Verification of

Sampling and

Assaying

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

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

• Intersections were defined by the geologists and subsequently reviewed and verified by the Exploration Manager.

• 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 Q3 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%.

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 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. • Topogrpahic 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 Ugur 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.

• 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 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 sampling cannot be established.

Sample Security • The measures taken to ensure sample security.

• Chain of custody of samples is managed by AIMC.

• Regarding OC 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 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 Q3 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 has 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 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 Q3 2019 are located within the Gedabek CA, or outside if geological continuity has been demonstrated.

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

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

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 samples, all results have not 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 Q3 to obtain WorldView-3® satellite imagery over part of the CA, to support mineral exploration activities in the area

• The area being tested covers/partially covers the Agamaly (Zs4), Narzan (Zs20) and Hachagaya (M1) ZTEM anomalies.

• 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.

• Exploration work is progressing well, according to the overall three-year strategy.

Work defining the lateral and down-dip definition at Gadir UG is ongoing. Further

evaluation and field reconnaissance of the high-priority ZTEM and regional targets

is continuing whilst the weather conditions are favourable, with drilling planned to

continue over the entire Q4 period. Due to the positive results from the

magnetometer survey at Zs18 (during H1 2019), a study is planned to be carried out

over both the Zs15 (“Korogly”) and Avshancli targets over this period.

Documents

Q3 2019 Gedabek exploration report - Anglo Asian Mining ... · mining operations and further upside potential defined speaks volumes to the positive contribution of the geological