Anglo Asian Mining begins production at Ugur mine in Azerbaijan
Anglo Asian Mining has started production at the Ugur open-pit mine at its Gedabek licence area in western Azerbaijan.
In the first ten days of this month, the average daily production of gold doré stood at 212oz, which is said to represent a rise of 116% over the figure for the previous eight months.
The company noted that the figure would only go higher as the mine moves into full production.
Anglo Asian Mining CEO Reza Vaziri 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.
"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."
The company expects the production for this year to be between 64,000 and 72,000 of gold equivalent ounces, with further expansion in future.
Ugur was discovered last year using geological mapping and surface sampling methods. It is located 3km north-west from the company's processing facilities within its Gedabek licence.
Exploration activities at the mine began in the fourth quarter last year in order to define the resource and reserves potential of the deposit.
The mine contains a total mineral resource of 199,000oz of gold and 1,049,000oz of silver, with a measured plus indicated mineral resource of 172,000oz of gold and 884,000oz of silver.
In addition, it has proven plus probable reserves of 147,000oz of gold and 808,000oz of silver.
Currently, infrastructure works at the site are close to completion.