Anglo Asian lifts Q3 gold output as new mine starts producing

JOHANNESBURG (miningweekly.com) – Gold/copper/silver miner Anglo Asian on Friday reported a 2 300-oz quarter-on-quarter production increase as the benefits of a strategic review are starting to show and its newest mine – Ugur – starts contributing to output.

The new Ugur openpit started production in September and already has had a “very positive” influence, CEO Reza Vaziri commented in a statement.

Gold production at the Gedabek operation, in western Azerbaijan, increased by 19% to 14 468 oz, from 12 140 oz in the second quarter. Third-quarter production comprised 12 221 oz contained in gold dore, 4 oz from sulphidisation, acidification, recycling and thickening (SART) processing and 2 243 oz from flotation.

Silver production totalled 40 288 oz, compared with 12 718 oz in the second quarter, and comprised 4 381 oz contained in gold dore, 9 097 oz from SART processing and 26 810 oz from flotation.

Copper output decreased from 716 t in the second quarter to 550 t in the third quarter, with 165 t having been obtained from SART processing and 385 t from flotation.

Anglo Asian remained confident of meeting its full-year production guidance of 64 000 oz to 72 000 oz, with gold-equivalent production for the first three quarters of the year amounting to 48 276 oz.

In the third quarter, the miner sold 9 287 oz of gold bullion at an average of $1 286/oz and shipped 2 905 dry metric tonnes of copper concentrate with a sales value of $5.5-million. 

“This has been an excellent quarter for Anglo Asian as the benefits of the strategic review earlier in the year are now being realised. Anglo Asian expects a strong fourth quarter and finish to 2017," said Vaziri.

Anglo Asia’s in-house exploration team discovered the Ugur deposit in 2016. The project was moved from discovery to production in less than a year. Ugur has a Joint Ore Reserves Committee-compliant resource of 199 000 oz of gold and 1.05-million ounces of silver.