TIDMAAZ
RNS Number : 8042S
Anglo Asian Mining PLC
13 July 2015
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
13 July 2015
Anglo Asian Mining plc
Q2 2015 and HY1 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 operational update from its
Gedabek gold, copper and silver mine ("Gedabek") in western
Azerbaijan for the three months to 30 June 2015 ("Q2 2015") and six
months to 30 June 2015 ("HY1 2015").
Production overview
-- Record gold production for HY1 totalling 35,938 ounces
(23,436 ounces from the agitation leach plant, 12,488 ounces from
heap leach operations and 14 ounces from SART)
-- Gold production for Q2 2015 increased to 18,745 ounces with
12,214 ounces from the agitation leach plant, 6,525 ounces from
heap leach operations and 6 ounces from SART processing (Q1 2015:
total 17,193 ounces)
-- Gold production for Q2 2015 was 19 per cent. higher than the
same period of the previous year (Q2 2014: total 15,736 ounces)
-- Copper production for Q2 2015 totalled 236 tonnes from SART processing (Q1 2015: 182 tonnes).
-- Copper production for HY1 2015 of 418 tonnes (HY1 2014: 369 tonnes)
-- Silver production for Q2 2015 totalled 4,527 ounces with 586
ounces from the agitation leach plant, 314 ounces from heap
leaching operations and 3,627 ounces from SART processing (Q1 2015:
total 1,950 ounces)
-- Gold production target for the year to 31 December 2015 ("FY
2015") remains at between 70,000 ounces and 75,000 ounces
(including approximately 5,000 ounces from the small scale
flotation plant) which represents a significant increase of
approximately 16 to 24 per cent. compared to FY 2014 production of
60,285 ounces
Operational update
-- Construction of the small scale flotation plant to improve
gold and copper production is progressing well with the majority of
the plant's equipment at site. On target to be commissioned in Q3
2015 and expected to add approximately 5,000 ounces of gold and
1,200 tonnes of copper for FY 2015
-- Gadir adit has now reached the ore body with 3,000 tonnes of
ore extracted to date and sent to agitation leach plant for
processing. Main mining to commence in August.
Sales
-- Q2 2015 gold sales of 16,088 ounces at an average of US$1,193 per ounce
-- Q2 2015 copper concentrate shipments to the customer totalled
420 dry metric tonnes ("dmt"), containing 253 tonnes of copper
Company financials
-- Net debt, being interest-bearing loans and borrowings less
cash and cash equivalents, totaled US$48.9 million at 30 June 2015
(US$50.7 million at 31 March 2015)
Anglo Asian CEO Reza Vaziri said, "We are delighted to report
continuation of the exceptional gold, copper and silver production
seen in Q1 2015 with record gold production for the half year of
35,938 ounces. This exceeded our internal production estimate and
ideally positions Anglo Asian for a strong remainder of 2015. The
second half of the year has historically been our best performing
half due to the seasonally better weather and we are confident of
meeting our production target for 2015 of between 70,000 and 75,000
ounces of gold.
"We continue to make 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. The majority
of the equipment for the plant is now at site. We continue to
expect the plant to be commissioned in Q3 2015. The development of
the Gadir mine is also progressing well with the first ore having
now been extracted. We expect the main mining operation to commence
next month.
"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
and co-located underground Gadir mine. 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 Q2 2015, the Company produced 18,745 ounces of gold at
Gedabek; 12,214 ounces from the agitation leach plant, 6,525 ounces
from heap leach operations and 6 ounces from SART processing. For
HY1 2015 the Company produced 35,938 ounces of gold; 23,436 ounces
from the agitation leach plant, 12,488 ounces from heap leach
operations and 14 ounces from SART. Of the 35,938 ounces of gold
produced in HY1 2015, 2,182 ounces were produced from ore mined at
Gosha, Anglo Asian's second gold mine which is 50 kilometers away
from Gedabek. Ore mined at Gosha is transported to Gedabek for
processing.
Anglo Asian completed gold sales of 16,088 ounces of gold at an
average of US$1,193 per ounce for Q2 2015.
The Company's SART plant has been performing well producing
copper concentrate and for Q2 2015 copper production totalled 236
tonnes. Anglo Asian has a strategic three year sales partnership in
place with Industrial Minerals (SA) which commenced in May 2014 for
the sale of Anglo Asian copper concentrates. Sales of copper
concentrate for Q2 2015 totalled 420 dmt.
Silver production for Q2 2015 totalled 4,527 ounces; with 586
ounces from the agitation leach plant, 314 ounces from heap
leaching operations and 3,627 ounces from SART (Q1 2015: total
1,950 ounces).
The following summary table of gold production and prices
outlines quarter-on-quarter gold production at Gedabek for HY1 2015
and the four quarters of the previous year.
Quarter Gold Produced* Gold Gold Sales Copper Copper Silver
ended (oz) Sales** Price Produced Concentrate Produced
(oz) (US$) (tonnes) Sales (oz)
(dmt)
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
30 June
2015 18,745 16,088 1,193 236 420 4,527
* 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 Q2 2015, Anglo Asian stacked 127,510 (HY1 2015: 220,096)
tonnes of dry crushed ore on to heap leach pads with an average
gold content of 1.50 (HY1 2015: 1.49) grammes per tonne. The
Company also heap leached uncrushed (Run of Mine - "ROM") ore.
During Q2 2015, Anglo Asian stacked 243,444 (HY1 2015: 379,331)
tonnes of ROM ore on to heap leach pads with an average gold
content of 0.84 (HY1 2015: 0.90) grammes per tonne.
During Q2 2015, the Company processed 141,552 (HY1 2015:
278,269) tonnes of ore with an average gold content of 3.38 (HY1
2015: 3.50) grammes per tonne through the agitation leach
plant.
There was a 79 per cent. gold recovery in agitation leaching for
Q2 2015, compared to 71 per cent. for the previous quarter. The
increase in recovery rate was due to the composition of the ore
feed which was more amenable to leaching and better configuration
of the agitation leach plant. 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.
The construction of a small scale flotation plant is proceeding
to plan and the Company is also proceeding with the necessary
design modifications to enable the plant to treat the tailings from
the agitation leach plant. The majority of the equipment for the
plant is now at site and it is expected that the plant will be
commissioned in Q3 2015.
The Company had net debt at 30 June 2015 of US$48.9 million, a
reduction of US$1.8 million since 31 March 2015. The net debt at 30
June 2015 was as follows:
US$m
Amsterdam Trade Bank - Agitation plant
loan 32.1
International Bank of Azerbaijan - loan
and credit lines 13.4
Atlas Copco - equipment finance loan 0.7
YapiKredit 0.4
Pasha Bank 2.1
Reza Vaziri 2.0
________
Total loans 50.7
Cash on hand and at bank (1.8)
________
Net debt 48.9
________
**ENDS**
For further information please visit www.angloasianmining.com or
contact:
Anglo Asian Mining Tel: +994 12 596
Reza Vaziri plc 3350
-------------------- ------------------- ------------------
Anglo Asian Mining Tel: +994 502 910
Bill Morgan plc 400
-------------------- ------------------- ------------------
Ewan Leggat SP Angel Corporate Tel: +44 (0) 20
Finance LLP 3463 2260
Nominated Adviser
and Broker
-------------------- ------------------- ------------------
Stuart Gledhill SP Angel Corporate Tel + 44 (0) 20
Finance LLP 3463 2260
-------------------- ------------------- ------------------
Felicity Winkles St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
-------------------- ------------------- ------------------
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Ltd 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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