TODAY.AZ / Business

AAM plans to launch production on new gold deposit

08 August 2017 [16:37] - TODAY.AZ

By Azernews


By Sara Israfilbayova

Anglo Asian Mining PLC (AAM), a producer of gold, copper and silver in Azerbaijan, plans to start gold production on the Ugur field in the fourth quarter of 2017.

The Ugur deposit, which was discovered in 2016, is located three kilometers to the north-west of the company's main fields. The construction of roads for connecting Ugur with other fields has already been completed, Trend reported.

The gold reserves in this field are about 195,000 ounces, according to preliminary data. However, the figure may be higher based on the results research work. The precious metal is located at a depth of 360 meters.

Overall, Anglo Asian Mining PLC has the right to develop 6 fields in south-west of Azerbaijan: Gadabay, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu, in accordance with the Production Sharing Agreement (PSA) signed between RV Investment Group Services and the government of Azerbaijan.

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.

AAM produced 23,218 ounces of gold (a reduction of 31.4 percent per year), 1,322 tons of copper (an increase of 36.4 percent), and 85,087 ounces of silver (a decrease of 6.3 percent) in the first half of 2017.

The country plans to produce 64,000-72,000 ounces of gold in 2017.

The country started industrial production of gold in July 2009. About 900 fields were registered in Azerbaijan's state and territorial balance of reserves of mineral resources. The Ministry for Ecology and Natural Recourses estimates that the country is able to produce about 10-15 tons of gold per year.

As much as 2.1 tons of gold, 5.3 tons of silver and 1.94 tons of copper concentrate were produced at the Gadabay field in Azerbaijan in 2016.

URL: http://www.today.az/news/business/163905.html

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