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Anglo Asian Mining continues expansion of operations in Azerbaijan

Anglo Asian Mining has been pressing ahead with plans to boost production at its mines in Azerbaijan
Anglo Asian Mining continues expansion of operations in Azerbaijan
Underground drilling at Gedabek

In 2018, shares in Anglo Asian Mining Plc (LON:AAZ) almost doubled, and with a recent push up to 40p, that momentum looks set to carry on well into 2018.

There are several reasons for this price strength, but the central one is that Anglo Asian has been expanding operations at its three mines in Azerbaijan.

Three gold and gold-copper mines supported by exploration

Its main mine is the Gedabek gold-copper open pit. Nearby are the high grade underground Gadir gold-copper mine and the Gosha underground gold mine.

But it’s not just the mines themselves. The Gedabek contract area also has significant exploration potential along a mineralised belt within its 300 square kilometre area.

In particular, exploration is now underway in the region of the newly producing Ugur open pit at Gedabek with the objective of defining extensions to the known mineralisation to provide an increase to the resource inventory.

While that and drilling at the Gedabek open pit is ongoing, actual production at Gedabek has been temporarily suspended. But it’s due to start up again in the first quarter of 2018. And at that point Anglo Asian really should hit its stride.

Chief executive bullish on increased Gedabek potential

"We have been extremely busy on the ground in Azerbaijan in regards to exploration,” says chief executive Reza Vaziri.

“We recently reported increased production for quarter three of 2017 with the commencement of mining at Ugur. Having spent time in 2017 optimising the extraction of gold and gold-copper ores from the Gedabek open pit, we now look forward to recommencing mining to contribute to production in the first quarter of 2018 with the enhanced knowledge of the mineralisation that these exploration activities will provide. We are also increasing the capacity of our tailings dam to support the expansion."

Underground link-up between Gadir and Gedabek underway

Construction of a tunnel between Gadir and the Gedabek underground mineralisation is now underway, and some 600 metres of tunnelling has been completed. This tunnelling work intersected Gedabek-style mineralisation at the end of the tunnel drive.

It is further planned to extend this tunnel along the Gedabek mineralisation beneath the backwall of the open pit and to fan drill to assess the mining potential for a Gedabek underground mine.

Broker SP Angel encouraged by recent rescheduling of director loan

A recent loan extension from Vaziri to the company has been welcomed by SP Angel.

“Rescheduling of the loan is a welcome development,” the broker commented.

“The latest operational update showed an acceleration in gold production rates led by the start of production at Ugur, bringing total output in the first nine months of 2017 to 48,300 ounces of gold equivalent and putting the company on course to reach the guided 64,000-72,000 ounces.

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