British company to spend $ 1.8mln for exploration of precious metals in Ordubad

By Azernews

By Leman Mammadova

Anglo-Asian Mining Plc., a British company engaged in the gold, silver and copper extraction in Azerbaijan, plans to spend $ 1.84 million on geological exploration program in the Ordubad contract area this year, the company said.

The program includes geological desertification studies and other researches aimed at the acquisition of geological exploration and technological reports, as well as exploring other metals for the purpose of evaluating future production potentials.

It was noted that the favorable geological structure shows that there are many porphyry minerals in Ordubad.

The program on geological work for 2018 covers 5,504 surface samples and the results of the survey are expected to be achieved in the second quarter of 2019.

Ordubad contract area covers an area of 462 square kilometers.

Anglo Asian Mining Plc. is a gold, copper and silver producer with a broad portfolio of production and exploration assets in Azerbaijan.

Anglo-Asian Mining produces gold in Azerbaijan within the framework of the PSA (Production Sharing) agreement, signed on August 21, 1997. The share of Azerbaijan in the contract is 51 percent, the British company Anglo Asian Mining Plc. - 49 percent.

Under the production sharing agreement, Anglo Asian Mining Plc. has the right to develop six fields in south-west of Azerbaijan: Gadabay, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu.

According to the agreement, 400 tons of gold, 2.5 thousand tons of silver and 1.5 thousand tons of copper are expected to be extracted from these deposits.

The extraction of the first gold at the Gadabay deposit began in 2009, the extraction of silver - in 2010.

Gold extraction from the Gosha field is carried out from the third quarter of 2013. In the summer of 2015, the company began production at the Gadir field, and in September 2017 - the Ugur field.

Anglo-Asian Mining invested $ 4.5 million in geological exploration for precious metals in 2018.

In 2019, the company plans to pay dividends to shareholders in the amount of not less than $0.06 for each share. In 2018, dividends for each share amounted to $ 0.03.

Anglo-Asian Mining increased the gold production in Gadabay by 17 percent to 83,736 in 2018. During the reporting period, the company mined 72,798 ounces of gold, 1,645 tons of copper, 210,184 ounces of silver. Gold production increased by 22 percent, silver - by 21.6 percent, while copper production decreased by 17.4 percent.

In 2018, 59,481 ounces of gold ingots were sold, an average of $ 1,265 per ounce. In 2017, 43,496 ounces of gold ingots were sold at an average price of $ 1,265 per ounce.

In addition, last year the company sold 7,675 tons of copper concentrate worth $ 15.4 million.

Azerbaijan, a country rich in mineral resources, 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.

Moreover, Azerbaijan is taking consecutive measures in the mining industry, which will ensure greater transparency and even greater attraction of foreign investment and its withdrawal from the Extractive Industries Transparency Initiative did not slow down the development of the country's mining industry.

Azerbaijan has its rich gold deposits. Gold mostly is produced in Dashkasan (AzerGold CJSC) and in Gadabay (Anglo-Asian Mining, Britain) regions of the country.

The Ministry for Ecology and Natural Resources estimates that the country is able to produce about 10-15 tons of gold per year.