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Reserves of Azerbaijani Gedabek gold and copper deposit to be specified in 2012

Business Materials 4 April 2012 16:02 (UTC +04:00)

Azerbaijan, Baku, April 4 / Trend A.Akhundov /

The Anglo-Asian Mining plc.is updating its estimation of the Gedabek gold and copper mine, the company's statement said on Wednesday.

The measured gold reserves at this deposit are 738,958 oz. (nearly 21 tons), copper - 57,069 tons and silver - 5,927,487 oz. (168 tons).

Indicated gold reserves are 315,424 oz. (nearly 9 tons), copper - 24,696 tons and silver - 2,681,064 oz. (76 tons).

Measured and indicated gold reserves are 1,054,382 oz. (29.89 tons), copper - 81,765 tons and silver - 8,608,551 oz. (244.05 tons). It's necessary to process 37.11 million tons of ore for their production.

Inferred gold reserves are estimated at 222,040 oz. (6.29 tons), copper - 13,125 tons and silver - 1,697,102 oz. (48.11 tons).

Taking into account the measured, indicated and inferred category, after processing 48,138,979 tons the results are: 1,276,422 oz. of gold (a 61 per cent increase); 94,890 tons of copper (a 93 per cent increase); and 10,305,653 oz. of silver (a 36 per cent increase) can be produced.

Classification

Tonnage

Grades

Products

Au

Cu

Ag

Au

Cu

Ag

g/t

%

g/t

Oz

T

Oz

Measured

22,349,562

1,028

0,255

8,249

738,958

57,069

5,927,487

Indicated

14,762,015

0,665

0,167

5,649

315,424

24,696

2,681,064

Measured & Indicated

37,111,577

0,884

0,220

7,215

1,054,382

81,765

8,608,551

Inferred

11,027,402

0,626

0,119

4,787

222,040

13,125

1,697,102

'Drilling continues south and southeast of the Gedabek Mineral Deposit. The technical and economic feasibility of future mineral processing alternatives are being assessed to increase the gold, copper and silver recovery', the statement said.

Evaluation of the deposit is held on the classification of the Joint Ore Reserves Committee and will be completed in the second half of 2012.

The total volume of gold production at the deposit in 2011 was brought to 57,068 ounces (1.62 tons), copper - 611 tons and silver - 46,940 ounces (1.33 tons). Last year the company sold 49,304 ounces of gold at an average price of $1,573 per ounce.

According to company estimates, the cost of gold produced including taking into account the share of the government of Azerbaijan in 2011, amounted to $450 per ounce and costs, except for the government share, are estimated at $535 per ounce.

The Anglo Asian Mining Company has the rights to develop six deposits in the south-west of Azerbaijan - Gedabek, Ordubad, Gosha Bulag, Gyzyl Bulag, Vezhnali and Soyutlu based on a PSA type agreement signed in August 1997 with Azerbaijani government. Under the contract, production of about 400 tons of gold, 2500 tons of silver and 1.5 million tons of copper is planned at the deposit.

Gold produced at the deposits is sent for refinement to Switzerland. Bullions are brought to Azerbaijan and stored in the government's vaults. The first gold and silver was produced at the Gedabek deposit in May 2009.

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