Last checked at 24 Nov 2015 07:00
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
24 November 2015
Anglo Asian Mining plc
First Shipment of Copper Concentrate Produced from Floatation Plant
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide an update on the progress of its flotation plant and the production and shipment of the first batch of copper flotation concentrate at its Gedabek gold, copper and silver mine ("Gedabek") in western Azerbaijan. Note that all references to "$" are to United States dollars.
Highlights
· First batch of approximately 125 wet tonnes of copper flotation concentrate has been produced
· 62 wet tonnes of the first batch of concentrate was shipped on 22 November with remainder to be shipped imminently
· Flotation concentrate will be sold to Industrial Minerals SA under existing off-take contract for copper concentrate produced by SART processing
· Initial weekly production of 150 wet tonnes of concentrate now planned whilst production is ramped up
· Company's gold production target for the year to 31 December 2015 now narrowed to between 72,000 and 74,000 ounces of gold
Anglo Asian CEO Reza Vaziri commented, "I am delighted to announce that our recently commissioned flotation plant is now in production and the first batch of a copper flotation concentrate has been produced. Approximately half this batch has already been shipped to the off-taker with the remainder to be shipped imminently. This is a highly credible performance by our technical and production team at Gedabek. The sales of concentrate produced by the flotation plant are an important part of our plans to return Anglo Asian to profitability.
"As we approach the end of the year, we are pleased to have narrowed our full year 2015 gold production target to achieve between 72,000 and 74,000 ounces of gold. This represents an increase of approximately 19 to 23 per cent. compared to the full year 2014 production of 60,285 ounces of gold."
Full details
As announced in the operations and production update on 14 October 2015, the Company's flotation plant has been commissioned and it has now entered a production ramp-up stage. Tailings from the agitation leaching plant at Gedabek are being used as feedstock for the production of copper concentrate.
After resolution of some initial technical issues, the flotation plant has now produced its first batch of copper concentrate of approximately 125 wet tonnes. 62 wet tonnes (48 dry tonnes) of this batch was shipped on 22 November 2015. The remainder is expected to be shipped later this week. The 62 wet tonnes of concentrate shipped contained approximately 8.9 tonnes of copper, 27 ounces of gold and 1,275 ounces of silver with a gross market value (before processing costs) of approximately $89,000. The concentrate was shipped to the purchaser, Industrial Minerals SA. The Company expects to receive the proceeds in the week ending 4 December 2015.
The flotation plant is now expected to initially produce around 150 tonnes of concentrate weekly and its production will be steadily increased towards its design feed capacity of 90 tonnes per hour. Flotation concentrate shipments will be made weekly with a further 150 tonnes to be shipped in the week ending 4 December 2015.
**ENDS**
For further information please visit www.angloasianmining.com or contact:
Reza Vaziri | Anglo Asian Mining plc | Tel: +994 12 596 3350 |
Bill Morgan | Anglo Asian Mining plc | Tel: +994 502 910 400 |
Ewan Leggat | SP Angel Corporate Finance LLP Nominated Adviser and Broker | Tel: +44 (0) 20 3463 2260 |
Stuart Gledhill | SP Angel Corporate Finance LLP | Tel + 44 (0) 20 3463 2260 |
Felicity Winkles | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
Lottie Brocklehurst | St Brides Partners Ltd | Tel: +44 (0) 20 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 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 totaled 60,285 ounces with 784 tonnes of copper also produced. The Company has a second mine, Gosha, which is 50 kilometres from Gedabek, and the ore produced at Gosha is processed at Anglo Asian's Gedabek plant. The Company is also developing the Gadir underground mine which is co-located at the Gedabek site. 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 has also commenced production of a copper and precious metal concentrate using a low capital expenditure flotation plant which it has just commissioned. This will initially process tailings from its agitation leach plant.
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.