Anglo Asian Mining expects drop in gold production in Azerbaijan in 2016

Anglo Asian Mining plc, which operates and develops gold mines in Azerbaijan, estimates that gold production in Azerbaijan for 2016 will total 69,000-71,000 ounces of gold, a company statement said.


"At the end of 2016, according to the new forecast, gold production in Azerbaijan is expected to be 69,000 - 71,000 ounces [before production was planned at 73,000 - 77,000 ounces]. This is due to a late commissioning of the second semi-autogenous grinding (SAG) mill and the Gadir development work required in August which resulted in a shortfall in gold dore production in July and August of 2,779 ounces," the press release said.


In 2015, the company mined 72,032 ounces of gold in Azerbaijan, 28,626 ounces of silver and 969 tonnes of copper. Therefore, gold production could fall by 1.4% to 4.2% this year in comparison to 2015, with production guidance lowered by 5.5%-7.8%.


Azerbaijan mines gold and silver at the Gedabek and Gosha fields in its western regions under a production-sharing agreement signed back in 1997 with Anglo Asian Mining, under which the country has a 51% stake and the investor 49%. The contract is for the development of six fields in Azerbaijan, two of them in Gedabek, which is 450 km from Baku, one in Nakhichevan and three in Kelbajar and Zangelan in Nagorny Karabakh.

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