Anglo Asian Q4 and FY 2011 Update

20 January 2012
Anglo Asian Q4 and FY 2011 Update

Anglo Asian Mining Gedabek Gold/Copper Mine Operations Update

Anglo Asian Mining plc, the AIM listed gold producer, is pleased to provide an update for the three months to 31 December 2011 ('Q4 2011') and the year ended 31 December 2011 ('FY 2011') on operations at its flagship Gedabek gold/copper mine ('Gedabek') in Azerbaijan.

Overview

  • Increased gold production from heap leach processing totalling 15,292 oz at Gedabek for Q4 2011 (Q3 2011: 13,166 oz)
  • Production for FY 2011 totals 57,068 oz of gold
  • Buoyant gold price - gold sales of 13,376 oz of gold at an average of US$1,688 per oz completed for Q4 2011 and 49,304 oz of gold completed at an average of US$1,573 per oz for FY 2011
  • Produced gold at an estimated average cash operating cost of US$450 per oz of gold including the Government of Azerbaijan's share for FY 2011 and US$535 per oz of gold net of the Government of Azerbaijan's share for FY 2011
  • Silver dore production for Q4 2011 totalled 6,841 oz and for FY 2011 totalled 39,086 oz
  • Operations at Gedabek running in line with management's expectation:
    • 190,737 tonnes of dry ore transferred during Q4 2011 onto the leach pad with an average gold content of 3.22 g/t
    • 842,751 tonnes of dry ore transferred during FY 2011 onto the leach pad with an average gold content of 3.29 g/t
  • Q4 2011 copper, silver and gold production from SART operations totalled 170 tonnes of copper, 38,392 oz of silver and 62 oz of gold
  • Total copper concentrate produced significantly increased in 2011 and exceeded 525 tonnes of copper forecast target - 611 tonnes of copper, 134,240 oz of silver and 200 oz of gold (2010: 182.5 tonnes of copper, 46,940 oz of silver and 832 oz of gold)
  • Net debt, being interest-bearing loans and borrowings less cash and cash equivalents, reduced from US$25.6 million at 31 December 2010 to US$3.2 million at 31 December 2011
  • Cash in the bank as at 31 December 2011 - US$9.8 million

Anglo Asian CEO Reza Vaziri said, "Solid gold production and a favourable gold price has provided for a strong performance in 2011 for Anglo Asian. Our strong operational performance has enabled us to accelerate the repayment of loans, reduce debt ahead of schedule and build a strong cash position, which stood at US$9.8 million at 31 December 2011. Looking ahead to 2012, whilst we remain committed to improving the long-term production efficiency of our flagship Gedabek mine, we expect to see continued solid gold and copper production for the year, positively impacting our bottom line.

"We are also focussed on increasing the Company's total resource base, which based on data available at June 2010 stood at 791,000 oz of gold, 49,300 tonnes of copper and 7,597,000 oz of silver for all categories, by Q1 2012 and in turn to calculate a JORC compliant reserve estimate thereafter.

"Furthermore 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 become a leading mid-tier gold producer in Caucasia and Central Asia. We look forward to reporting on these developments in due course."

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