Anglo Asian Mining Update

09 January 2013
Anglo Asian Mining Update

Q4 Operations and FY 2012 Update - Gedabek Gold/Copper/Silver Mine in Azerbaijan

Anglo Asian Mining plc, the AIM listed gold producer in Azerbaijan, is pleased to provide an update on production and operations at its flagship Gedabek gold/copper/silver mine ('Gedabek') in western Azerbaijan for the three months to 31 December 2012 ('Q4 2012') and the year ended 31 December 2012 ('FY 2012').

Overview

  • Gold production from heap leach processing for Q4 2012 at Gedabek totalled 14,530 oz
  • FY 2012 gold production totalled 50,215 oz - achieving management's target for the year
  • Buoyant gold price - Q4 2012 gold sales of 11,497 oz at an average of US$1,694 per oz bringing the full year sales to 42,743 oz of gold at an average of US$1,660 per oz for FY 2012
  • Silver dore production from heap leach operations for Q4 2012 totalled 4,790 oz and 20,133 oz for FY 2012
  • Agitation leaching plant construction continues on budget and on-time - expected to improve gold recoveries significantly at Gedabek when commissioned in 2013
  • Copper, silver and gold production from SART processing operations for Q4 2012 totalled 116 tonnes of copper, 14,242 oz of silver and 14 oz of gold
  • Copper concentrate production for FY 2012 from SART processing of 502 tonnes of copper and 98,158 oz of silver and 86 oz of gold
  • Contract signed with Glencore International plc during Q4 2012 for the sale of 2,500 wet metric tonnes ('WMT') and 550 dry metric tonnes of copper concentrate
  • Net debt, being interest-bearing loans and borrowings less cash and cash equivalents totals US$29.0 million

Anglo Asian CEO Reza Vaziri said, "We are delighted to report another strong production performance from our flagship Gedabek gold/copper/silver mine in Azerbaijan having achieved our gold production target for FY 2012 by producing 50,215 ounces.

"Looking ahead to 2013, we are committed to increasing Gedabek's gold production and are in the process of the construction a new agitation leaching plant which is set to improve production from the mine substantially once commissioned. The agitation leaching plant is expected to improve gold recoveries of oxides and sulphides to 85% and 69%, respectively and with the plant's commissioning on target to start in April 2013 we are ideally placed to capitalise on the on-going strong gold price environment. In terms of our copper production, we achieved 502 tonnes for the year and sold US$2.1 million worth of product. Importantly we have signed a sales agreement with Glencore International in Q4 2012 which positively impact our bottom line."

"Furthermore as a company we remain dedicated to establishing our second mining project in Azerbaijan, Gosha, located 50km away from Gedabek, which will be another significant step for Anglo Asian as we look to consolidate our position as a leading mid-tier gold producer in Caucasia and Central Asia."

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