GEDABEK

The Company holds mining and exploration rights for a minimum period of 15 years from 26 February 2007 in the Gedabek Contract Area, located 55km from Azerbaijan’s second largest city, Ganja.  The Contract Area comprises nine mining properties covering 300 sq km. These properties are the Gedabek development property, which is the principal property in this group, together with Gyzildzhadag, Bittibulag, Maarif, Ertep, Geyer, Shekerbey, Gumlu and Aitalin.

Construction of the Gedabek gold and copper mine was completed in May 2009 with production commencing with first gold pour on 26 May 2009.  The open pit, heap leach operation is expected to be relatively low cost particularly with the inclusion of copper and silver credits.  The internal target is to produce in excess of 300,000 oz gold over the initial six year mine life, but the Company anticipates that further exploration in the proximity of the mine will lead to an increased life of mine.  Production for the first full year is expected to be circa 50,000 oz Au and the current SRK published JORC compliant resource is 702,000 oz of gold, 37,500 t of copper and 6,100,000 oz of silver.  The combined estimate results in a gold equivalent resource of 1,081,000 oz.  

Initially the mine is open pit in design.  However, if exploration activities demonstrate the resource increases at depth, in the longer term the Company may move to an underground mining operation, utilising some of the existing historical infrastructure and adits.

SRK JORC compliant resource statement at Gedabek completed in 2006 based on the results of 129 diamond and RC drill holes completed by Anglo Asian Mining:

Mining activity at Gedabek is reported to have started as long as 2,000 years ago. More recent activity began around 1849 when the Mekhor Brothers, followed by the German Siemens Bros Company, developed and operated a copper mine at Gedabek. At least five 100,000-tonne and numerous smaller sulphide lenses were mined during the period between 1849 and 1917.  Mining activity ceased in 1917 with the onset of the Russian Revolution.

President of Azerbaijan, IIham Aliyev's visit to Gedabek, May 2009 to open the Gedabek Gold/Copper Mine - click here to view.

President of Azerbaijan, IIham Aliyev's visit to Gedabek, November 2006 - click here to view..