Anglo Asian Mining Operations Update : News from McNeill.org.uk

Anglo Asian Mining Operations Update

08 October 2012
Anglo Asian Mining Operations Update

Anglo Asian Mining plc Q3 2012 Operations Update

Anglo Asian Mining plc, the AIM listed gold producer, is pleased to provide an update on operations and production for the three months to 30 September 2012 ('Q3 2012') at its flagship Gedabek gold/copper/silver mine ('Gedabek') in Azerbaijan.

Overview

  • Gold production from heap leach processing totalled 14,044 oz at Gedabek for Q3 2012 (Q2 2012: 11,716 oz)
  • Gold sales of 13,111 oz at an average price of US$1,655 per oz completed for the quarter
  • Silver dore production for Q3 2012 totalled 3,168 oz (Q2 2012: 4,504 oz)
  • Ore stacking process continuing to perform well during Q3 2012 - 204,720 tonnes of dry ore transferred onto the leach pad with an average gold content of 2.94g/t
  • Production target for FY 2012 remains at 49,000 - 51,000oz of gold and 26,000 oz silver from heap leach operations
  • US$18 million funding agreed (plus an additional US$42, subject to certain conditions) for new agitation leaching plant to improve gold recoveries of oxides and sulphides at Gedabek to levels of 85% and 69% respectively and lower production costs - commissioning expected in H1 2013
  • Copper, silver and gold production from SART operations for Q3 2012 totalled 132 tonnes of copper concentrate, 23,397 oz of silver and 36 oz of gold
  • US$1.4 million of copper sales completed with Glencore - Glencore is currently conducting test smelting of the concentrate and if successful it is envisaged further sales will be made
  • Target of 720 tonnes of dry copper concentrate expected from SART operations for FY 2012
  • Net Debt, being interest-bearing loans and borrowings less cash and cash equivalents totals US$14.1 million
  • Cash in the bank as at 30 September 2012 - US$4.9 million


Anglo Asian CEO Reza Vaziri said, "I am pleased to report that gold production for the quarter has significantly increased due to further fine tuning of our heap leach stacking operationand improved weather conditions. We expect this trend to continue into Q4 2012 and to achieve our gold production target of between 49,000 - 51,000 oz of gold from Gedabek for FY 2012.

"Our primary objective is to further improve the gold recoveries at Gedabek and continue to unlock the operation's intrinsic value. We have been actively exploring and developing the greater Gedabek area and have to date delineated a JORC reserve base in excess of 700,000 oz of gold and a Measured and Indicated resource base of over 1 million oz of gold, which has increased the life of mine of Gedabek. Furthermore a new agitation leaching plant is being constructed which will have a capacity to treat 100 tph of ore and improve gold recovery of oxides and sulphides at Gedabek initially to 85% and 69% respectively and lower production costs. The plant is expected to be commissioned in H1 2013 and will represent a major milestone in the progressive development of Gedabek's success as a leading gold mine in central Caucasia." 

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