Anglo Asian Mining (LON:AAZ) is on track to hit its 60,000 ounce production target in 2011.
In its second quarter trading update this morning the group confirmed that it produced 14,582 ounces of gold at the Gedabek mine during the three months ended 30 June 2011. Separately it produced 157 tonnes of copper, 26,254 ounces of silver and 49 ounces of gold via its SART - Sulphidisation, Acidification, Recycling, and Thickening – operations.
"We are on track to achieve our production target for the year of 60,000 oz of gold and 525 tonnes of copper and remain committed to ensuring the success of our flagship Gedabek mine,” chief executive Reza Vaziri said.
“With this in mind, we are actively assessing initiatives which will improve the operational efficiency of Gedabek and in turn, production.
“We appointed mining consultants Arcardis Chile in June 2011 to undertake a feasibility study for a new agitation leaching plant, which we believe would improve total gold recovery rates and increase the life of mine currently standing at 300,000 ounces of gold over a six year period.”
During the three month period it has transferred 210,526 tonnes of dry ore onto the leach pad, with an average gold content of 3.35 grams per tonne.
At Gedabek a feasibility study is underway for new agitation leaching plant to improve total gold recovery and increase life of mine.
“Results from the feasibility study are due in October 2011 and we look forward to updating shareholders on this,” Vaziri added.
“In tandem, we continue to advance our resource development programme which includes a 17,500 metre drilling programme over the Gedabek Contract Area and hope to issue a new JORC compliant reserve report by the first half of 2012."
In terms of its financials, Ango Asian said it sold 13,317 ounces of gold at an average price of US$1,506 an ounce.
Also during the period it repaid a US$4 million loan repaid to the International Bank of Azerbaijan (IBA) ahead of schedule. At the end of the period the group had a total debt of US$18 million.