Gold production may increase in Gadabay this year

Baku. 6 February. REPORT.AZ/ Anglo Asian Mining plc - gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan, plans production of between 78,000 to 84,000 gold equivalent ounces.

Report informs referring to the company.

The company has produced 71,461 gold equivalent ounces ('GEOs') for the year ended 31 December 2017.

Forecast production for FY 2018 of between 64,000 to 70,000 ounces of gold (FY 2017: 59,617 ounces of gold produced) and between 2,100 to 2,300 tonnes of copper (FY 2017: 1,991 tonnes of copper produced).

It was noted that, increase in total anticipated production during 2018 resulting from the optimisation initiatives undertaken at Gadabay in 2017, with continuation of production from the new Ugur open pit and Gadir underground mines and recommencement of mining in the Gadabay main open pit.

Start-up of second crusher line for the flotation plant in Q2 2018 will enable copper production to increase

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 Gadabay deposit).

Gadabay 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 Gadabay.

This year, the company carries out extensive exploration and production optimization in Gadabay. In this context, production in Gadabay 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 Gadabay 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.