Anglo Asian Mining PLC Gedabek Connected to Power Grid & Operation Update (4792Q)
30 November 2016 - 7:00AM
UK Regulatory
TIDMAAZ
RNS Number : 4792Q
Anglo Asian Mining PLC
30 November 2016
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
30 November 2016
Anglo Asian Mining plc
Gedabek gold, copper and silver mine connected to Azerbaijan
power grid and operations update
Anglo Asian Mining plc ("Anglo Asian" or "the Company"), the AIM
listed gold, copper and silver producer in Azerbaijan, announces an
operational update from its Gedabek mine ("Gedabek") in western
Azerbaijan. The Company is pleased to report that its Gedabek mine
site is now connected to the Azerbaijan national power grid. This
will result in the Gedabek mine site using cleaner and cheaper
power which up to now has been provided by diesel generators. The
Company's website has also been revised and expanded to include
details of the electrical installation and other recent
developments (www.angloasianmining.com) and these revisions will be
made live shortly. Note that all references to "$" and "cents" are
to the United States dollar.
Highlights
-- Gedabek site now connected to the Azerbaijan national power grid
-- Expected annual cost savings of approximately $2.3 million
-- Payback of capital cost of electrical installation expected in around one year
-- Reduction in diesel fuel consumed of around 11 million litres per annum
-- Full Year 2016 gold production target slightly reduced to
between 67,000 to 69,000 ounces from 69,000 ounces and 71,000
ounces due to recent lower grade ore from the Gadir underground
mine and the transition to the new power source
Anglo Asian CEO, Reza Vaziri, said, "I am absolutely delighted
to announce that the Gedabek site is now connected to the
Azerbaijan national power grid. This enables us to operate the site
at a considerably reduced cost and in a cleaner and more
sustainable manner. It will also enable us to expand production at
the Gedabek site, unconstrained by the availability of electrical
power. The diesel electrical generators at site will be retired
from service but kept as backup, which will de-risk the operation
to power outages. This is the culmination of over two years of work
by both the Company and various departments within the Government
of Azerbaijan. I would like to thank everybody for their efforts in
this successful project.
"Although we are reducing our full year gold production target
by 2,000 ounces, the Company's recent return to profitability will
be now be further enhanced by the cost savings resulting from
connection to the power grid and release of power constraints on
our processing.
"This has been a busy few months for Anglo Asian and as a result
we have considerably revised and expanded our website to include
recent developments. This includes not only details of the
electrical installation but also the recent developments in
exploration."
Further details on connection of Gedabek to Azerbaijan power
grid
The capital works to connect the Gedabek site to the Azerbaijan
national power grid comprised installation of the following:
- Seven kilometres of 35 kilovolt overhead power cable and five
kilometres of 6.3 kilovolt overhead distribution line.
- Two main and five auxiliary electricity transformers.
- An electrical power house comprising two sets of 6.3 and 35
kilovolt electrical panels and ancillary measuring equipment.
The total cost of the installation was $2.1 million. Electricity
is currently being purchased from the grid at a cost of 3.5 cents
per kilowatt hour. As a result of the connection to the grid, the
Gedabek site will no longer consume around 11 million litres of
diesel fuel per annum to generate electrical power. This will
result in a cost saving of approximately $2.3 million per annum and
therefore the capital cost of the installation will be recovered in
around one year. The reduction in fuel usage will substantially
reduce fuel management at the site and the consequent environmental
risk.
The Company's nine existing diesel generators will not now be
used but will be kept as a standby power supply.
Note that translation of amounts from Azerbaijani New Manats
(AZN) to United States dollars has been carried out at the current
rate of $1 = 1.71 AZN.
**ENDS**
For further information please visit www.angloasianmining.com or
contact:
Anglo Asian Mining Tel: +994 12 596
Reza Vaziri plc 3350
-------------------- ------------------- ------------------
Anglo Asian Mining Tel: +994 502 910
Bill Morgan plc 400
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Anglo Asian Mining Tel: +994 502 916
Stephen Westhead plc 894
-------------------- ------------------- ------------------
Ewan Leggat SP Angel Corporate Tel: +44 (0) 20
Finance LLP 3470 0470
Nominated Adviser
and Broker
-------------------- ------------------- ------------------
Laura Harrison SP Angel Corporate Tel + 44 (0) 20
Finance LLP 3470 0470
-------------------- ------------------- ------------------
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
-------------------- ------------------- ------------------
Susie Geliher St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
-------------------- ------------------- ------------------
Notes:
Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver
producer in Central Asia with a broad portfolio of production and
exploration assets in Azerbaijan. The Company has a 1,962 square
kilometre portfolio, assembled from analysis of historic Soviet
geological data and held under a Production Sharing Agreement
modelled on the Azeri oil industry.
The Company developed Azerbaijan's first operating
gold/copper/silver mine, Gedabek, which commenced gold production
in May 2009. Gedabek is an open cast mine with a series of
interconnected pits. The Company also mines high grade ore from the
Gadir underground mine which is co-located at the Gedabek site. The
Company has a second underground mine, Gosha, which is 50
kilometres from Gedabek. Ore mined at Gosha is processed at Anglo
Asian's Gedabek plant.
Gold production for the year ended 31 December 2015 from Gedabek
totalled 72,032 ounces with 969 tonnes of copper also produced.
Gedabek is a polymetallic deposit and its ore has a high copper
content, and as a result the Company produces copper concentrate
from its Sulphidisation, Acidification, Recycling, and Thickening
(SART) plant. Anglo Asian also produces a copper and precious metal
concentrate from its flotation plant, which commenced production in
the last quarter of 2015.
Anglo Asian is also actively seeking to exploit its first mover
advantage in Azerbaijan to identify additional projects, as well as
looking for other properties in order to fulfil its expansion
ambitions and become a mid-tier gold and copper metal production
company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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