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Q2 2015 and HY1 2015 operations update – Gedabek gold, copper and silver mine, Azerbaijan
Anglo Asian Mining, the AIM listed gold, copper and silver producer focused in Azerbaijan, has provided a production and operational update from its Gedabek gold, copper and silver mine in western Azerbaijan for the three months to 30 June 2015 and six months to 30 June 2015.
Production overview
· Record gold production for HY1 totalling 35,938 ounces (23,436 ounces from the agitation leach plant, 12,488 ounces from heap leach operations and 14 ounces from SART)
· Gold production for Q2 2015 increased to 18,745 ounces with 12,214 ounces from the agitation leach plant, 6,525 ounces from heap leach operations and 6 ounces from SART processing (Q1 2015: total 17,193 ounces)
· Gold production for Q2 2015 was 19 per cent. higher than the same period of the previous year (Q2 2014: total 15,736 ounces)
· Copper production for Q2 2015 totalled 236 tonnes from SART processing (Q1 2015: 182 tonnes).
· Copper production for HY1 2015 of 418 tonnes (HY1 2014: 369 tonnes)
· Silver production for Q2 2015 totalled 4,527 ounces with 586 ounces from the agitation leach plant, 314 ounces from heap leaching operations and 3,627 ounces from SART processing (Q1 2015: total 1,950 ounces)
· Gold production target for the year to 31 December 2015 remains at between 70,000 ounces and 75,000 ounces (including approximately 5,000 ounces from the small scale flotation plant) which represents a significant increase of approximately 16 to 24 per cent. compared to FY 2014 production of 60,285 ounces
Operational update
· Construction of the small scale flotation plant to improve gold and copper production is progressing well with the majority of the plant’s equipment at site. On target to be commissioned in Q3 2015 and expected to add approximately 5,000 ounces of gold and 1,200 tonnes of copper for FY 2015
· Gadir adit has now reached the ore body with 3,000 tonnes of ore extracted to date and sent to agitation leach plant for processing. Main mining to commence in August.
Sales
· Q2 2015 gold sales of 16,088 ounces at an average of US$1,193 per ounce
· Q2 2015 copper concentrate shipments to the customer totalled 420 dry metric tonnes (“dmt”), containing 253 tonnes of copper
Company financials
· Net debt, being interest-bearing loans and borrowings less cash and cash equivalents, totaled US$48.9 million at 30 June 2015 (US$50.7 million at 31 March 2015)
Anglo Asian CEO Reza Vaziri said, “We are delighted to report continuation of the exceptional gold, copper and silver production seen in Q1 2015 with record gold production for the half year of 35,938 ounces. This exceeded our internal production estimate and ideally positions Anglo Asian for a strong remainder of 2015. The second half of the year has historically been our best performing half due to the seasonally better weather and we are confident of meeting our production target for 2015 of between 70,000 and 75,000 ounces of gold.
“We continue to make good progress on the building of our small scale flotation plant and the necessary modifications to enable it to process the tailings of the agitated leach plant. The majority of the equipment for the plant is now at site. We continue to expect the plant to be commissioned in Q3 2015. The development of the Gadir mine is also progressing well with the first ore having now been extracted. We expect the main mining operation to commence next month.
“I look forward to providing further updates in due course as we continue to improve our production performance in order to deliver the utmost value for shareholders.”
Full details
Gedabek is a polymetallic deposit from which Anglo Asian produces gold, copper and silver from its open pit mining operation and co-located underground Gadir mine. 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 (‘SART’) are used to produce precious metal and copper.
During Q2 2015, the Company produced 18,745 ounces of gold at Gedabek; 12,214 ounces from the agitation leach plant, 6,525 ounces from heap leach operations and 6 ounces from SART processing. For HY1 2015 the Company produced 35,938 ounces of gold; 23,436 ounces from the agitation leach plant, 12,488 ounces from heap leach operations and 14 ounces from SART. Of the 35,938 ounces of gold produced in HY1 2015, 2,182 ounces were produced from ore mined at Gosha, Anglo Asian’s second gold mine which is 50 kilometers away from Gedabek. Ore mined at Gosha is transported to Gedabek for processing.
Anglo Asian completed gold sales of 16,088 ounces of gold at an average of US$1,193 per ounce for Q2 2015.
The Company’s SART plant has been performing well producing copper concentrate and for Q2 2015 copper production totalled 236 tonnes. 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 Q2 2015 totalled 420 dmt.
Silver production for Q2 2015 totalled 4,527 ounces; with 586 ounces from the agitation leach plant, 314 ounces from heap leaching operations and 3,627 ounces from SART (Q1 2015: total 1,950 ounces).
The following summary table of gold production and prices outlines quarter-on-quarter gold production at Gedabek for HY1 2015 and the four quarters of the previous year.
