Azerbaijan’s gold reserves more than estimated
By Nigar Orujova
New gold reserves have been discovered in Gadabay gold, copper, and silver mine in western Azerbaijan.
The volume of the discovered deposit is higher than previously expected amount.
Anglo-Asian Mining plc, a company extracting precious metals in resource-rich Azerbaijan, announced further positive exploration updates from new drilling undertaken north of Gadabay mine.
Gold reserves have doubled in Azerbaijan due to deposits found in recent years. In the last ten years, 192 deposits of various profiles were put on the balance in 25 regions of the country.
Ongoing 3,000 meters drilling programme has shown continuation of a high-grade gold zone just 400 meters north of the operating mine area.
The company also plans to drill two additional holes in the next month to further test the gold mineralization of this newly discovered gold trend.
To further outline the extent of the discovery, a geophysical programme is scheduled to commence in the second quarter of 2014. This programme will assist in the optimization of drill hole targets over the 1,500 meters of potential extension to the east.
Anglo Asian CEO Reza Vaziri said, "Validation of this mineral discovery, immediately north of the current open pit working at Gadabay, supports the theory that Gadabay is part of a much larger mineralization system. While the full extent of this discovery is unknown, an aggressive exploration programme in 2014 will determine how much additional resource will be available to extend the mine life at Gadabay.
"The apparent high grade nature of this significant new discovery would certainly enhance our ability to optimize the reprocessing of spent heap leach tailings through the AGL by blending."
In December, the company announced record gold production of 20,242 ounces in third quarter of 2013 resulted by commissioning of the new Agitation Leaching Plant. However, due to unexpectedly high concentrations of copper in the ore, gold recovery was reduced in the fourth quarter of the year.
The company was expected to produce about 60,000 ounce of gold in 2013, however, lowered their expectations to 52,000 ounces of gold.
Anglo Asian Mining, a cash generative and profitable gold and copper mining and exploration company, started gold and silver production in May 2009 and copper concentrate production in 2010 at the Gadabay mine.
The company has the rights to develop six deposits in the south-west of Azerbaijan - Gadabay, Ordubad, Gosha Bulag, Gyzyl Bulag, Vezhnali and Soyutlu, under a production sharing agreement signed in August 1997 with Azerbaijan's government.
The gold and silver produced there are sent to Switzerland for refining, and gold bars are delivered to the country and preserved by the government.