Gold producer in Azerbaijan to become lead Caucasian and Central Asian producer

Business Materials 22 November 2011 18:42 (UTC +04:00)

Azerbaijan, Baku, November 22/ Trend, N. Ismailova /

Anglo Asian Mining plc, the AIM listed gold producer, has submitted the Development and Production Program for its 300 sq km Gosha Contract Area ('Gosha') in western Azerbaijan to the Government of Azerbaijan. It is the Company's intention to develop a small, profitable, high grade underground gold mine at Gosha, producing gold at an average rate of 10,000 to 15,000 ounces per annum for a period of up to five years, with first production anticipated H1 2013.

The Development and Production Program has been submitted following a Notice of Discovery made in February 2011 at Gosha, after an active exploration program in 2010, which included 3,000 meters of drilling and 300 meters of adit and sample work. Under the terms of the Production Sharing Agreement, the Government of Azerbaijan has thirty days to request further information that it may reasonably need to evaluate the Development and Production Program. If the Government of Azerbaijan has not made any requests to change the Development and Production Program in writing within ninety days of receipt, then the Program is deemed acceptable to the Government.

To date, the Company has only explored some of the known areas of mineralization at Gosha and at present no JORC compliant information on Gosha's resource is available. However if the Development and Production Program is accepted, Anglo Asian plans to implement further drilling campaigns in order to increase the economics of the proposed mine. Further information regarding the progress of the Development and Production Program for Gosha, together with a summary of the proposed work program, if accepted, will be made in due course.

Anglo Asian CEO Reza Vaziri said, "The development of Gosha will be another significant step for Anglo Asian as we look to become a leading mid-tier gold producer in Caucasian and Central Asia. Gosha has the potential to increase our gold production profile and replicate, on a smaller scale, the success of our flagship Gedabek gold/copper mine, which is targeted to produce circa 58,000 to 60,000 ounces of gold for FY 2011. I look forward to updating shareholders on the progress of the Production and Development Program in due course as we look to establish our second mining operation in Azerbaijan."