BAKU

Azerbaijan’s leading gold mining company, Anglo Asian Mining Plc, reported optimistic results of drilling at Zafar polymetallic deposit in Azerbaijan after completion of 35 core drill holes with a total length of 16,319 metres.

The company said in a report that 32 drill holes “returned grades above reportable limits.”

“Drilling at Zafar continues at pace, and the company plans to release the final resource estimation by the end of 2021, followed by the ore reserve estimation and final mine design in 2022,” Anglo Asian Mining said.

“Mining equipment selection, staffing, infrastructure, and process design will start in late 2021, with a view to commencing production in 2023.”

According to Maiden Mineral Resource for the Zafar deposit published 16 August 2021, the deposit is estimated to contain 51,000 tonnes of copper, 82,000 ounces of gold, and 40,000 tonnes of zinc.

Anglo Asian Mining produces gold at Gedabek and other mines in Azerbaijan in a joint venture with the state in which the London-listed company holds a 51-percent stake. Zafar is a new deposit that the company started to explore.

Anglo Asian reported a decline in gold production in the first half of this year but said it remains on track to achieve its production targets for the full year. It said gold production declined to 24,249 ounces in January-June 2021 from 27,696 ounces in the same period last year.

The total production of gold-equivalent ounces (GEO), which includes other metals, declined to 32,171 GEO from 32,501 GEO.

The company added that it produced a solid performance in the second quarter with production increasing to 16,740 GEO compared to 15,431 GEO in the first quarter.

Copper production increased in the first half to 1,333 tonnes from 1,207 tonnes in January-June 2020. Silver production rose to 78,931 ounces from 58,603 ounces.

Anglo Asian said gold bullion sales totalled 13,947 ounces at an average price of $1,808 per ounce in the second quarter of this year compared to 12,743 ounces sold at an average price of $1,713 per ounce in April-June 2020.

“The company remains on track to achieve its production guidance for the full year of 48,000 ounces to 54,000 ounces of gold and 2,500 tonnes to 2,800 tonnes of copper,” Reza Vaziri, the company CEO, said in a statement.

Anglo Asian projects that total metal production in 2021 will be in a range of 64,000-72,000 GEOs. Last year’s total output was 67,249 GEOs. Copper output in 2020 was 2,591.

In April, Anglo Asian Mining extended its contract with the government for five years for the Gedabek mine.

Gold and silver mining in Azerbaijan is carried out by two companies – Anglo Asian Mining and AzerGold CJSC, established in 2015.

According to the State Statistics Committee, total gold production rose to 2.058 kg in January-July 2021, 1.1 percent more than in the same period last year. Production of silver rose by 12.6 percent to 2,786 kg.