🕐03.02.10 - 10:27 Uhr
Anglo Asian Mining plc - Operations Update
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
3 February 2010
Anglo Asian Mining plc (Anglo Asian or the Company)
Operations Update
Anglo Asian Mining plc, the AIM listed emerging gold producer, is
pleased to provide an operations update at its Gedabek gold/copper mine
(Gedabek) in Azerbaijan, including gold production analysis and the
conclusion of increased monthly gold sales during the three months to
January 2010.
The Company produced 3,483 oz of gold (Au) in the month ended 31
January 2010, bringing total production to 14,848 oz.
As can be seen
from the following table, this represents the latest increase in the
positive trend experienced since July 2009 when the Company commenced
gold production.
Month
Gold Produced (Including Govt.
of Azerbaijans share) (oz)
Weighted Average Gold Sale Price
(US$)
July 2009
802
944
August 2009
751
951
September 2009
2,192
997
October 2009
2,208
1,037
November 2009
2,549
1,129
December 2009
2,863
1,105
January 2010
3,483
1,112
It should be noted that under the Production Sharing Agreement, the
Government of Azerbaijan receive 12.75% of gold produced until Anglo
Asian has recovered its capital, operating and financing costs in full
at which point the Government of Azerbaijan is then entitled to a 51%
share of profit.
In terms of processing, during November and December 2009, 27,000 tonnes
and 62,000 tonnes of dry ore with an average gold content of 4.59 g/t
and 4.04 g/t were crushed and transferred to the leach pad respectively.
For the month of January 2010, the Company transferred a further 59,000
tonnes of dry ore onto the leach pad with an average gold content of 4.7
g/t.
Anglo Asian anticipates that it will see ongoing increases in
production during 2010.
As such, the Board is hopeful that it will
exceed its revised production target for the first 12 months of
operation to 30 June 2010 of 25,000 oz Au while simultaneously
benefiting from the buoyant gold price.
The improved plants performance and production figures can be
attributed to the Companys operational initiatives put in place in
July/ August 2009 to overcome initial start-up technical difficulties at
the plant.
These initiatives included installing two new cone crushers,
which were fitted and completed at the end of September 2009 to improve
operational consistency.
Anglo Asian also installed an additional
tertiary cone crusher and has sourced a reconditioned cone crusher that
will be introduced as a standby for the secondary cone crusher to
increase the plants operational flexibility.
The Company is also
purchasing a new stacker system, which it is planning to be operational
by April 2010.
Additionally, in October 2009 the Company appointed a new Operations
Manager, Timothy van Zellar, to oversee Gedabek on a day-to-day basis
and strengthen its management team within Azerbaijan.
Timothy has over
30 years experience in the mining industry having worked for many large
scale mining operations in Zimbabwe, South Africa, Uzbekistan and
Kazakhstan and specialises in heap leach operations.
Anglo Asian CEO Reza Vaziri said, "We are delighted with the gold
production increases seen over the past few months and hope that, having
overcome the initial teething problems, this growth will continue.
Our
focus is now on achieving full ramp-up of production at Gedabek, to
realise the mines potential and profit from being the first gold
producer in Azerbaijan."
As previously stated in the Companys interim results 25 September 2009,
should operating costs increase significantly, ramp-up be delayed
further or revenues otherwise fall short of expectations, there may be
insufficient cash flow for the Group to sustain its day to day
operations without seeking and relying on further financing.
Accordingly, the Company continues to monitor the situation carefully,
but is pleased with the recent improvements in production and cash flow.
**ENDS**
For further information please visit www.aamining.com
or contact:
Reza Vaziri
Anglo Asian Mining plc
Tel: +994 12 596 3350
Andrew Herbert
Anglo Asian Mining plc
Tel: +994 12 596 3350
John Harrison
Numis Securities Limited, as Nominated Adviser
Tel: +44 (0) 20 7260 1000
James Black
Numis Securities Limited, as Corporate Broker
Tel: +44 (0) 20 7260 1000
Hugo de Salis
St Brides Media & Finance Ltd
Tel: +44 (0) 7967 496 863
Felicity Edwards
St Brides Media & Finance Ltd
Tel: +44 (0) 7977 217 410
Notes:
Anglo Asian Mining plc (AIM:AAZ) is an emerging gold producer in Central
Asia with a broad portfolio of production and exploration assets in
Azerbaijan.
The Company has a 1,962 sq km prospective exploration
portfolio, assembled on the back of analysis of historic Soviet
geological data and held under a Production Sharing Agreement (PSA)
based on the Azeri oil industry.
The Company developed Azerbaijans
first operating gold/copper mine, Gedabek, which commenced gold
production in May 2009.
Anglo Asian is actively looking to exploit its first mover advantage in
Azerbaijan to identify additional projects, as well as looking for other
properties in Central Asia and Caucasia in order to fulfil its expansion
ambitions and become a mid-tier gold and base metal production company
focussed in these regions.
Felicity Edwards
St Brides Media and Finance Ltd
Chaucer House
38 Bow Lane
London
EC4M 9AY
Tel: +44 (0) 207 236 1177
Mob: +44 (0) 7748 843871
Fax: +44 (0) 207 236 1188
Email:
Web: www.sbmf.co.uk
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