Goldminer Anglo Asian increases estimate of Gilar deposit resources in Azerbaijan

BAKU. March 24 (Interfax) - The British Anglo Asian Mining PLC (AAM, develops gold deposits in Azerbaijan) has increased its mineral resource estimate (MRE) of the Gilar deposit.

According to a new estimate based on the results of drilling an additional 13 wells, gold reserves at the Gilar deposit total 249,083 ounces; copper - 46,466 tonnes; and zinc - 48,786 tonnes. "The latest drill results further validate the decision to start the construction of an underground tunnel at Gilar for exploration and production," AAM said in a statement.

Previously, the company did not disclose the resources available from the deposit.

The company intends to file a JORC report following the completion of the current program of drilling and exploration, the statement says.

"Gilar is a significant gold and copper project. Its lower zone has the potential to supply high-grade ore at a throughput of about 700,000 tonnes per annum for over 3 years to the agitation leach plant. This will enable the evaluation of the remaining resources and expansion of the mineral resource estimate. The Company is very excited that Gilar can extend production at the current Gedabek processing facilities until Xarxar and Garadag are brought into production," Anglo Asian Vice President Stephen Westhead said in a press release.

The Gilar field is located in the Gedabek contract area, approximately 7 km from the company's processing facilities. In all, 131 wells were drilled at the field with a total penetration of 41,661 meters.

Currently, Anglo Asian Mining is mining precious metals in Azerbaijan at the Gedabek and Gosha contract areas. This year, the company plans to start production at the Vejnaly, Gilar and Zafar fields.

The initial PSA with Anglo Asian was signed on August 21, 1997 and included the development of six fields. Azerbaijan's share in the contract was 51%, Anglo Asian Mining PLC - 49%. Under the new contract, signed in September 2021, the company received three new contract blocks at its disposal and waived the rights to develop one. Thus, at present the company owns the rights to develop eight contract areas in Azerbaijan.

In 2022, AAM produced 43,114 ounces of gold in Azerbaijan, down 11.4% from 2021, 182,046 ounces of silver (an increase of 17.8%), and 2,516 tonnes of copper (a decrease of 5%). In 2023, the company plans to produce from 30,000-32,000 ounces of gold, and 4,100-4,300 tonnes of copper.