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LSE:AAZ
Anglo Asian Mining plc, the AIM listed gold producer in Azerbaijan, has provided a production and operations update from its Gedabek gold/copper/silver mine and Gosha gold mining operation in western Azerbaijan for the three months to 31 March 2014.
Overview:
· Gold production at Gedabek for Q1 2014 totalled 11,312oz (8,597oz from the agitation leaching plant and 2,715oz from heap leach operations)
· Q1 2014 gold production represents a 32% increase over the comparable period in 2013 (Q1 2013: 8,585oz Au)
· Q1 2014 gold sales of 10,403oz at an average of US$1,303 per oz
· Silver production in doré for Q1 2014 totalled 3,890oz (2,688oz from agitation leaching and 1,222oz from heap leach)
· A continuous Knelson concentrator was installed at the agitation leaching plant in March 2014 – early results have shown enhanced gold recovery from high-copper sulphide ore along with reduced cyanide consumption
· Gold production target for the year to 31 December 2014 (‘FY 2014’) is between 62,000oz Au and 67,000oz Au
· Copper production from SART processing operations increased by 50% for Q1 2014 from previous quarter – 141t of copper, together with 9,249oz of silver and 6oz of gold (Q4 2013: 71t of copper)
· Target production of copper from SART for FY 2014 is 595t
· Gosha mining operation in Azerbaijan progressing – 1,095 tonnes of ore mined and 250 tonnes of ore sent to Gedabek for processing at an average grade of 12 g/t Au – targeting 58,000 tonnes of mined ore for 2014 at an average grade of 6 g/t, which will contribute circa 10,000oz of gold production
· Net debt, being interest-bearing loans and borrowings less cash and cash equivalents, totals US$50.4 million at 31 March 2014 (US$46.3 million at 31 December 2013)
Anglo Asian CEO Reza Vaziri said, “Our revised FY 2014 gold production target of between 62,000 and 67,000oz of gold represents an increase on FY2013 production of 52,068oz Au, and highlights our commitment to achieving production growth over the coming year. This new target however is reduced from the previous management forecast of 80,000oz Au to 90,000oz Au and has been based upon our revised expected production from the new agitation leaching plant at Gedabek and the heap leach operations where we are working to improve efficiencies.
“In line with this we have taken steps to maximise output and improve efficiencies including initiatives such as the commissioning of the new continuous Knelson concentrator at Gedabek’s agitation leaching plant to enhance gold recovery from high-copper sulphide ore and reduce cyanide consumption. In addition, copper production for Q1 2014 has significantly increased for the period due to improvements in the SART plant and the new dedicated SART management team on site and we hope to see this trend continue throughout the rest of the year.
“Furthermore we are making good progress at our second mining project in Azerbaijan, Gosha, having processed 250 tonnes of ore, of a total of 1,095 tonnes mined to date, at our nearby Gedabek agitation leaching plant in the month of March. With the above developments in place I look forward to updating shareholders on our progress.”
