TIDMAAZ
RNS Number : 0539F
Anglo Asian Mining PLC
17 April 2014
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
17 April 2014
Anglo Asian Mining plc ('Anglo Asian' or 'the Company')
Q1 2014 Operations Update - Gedabek and Gosha Gold/Copper/Silver
Mine in Azerbaijan
Anglo Asian Mining plc, the AIM listed gold producer in
Azerbaijan, is pleased to provide a production and operations
update from its Gedabek gold/copper/silver mine ('Gedabek') and
Gosha gold mining operation in western Azerbaijan for the three
months to 31 March 2014 ('Q1 2014').
Overview
-- Gold production at Gedabek for Q1 2014 totalled 11,312oz
(8,597oz from the agitation leaching plant and 2,715oz from heap
leach operations)
-- Q1 2014 gold production represents a 32% increase over the
comparable period in 2013 (Q1 2013: 8,585oz Au)
-- Q1 2014 gold sales of 10,403oz at an average of US$1,303 per oz
-- Silver production in doré for Q1 2014 totalled 3,890oz
(2,688oz from agitation leaching and 1,222oz from heap leach)
-- A continuous Knelson concentrator was installed at the
agitation leaching plant in March 2014 - early results have shown
enhanced gold recovery from high-copper sulphide ore along with
reduced cyanide consumption
-- Gold production target for the year to 31 December 2014 ('FY
2014') is between 62,000oz Au and 67,000oz Au
-- Copper production from SART processing operations increased
by 50% for Q1 2014 from previous quarter - 141t of copper, together
with 9,249oz of silver and 6oz of gold (Q4 2013: 71t of copper)
-- Target production of copper from SART for FY 2014 is 595t
-- Gosha mining operation in Azerbaijan progressing - 1,095
tonnes of ore mined and 250 tonnes of ore sent to Gedabek for
processing at an average grade of 12 g/t Au - targeting 58,000
tonnes of mined ore for 2014 at an average grade of 6 g/t, which
will contribute circa 10,000oz of gold production
-- Net debt, being interest-bearing loans and borrowings less
cash and cash equivalents, totals US$50.4 million at 31 March 2014
(US$46.3 million at 31 December 2013)
Anglo Asian CEO Reza Vaziri said, "Our revised FY 2014 gold
production target of between 62,000 and 67,000oz of gold represents
an increase on FY2013 production of 52,068oz Au, and highlights our
commitment to achieving production growth over the coming year.
This new target however is reduced from the previous management
forecast of 80,000oz Au to 90,000oz Au and has been based upon our
revised expected production from the new agitation leaching plant
at Gedabek and the heap leach operations where we are working to
improve efficiencies.
"In line with this we have taken steps to maximise output and
improve efficiencies including initiatives such as the
commissioning of the new continuous Knelson concentrator at
Gedabek's agitation leaching plant to enhance gold recovery from
high-copper sulphide ore and reduce cyanide consumption. In
addition, copper production for Q1 2014 has significantly increased
for the period due to improvements in the SART plant and the new
dedicated SART management team on site and we hope to see this
trend continue throughout the rest of the year.
"Furthermore we are making good progress at our second mining
project in Azerbaijan, Gosha, having processed 250 tonnes of ore,
of a total of 1,095 tonnes mined to date, at our nearby Gedabek
agitation leaching plant in the month of March. With the above
developments in place I look forward to updating shareholders on
our progress."
Full Details
During the quarter ended 31 March 2014, the Company produced
11,312oz of gold ('Au') at Gedabek from its agitation leaching
plant and heap leach operations. In line with the Company's mine
plan, 8,597oz of this has been produced from the agitation leaching
plant and 2,715oz from the heap leach operations. Anglo Asian has
completed gold sales of 10,403oz Au at an average of US$1,303 per
oz during Q1 2014.
The following summary table of gold production and prices
outlines quarter-on-quarter gold production at Gedabek for the past
year.
Quarter Ended Gold Produced Weighted Average
(including Govt. Gold Sale Price
of Azerbaijan's (US$)
share)
(oz)
31 March 2013 8,585 1,638
30 June 2013 8,912 1,438
30 September 2013 20,242 1,328
31 December 2013 14,329 1,280
Total for FY 2013 52,068 1,387
31 March 2014 11,312 1,303
At Gedabek, the Company is currently processing ore through its
agitation leaching plant and heap leach plants. During Q1 2014 the
Company transferred 110,564 tonnes of dry ore onto the heap leach
pads with an average gold content of 1.14g/t. As previously
reported, since commissioning agitation leaching plant in June
2013, low grade ore (<1.5 g/t) has been treated by heap
leaching, with higher grade ore being sent to the agitation
leaching plant. For Q1 2014, 152,554 tonnes of ore with an average
gold content of 2.51g/t was processed through the agitation
leaching plant. In addition, waste removal is currently being
conducted at Gedabek to further improve the tonnage and grade of
ore being processed at both the agitation plant and heap leach.
