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Anglo Asian Mining PLC Announces Reserves of Gold, Silver and Copper in Gedabek Field of Azerbaijan

Business Materials 19 June 2007 17:55 (UTC +04:00)

Azerbaijan, Baku /corr. Trend S.Babayeva / The company Anglo Asian Mining PLC has completed a feasibility study at Gedabek, which shows the development of the property to be both economically viable and robust.  The study identifies a mining reserve of 7.7 million tonnes of ore at grades of 1.80 grams per tonne ('g/t') gold, 15.91 g/t silver and 0.29% copper. Gold, silver and copper production of the mine life has been conservatively estimated to be 311,154 oz of gold, 1,959,109 oz of silver and 17,424,960 lbs of copper respectively. 

The capital costs are estimated at US$30.7 million, including US$3.1 million for working capital. The gross cash operating costs are estimated as US$283 per oz of gold (US$147 per oz net of copper and silver credits). Together with the low cost of operation and after metal credits, at current metal prices, the project is expected to payback the capital investment within one year of commencement of production. 

The company is currently marketing the CIL plant which is packed and ready for transport in Singapore.  Negotiations with several interested prospective buyers are in process.  It is expected that proceeds from the sale of the CIL plant will fund a substantial amount of the construction work planned for this year at Gedabek. Following completion of the feasibility study, the company is now exploring various options to meet the capital requirements of the group.

The mine is scheduled to finish the remaining construction during the second quarter and commence production in the third quarter of 2008.

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