GADABAY (Commodity Online): Finally, Azerbaijan’s gold will reach the global markets by September.
According to a press note from president of US RV Investment Group, which is tapping the country’s gold deposits, 4,000 to 4,500 ounces of gold to be mined in the country’s western Gadabay district will be initially exported per month.
For the time being, the produced gold will be sent to Switzerland for processing. Afterwards, it will be put on sale in accord with the contracts signed with European companies.
The price for the metal will comply with world market levels. A total of 300,000 ounces of gold will be extracted from the Gadabay field until 2015.
Around $60 million has been invested in exploratory and development work at the field since 2004.
According to estimates, about 15 tonnes of enriched soil is to be processed to extract an ounce of gold. Two gms of gold can be produced per tonne soil.
The Gadabay field, which holds Azerbaijan’s major gold stocks, has been known since the ancient times and repeatedly tapped for copper and other precious metals.
Mining operations were carried out there as early as in 1864-1917. At the time, German Siemens company was engaged in producing copper ore at the field.
Gadabay’s reserves are estimated at 22 tonnes of gold, 192 tonnes of silver and 37,000 tonnes of copper. The field is located around the Misdagh Mountain at about 1,500 meters above sea level.
Geological activities in Gadabay, Gosha and Ordubad contract fields began in accordance with the four-year Working Program confirmed by Azerbaijan and covering 2005-2009.
In 2006-2007 Azerbaijan International Mining Operating Company dug 146 exploration wells (17700m deep) in the gold-copper field in Gadabay Contract Field and assessed the ore resources of the field. Maximum depth of the wells was 270m. About 50 subcontracting organizations were involved in the project. Over $60 million were spent on the exploration, construction, installation and equipment.
Early in 2007, the company presented the exploration document on Gadabay gold-copper deposit development project to Azerbaijani government.
Gadabay field is located 1500 m above the sea around the mountain of Misdagh. There is a shallow valley there suitable for the pile corrosion field. The mine wastes will be thrown to the valleys around Misdagh. Small part of the rocks around is characterized as acid formers. Conceptual and completed project of the corrosion field was prepared by the Australia’s Perth-based Knight Piesold Consulting Engineers. The project allows the mine exploitation without explosives or with use of modern special explosives in certain time. 90 percent of gold production will be carried out with use of cyanides.
