AAM to develop new gold mine
By Nigar Orujova
The Anglo-Asian Mining plc which extracts precious metals in Azerbaijan will begin production at its new mine of Gadir from the second half of 2015.
The company stated that its underground mine of Gadir is located about one kilometer from the mine complex Gadabay.
Last year, the Anglo-Asian Mining started gold production at another mine – Gosha. In 2014, the mine provided 28,891 tons of ore, which resulted to 4.15 grams of gold from each ton.
Reserves at the Gosha mine are estimated at approximately 40 million ounces of gold, which is expected to produce until 2017.
The company produced 17,193 ounces of gold in the first quarter of 2015, which is 52 percent more than last year.
By late 2015, the AAM plans to produce 70,000-75,000 ounces of gold, some of which will be produced in the mines Gosha and Gadir.
Copper production by SART method in Azerbaijan amounted to 182 tons in the first quarter of 2015. The company also produced 1,950 ounces of silver.
The company has the right 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 government.
The resource base of the company exceeds 36 tons of gold, 292 tons of silver and 94.000 tons of copper.
2014: Gold production increased
Last year, the company produced a total of 60,285 ounces of gold, which is 16 percent more than in 2013 when the gold production reached 52,107 ounces. Gold sales of 50,615 ounces completed at an average of $1,267 per ounce.
Silver production totaled 31,177 ounces, a 53 percent decrease from 2013: 65,939 ounces, due to changes in the mineralogy of the ore.
Copper production totaled 784 tons, a 140 percent increase on 2013 production - 327 tons.
The company registered a revenue of $70 million in 2014, slightly less than in 2013 with revenue was $70.8 million.
Reviewing the year, non-executive chairman Khosrow Zamani said the company’s primary focus in 2014 was the optimization of production, and future development of Gadabay gold, copper and silver mining operation located in the lower Caucasus mountains, west of the country.
“Whilst gold and copper production for the year increased substantially, the environment for mining companies globally remained poor with the effects still being felt of the sustained low gold and copper prices. Despite a strong performance in terms of production, low global metals prices throughout the year, together with the first full year's operational cost of the agitation leach plant at Gadabay, have adversely impacted profitability for 2014. Whilst we achieved solid revenues of $68.0 million, we are disappointed to report a loss before tax of $14.4 million for the year,” he said.
Earlier, the company reported that it will receive a loan worth $4 million. Anglo Asian Mining intends to use these funds for general working capital purposes and has made an initial drawdown of $2 million.
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Nigar Orujova is AzerNews’s staff journalist, follow her on Twitter: @o_nigar
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