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Mining company eyes finding gold at new field in Azerbaijan

Economy Materials 23 November 2015 10:42 (UTC +04:00)

Baku, Azerbaijan, Nov. 23

By Azad Hasanli - Trend:

The Anglo-Asian Mining PLC company (AAM) is completing exploration work on the new Agyurt field in Ordubad district of Azerbaijan, the company's director general Reza Vaziri told Trend.

"Currently, we are exploring a new field in Ordubad district and hope to complete the work before the snow," he said. "The deposit itself is located in the area with difficult terrain and is very hard to develop, so if we don't have enough time to complete the exploration [before the snow], the work will be postponed till late March 2016."

Vaziri said he hoped to get good results on the new field.

However, he went on to add that according to the primary data, the approximate gold reserves at this field account for 200,000 ounces.

The 462 square kilometer Ordubad contract area is in the Nakhchivan district and contains numerous targets including Shakardara, Piyazbashi, Misdag, Agyurt, Shalala and Diakchay, which are all located within a 5 kilometer radius.

The company produced 54,103 ounces of gold, 634 tons of copper and 10,916 ounces of silver in Jan.-Sept. 2015.

ААМ plans to produce 74,000-75,000 ounces of gold by late 2015.

Based on the production sharing agreement signed with Azerbaijani government in August 1997, Anglo Asian Mining PLC has the right to develop six fields in south-west of Azerbaijan: 'Gadabay', 'Ordubad', 'Gosha Bulag', 'Gizil Bulag', 'Vejnali' and 'Soyutlu'.

AAM and Swiss Industrial Minerals SA signed an agreement in May 2014 on selling cooper concentrate produced at Gadabay field.

The contract signed for the period of three years envisages the purchase of copper concentrate by the Swiss company.

Industrial Minerals will purchase both dry and wet copper concentrate.

The gold produced at the fields is sent to Switzerland for purification. The ingots are delivered to Azerbaijan and stored in the government's account.

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