Anglo Asian Mining Begins Ore Extraction at Gilar Mine in Azerbaijan
Anglo Asian Mining (LON: AAZ) announced on Monday the successful extraction of its first ore from the new Gilar underground operation at the Gedabek site in Azerbaijan.
Mining operations commenced earlier this month, with an initial yield of 1,267 tonnes of ore. This marks a significant step in the company’s strategy to position itself as a mid-tier copper producer.
Resource Estimates and Production Goals
A maiden JORC mineral resource estimate released in December 2023 revealed that the Gilar deposit holds 6.1 million tonnes of resources. Average grades are reported at 0.88% copper, corresponding to nearly 54,000 tonnes of the metal. Additionally, the deposit contains an estimated 1.3 grams of gold per tonne, equating to more than 255,000 ounces of gold.
Currently, while the construction of mine development tunnels is ongoing, the extracted ore will be stockpiled until processing starts. The company aims to enhance production over the coming months, targeting a monthly throughput of 50,000 to 60,000 tonnes.
Mineralization and Future Outlook
The Gilar project features two types of mineralization: gold in quartz veins and hydrothermal gold-copper. In its 2025 outlook, Anglo Asian anticipates that with the production from Gilar, this year will be “pivotal,” expecting to achieve record copper output levels.
Situated approximately seven kilometers (4.4 miles) from Anglo Asian’s processing facilities, Gilar was developed following promising drilling results noted in late 2022. The project incorporates two underground tunnels: a primary exploration tunnel measuring 1,462 metres, designated as the main production route, with a parallel ventilation tunnel also completed. Ongoing development work includes a spiral ramp to facilitate multi-level ore access.
Context of Azerbaijan’s Mining Industry
According to the US Geological Survey, Azerbaijan continues to advance its hydrocarbon and mining sectors. The country is known for various deposits, including alumina, bentonite, copper, gold, iodine, limestone, and silver. It also has a strong steel industry that supports its mineral exploration efforts.
