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Quarter 4 and Full Year 2014, operations and production update – Gedabek and Gosha gold, copper and silver mines, Azerbaijan
Anglo Asian Mining, the AIM-listed gold, copper and silver producer focused in Azerbaijan, has issued fresh details about production and operations for its Gedabek and Gosha gold, copper and silver mines in western Azerbaijan for the three months to 31 December 2014 and the year ended 31 December 2014.
Production overview:
· Gold production for Q4 2014 increased to 17,053 ounces with 10,176 ounces from the agitation leaching plant, 6,827 ounces from heap leach operations and 50 ounces from SART processing (Q3 2014: total 16,178 ounces)
· Copper production for Q4 2014 totalled 205 tonnes from SART processing (Q3 2014: 210 tonnes)
· Silver production for Q4 2014 totalled 3,749 ounces with 345 ounces from the agitation leaching plant, 366 ounces from heap leaching operations and 3,038 ounces from SART processing (Q3 2014: total 5,504 ounces)
· Anglo Asian’s FY 2014 production was as follows:
o Gold – 60,285 ounces. 16 per cent. increase over FY 2013 production of 52,107 ounces
o Copper – 784 tonnes of copper. 140 per cent. increase over FY 2013 production of 327 tonnes
o Silver – 31,177 ounces. 53 per cent. decrease over FY 2013 production of 65,939 ounces
Sales:
· Q4 2014 gold sales of 13,272 ounces at an average of US$1,201 per ounce – FY 2014 gold sales of 50,615 ounces of gold at an average of US$1,267 per ounce
· Q4 2014 copper concentrate shipments to the customer totalled 391 dry metric tonnes (‘dmt’), containing 232 tonnes of copper – FY 2014 copper concentrate sales of 1,316 dmt generating US$4.4 million in sales proceeds for FY 2014
Gedabek operations:
· Construction of the small scale flotation plant is underway – financing for the turnkey construction contract has been finalised with The Pasha Bank providing the entire financing required of up to US$2.7 million
· Updated JORC ore reserve estimate for Gedabek of 20.5 million tonnes of ore grading 1.03 grammes per tonne of gold (682 thousand ounces), 0.50 per cent. copper (102 thousand tonnes); and 7.35 grammes per tonne of silver (4.84 million ounces)
· The contained copper in the updated ore reserve estimate increased by 72 per cent. and recoverable copper increased by over 570 per cent. from the May 2012 ore reserve estimate demonstrating the positive economic potential of commissioning a flotation plant at Gedabek
Company financials:
· Cash position of US$0.4 million at 31 December 2014
· Net debt, being interest-bearing loans and borrowings less cash and cash equivalents totalled US$52.4 million at 31 December 2014
Anglo Asian CEO Reza Vaziri said, “I am delighted to report a strong fourth quarter’s production which resulted in a significant 16 per cent. increase in our gold production for 2014 compared to 2013 and a step increase in copper production of 140 per cent. to 784 tonnes. We have achieved our latest target for both gold and copper for the year and hope to continue 2015 on this positive note. I am also pleased to report that the construction of the small scale flotation plant is progressing well and we have successfully agreed terms for the full financing of its turnkey construction contract. This small scale flotation plant, once it commences operations, will enable us to exploit the substantial increase in recoverable copper reserves contained within our latest ore reserve estimate.”
Full details:
Gedabek is a polymetallic deposit from which Anglo Asian produces gold, copper and silver from its open pit mining operation. The Company also processes ore from its Gosha deposit, approximately 50 kilometres away from Gedabek. Three different processing methods, agitation leaching, heap leaching and Sulphidisation, Acidification, Recycling, and Thickening are used to produce gold, copper and silver.
During Q4 2014, the Company produced 17,053 ounces of gold at Gedabek; 10,176 ounces from the agitation leaching plant, 6,827 ounces from heap leach operations and 50 ounces from SART processing. This brings total production for FY 2014 at Gedabek to 60,285 ounces of gold, a 16 per cent. increase in production compared to FY 2013 (2013: total 52,107 ounces). Anglo Asian completed gold sales of 13,272 ounces of gold at an average of US$1,201 per ounce for Q4 2014 and gold sales of 50,615 ounces at an average of US$1,267 per ounce for FY 2014.
The Company’s SART plant has been performing strongly producing copper concentrate and for Q4 2014 copper production totalled 205 dmt, giving a total FY 2014 copper production of 784 dmt, exceeding the management’s target of 750 dmt for the FY 2014 and achieving a 140 per cent. increase from FY 2013 of 327 dmt. Anglo Asian has a strategic three year sales partnership in place with Industrial Minerals (SA) which commenced in May 2014 for the sale of Anglo Asian copper concentrates. Sales of copper concentrate for Q4 2014 totalled 391 dmt giving total sales for FY 2014 of 1,316 dmt, which generated sales proceeds of US$4.4 million for FY 2014.
Silver production for Q4 2014 totalled 3,749 ounces; with 345 ounces from the agitation leaching plant, 366 ounces from heap leaching operations and 3,038 ounces from SART. This brings FY 2014 total silver production to 31,177 ounces.
The following summary table of gold production and sales demonstrates the quarter-on-quarter increase in gold production and also details copper and silver production at Gedabek.
