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Azerbaijan to launch gold production in March

07 January 2009 10:07 (UTC +04:00)

The company told APA-Economics that the first target is Gedebey Field in which industrial production of gold will commence from the second quarter.
â€œDespite unfavorable weather conditions, the construction of a chemically separating ore-dressing plant nearby has continued to progress and is on track of completion. The production is due to start in March,â€ said the company.
Gold production will then be started in Gosha Field which was proved in exploration as promising and feasible.
According to the exploration, Gedebey holds net gold reserve of 750,000 ounces. Along with copper and silver, it reaches 1.2 million ounces.
In Gedebey field 15 tons of soil shall be refined for an ounce of gold and it is possible to extract 2 grams of gold from one ton soil.
Anglo Asian Mining Plc (49%) and Azerbaijan (51%) signed a 30-year Production Sharing Agreement (PSA) to develop previously identified copper and gold properties in Azerbaijan that lie on the Tethyan Mineralization Belt which runs between Turkey and Pakistan.
The joint venture has copper and gold development properties in 3 separate mining areas of Azerbaijan.
The six fields reflected in the agreement include one field in Nakhchivan, one in Gandja, one in Gedebey, 3 in the occupied lands (Zod Field in Kelbedjer, Kizilbulag in Aghdara, and Vajnali in Zangilan).
Under the Production Sharing Agreement, 400 tons of gold, 2,500 tons of silver and 1.5 million tons of copper will be extracted from the contract fields.