AGM Statement

RNS Number : 0150G

Anglo Asian Mining PLC

25 June 2012

 



Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

25 June 2012

Anglo Asian Mining plc ('Anglo Asian' or 'the Company')

AGM Statement

Anglo Asian Mining plc, the AIM listed gold producer, will hold its Annual General Meeting ('AGM') today.  Reza Vaziri, the Company's CEO, will make the following statement at the AGM:

"The past year has been a highly active and progressive time for Anglo Asian in terms of establishing ourselves as a significant gold/copper/silver producer in Caucasia.  We have continued to make steady progress at our flagship Gedabek mine in western Azerbaijan having produced 57,068 ounces of gold, 611 tonnes of copper and 173,326 ounces of silver for the year ending 31 December 2011.  Solid production and low operating costs of US$ 448 per ounce of gold have allowed us to enjoy a period of increasing profitability, and we were delighted to report a 60% increase in profit before tax of US$31.6 million (2010: US$19.8 million) and a 37% increase in gross profit of US$43.0 million (2010: US$31.4 million) for the 2011 financial year.

"Increasing Gedabek's production profile and life of mine has remained a key focus for us during 2012.  We have undertaken an expansive exploration and development programme which is still ongoing and were pleased to announce a 50% upgrade in our JORC resource to over 1 million ounces of gold in the Measured and Indicated classifications and a maiden reserve estimate of 744,038 ounces of gold (532,607 ounces of recoverable gold) which significantly exceeded our previous internal estimate at Gedabek and in turn has increased the life of mine. Further initiatives also include commencing development of a new Agitation plant, in addition to the heap leach operation which we currently utilise, which is anticipated to improve gold recovery rates for oxide and sulphide materials initially to 85% and 69% respectively.

"In turn, in line with our strategy to add value upside for shareholders through the creation of a multiple gold mine company, we are also actively exploring our 300 sq km Gosha gold project located 50km away from Gedabek and 462 sq km Ordubad project also in Azerbaijan.  At Gosha, we announced that the Government of Azerbaijan had approved a development and production programme which has given us the green light to continue establishing our second mining project in Azerbaijan. We are targeting a 10,000 -15,000 ounce per annum high-grade underground gold mining operation with first production by 2014.

 "With these developments in mind, I believe the rest of the year and beyond will be highly exciting in terms of news flow and value drivers, and that all the foundations are in place from which to deliver significant growth as we develop Anglo Asian as a multiple gold mining company in Caucasia."

**ENDS**

For further information please visit www.angloasianmining.com or contact:

Reza Vaziri	Anglo Asian Mining plc	Tel: [phone]
Sean Duffy	Anglo Asian Mining plc	Tel: [phone]
Ewan Leggat	Fairfax I.S. PLC	Tel: [phone]
Laura Littley	Fairfax I.S. PLC	Tel: [phone]
Felicity Edwards	St Brides Media & Finance Ltd	Tel: [phone]

Notes:

Anglo Asian Mining plc (AIM:AAZ) is a gold producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan.  The Company has a 1,962 sq km prospective exploration portfolio, assembled on the back of analysis of historic Soviet geological data and held under a Production Sharing Agreement ('PSA') based on the Azeri oil industry.  The Company developed Azerbaijan's first operating gold/copper mine, Gedabek, which commenced gold production in May 2009.  Gold production for the year ended 31 December 2011 totalled 57,068 oz of gold.

Anglo Asian is actively looking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in Central Asia and Caucasia in order to fulfil its expansion ambitions and become a mid-tier gold and base metal production company focussed in these regions.

 

END

 

 

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