28 September 2023

Anglo Asian Mining plc

Final Micon environmental report

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused on Azerbaijan provides an update on the final Micon report (the "Report") which was delivered on 26 September 2023 to the Company and the Government of Azerbaijan (the "Government").

Background to the Report

Micon International Co Limited ("Micon") was commissioned on 21 July 2023 by the Company and the Government to undertake a Health, Safety and Environmental due diligence review of the tailings management at Gedabek gold mine (the "Review"). The Review also included soil and water sampling and the testing of air quality in the vicinity of Gedabek. The Review was commissioned following protests in July 2023 by local residents against the proposed construction of a second tailings dam close to the location of the Company's existing tailings dam.

Work undertaken at the Gedabek site pursuant to the Review

Three Micon employees visited Gedabek between 25 to 27 July 2023 where they undertook a detailed investigation of the processing facilities and visited environmental monitoring locations and the Company's existing tailings dam.

IQLIM Environment Analytical ("IQLIM"), an Azerbaijan environmental engineering company, also visited the Gedabek site between 25 July 2023 and 1 August 2023 on behalf of Micon. During this period, IQLIM carried out sampling of soils and surface and ground water. They also conducted air quality and noise monitoring. The environmental samples taken were analysed by the Caspian Environmental Laboratory in Azerbaijan, an accredited independent laboratory.  

The Company engaged Mine Environmental Management ("MEM") to be present during the Micon and IQLIM site inspections to ensure they were conducted in accordance with industry standards. MEM was in attendance at Gedabek throughout both visits. The Company's tailings dam consulting engineers, Knight Piésold, were also present during the Micon site visit. Azecolab, an accredited laboratory, was also engaged by the Company to take duplicate environmental samples which were analysed at Azecolab's laboratory.

Environmental sampling carried out at the Gedabek site

Water sampling

17 surface water samples, plus one duplicate (18 in total) and 18 groundwater samples, plus two duplicates (20 in total) were taken by IQLIM.

Soil sampling

A total of 29 composite (bulk) soil samples (plus three duplicates) were taken by IQLM from locations in and around the Gedabek site, including background locations, the mine site itself, the area around the tailings dam and its pipeline corridor and local settlements.

Air quality, noise and radiation monitoring

Sampling was carried out on air quality using portable gas, dust, noise, vibration and radioactivity analysers.

Results of the Review and main conclusions in the Report

The main findings of the Report were as follows:

·    Radiation levels at Gedabek are aligned with natural background conditions for the area. Noise levels were low and within acceptable limits. No issues of concern were identified with air quality

·    No cyanide was found in any soil sample above the limits of analytical detection (<0.06 milligrams per kilogram)

·    Very low concentrations of cyanide (0.013 to 0.23 milligrams per litre) were found in four water samples (taken from three monitoring stations and one surface station) out of 35 samples taken, although all were well within the guidelines of the International Finance Corporation ("IFC") Environmental and Social Performance Standards Limits (IFC Environmental, Health, and Safety Guidelines for Mining).

·    The Report concluded "Opposition to the proposed new tailings storage facility is the result of a lack of proactive communication between the site management team and the local community, longstanding issues regarding land allocation and mineral rights, and the failure to follow accepted international protocols for public consultation, rather than a fundamental technical problem with the current tailings storage facility or the proposed location for the new tailings storage facility."

·    The management of the Gedabek site included various examples of good practice:

o Knowledgeable and experienced technical staff

o The existing tailings dam is in generally good working condition

o Good signage at the water bodies

o Topsoil is stockpiled for rehabilitation and closure

o The site appeared generally clean and tidy

·    Various issues were highlighted for improvement:  

o The emergency response capability at the Gedabek site for dealing with a cyanide incident was inadequate

o The Company's environmental monitoring and associated documentation should be strengthened so issues are identified at an earlier stage

o The Gedabek operation does not have a dedicated community relations department and is therefore limited to administrative work rather than proactive communication in the field

·    Recommendations were also made to improve some operational, social and safety aspects of the Gedabek site

Next steps

The Board is carefully considering the findings of the Report and is in active dialogue with the Government and local communities at Gedabek with regard to implementing the recommendations in the Report. Further updates will be made in due course, including regarding the resumption of agitation leaching and flotation processing at Gedabek.

For further information please contact:

Notes to editors

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer with a high-quality portfolio of production and exploration assets in Azerbaijan. The Company produced 57,618 gold equivalent ounces ("GEOs") for the year ended 31 December 2022. 

On 30 March 2023, the Company published its strategic plan for growth which shows a clearly defined path for the Company to transition to a multi-asset, mid-tier copper and gold producer by 2028. By 2028, copper will be the principal product of the Company, with forecast production of around 36,000 copper equivalent tonnes. It plans to achieve this growth by bringing into production four new mines during 2023 to 2028 at Zafar, Gilar, Xarxar and Garadag. 

The Company owns approximately 17.4 per cent. of Libero Copper & Gold Corporation ("Libero"). Libero is listed on the TSX Venture Exchange in Canada and owns, or has the option to acquire, several copper exploration properties in North and South America, including Mocoa in Colombia, one of the world's largest undeveloped copper-molybdenum resources. 

https://www.angloasianmining.com/