Anglo Asian Mines (LON:AAZ) has completed its strategic review which focused on optimizing the production plans at the Gedabek gold-copper-silver mine in Azerbaijan. The Gedabek open pit mine will be shut down in order to allow the mining equipment to start working on the Ugur open pit project which is located just a few kilometers from the Gedabek processing plant.
Meanwhile, Anglo Asian will continue to process the stockpiled ore from Gedabek through its flotation circuits, whilst the Ugur pit should start to deliver ore to the mill by the end of this year. This revised plan results in an updated production guidance of 52,000-58,000 ounces of gold and 4.5-6 million pounds of copper (for a gold-equivalent production rate of 64,000-72,000 ounces). A large part of the gold production will come from the Gedabek mine whilst 8-10,000 ounces will be produced by the flotation plant with an additional 8-10,000 ounces expected from the Ugur open pit.
This will be an interesting transformation for Anglo Asian, and we would expect to see a more detailed update when mining at Ugur will commence. An ‘ore extraction plan’ is expected to be published in the third quarter of this year.