TIDMAAZ
RNS Number : 0823K
Anglo Asian Mining PLC
14 April 2015
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
14 April 2015
Anglo Asian Mining plc
Q1 2015 Operations Update
Gedabek gold, copper and silver mine, Azerbaijan
Anglo Asian Mining plc ("Anglo Asian" or "the Company"), the AIM
listed gold, copper and silver producer focused in Azerbaijan, is
pleased to provide a production and operations update from its
Gedabek gold, copper and silver mine ("Gedabek") in western
Azerbaijan for the three months to 31 March 2015 ("Q1 2015").
Production overview
-- Gold production for Q1 2015 increased to 17,193 ounces with
11,222 ounces from the agitation leaching plant, 5,963 ounces from
heap leach operations and 8 ounces from SART processing (Q4 2014:
total 17,053 ounces)
-- Gold production was 52 per cent. higher than the same period of the previous year (Q1 2014)
-- Copper production for Q1 2015 totalled 182 tonnes from SART processing (Q4 2014: 205 tonnes)
-- Silver production for Q1 2015 totalled 1,950 ounces with 388
ounces from the agitation leaching plant, 208 ounces from heap
leaching operations and 1,354 ounces from SART processing (Q4 2014:
total 3,749 ounces)
-- Gold production target for the year to 31 December 2015 ("FY
2015") is between 70,000 ounces and 75,000 ounces (including
approximately 5,000 ounces of production from the small scale
flotation plant targeted to be commissioned in Q3 2015)
Sales
-- Q1 2015 gold sales of 17,206 ounces at an average of US$1,214 per ounce
-- Q1 2015 copper concentrate shipments to the customer totalled
272 dry metric tonnes ("dmt"), containing 162 tonnes of copper
Company financials
-- Net debt, being interest-bearing loans and borrowings less
cash and cash equivalents, totals US$50.7 million at 31 March 2015
(US$52.4 million at 31 December 2014)
Anglo Asian CEO Reza Vaziri said, "We are delighted to report
exceptional gold and copper production for Q1 2015, especially as
the first three months of the year have historically seen
production capabilities and ore throughput constrained at Gedabek
due to the seasonal harsh winter conditions. This is a highly
credible performance for the quarter and shows that the various
initiatives taken during 2014 to improve production performance are
now starting to show positive results.
"In line with this, we are making 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.
We expect the plant to be commissioned in Q3 2015.
"With this in mind, our production target for 2015 of between
70,000 and 75,000 ounces of gold represents a significant increase
of around 16 to 24 per cent. compared to the FY 2014 production of
60,285 ounces. 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. 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 Q1 2015, the Company produced 17,193 ounces of gold at
Gedabek; 11,222 ounces from the agitation leaching plant, 5,963
ounces from heap leach operations and 8 ounces from SART
processing. Anglo Asian completed gold sales of 17,206 ounces of
gold at an average of US$1,214 per ounce for Q1 2015.
The Company's SART plant has been performing well producing
copper concentrate and for Q1 2015 copper production totalled 182
dmt. Anglo Asian has a strategic three year sales partnership in
place with Industrial Minerals (SA) which commenced in May 2014 for
the sale of Anglo Asian copper concentrates. Sales of copper
concentrate for Q1 2015 totalled 272 dmt.
Silver production for Q1 2015 totalled 1,950 ounces; with 388
ounces from the agitation leaching plant, 208 ounces from heap
leaching operations and 1,354 ounces from SART.
The following summary table of gold production and prices
outlines quarter-on-quarter gold production at Gedabek for Q1 2015
and the four quarters of the previous year.
Quarter ended Gold Produced* Gold Gold Sales Copper Copper Concentrate Silver
(oz) Sales** Price Produced Sales (dmt) Produced
(oz) (US$) (dmt) (oz)
31 Mar 2014 11,318 10,403 1,302 141 152 13,139
30 Jun 2014 15,736 13,142 1,291 228 523 8,785
30 Sept 2014 16,178 13,798 1,281 210 250 5,504
31 Dec 2014 17,053 13,272 1,201 205 391 3,749
Total FY
2014 60,285 50,615 1,267 784 1,316 31,177
31 Mar 2015 17,193 17,206 1,214 182 272 1,950
* including Government of Azerbaijan's share
** excludes Government of Azerbaijan's share
As previously reported, low grade ore (less than 1.5 grammes per
tonne of gold) is being treated by heap leaching, whilst higher
grade ore (more than 1.5 grammes per tonne of gold) is being
processed through the agitation leaching plant.
