Shares in Anglo Asian Mining (LON:AAZ) headed north as the Azerbaijan-focused miner told of good progress on building its flotation plant at Gedabek, which is aimed at boosting future metal production.
It aims to commission the small scale 20 tonne per hour plant in the third quarter of 2015.
It was originally designed to increase copper production but in-house testing and studies have shown it could also improve gold and silver recoveries.
Thus, the final design is being modified and the total capital expenditure will be around US$1 million higher to bring the total to US$4.7 million.
"It should also help solve the issue of the low recoveries recently being experienced by the agitation leaching plant, which is the main process to recover gold at Gedabek," said Anglo's chief executive Reza Vaziri.
Alongside this, the company updated on corporate matters, saying the recent devaluation of the Azerbaijan manat against the US dollar means an expected cost saving to the firm of around US$6.5mln for the rest of full year 2015.
Net debt decreased by US$2 million to US$50.4 million as at February 27 from US$52.4 million as at December 31 last year.
"The recent 34 per cent devaluation of the Azerbaijan manat against the US dollar due to the effect of the current low oil price on the economy is obviously an unwelcome development for Azerbaijan and its people," said Vaziri.
"However, as a company which sells its products for US dollars and which has a significant portion of its costs in Azerbaijan manats, this will have a beneficial effect for us."
Shares added 8.33% at 4.875p.