Costs for development of Azerbaijan’s gold, silver field revealed
Baku, Azerbaijan, Sept. 21
By Anvar Mammadov – Trend:
Anglo Asian Mining PLC (AAM, a gold, copper and silver producer in Azerbaijan) said in a message Sept. 21 that it has spent $600,000 for the development of the Ugur field in Azerbaijan’s Gadabay district in the first half of 2017.
AAM started the extraction of gold and silver at the Ugur field in September 2017.
From Sept. 1 to Sept. 10, AAM’s average daily gold output was 212 ounces, which exceeds the average daily output in the previous eight months by more than two times.
The average daily output is expected to continue growing when full-scale production commences.
The first drilling work at the Ugur field started in September 2016. According to preliminary estimations, its gold reserves amount to 199,000 ounces. The Ugur field also has nearly 1.05 million ounces of silver.
Ugur was discovered in 2016.
AAM produced 23,218 ounces of gold, 1,322 tons of copper, and 85,087 ounces of silver in 1H17.
The company plans to produce 64,000-72,000 ounces of gold in 2017.
Based on a production sharing agreement signed with Azerbaijani government in August 1997, Anglo Asian Mining PLC has the right to develop six fields in southwest of Azerbaijan – Gadabay, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu.
The gold produced at the fields is sent to Switzerland for purification. The ingots are then delivered to Azerbaijan and stored in the government's account.