Azerbaijan to produce gold from 4Q07

Company President Reza Vaziri told that the action plan will also be introduced to the government by late March.

He said equipment for the gold plant will be delivered to Azerbaijan within three months, APA reports.

"The site of the plant has been reviewed. Gold production will start in Azerbaiajn in the fourth quarter of this year," he noted.

Anglo Asian Mining Plc (49%) and Azerbaijan (51%) signed a 30 year Production Sharing Agreement ("PSA") to develop previously identified copper and gold properties in Azerbaijan that lie on the Tethyan Mineralization Belt which runs between Turkey and Pakistan.

Anglo Asian has three principal contract areas in Azerbaijan, with a total accessible area of 1,062 km2: Ordubad, Gedabek and Gosha.

The Ordubad area, some 462 km2, contains six projects: Shakardara, Piyazbashi, Misdag, Agyurt, Shalala and Diakhchay which are likely to be developed by cluster mining as they are all within a 5 km radius. Additionally, the Ordubad area contains other significant properties with Soviet era defined resources at Yashiling, Goyhundur, Keleki and Kotam.

The Gedabek contract area, some 300 km2, is approximately 75 km from Azerbaijan’s second biggest city, Ganja. This area contains the Gedabek development property and a further eight properties, again with Soviet era defined resources.

The 300 km2 Gosha contract area is approximately 40 km further to the north-west of Gedebek and contains the Gosha property as well as the Itkirlanski and Mundjgdu prospects.