To further improve gold recoveries and combat problems that have
occurred with sulphide ore with higher copper content as mining at
Gedabek reaches deeper levels, a continuous Knelson concentrator
was installed at the agitation leaching plant in March 2014.
Initial results show that 26% of the gold in the sulphide ore is
recovered in the gravity concentrate. Leaching this concentrate by
intensive cyanide leaching gives gold recoveries up to 92%, thus
increasing the overall leaching efficiency of the sulphide ore to
more than 80% in the AGL plant.
In addition, the Company has commenced development of its second
mining operation Gosha, which is located 50km away from Gedabek,
and expects regular ore production at Gosha later this year. In Q1
2014, a total of 1,095 tonnes of ore were mined and 250 tonnes at
an average grade of 12 g/t Au were sent to Gedabek for processing.
The Company is targeting 58,000 tonnes of mined ore from Gosha for
2014 at an average grade of 6 g/t Au, which will contribute circa
10,000oz of gold production to Anglo Asian's FY 2014
production.
During the period, significant development work was completed at
Gosha including the completion of all supporting facilities such as
the residential area, canteen, repair shop and working offices.
Additionally, the Company reached the 470 metre mark with the
access ramp and the associated galleries were completed.
In terms of copper concentrate production from the Company's
Sulphidisation, Acidification, Recycling, and Thickening ('SART')
plant at Gedabek, production for Q1 2014 totalled 141t of copper,
9,249oz of silver and 6oz of gold. This is an increase of 50% from
the previous quarter (Q4 2013 where 71t of copper was produced). As
a result of improvements to the SART processing operations and the
new management team in place to oversee Gedabek's SART operation,
FY 2014 copper production is targeted to reach 595t.
Net debt as at 31 March 2014 stands at:
US$(M)
ATB Agitation Plant loan balance 37.0
IBA Loan Balance 11.6
Yapikredi bank LC credit line 0.6
Atlas Copco equipment finance loan 1.7
Total Loans 50.9
Cash on hand and at bank 0.5
Net debt 50.4
The amount of the loans with the International Bank of
Azerbaijan ('IBA') and the Amsterdam Trade Bank N.V. ('ATB') were
US$11.6 million and US$37.0 million, respectively, and cash in the
bank was US$0.5 million at 31 March 2014. In January 2013, the
company entered into an arrangement with the industrial group Atlas
Copco for financing of underground mining equipment for the Gosha
gold project for US$3.8 million (representing 85% of the equipment
value); this has now reduced to $1.7million. Including this loan
and our credit line facility for Letters of Credit at the Yapikredi
bank of US$0.6 million, the net debt, being interest-bearing loans
and borrowings, less cash and cash equivalents, therefore stood at
US$50.4 million at 31 March 2014. The Yapikredi bank facility was a
line of credit for US$1 million to cover an LC payment and was
repaid within one week.
**ENDS**
For further information please visit www.angloasianmining.com or
contact:
Reza Vaziri Anglo Asian Mining plc Tel: +994 12 596 3350
-------------------- --------------------------- ----------------------
Sean Duffy Anglo Asian Mining plc Tel: +994 12 596 3350
-------------------- --------------------------- ----------------------
Ewan Leggat SP Angel Corporate Finance Tel: +44 (0) 20 3463
LLP 2260
(Nomad & broker)
-------------------- --------------------------- ----------------------
Laura Harrison SP Angel Corporate Finance Tel: +44 (0) 20 3463
LLP 2260
-------------------- --------------------------- ----------------------
Felicity Edwards St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
-------------------- --------------------------- ----------------------
Lottie Brocklehurst St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
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Notes:
Anglo Asian Mining plc (AIM:AAZ) is a gold producer in Central
Asia with a broad portfolio of production and exploration assets in
Azerbaijan. The Company has a 1,962 sq km prospective exploration
portfolio, assembled from analysis of historic Soviet geological
data and held under a Production Sharing Agreement ('PSA') based on
the Azeri oil industry. The Company developed Azerbaijan's first
operating gold/copper mine, Gedabek, which commenced gold
production in May 2009. Gold production for the year ended 31
December 2013 totalled 52,068oz.
Anglo Asian is actively looking to exploit its first mover
advantage in Azerbaijan to identify additional projects, as well as
looking for other properties in order to fulfil its expansion
ambitions and become a mid-tier gold and base metal production
company
This information is provided by RNS
The company news service from the London Stock Exchange
END
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