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Anglo Asian Mining expects to increase gold production in Azerbaijan

Business Materials 12 July 2011 13:43

Azerbaijan, Baku, July 12 / Trend A.Badalova /

The Anglo Asian Mining Plc company, only gold producer in Azerbaijan, produced 14,582 ounces of gold at the Gedabek gold/copper mine ('Gedabek') during the second quarter of 2011, the company reported.

The figure was 14,028 ounces in the first quarter of 2011.

The company transferred 210,526 tons of dry ore onto the leach pad with an average gold content of 3.35 g/t. During the first quarter of 2011, the company transferred 208,000 tons of dry ore with an average gold content of 3.32 g/t.

"We are on track to achieving our production target for the year, of 60,000 oz of gold and 525 tons of copper, and remain committed to ensuring the success of our flagship Gedabek mine. With this in mind, we are actively assessing initiatives which will improve the operational efficiency of Gedabek and in turn, production," Anglo Asian CEO Reza Vaziri said.

It must be noted that due to seasonal harsh weather conditions over the winter months, the third and fourth quarters are expected to be stronger in terms of production levels.
Anglo Asian sold 13,317 oz of gold at an average of $1,506 per oz during the three months leading up to June 30, 2011, the report reads.

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.

The PSA signed with the Azerbaijani government and Azerbaijan International Mineral Resources Operating Co.Ltd (AIMROC) for 30 years; Azerbaijan's share is 51 percent, Britain's Anglo-Asian Mining Plc is 49 percent.

According to the contract, production plans to yield 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.
More than 300 million ounces of gold are planned to be produced from this field between now and 2015.

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