Core drilling work at newly discovered gold deposit in Azerbaijan completes

Baku. 8 May. REPORT.AZ/ Phase II core drilling and additional development progress at "Ugur" gold deposit, located on Gedabek license area has completed.

Report informs quoting the Anglo Asian Mining plc, carrying out production of gold, copper and silver in Azerbaijan.

The report says that completion of these works will enable resource and reserve estimation in Q3 2017.

“Considerable progress made at newly discovered Ugur gold deposit ahead of intended first production in Q4 2017. Ugur production will contribute to Anglo Asian's total gold equivalent target for 2017 of 64,000 to 72,000 ounces”, the statement says.

Independent quality assurance and quality control assaying of drill samples is underway. Haul road design finalized following completion of a detailed topographic survey of the area between the Ugur gold deposit and the Gedabek processing facilities.

Notably, information on discovery of Ugur deposit was spread in October of last year. The field is located 3 km north-west from Leaching Plant of Anglo Asian Mining.

Notably, mining in the Gedabek open pit will be reduced during May 2017 until the end of the year.

Ore production has also been stopped from the Gadir underground mine (from February 2017 until September 2017) to allow development and exploration drilling. Any ore mined from Gadir during this exploration development phase will be stockpiled for Q4 2017 production.

Full production mining in the Gedabek open pit is planned to resume at the beginning of 2018.

Notably, production of gold and silver in Azerbaijan is carried out within frame of Production Sharing Agreement (PSA) signed on August 21, 1997. The agreement envisages production from 6 mines - 1 in Nakhchivan, 2 in Gadabay, 3 in currently under-occupation Kalbajar and Zangilan. Azerbaijan owns 51%, British company Anglo-Asian Mining Plc - 49% of shares according to agreement. Production of first gold started in 2009 in Gadabay.