Anglo Asian mines first ore from Gilar

Anglo Asian Mining (LSE: AAZ) said on Monday it had mined the first ore from Gilar, its new underground operation at the Gedabek site in Azerbaijan.

Mining activities began earlier this month, with an initial 1,267 tonnes of ore extracted — a milestone in the company’s transition toward becoming a mid-tier copper producer.

A maiden JORC mineral resources estimate published in December 2023 confirmed the Gilar deposit contained 6.1 million tonnes of resources with average grades of 0.88% for copper, amounting to nearly 54,000 tonnes of copper. The deposit also holds 1.3 grams of gold per tonne, totalling over 255,000 ounces of gold.

While mine development tunnels are under construction, extracted ore will be stockpiled until processing begins, the company said. It plans to ramp up production in the coming months, targeting a monthly throughput of 50,000 to 60,000 tonnes.

Pivotal year

Gilar hosts two types of mineralization: gold in quartz veins and hydrothermal gold-copper. Anglo Asian said in its 2025 outlook that with production from Gilar, it expects this year to be “pivotal,” with copper output reaching record levels.

Located about seven km from Anglo Asian’s processing facilities, Gilar was developed after promising drilling results in late 2022. The project includes two underground tunnels. A 1,462-metre main exploration tunnel will serve as the primary production route. A parallel ventilation tunnel is also complete, and further development work, including a spiral ramp for multi-level ore access, is underway.

According to the US Geological Survey, Azerbaijan has been actively developing its hydrocarbon and mining industries. The country hosts deposits of alumina, bentonite, copper, gold, iodine, limestone, and silver, alongside a robust steel sector.