Company engaged in Azerbaijan gold production unveils plans

Baku. 25 July. REPORT.AZ/ British Anglo-Asian Mining Plc., which is engaged in gold, silver and copper production in Azerbaijan, has announced its plans for the Ugur gold deposit discovered in Gadabay region last year and mines operated.

Report informs citing the company, according to the plan, production from Ugur gold deposit will begin in the 4th quarter this year.

The miner has completed core and reverse circulation drilling and assaying that will allow a mineral resource and ore reserve report to be completed in the third quarter of 2017. According to information, the environmental impact assessment has also been completed.

The initial estimates show a resource containing around 195,000 ounces of gold could be declared.Pre-stripping of the top soil is planned to commence in late July.

As for the wider project, the miner said it plans to further explore the main Gedabek open pit, with drilling of 61 reverse circulation holes currently underway with two core drill-holes completed. Of the tunnel between the Gadir underground mine and the down-dip extension of the main Gedabek open pit, 216 metres has been completed of the total 465 metres planned.

"The company's strategy for 2017 is expected to have a positive impact on production starting from the fourth quarter of 2017. In this quarter, the company will be able to recommence mining in both the Gadir and Gosha underground mines", said the miner.

Notably, Anglo-Asian Mining is engaged in production in Azerbaijan in the framework of the contract such as PSA (Production Sharing Agreement), signed on 21 August 1997. The agreement includes the development of six fields: in Nakhchivan - 1, Gadabay - 2, Kalbajar and Zangilan, which are currently under Armenian occupation - 3. The agreement Azerbaijan's share is 51%, of the British company Anglo Asian Mining Plc. - 49%. The company commenced gold production in 2009 (in Gedabek deposit).

Gedabek is an open cast mine with a series of interconnected pits. The company has a second underground mine, Gosha, which is 50 kilometres from Gadir and Gedabek.

This year, the company carries out extensive exploration and production optimization in Gedabek. In this context, production in Gedabek open pit has decreased since May and this decline will continue until the end of the year.

Ore production was suspended in Gadir underground mine in February this year due to drilling works.

The full production at Gedabek open pit is expected to be restored at the beginning of 2018.

Discovery of the Ugur field was reported in October last year. The bed is located 3 km north-west from the Anglo-Asian Mining Leaching Plant.