During Q1 2015, Anglo Asian stacked 92,586 tonnes of dry crushed
ore on to heap leach pads with an average gold content of 1.47
grammes per tonne. The Company also heap leached uncrushed (Run of
Mine - "ROM") ore. During Q1 2015, Anglo Asian stacked 135,887
tonnes of ROM ore on to heap leach pads with an average gold
content of 1.00 grammes per tonne.
During Q1 2015, the Company processed 136,717 tonnes of ore with
an average gold content of 3.61 grammes per tonne through the
agitation leaching plant.
There was a 71 per cent. gold recovery in agitation leaching for
Q1 2015, the same as the previous two quarters. Gold doré is
produced from both heap and agitated leach intermediate solutions,
which are combined for final processing and also recirculated
around the plant, heap leach pads and tailings dam. Heap leaching
is also a long term process and recoveries are therefore only
estimates calculated from available metallurgical statistics.
As recently announced on 9 March 2015, the construction of a
small scale flotation plant is proceeding to plan. As also
announced, the Company is proceeding with the necessary design
modifications to enable the plant to treat the tailings from the
agitation leach plant.
The Company had net debt at 31 March 2015 of US$50.7 million, a
reduction of US$1.7 million since 31 December 2014. The net debt at
31 March 2015 was as follows:
US$m
Amsterdam Trade Bank - Agitation plant loan 34.5
International Bank of Azerbaijan - loan 13.4
Atlas Copco equipment finance loan 0.8
YapiKredit 0.7
Pasha Bank 1.8
Total Loans 51.2
Cash on hand and at bank (0.5)
Net debt 50.7
**ENDS**
For further information please visit www.angloasianmining.com or
contact:
Reza Vaziri Anglo Asian Mining plc Tel: +994 12 596 3350
-------------------- ------------------------------ ----------------------
Bill Morgan Anglo Asian Mining plc Tel: +994 502 910 400
-------------------- ------------------------------ ----------------------
Ewan Leggat SP Angel Corporate Finance Tel: +44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
-------------------- ------------------------------ ----------------------
Stuart Gledhill SP Angel Corporate Finance Tel + 44 (0) 20 3470
LLP 0470
-------------------- ------------------------------ ----------------------
Felicity Winkles St Brides Partners Ltd Tel: +44 (0) 20 7236
1177
-------------------- ------------------------------ ----------------------
Lottie Brocklehurst St Brides Partners Ltd Tel: +44 (0) 20 7236
1177
-------------------- ------------------------------ ----------------------
Notes:
Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver
producer in Central Asia with a broad portfolio of production and
exploration assets in Azerbaijan. The Company has a 1,962 square
kilometre prospective exploration portfolio, assembled from
analysis of historic Soviet geological data and held under a
Production Sharing Agreement modelled on the Azeri oil
industry.
The Company developed Azerbaijan's first operating
gold/copper/silver mine, Gedabek, which commenced gold production
in May 2009. Gold production for the year ended 31 December 2014
from Gedabek totalled 60,285 ounces and 784 tonnes of copper. The
Company is also developing a second resource area, Gosha, which is
50 kilometres from Gedabek, and the ore produced at Gosha is
processed at Anglo Asian's Gedabek plant. The Company's production
target for full year 2015 is between 70,000 ounces and 75,000
ounces of gold. Gedabek is a polymetallic deposit and its ore has a
high copper content, and as a result the Company produces copper
concentrate from its Sulphidisation, Acidification, Recycling, and
Thickening (SART) plant. Anglo Asian is also constructing a small
scale, low capital expenditure flotation plant to produce a copper
and precious metal concentrate. This will initially process ore
from its existing stockpiles of sulphide ore with a high copper
content.
Anglo Asian is also 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 copper metal production
company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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