Gold & silver mining up

By Azernews

By Leman Mammadova

Being one of the leading sectors in the economy of Azerbaijan, mining industry holds the largest share in the industrial production.

Presently, two companies - AzerGold and Anglo Asian Mining - are operating in the sphere of mining of precious metals in the country.

AzerGold produced 34,678 ounces of gold and 63,698 ounces of silver in January-August 2019, the company said in a message.

The growth in gold mining amounted to 24.4 percent compared to the same period in 2018, and in silver mining – to 33 percent.

AzerGold's revenues from export of precious metals amounted to $51 million in January-August 2019. This is 35 percent more than in the same period last year.

In the reporting period, the company exported 36,889 ounces of gold and 52,024 ounces of silver, which is respectively 30 and 5 percent more than the figures for the same period in 2018.

Azergold plans to produce 55,000 ounces of gold this year. In addition, production of 87,000 ounces of silver is expected in 2019.

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

AzerGold CJSC, established in 2015, envisages the study, research, exploration, management, as well as extraction, processing and sale of precious and non-ferrous metal ore deposits, implementation of new technologies in this field, modernization and efficient use of material and technical base, and implementation of other activities related to the development of the industry.

The company is engaged in the study, research, exploration, development and management of the gold-bearing and iron-ore areas of Garadagh, Chovdar, Goydag, Daghkesaman, Kohnamadan sites and the Kurekchay field.

Azergold mines precious metals from the Chovdar deposit in the Dashkasan region.

Last year, 45,990 ounces of gold and 77,340 ounces of silver were extracted by the company from the Chovdar field, which exceeds the production plan for 2018. This was 34 percent higher than the gold production figures for 2017 and 53 percent more than the silver production numbers of 2017.

This year, AzerGold plans to complete the development of a feasibility study for the underground phase of the operation of the Chovdar field.

In 2018, AzerGold carried out exploration and drilling works at depths of up to 17,000 meters, as well as metallurgical, laboratory, geotechnical, hydrological studies to raise the reserves of underground (sulfide) ores at the Chovdar, Agyokhush, Tulullar, Ortakend Khanagha deposits.

The company also completed the preparation of a preliminary feasibility study for the development of the Filizchay polymetallic ore deposit.

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.

A total of 4,238 kilograms of gold and 2,671 kilograms of silver was produced in the country in 2018.

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