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Anglo Asian Mining doubles daily production as Ugur mine starts production

There's more to come, too, as the mine - in Anglo's Gedabek licence area in Western Azerbaijan - ramps up to full speed
Gold bars
Ugur's production will offset the anticipated decrease in gold production from the main Gedabek open pit due to the changing composition of the ore

Shares in Anglo Asian Mining Plc (LON:AAZ) shot up 13% as the company said production has started at the Ugur open pit mine in Azerbaijan.

The mine is already making “a highly significant contribution to Anglo Asian's production”, the directors told investors on Wednesday morning.

The average daily gold production in the form of gold doré for the period from 1 to 10 September 2017 was 212 ounces, which is 116% higher than the average daily production for the previous eight months. This average daily production is expected to increase further as Ugur moves into full production.

The company is processing the Ugur ore only by agitation leaching. The Ugur oxide-rich ores do not contain copper and therefore the tailings of the agitation leaching plant are not treated by flotation.

READ: Anglo Asian Mining on track to begin mining Ugur gold deposit in fourth quarter

As a result, the flotation plant is free to process some 300 to 400 tonnes per day of mainly high sulphide stockpiled ore using its own mills.

This is another configuration of the company's processing facilities and again demonstrates the flexibility of the processing routes available to Anglo Asian, the company said.

“Progressing from discovery to production in a year is a significant achievement and underlines Anglo Asian's confidence that the Ugur deposit will be an important contributor to the company's future production,” said Reza Vaziri, Anglo Asian's chief executive.

"Bringing Ugur into production now, whilst we undertake the previously reported optimisation and expansion initiatives across our wider Gedabek licence area, will offset the anticipated decrease in gold production from our main Gedabek open pit due to the changing composition of the ore. With this in mind, we are pleased to reconfirm our production forecast of 64,000 to 72,000 of gold equivalent ounces in 2017 and building on this in 2018 and beyond," Vaziri said.

READ: Anglo Asian Mining back in profit as copper output doubles

Anglo's nominated advisor, SP Angel, said: "The team has done well in delivering a reserve/resource statement and commissioning mining operations at Ugur in a year since the discovery. Production start at Ugur lends confidence to the management team to reiterate annual production guidance supplying oxide ores to the agitation plant while Gedabek and Gadir operations go through a production review."

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Anglo Asian Mining Plc Timeline

January 17 2017

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