Business
Gedabek Project Update
Gedabek Project Update.
About this update from Anglo Asian Mining Plc
[{"type":"text","content":"\n Anglo Asian Mining PLC\n18 June 2007\n\n\n \n\n18 June 2007\n\n\n ANGLO ASIAN MINING PLC\n\n ('Anglo Asian' or 'the Company')\n\n\n Gedabek Development Plan\n\n Feasibility Study Completed\n\n\nAnglo Asian Mining PLC (AIM:AAZ) the gold and copper development company with\nprojects in Azerbaijan, announces continued good progress on its Gedabek project\nin West Azerbaijan.\n\n\nFeasibility Study\n\n\nThe Company has completed a Feasibility Study on Gedabek, which shows the\ndevelopment of the property to be both economically viable and robust. The study\nidentifies a mining reserve of 7.7 million tonnes of ore at grades of 1.80 grams\nper tonne ('g/t') gold, 15.91 g/t silver and 0.29% copper. Gold, silver and\ncopper production over the mine life has been conservatively estimated to be\n311,154 oz of gold, 1,959,109 oz of silver and 17,424,960 lbs of copper\nrespectively. Under the JORC code this reserve is in the 'probable' mineral\nreserve category. Additional ore is expected to be found from the inferred ore\nwithin the current pit boundaries, extensions of the mineralisation already\nidentified outside the pit and from old mine stockpiles produced from previous\nunderground mining.\n\n\nCapital costs are estimated at US$30.7 million, including US$3.1 million of\nworking capital. The gross cash operating costs are estimated as US$283 per oz\nof gold (US$147 per oz net of copper and silver credits). Together with the low\ncosts of operation and after metal credits, at current metal prices, the project\nis expected to payback the capital investment within one year of production\ncommencing. Analysis of the Gedabek project shows that the Company will receive\n63% of the pre-tax cashflows under the terms of the Production Sharing\nAgreement.\n\n\nAs described in earlier announcements, the application of heap leach technology\nfrom a low strip open pit mine, combined with the SART\n(Sulphidation-Acidification-Recycle-Thickening) copper precipitation process\nremains the preferred recovery method for the project.\n\n\nCIL Plant and funding\n\n\nThe Company is currently marketing the CIL plant which is packed and ready for\ntransport in Singapore. Negotiations with several interested prospective buyers\nare in process. It is expected that proceeds from the sale of the CIL plant will\nfund a substantial amount of the construction w...