Azeri gold to go on sale
Azerbaijan`s gold will be put on sale in world
markets in September, says the president of US R.V. Investment
Group, which is tapping the country`s gold deposits.
Reza Vaziri said 4,000 to 4,500 ounces of gold to be mined in the country`s western Gadabay district will be initially exported per month. For the time being, the produced gold will be sent to Switzerland for processing. Afterwards, it will be put on sale in accord with the contracts signed with European companies.
The price for the precious metal will comply with world market levels. A total of 300,000 ounces of gold will be extracted from the Gadabay field until 2015.
$60 million has been invested in exploratory and development work at the field since 2004. According to estimates, about 15 tons of enriched soil is to be processed to extract an ounce of gold. 2 grams of gold can be produced per ton of soil.
The Gadabay field, which holds Azerbaijan`s major gold stocks, has been known since the ancient times and repeatedly tapped for copper and other precious metals. Mining operations were carried out there as early as in 1864-1917. At the time, German Siemens company was engaged in producing copper ore at the field.
Gadabay`s reserves are estimated at 22 tons of gold, 192 tons of silver and 37,000 tons of copper. The field is located around the Misdagh Mountain at about 1,500 meters above sea level.
According to Vaziri, R.V. Investment Group intends to embark on drilling for new fields. Also, the company is conducting exploratory work at the Gosha and Ordubad fields. The two deposits are scheduled for commissioning in 2010.
Azerbaijan`s state-run Azergyzyl company signed a 30-year production sharing agreement with R.V. Investment Group in 1997. Under the deal, the company has been granted six locations across Azerbaijan to tap gold. Three of the deposits are located in the Nakhchivan Autonomous Republic, Tovuz and Gadabay districts, while three others - in the territories under Armenian occupation. The fields contain an estimated 400 tons of gold, 2,500 tons of silver and 1.5 million tons of copper.
The Azerbaijani government holds 51 percent in the PSA. Its operations under the agreement are being carried out by the International Mining Operating Company.
Reza Vaziri said 4,000 to 4,500 ounces of gold to be mined in the country`s western Gadabay district will be initially exported per month. For the time being, the produced gold will be sent to Switzerland for processing. Afterwards, it will be put on sale in accord with the contracts signed with European companies.
The price for the precious metal will comply with world market levels. A total of 300,000 ounces of gold will be extracted from the Gadabay field until 2015.
$60 million has been invested in exploratory and development work at the field since 2004. According to estimates, about 15 tons of enriched soil is to be processed to extract an ounce of gold. 2 grams of gold can be produced per ton of soil.
The Gadabay field, which holds Azerbaijan`s major gold stocks, has been known since the ancient times and repeatedly tapped for copper and other precious metals. Mining operations were carried out there as early as in 1864-1917. At the time, German Siemens company was engaged in producing copper ore at the field.
Gadabay`s reserves are estimated at 22 tons of gold, 192 tons of silver and 37,000 tons of copper. The field is located around the Misdagh Mountain at about 1,500 meters above sea level.
According to Vaziri, R.V. Investment Group intends to embark on drilling for new fields. Also, the company is conducting exploratory work at the Gosha and Ordubad fields. The two deposits are scheduled for commissioning in 2010.
Azerbaijan`s state-run Azergyzyl company signed a 30-year production sharing agreement with R.V. Investment Group in 1997. Under the deal, the company has been granted six locations across Azerbaijan to tap gold. Three of the deposits are located in the Nakhchivan Autonomous Republic, Tovuz and Gadabay districts, while three others - in the territories under Armenian occupation. The fields contain an estimated 400 tons of gold, 2,500 tons of silver and 1.5 million tons of copper.
The Azerbaijani government holds 51 percent in the PSA. Its operations under the agreement are being carried out by the International Mining Operating Company.
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