Goldproducer Anglo Asian Mining PLC Monday said it has found a potential newhigh-grade extension to its Gedabek mine in Azerbaijan.

The companyis currently drilling a 3,000 metre programme near the deposit and found abonanza grade at depth in the one hole it has already completed.

"Thisidentified extension of the northern portion of the Gedabek deposit has thepotential to significantly increase the JORC resource of 1.12Moz of gold in theMeasured and Indicated category and the reserve base of 744,038oz of gold atGedabek," Chief Executive Reza Vaziri said in a statement.

JORC is theJoint Ore Reserves Committee which provides mineral resource classificationschemes.

The companysaid the extension should increase the mine life of the mining operation.

Anglo Asianintends to continue drilling at this new target to get further understanding ofits potential.

The stockwas trading at 23.90 pence Monday afternoon, up 5.6%.

ANN.Az