Gedabek Gold Mine Update Azerbaijan

RNS Number : 0359W

Anglo Asian Mining PLC

20 December 2013

 



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

20 December 2013

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

Update on Flagship Gedabek Gold/Copper/Silver Mine in Azerbaijan

Anglo Asian Mining plc, the AIM listed gold producer in Azerbaijan, announces an operations update for its flagship Gedabek gold/copper/silver mine ('Gedabek') in western Azerbaijan.

As a result of the new Agitation Leaching Plant commissioned in June 2013 to improve gold recoveries and lower operating costs, the Company announced record gold production of 20,242 ounces in Q3 2013 (see press release 10 October 2013).  However, due to unexpectedly high concentrations of copper in the ore, gold recovery was reduced in Q4 2013 because the copper preferentially consumed cyanide.  The Q4 2013 production figures at Gedabek are expected to total approximately 15,000 ounces, and as a result, Anglo Asian's full year 2013 production is now expected to be circa 52,000 ounces of gold (c.f. previous FY 2013 production target of c.60,000 ounces).  We have also experienced unseasonably cold conditions (-15°C) at Gedabek, which have arrived earlier than previous years.  This is the first year of operation of the new plant during winter months and there were instances of line and valve freezing that have now been mitigated.

Anglo Asian CEO Reza Vaziri said, "Since its commissioning in June 2013, the Agitation Leaching Plant has performed well and has enabled us to increase our quarterly production and lower our operating costs.  Naturally we are disappointed to report that we will marginally miss our FY2013 production target, however we believe our commencement of RC drilling to determine copper levels ahead of mining, and the determination of segregation and blending plans for this ore, will prevent a reoccurrence of this problem.  It is also important to note that circa 15,000 ounces of gold production for Q4 2013 at Gedabek would result in production for H2 2013 of circa 35,000 ounces of gold, representing a doubling over H1 2013 gold production of 17,497 ounces.  As such, the second half year production will have a positive impact on profitability despite the recent reduction in the gold price.

"In addition, mining development at our second gold development project, Gosha, 50 km away from away from Gedabek, which will feed into the new Agitation Leaching Plant, is progressing well, with production expected to come on line in H1 2014.  The improved knowledge of the ore characteristics and the plant operation will allow a review of the mining plans for the coming year with increased confidence, and the market will be updated in due course"

**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	SP Angel Corporate Finance LLP	Tel: [phone]
Laura Littley	SP Angel Corporate Finance LLP	Tel: [phone]
Felicity Edwards	St Brides Media & Finance Ltd	Tel: [phone]
Lottie Brocklehurst	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 from 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 2012 totalled 50,215 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 order to fulfil its expansion ambitions and become a mid-tier gold and base metal production company

 

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