🕐17.09.09 - 09:47 Uhr
Anglo Asian Mining: Operations update
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
17 September 2009
Anglo Asian Mining plc (Anglo Asian or the Company)
Operations Update
Anglo Asian Mining plc, the AIM listed emerging gold producer, provides
an operations update at its Gedabek gold/copper mine (Gedabek) in
Azerbaijan, including production analysis and the conclusion of further
gold sales during August 2009.
The Company produced 1,409 ounces (oz) and sold 1,229 oz of gold
(Au) at Gedabek during August 2009.
Gold sales were completed at an
average of US$977, ahead of the Companys forecast projections.
Additionally, 700 oz Au has been produced from 1-8 September 2009 and
has now been shipped to the refinery where 546 oz Au has been sold.
The
Company is now projected to produce 2,200 oz of Au for the month ending
30 September 2009 which is broadly inline with managements
expectations.
However, due to start-up problems at the processing
facility, including the operational consistency of the secondary and
tertiary crushers and issues with the leach pad, October 2009 production
forecasts of 3,300 oz of Au may be affected.
During August 2009, 34,000 tonnes of dry ore with an average gold
content of 4 g/t was crushed and transferred to the leach pad, which was
below the forecast of 50,000 tonnes at 3g/t.
The Company expect to
gradually ramp this up to 60,000 tonnes by November 2009 and will seek
to make further increases during 2010.
To deliver lower operational costs, improve the plants performance and
attain production targets of 4,000 oz of Au per month and circa 50,000
oz of Au for the first 12 months of operations, the Company has put a
number of initiatives in place.
These include the purchase of two cone
crushers complete with spare parts, which the Company believes will have
significantly superior performance levels than the existing crushers.
The two new crushers are expected to be operational by the end of
September 2009.
Additionally, the stacker is being retrofitted with
upgraded key mechanical parts.
The retrofitting is due to be completed
by mid-October 2009, which will further raise the plants operational
performance.
Anglo Asian is also planning longer-term plant modifications and
improvements and is currently in discussions with various major
crusher/stacker suppliers in the USA and Europe with a view to expanding
production and improving efficiencies.
Any future equipment
modifications will be installed in parallel to the existing ore handling
system.
During the initial development of the mine, it has become evident that
in a number of areas the ore has higher grades than forecast by the
original ore body model and there are also extensions beyond the
predicted final pit boundaries.
In fact, the ore which is currently
being mined and processed, which to date amounts to 150,000 tonnes at a
grade of 3 g/t, was not included in the original reserve estimations.
In order to help clarify the situation, management enlisted the help of
SGS Mineral Services (SGS) and, at the end of August 2009, a
consultant from SGS visited the mine to review Gedebeks geology and
existing drill logs.
Subsequently, a re-modelling and a
geometallurgical study have been commissioned to create a more accurate
ore body model of the Gedabek deposit.
The study is due to commence in
the first week of October 2009 and it is anticipated that this will
result in improved ore reserve estimations and overall gold recoveries
in the long term.
As previously stated in the Companys final results statement announced
on 23 June 2009 and in a corporate update on 4 August 2009, should
operating costs increase significantly, ramp-up be delayed further, or
revenues otherwise fall short of expectations, there may be insufficient
cash flows for the Company to sustain its day to day operations without
seeking and relying on further financing.
Accordingly, the Company
continues to monitor the situation carefully and is working on various
contingency plans, including seeking major shareholder support if cash
flow is at insufficient levels.
In terms of financing, as previously announced on 4 August 2009, the
Company signed a US$1 million unsecured loan agreement with its CEO, Mr.
Reza Vaziri, to provide additional working capital.
To date Anglo Asian
has drawn down $450,000 of the $US1 million loan agreement.
Additionally, Mr.
Vaziri is owed a further US$434,000 outstanding from
the previous unsecured interest free loan agreement with the Company
announced on 19 March 2009.
Anglo Asian CEO Reza Vaziri said, "Naturally we were delighted to have
moved into production with the opening of the Gedabek gold/copper mine
earlier this year; however, the initial start-up of the mine has not
been without its difficulties.
With this in mind, the next few months
will require the managements channelled focus, time and dedication to
manage our working capital position and achieve full ramp-up of
production at Gedabek, to realise the mines potential and profit from
the opportunity of being the first gold producer in Azerbaijan."
* * 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) 20 7236 1177
Felicity Edwards
St Brides Media & Finance Ltd
Tel: +44 (0) 20 7236 1177
Notes to Editor:
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 and is targeted to produce in excess of 300,000
oz gold in the first six years of production.
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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