Gold producer in Azerbaijan beats production forecasts by over 5,000 ounces

Business Materials 7 June 2010 11:14 (UTC +04:00)

Azerbaijan, Baku, June 5 / Trend, N. Ismayilova /

Anglo-Asian Mining plc., Azerbaijan's only gold producer, produced 5,298 ounces of gold from the Gadabay Mine in April compared to 6,167 ounces in March.

"Total production, which started in July 2009, hit 30,323 ounces, which exceeds the total production capacity by 25,000 ounces. The company intended to achieve this figure only by June 30," the company said.

According to the report, the company's gold mining forecast for Dec. 31 is 53,500 ounces. The company management expects that production will continue to increase.

Anglo-Asian Mining has the right to develop six fields in southwestern Azerbaijan - Gadabay, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu - based on agreements signed with the Azerbaijani government in the PSA format in August 1997.

The PSA was signed between the Azerbaijani government and the Azerbaijan International Mineral Resources Operating Company for 30 years.

Azerbaijan's share is 51 percent, and Anglo-Asian Mining's is 49 percent.

Under the contract, plans include extracting about 400 tons of gold, 2,500 tons of silver and 1.5 million tons of copper on the fields.

Gold and silver were first mined in Gadabay in May 2009. In general, plans cover mining more than 300 million ounces of gold on this field before 2015.