Production of precious metals in Azerbaijan was 71,500 ounces last year

Baku. 16 January. REPORT.AZ/ Anglo Asian Mining plc the AIM listed gold, copper and silver producer focused in Azerbaijan produced. 71,461 gold equivalent ounces (GEOs) during fiscal year (FY) 2017. 

Report informs, the company has said.

Total volume of production in the Q1 last year was 14,557, in Q2 - 15,985, in Q3 - 17,714, and in Q4 - 23,180 gold equivalent ounces. The company said that sharp increase in production in the fourth quarter was due to the start of production from the Ugur field in September.

Total production expressed as gold equivalent ounces was 71,461 GEOs (1,17% less than FY 2016: 72,304 GEOs).

Gold production for FY 2017 totaled 59,617 ounces (8,8% decrease compared to FY 2016: total 65,394 ounces) - lower production earlier in the year was partially offset by production from Ugur commencing in September 2017

Copper production for FY 2017 totaled 1,991 tons (increased by 2,6% compared to FY 2016: 1,941 tons) despite flotation plant idled in Q4 2017

Silver production for FY 2017 totaled 172,853 ounces (increased by 4,7% compared to FY 2016: total 165,131 ounces).

Notably, gold production in Azerbaijan carried out in Dashkasan (AzerGold CJSC) and Gedabek (Anglo-Asian Mining (Britain)).

In Azerbaijan, the gold and silver mined 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 first gold production in Gadabay deposit began in 2009.

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 2016. The bed is located 3 km north-west from the Anglo-Asian Mining Leaching Plant.