Anglo Asian Mining Plc while will transfer to Azerbaijan one third of gold from new deposit
Azerbaijan, Baku, June 20 / Trend N.Ismayilova /
The Anglo Asian Mining Plc company, only gold producer in Azerbaijan, develops the Development and Production Program on the Gosha Contract Area ('Gosha') in Azerbaijan, the company reported.
"The Company submitted a notice of discovery to the Azerbaijani government in February 2011 following active exploration in 2010. This included 3,000m of drilling and 300m of adit and sampling work. According to the terms of the Product Sharing Agreement ('PSA'), Anglo Asian has to submit a Development and Production Program to the Azerbaijani government for approval," the report reads.
The Development and Production Program is now underway and is expected to be finalized in October 2011. It is the Company's intention to develop a small gold mine with production by the second half of 2012.
The Anglo Asian Mining Plc company plans to produce 25,000-30,000 ounces of gold at the Gosha field by late next year, Company CEO Reza Veziri told Trend earlier.
Under the PSA, the Azerbaijani government would receive 12.75 percent of any gold produced at Gosha until Anglo Asian has recovered its capital, operating and financing costs in full at which point the Government of Azerbaijan is then entitled to a 51 percent share of profit. It should be noted that costs incurred on Gosha can only be recovered from revenue generated from the Gosha Contract Area.
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, field production is planned to reach about 400 tons of gold, 2,500 tons of silver, and 1.5 million tons of copper.
Gold and silver were first discovered through mining in Gedabek in May 2009.