Azerbaijan produces 57 million ounces of gold in 2011

Business Materials 23 January 2012 22:56 (UTC +04:00)

Azerbaijan, Baku, Jan.23 /Trend N.Ismayilova/

During the quarter ended 31 December 2011, the Company produced 15,292 oz of gold ('Au') at Gedabek from its heap leach operations. This brings total production for the year ended 31 December 2011 to 57,068 oz Au. The strong gold price has seen Anglo Asian completing gold sales* of 13,376 oz Au at an average of US$1,688 per oz for Q4 2011 and gold sales of 49,304 oz Au at an average of US$1,573 per oz for FY 2011.

Anglo Asian estimates that its cash cost of gold produced, including the Government of Azerbaijan's share for FY 2011, was US$450 per oz and the cash cost excluding the Government of Azerbaijan's share is estimated at US$535 per oz.

Anglo Asian Mining Plc 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. It is expected to produce about 400 tons of gold, 2,500 tons of silver and 1.5 million tons of copper on the fields under the contract.

The gold was cleared in Switzerland after the extraction. The bars are imported into Azerbaijan and stored on account of the Government.

The first gold and silver were extracted in the Gadabay mine on May 2009. It is planned to extract more than 300 million ounces of gold from the field to 2015.