Gold producer in Azerbaijan discovers new perspective mine
Azerbaijan, Baku, Feb. 22 / Trend N.Ismayilova /
Anglo Asian Mining plc, the AIM listed gold producer, said the exploration activities within the Gedabek Contract Area included the undertaking of topographic surveys and geological mapping as well as a 9,500 metre diamond drilling programme.
This has resulted in a new resource model and an increased resource at the Gedabek gold/copper mine ('Gedabek mine') area to 704,000 ounces of gold in the Measured and Indicated classifications as announced in October 2010; the discovery of a new prospect in the Cholpan area, 2 km north of the Gedabek mine; and the firming up of targets for a copper/gold deposit in the Maarif area of the Contract Area.
In addition, the Company recently completed a 6,000 metre diamond drill programme within the boundaries of the existing pit, aimed at increasing confidence in the resource of the Gedabek mine. The results of the drilling programme are expected within the first quarter of 2011.
A preliminary remote sensing study of the Ordubad Contract Area was conducted as well as adit cleaning and re-sampling of adits in two regions, Pyazbashi and Agyurt. Trenching and sampling was also undertaken in the Daste Bashi region.
"These activities have not shown any potential target area in Ordubad so far, however the Company believes that the Agyurt and Daste Bashi prospects warrant further exploration," the company said.
The Company's license expires on 13 April 2011 and the Company is in the process of renewing the license for a further year.
Anglo Asian Mining Plc is the only gold producer in Azerbaijan. The company owns the rights to develop six fields in south-west Azerbaijan at Gedabey, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu. The concession is based on PSA agreements signed with the Azerbaijani government in August 1997.According to the contract, it is planned to produce about 400 tons of gold, 2,500 tons of silver and 1.5 million tons of copper at the fields.
The first gold and silver were extracted at Gedabey mine in May 2009. In general, it is planned to produce over 300,000 ounces of gold at Gedabey field before 2015.